Finalize Cost Recovery

Cost recovery is initiated when an application and application filing fee is submitted to the BLM. After initial review of a right-of-way application, the BLM and the applicant enter into a written agreement that includes a financial plan addressing timing of processing and monitoring fee payments.

• The BLM will present the applicant with the final estimate of the reasonable costs they must reimburse to BLM, including the cost for monitoring the project.
• The BLM estimates the costs using the factors listed at 43 CFR 2804.20 and 2804.21.
• The BLM will periodically estimate processing costs for a specific work period and notify the applicant of the amount due.
• The amount due must be paid by the applicant before BLM will continue working on the application.

If additional funds are needed beyond the application filing fee, an amendment would be made to the cost recovery agreement. To expedite processing of an application, the applicant may notify the BLM in writing that he/she is waiving paying reasonable costs and is electing to pay the full actual costs incurred by the BLM in processing the application and monitoring the grant.

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 a financial measure of resources the Federal government expends or uses in processing a right-of-way application. Actual costs includes both direct and indirect costs, exclusive of management overhead costs (43 CFR 2801.5(b)).