12728 Federal Register / Vol. 60, No. 45 / Wednesday, March 8, 1995 / Proposed Rules

of circumstances where such an amount

in contract awards would result, on a

consistent basis, in insignificant

depreciation and/or cost of money

charges.

Comment: Some commenters believed

that the term ‘‘generated costs

chargeable’’ was too ambiguous.

Response: The word ‘‘chargeable’’ has

been replaced by ‘‘charged either as

direct cost or as indirect cost’’.

Comment: Several commenters were

concerned about the perceived potential

recordkeeping burden including

massive studies and protracted audits.

Response: When CAS has been

applied continuously, the proposed

amendments do not create any need for

new or additional data regarding

tangible capital assets. The only

requirement is that records regarding

the net book values that were

maintained prior to the business

combination should be retained and

kept up to date after the business

combination.

It is only when the contractor believes

that the historical costs used for CAS

purposes do not represent the fair value

to be used for financial reporting

purposes that the creation of additional

records (or at least additional entries on

existing records) becomes necessary.

Comment: One commenter stated that

an adequate definition of ‘‘business

combination’’ is required.

Response: ‘‘Business combination’’

and ‘‘purchase method’’ are financial

accounting terms that are already used

in the current version of CAS 9904.404.

CAS uses these terms in a derivative

sense, i.e., it prescribes certain courses

of action when events so described have

been recognized for financial reporting

purposes. The CASB is not an originator

of these terms.

Comment: One commenter suggested

that issues dealt with in the proposed

amendment also apply to intangible

assets and that these should also be

addressed in this proposal.

Response: The proposed amendments

are necessarily a part of CAS 9904.404

and 9904.409. Since the application of

these two Standards is limited to

tangible capital assets, the proposed

amendment is not a suitable vehicle for

extending the coverage to intangible

assets. A separate project on intangible

assets would be necessary for such a

purpose.

Comment: One commenter in

particular offered extensive editorial

comments on the proposed

amendments.

Response: Most of these editorial

comments were accepted.

List of Subjects in 48 CFR Part 9904

Cost accounting standards,

Government procurement.

Richard C. Loeb,

Executive Secretary, Cost Accounting

Standards Board.

For the reasons set forth in this

preamble, chapter 99 of title 48 of the

Code of Federal Regulations is proposed

to be amended as set forth below:

1. The authority citation for part 9904

continues to read as follows:

Authority: Public Law 100–679, 102 Stat.

4056, 41 U.S.C. 422.

PART 9904—COST ACCOUNTING

STANDARDS

9904.404 Capitalization of tangible assets.

2. Section 9904.404–50 is proposed to

be amended by revising paragraph (d) to

read as follows:

9904.404–50 Techniques for application.

* * * * *

(d) For Federal Government contract

costing purposes, acquisition costs of

tangible capital assets acquired in a

business combination and accounted for

under the ‘‘purchase method’’ of

accounting shall be assigned to these

assets as follows:

(1) Tangible capital assets that

generated costs charged either as direct

costs or as indirect costs to Federal

Government contracts prior to a

business combination shall retain the

same net book value(s) subsequent to a

business combination as if the business

combination had not taken place.

(2) Where acquired tangible capital

asset(s) did not generate costs that were

charged to Federal contracts subject to

CAS at the time of the business

combination, the asset(s) shall be

assigned a portion of the cost of the

acquired company not to exceed their

fair value(s) at the date of acquisition.

When the fair value of identifiable

acquired assets less liabilities assumed

exceeds the purchase price of the

acquired company in an acquisition

under the ‘‘purchase method,’’ the value

otherwise assignable to tangible capital

assets shall be reduced by a

proportionate part of the excess.

* * * * *

3. Section 9904.404–63 is proposed to

be amended by designating the existing

paragraph as (a) and by adding a new

paragraph (b) to read as follows:

9904.404–63 Effective date.

(a) * * *

(b) The effective date of 9904.404–

50(d) is [30 days after date of

publication of the final rule in the

Federal Register].

4. Section 9904.409–50 is proposed to

be amended by adding a new paragraph

(j)(5) to read as follows:

9904.409–50 Techniques for application.

* * * * *

(j) * * *

(5) The provisions of this subsection

9904.409–50(j) do not apply to business

combinations. The carrying values of

tangible capital assets subsequent to a

business combination shall be

established in accordance with the

provisions of 9904.404–50(d).

* * * * *

6. Section 9904.409–63 is proposed to

be amended by designating the existing

paragraph as (a) and by adding a new

paragraph (b) to read as follows:

9904.409–63 Effective date.

(a) * * *

(b) The effective date of 9904.409–

50(j)(5), is [30 days after date of

publication of the final rule in the

Federal Register].

[FR Doc. 95–5566 Filed 3–7–95; 8:45 am]

BILLING CODE 3110–01–M

DEPARTMENT OF THE INTERIOR

Fish and Wildlife Service

50 CFR Part 17

RIN 1018–AD02

Endangered and Threatened Wildlife

and Plants; Proposed Revisions for

Proposed Designation of Critical

Habitat for the Mexican Spotted Owl

AGENCY: Fish and Wildlife Service,

Interior.

ACTION: Supplemental proposed rule,

proposed revisions to proposed

designation of critical habitat.

SUMMARY: The U.S. Fish and Wildlife

Service (Service) announces proposed

exclusions from its previously

published proposal to designate critical

habitat for the Mexican spotted owl. The

draft economic analysis upon which the

exclusions are partly based has also

been made available.

DATES: The original comment period on

the proposed rule to designate critical

habitat extended from December 7,

1994, to March 7, 1995. The comment

period on the proposal and the

proposed exclusions extends through

May 8, 1995.

ADDRESSES: Requests for copies of the

Service’s Economic Analysis and

comments concerning that document

and the proposal to designate critical

habitat for the Mexican spotted owl or
Federal Register / Vol. 60, No. 45 / Wednesday, March 8, 1995 / Proposed Rules 12729

proposed exclusions should be sent to

the State Supervisor, U.S. Fish and

Wildlife Service, 2105 Osuna NE,

Albuquerque, New Mexico 87113.

Comments and materials received will

be available for public inspection, by

appointment, during normal business

hours at the above address.

FOR FURTHER INFORMATION CONTACT:

Jennifer Fowler-Propst, New Mexico

State Supervisor, at the above address,

telephone (505) 761–4525.

SUPPLEMENTARY INFORMATION:

Background

The Service listed the Mexican

spotted owl as a threatened species on

March 16, 1993 (58 FR 14248). At the

time of the listing, the Service found

that, although considerable knowledge

of Mexican spotted owl habitat needs

had been gathered in recent years,

habitat maps in sufficient detail to

accurately delineate these areas were

not available. Subsequent to listing the

owl, the Service began gathering the

data necessary to develop the proposed

rule to designate critical habitat. On

February 14, 1994, several

environmental groups and an individual

filed a lawsuit in Federal District Court

in Arizona against the Department of the

Interior for failure to designate critical

habitat for the Mexican spotted owl (Dr.

Robin Silver, et al. v. Bruce Babbitt, et

al., CIV–94–0337–PHX–CAM). On

October 6, 1994, the Court ordered the

Service to ‘‘publish a proposed

designation of critical habitat, including

economic exclusion pursuant to 16

U.S.C. Sec. 1533(b)(2), no later than

December 1, 1994.’’ The proposal was

published on December 7, 1994 (59 FR

63162); since the Service had not yet

completed an economic analysis on the

potential effects of the designation,

economic exclusions were not proposed

at that time. A total of 4,770,223 acres

was proposed for inclusion in critical

habitat for the Mexican spotted owl.

The extent and trend of habitat loss

and degradation was the basis for

determining that protection under the

Endangered Species Act (Act) was

necessary. The vegetative communities

and structural attributes used by the

Mexican spotted owl vary across its

range. In forested habitat types, the

vegetative communities consist

primarily of warm-temperate and coldtemperate forests, and, to a lesser extent,

woodlands and riparian deciduous

forests. Canyons, deep drainages, and

other topographical features that

influence vegetative associations are

also essential components of owl

habitat. Characteristics associated with

forested Mexican spotted owl habitat

usually develop with increasing forest

age, but their occurrence may vary by

location, past forest management

practices, forest type, and productivity.

The attributes of nesting and roosting

habitat typically include a moderate to

high canopy closure; a multi-layered

canopy with large overstory trees, often

with various deformities; large snags;

and accumulations of fallen trees and

other woody debris on the ground.

Currently, land managing agencies

characterize Mexican spotted owl

habitat under the term ‘‘suitable.’’

Suitable habitat is often only applied to

habitat able to sustain the combined

nesting, roosting, and foraging needs of

the species’ life history. Additional

habitat utilized only for foraging

frequently comprises the majority of the

surrounding habitat base. The term

‘‘capable’’ is applied to habitat that was

suitable some time in the past, but

whose condition has changed through

natural or human-caused structural

modifications, and that retains the

potential to return to suitable conditions

at some time in the future.

The Service’s determination of the

extent and trend of habitat loss and

degradation was based on the

assessment of the impacts of timber

management in forested owl habitat.

Under presently approved forest

management plans, timber on the

majority of lands on which the owl

occurs is managed primarily under a

shelterwood harvest regime. The

shelterwood harvest method results in

even-aged stands, rather than the

uneven-aged, multi-layered stands used

by Mexican spotted owls. In addition,

the shelterwood silvicultural system

calls for even-aged conditions in

perpetuity. Thus, stands already

changed from suitable to capable would

not be allowed to return to a suitable

condition, and acreage slated for future

harvest would be similarly rendered

perpetually unsuitable for Mexican

spotted owls. National Forest plans

currently in place in the Southwest

Region allow for up to 95 percent of

commercial forest (59 percent of

suitable owl habitat) to be managed

under a shelterwood system. The

Service also considered the various

Federal and State laws and agency

management policies, and concluded

that existing regulatory mechanisms

were inadequate to protect the Mexican

spotted owl.

Proposed Revisions to Proposed Critical

Habitat

In analyzing potential areas of critical

habitat for the owl, the Service

evaluated the known and primary

threats to the species: even-aged timber

harvest practices, steep-slope timber

harvests, and inadequate regulatory

mechanisms. Areas of known or

suspected threats were compared to

areas containing habitats that support or

could support the nesting, roosting, and

foraging requirements of the owl. This

process resulted in the identification of

the approximately 4.8 million acres that

were included in the proposed rule to

designate critical habitat.

After the Service identified areas to be

proposed for designation as critical

habitat, information was submitted to

the Service by the Jicarilla Apache Tribe

concerning the occurrence of the

Mexican spotted owl on its Reservation

and the Tribe’s plan for protecting the

species and managing timber resources.

After reviewing this information, the

Regional Director of the Southwest

Region of the Service (Regional Director)

is of the opinion that the Jicarilla

Apache Reservation lands do not

require special Federal management

considerations or protection. Therefore,

for reasons discussed in more detail

below, the Service is proposing to delete

the reservation lands described below

from the area proposed for critical

habitat designation in the Federal

Register on December 7, 1994.

Approximately 101,923 acres of

Jicarilla Apache Tribal lands, in five

discrete units (NM–JAIR–1, NM–JAIR–2,

NM–JAIR–3, NM–JAIR–4, and NM–

JAIR–5), were included in the proposed

designation of critical habitat for the

Mexican spotted owl. These critical

habitat units (CHUs) run north-south

along a series of canyon-incised mesas,

and lie between the proposed CHUs in

the Santa Fe National Forest to the

south and the Colorado-New Mexico

state line. A parallel north-south series

of proposed CHUs in the Jicarilla Ranger

District of the Carson National Forest lie

5 to 18 kilometers to the west. The

majority of the high-potential breeding

habitat (steep slopes, mixed conifer)

receives little or no timber management,

and the surrounding foraging habitat is

managed primarily under uneven-age

silviculture. Furthermore, there are only

two known records for the Mexican

spotted owl on the Jicarilla Reservation.

Both records were documented in the

1980’s approximately 3 miles west of

the Town of Dulce. Additional records

exist for areas adjacent to the

Reservation. Extensive surveys between

1990 and 1994 were unsuccessful in

locating any owls, nests, or roost sites

on the Jicarilla Reservation.

Informal discussions between staffs of

the Service’s New Mexico Ecological

Services State Office and Jicarilla Game

and Fish Department on owl related

issues were initiated during the data
12730 Federal Register / Vol. 60, No. 45 / Wednesday, March 8, 1995 / Proposed Rules

collection period for critical habitat

development in early summer 1993.

Continued discussions led to a mutual

recognition of the significant differences

between resource management and

habitat conditions on federally

administered lands and Jicarilla Apache

Reservation lands. These differences

afforded an opportunity to address the

threats identified in the listing proposal

through the development of a tribal

management plan for the owl. Working

independently, the Jicarilla Game and

Fish Department developed a draft

‘‘Conservation Plan for the Mexican

Spotted Owl on the Jicarilla Apache

Reservation, New Mexico’’ and

requested review of the document by

the New Mexico Ecological Services

State Office at a meeting on November

21, 1994. Reviews were conducted and

recommendations provided by the

Service at that meeting and during

subsequent telephone conversations

with representatives of the Tribe. On

December 16, 1994, the Jicarilla Apache

Tribal Council approved the plan and

formally submitted it to the Service.

The plan addresses the identified

threats to owl habitat by maintaining

sufficient suitable habitat across the

landscape and the site-specific retention

of complex forest structure following

timber harvest. Nest/roost habitats,

primarily in mixed conifer and steep

slope areas, are not managed for timber

extraction and are to remain in suitable

nest-roost condition. Foraging habitat

consisting of ponderosa pine is to be

managed almost entirely by unevenaged methods. Timber harvest may

lower the quality of a fraction of the

foraging habitat base, but adequate

residual structure remains so that the

habitat may rapidly reattain suitable

condition. At any point in time the

majority of foraging habitat remains in

suitable foraging condition across the

landscape. Site-specific management of

territories address both habitat

conditions and behavioral disturbance

within owl territories. Territorial

management includes the establishment

of 300-acre protected activity centers

(PAC) around nest-roost sites. No

timber, or oil and gas development is to

occur within these areas, and no

behaviorally disturbing activities are

permitted within 1⁄4 mile of any nest or

roost site during the breeding season.

Habitat in the areas surrounding the

PACs are to be managed as described

above.

The plan fully incorporates the

Service’s criteria for management of

critical habitat. These criteria were

adopted, in part, from the recommended

guidelines outlined in the Draft

Recovery Plan prepared by the Mexican

Spotted Owl Recovery Team. In

addition, the Jicarilla plan has increased

protection in ponderosa pine foraging

habitat above those levels identified in

the Draft Recovery Plan.

Based on information provided during

the initial public comment period by the

Jicarilla Apache Indian Tribe, the

Service has determined that identified

threats to the species over the majority

of its range have been removed on the

Jicarilla Apache Indian Reservation

through the establishment and

enforcement of the Tribe’s Mexican

Spotted Owl Conservation Plan.

Therefore, the Service proposes to

delete the 101,923 acres in Critical

Habitat Units NM–JAIR–1, NM–JAIR–2,

NM–JAIR–3, NM–JAIR–4, and NM–

JAIR–5, on the Jicarilla Apache Indian

Reservation from the proposed rule to

designate critical habitat based on the

new information provided by the Tribe.

Section 4(b)(2) of the Act (16 U.S.C.

1533 (b)(2)) requires the Service to

consider economic and other impacts of

designating a particular area as critical

habitat. In a final designation of critical

habitat, the Service is required to

balance the benefits of excluding a

significantly impacted area against the

benefits of including that area within

the boundaries of critical habitat. In

fulfillment of that requirement, the

Service has prepared a draft economic

analysis of the effects that may be

caused by the designation of critical

habitat. The Service will provide a copy

of the Economic Analysis to interested

parties upon request. Based on the data

provided for the draft economic

analysis, and the assessment of

identified economic impacts, the lands

of the Navajo Nation, and the Southern

Ute, Mescalero Apache, and San Carlos

Apache tribes are being proposed for

exclusion under section 4(b)(2),

contingent upon Service receipt and

review of specific economic information

for each of those tribes, and biological

data concerning the presence,

distribution, and habitat use of Mexican

spotted owls on those tribal lands.

Information provided for the draft

economic analysis indicates that

significant economic impacts may occur

on lands of these tribes due to the

designation of critical habitat. However,

the information was not conclusive. In

one instance, data were grouped

together for three of the tribes: Jicarilla

Apache, Mescalero Apache, and

Southern Ute. Such aggregation does not

allow specific impacts to be delineated

for individual tribes. In another

instance, information provided on

economic impacts on the Navajo

Reservation was contradictory and may

require further review and analysis.

While information is available regarding

economic effects, biological information

is lacking concerning the abundance,

distribution and management of

Mexican spotted owls on the Navajo,

Southern Ute, Mescalero Apache, and

San Carlos Apache reservation lands.

Therefore, the Service is inviting

submission of information and comment

on these and any other relevant issues.

A more detailed discussion of economic

impacts is provided in the Economic

Analysis. The Service will consider the

critical habitat designation in light of all

additional relevant information

obtained during the comment period

before making a final decision with

respect to the proposed rule.

A series of public hearings have been

scheduled in connection with the

announcement of availability of the

draft economic analysis; notice of the

times and locations of the hearings

appears elsewhere in today’s issue of

the Federal Register. Comments

regarding the proposed exclusions

described above will also be accepted at

these hearings or in writing through the

end of the comment period on May 8,

1995.

Author

The primary author of this notice is

Jennifer Fowler-Propst, New Mexico

State Supervisor, at the above address.

Authority

Authority for this action is the

Endangered Species Act of 1973 (16

U.S.C. 1531 et seq.)

Dated: March 6, 1995.

George T. Frampton Jr.,

Assistant Secretary for Fish and Wildlife and

Parks.

[FR Doc. 95–5809 Filed 3–7–95; 8:45 am]

BILLING CODE 4310–55–P

50 CFR Part 17

RIN 1018–AD02

Endangered and Threatened Wildlife

and Plants; Notice of Document

Availability, Notice of Public Hearings,

and Reopening of Public Comment

Period

AGENCY: Fish and Wildlife Service,

Interior.

ACTION: Notice of document availability,

reopening of public comment period,

notice of public hearings.

SUMMARY: The U.S. Fish and Wildlife

Service (Service) announces availability

of a draft economic analysis of its

proposal to designate critical habitat for

the Mexican spotted owl. A comment

period is opened and public hearings