[Code of Federal Regulations]

[Title 43, Volume 2]

[Revised as of October 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 43CFR2201.1-3]



[Page 64]

 

                    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.