Cost Recovery

Leaseholders must pay the reasonable costs for the BLM or other Federal agencies to review and approve the plan of development (POD) and to monitor the lease. To expedite review of the POD and monitoring of the lease, leaseholders may notify BLM in writing that they are waiving paying reasonable costs and are electing to pay the full actual costs incurred by the BLM.

Reasonable costs include but are not limited to costs of special studies; environmental impact statements; monitoring construction, operation, maintenance, and termination of any authorized facility; or other special activities. In determining whether costs are reasonable under this section, the Secretary may take into consideration actual costs, the monetary value of the rights or privileges sought by the applicant, the efficiency to the government processing involved, that portion of the cost incurred for the benefit of the general public interest rather than for the exclusive benefit of the applicant, the public service provided, and other factors relevant to deter-mining the reasonableness of the costs (Federal Land Policy and Management Act, sec. 304(b)).

Actual costs are financial measure of resources the Federal government expends or uses in processing a right-of-way application or in monitoring the construction, operation, and termination of a facility authorized by a lease. Actual costs includes both direct and indirect costs, exclusive of management overhead costs (43 CFR 2801.5(b)).