[Code of Federal Regulations]
[Title 43, Volume 2]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 43CFR2201.1-3]

[Page 68]
 
                    TITLE 43--PUBLIC LANDS: INTERIOR
 
    CHAPTER II--BUREAU OF LAND MANAGEMENT, DEPARTMENT OF THE INTERIOR
 
PART 2200--EXCHANGES: GENERAL PROCEDURES--Table of Contents
 
             Subpart 2201--Exchanges--Specific Requirements
 
Sec. 2201.1-3  Assumption of costs.

    (a) Generally, parties to an exchange will bear their own costs of 
the exchange. However, if the authorized officer finds it is in the 
public interest, subject to the conditions and limitations specified in 
paragraphs (b) and (c) of this section, an agreement to initiate an 
exchange may provide that:
    (1) One or more of the parties may assume, without compensation, all 
or part of the costs or other responsibilities or requirements that the 
authorized officer determines would ordinarily be borne by the other 
parties; or
    (2) The parties may agree to make adjustments to the relative values 
involved in an exchange transaction in order to compensate parties for 
assuming costs or other responsibilities or requirements that the 
authorized officer determines would ordinarily be borne by the other 
parties. These costs or services may include but are not limited to: 
Land surveys, appraisals, mineral examinations, timber cruises, title 
searches, title curative actions, cultural resource surveys and 
mitigation, hazardous substance surveys and controls, removal of 
encumbrances, arbitration including all fees, bargaining, cure of 
deficiencies preventing highest and best use of the land, conduct of 
public hearings, assemblage of non-Federal parcels from multiple 
ownerships, expenses of complying with laws, regulations, and policies 
applicable to exchange transactions, and expenses that are necessary to 
bring the Federal and non-Federal lands involved in the exchange to 
their highest and best use for appraisal and exchange purposes.
    (b) The authorized officer may agree to assume without compensation 
costs ordinarily borne under local custom or practice by the non-Federal 
party or to compensate the non-Federal party for costs ordinarily borne 
under local custom or practice by the United States but incurred by the 
non-Federal party, but only when it is clearly in the public interest 
and the authorized officer determines and documents that each of the 
following circumstances exist:
    (1) The amount of the cost assumed or compensation is reasonable and 
accurately reflects the value of the goods and services received;
    (2) The proposed exchange is a high priority of the agency;
    (3) The land exchange must be expedited to protect important Federal 
resource values, such as congressionally designated areas or endangered 
species habitat;
    (4) Cash equalization funds are available for compensating the non-
Federal party; and
    (5) There are no other practicable means available to the authorized 
officer of meeting Federal exchange processing costs, responsibilities, 
or requirements.
    (c) The total amount of adjustment agreed to as compensation for 
costs incurred pursuant to this section shall not exceed the limitations 
set forth in Sec. 2201.6 of this part.