FOREST SERVICE HANDBOOK PACIFIC NORTHWEST REGION (REGION 6) PORTLAND, OREGON

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2209.13,10

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FOREST SERVICE HANDBOOK

PACIFIC NORTHWEST REGION (REGION 6)

PORTLAND, OREGON

FSH 2209.13 – GRAZING PERMIT ADMINISTRATION HANDBOOK

CHAPTER 10

– PERMITS WITH TERM STATUS

R6 Supplement No.: 2209.13-2005-1

Effective Date: December 15, 2005

Duration: This supplement is effective until superseded or removed.

Approved: MIKE ASH

Deputy Regional Forester

Date Approved: 12/9/2005

Posting Instructions: Supplements are numbered consecutively by Handbook number and calendar year. Post by document; remove the entire document and replace it with this supplement. Retain this transmittal as the first page(s) of this document. This is the first

Regional Supplement to this handbook.

New Document

Superseded Document(s) by Issuance Number and

Chapter 10

R6 FSH ID 2209.13-2005-1, to Chapter 10

Date 6/20/2005

58 Pages

58 Pages

Effective Date

Digest:

Issues a new Regional Handbook Supplement, replacing the previously issued Regional interim directive (ID), with no substantive changes. Chapter/Part headings and organization have been edited to match the parent text headings and organization for this chapter.

R6/PNW SUPPLEMENT FSH-2209.13-2005-1

EFFECTIVE DATE: December 15, 2005

DURATION: This supplement is effective until superseded or removed.

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FSH 2209.13 - GRAZING PERMIT ADMINISTRATION HANDBOOK

CHAPTER 10 - PERMITS WITH TERM STATUS

TABLE OF CONTENTS

11 - GRAZING PERMITS WITH TERM STATUS (EXCEPT GRAZING AGREEMENTS)

............................................................................................................................. 6

11.1 - Kinds of Grazing Permits With Term Status .................................................................... 6

11.11 - Term Grazing Permit .................................................................................................. 6

11.13 - Term Private Land Grazing Permit ............................................................................ 6

11.14 - Term Grazing Permit with On-and-Off Provisions .................................................... 6

12 - ELIGIBILITY AND QUALIFICATION REQUIREMENTS FOR PERMITS WITH

TERM STATUS .................................................................................................... 7

12.1 - Eligibility Requirements ................................................................................................... 7

12.11 - Married Persons .......................................................................................................... 7

12.12 - Minor Who Is Head of Family ................................................................................... 7

12.13 - Minor Who Has Acquired Base Property or Permitted Livestock ............................. 7

12.14 - Forest Officers ............................................................................................................ 8

12.15 – Trusts .......................................................................................................................... 8

12.16 – Estates ........................................................................................................................ 8

12.17 - Corporations and Partnerships .................................................................................... 8

12.2 - Qualification Requirements .............................................................................................. 8

12.21 - Base Property .............................................................................................................. 9

12.22 - Livestock Requirements ........................................................................................... 10

12.23 - Permit Holders Having Agent or Manager Relationships ........................................ 10

12.3 - Limitations on Livestock Numbers ................................................................................ 11

13 - ACQUIRING GRAZING PERMITS WITH TERM STATUS .................................... 11

13.1 - Prior Use ......................................................................................................................... 12

13.11 - On Added Lands ....................................................................................................... 12

13.13 - Conversion of Kind or Class of Livestock ............................................................... 12

13.2 - Grant ............................................................................................................................... 12

13.21 - Qualifications ............................................................................................................ 13

13.21a - Conditions ............................................................................................................... 13

13.21b - Grant Priority .......................................................................................................... 13

13.22 - Related Considerations ............................................................................................. 14

13.23 - History of Grant Permits ........................................................................................... 14

13.3 - Changes in Ownership .................................................................................................... 14

13.4 - Exchange of Permits with Other Agencies ..................................................................... 15

14 - APPLICATION FOR GRAZING PERMITS WITH TERM STATUS ....................... 15

14.1 - Notice to Applicants ....................................................................................................... 15

14.11 - Preferred Applicant Status ........................................................................................ 15

14.2 - Applications for Grazing Permits ................................................................................... 16

14.21 - Number, Kind, and Class of Livestock and Period of Use ....................................... 16

14.24 - Livestock to be Purchased ........................................................................................ 16

14.25 - On-and-Off Provision ............................................................................................... 17

14.3 - Supporting Documents ................................................................................................... 17

R6/PNW SUPPLEMENT FSH-2209.13-2005-1

EFFECTIVE DATE: December 15, 2005

DURATION: This supplement is effective until superseded or removed.

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FSH 2209.13 - GRAZING PERMIT ADMINISTRATION HANDBOOK

CHAPTER 10 - PERMITS WITH TERM STATUS

14.32 - Trusts and Estates ..................................................................................................... 17

14.33 - Certificates of Brand ................................................................................................. 17

14.34 - Records ..................................................................................................................... 17

14.35 - Certified or Sworn Statements .................................................................................. 17

14.37 – Corporations and Partnerships ................................................................................. 18

14.38 – Document Examination ........................................................................................... 18

14.39– Information Revision and Updating .......................................................................... 18

14.4 - Action on Applications ................................................................................................... 18

14.41 - Approval ................................................................................................................... 18

14.42 - Disapproval ............................................................................................................... 18

15 - ISSUANCE OF GRAZING PERMITS WITH TERM STATUS ................................ 18

15.1 - Issuance of Term Grazing Permits ................................................................................. 19

15.1a - Validation .................................................................................................................. 19

15.11 - Range Allotment Description ................................................................................... 20

15.12 - Number, Kind, and Class of Livestock, Period of Use, and Grazing Allotment ...... 20

15.12a - Changes in Number Because of Age Class............................................................. 20

15.12b - Variable Numbers and Seasons .............................................................................. 21

15.13 - Grazing Permit Terms and Conditions ..................................................................... 21

15.13a - General Terms and Conditions ............................................................................... 21

15.13b - Special Terms and Conditions ................................................................................ 21

15.2 - Issuance of Term Grazing Association Permits ............................................................. 22

15.21 - General Guidelines ................................................................................................... 22

15.22 - Qualification Requirements ...................................................................................... 23

15.3 - Issuance of Term Private Land Grazing Permits ............................................................ 23

15.33 - Grazing Capacity of Private Lands ........................................................................... 23

15.4 - Issuance of Term Grazing Permits with On-and-Off Provisions ................................... 24

15.41 - General Guidelines ................................................................................................... 24

15.42 - Qualification Requirements ...................................................................................... 24

15.43 - Only Natural Units Included ..................................................................................... 24

16 - CHANGES IN GRAZING PERMITS ...................................................................... 26

16.1 - Modification of Grazing Permits .................................................................................... 26

16.1a - Methods of Modification .......................................................................................... 26

16.12 - Modifications That Result in Increased Numbers or Period of Use ......................... 27

16.13 - Modifications That Result in Reduced Numbers or Period of Use .......................... 27

16.14 - Permittee Requested Modifications .......................................................................... 28

16.2 - Suspension or Cancellation of Grazing Permits ............................................................. 28

16.2a - Permit Violations ...................................................................................................... 29

16.2b – Notice of Non-Compliance ...................................................................................... 29

16.2c - Exception to Written Notice of Non-Compliance and Remedy for Willful Conduct29

16.2d - Exception to Written Notice of Non-Compliance and Remedy Regarding Matters of

Public Health, Interest, or Safety .............................................................................. 30

16.2e - Suspension and Cancellation Guidelines .................................................................. 31

16.24 - To Devote Lands to Other Public Purpose ............................................................... 37

R6/PNW SUPPLEMENT FSH-2209.13-2005-1

EFFECTIVE DATE: December 15, 2005

DURATION: This supplement is effective until superseded or removed.

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FSH 2209.13 - GRAZING PERMIT ADMINISTRATION HANDBOOK

CHAPTER 10 - PERMITS WITH TERM STATUS

16.29 - Cancellation of Grazing Agreements or Association Permits for Noncompliance

With Title VI of Civil Rights Act ............................................................................. 38

16.3 - Changes Which May Affect Lands Administered by Other Federal and State Agencies

...................................................................................................................................... 38

16.4 - Status of Grazing Permits During Administrative Reviews ........................................... 38

16.5 – Mediation ....................................................................................................................... 38

17 - NONUSE OF GRAZING PERMITS WITH TERM STATUS ................................... 39

17.1 - Personal Convenience of Permittee ................................................................................ 39

17.2 - For Resource Protection or Development ...................................................................... 40

17.3 - For Range Research ........................................................................................................ 40

17.4 - For Changes in Kind or Class of Livestock Grazed ....................................................... 40

18 - WAIVER AND ISSUANCE OF GRAZING PERMITS WITH TERM STATUS

BECAUSE OF CHANGES IN OWNERSHIP...................................................... 41

18a - Forest Service Disclosures Associated with Sale of Permitted Livestock, Base Property, or Both .......................................................................................................................... 41

18.1 - Transactions with Permit Waiver ................................................................................... 41

18.11 - Sales with Waiver ..................................................................................................... 42

18.12 - Sales Within family .................................................................................................. 42

18.13 - Contracts to Purchase with Waiver .......................................................................... 42

18.14 - Inheritance ................................................................................................................ 42

18.15 - Partnership Agreements ............................................................................................ 42

18.16 - Division of Interests .................................................................................................. 43

18.17 - Changes in Ownership of Corporation and Companies ........................................... 43

18.2 - Escrow Waivers .............................................................................................................. 43

18.2 – Exhibit 01, MOU with Farm Credit Banks .................................................................... 45

18.3 - Foreclosure in Connection With Grazing Permits .......................................................... 49

18.31 - Foreclosure With Waiver Of Term Grazing Permit ................................................. 49

18.32 - Foreclosure With Escrow Waiver ............................................................................. 49

18.33 - Foreclosure Without Escrow Waiver........................................................................ 49

18.34 - Repossession by Previous Owner ............................................................................. 49

18.35 - Redemption ............................................................................................................... 49

18.4 - Transactions Without Escrow Waiver ............................................................................ 50

18.5- Bankruptcy ...................................................................................................................... 50

18.51 - Types of Bankruptcy Filings .................................................................................... 51

18.52 - Status of Permit ........................................................................................................ 51

18.53 - Actions by the Authorized Officer ........................................................................... 52

18.6 - Documentation Required for Permit Issuance Following Sale and Purchase of Permitted

Livestock and/or Base Property .................................................................................... 53

18.7 - Nonuse ............................................................................................................................ 54

19 – GENERAL ADMINISTRATION OF GRAZING PERMITS .................................... 54

19.1 - Determination for Priority for Allotment Administration .............................................. 54

19.2 - Documentation of Allotment Administration ................................................................. 55

R6/PNW SUPPLEMENT FSH-2209.13-2005-1

EFFECTIVE DATE: December 15, 2005

DURATION: This supplement is effective until superseded or removed.

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FSH 2209.13 - GRAZING PERMIT ADMINISTRATION HANDBOOK

CHAPTER 10 - PERMITS WITH TERM STATUS

19.3 - Definitions and Monitoring Methodology for Land and Resource Management Plan

(LRMP) Standards ........................................................................................................ 56

19.4 - Documentation of Compliance with Grazing Permit Terms and Conditions and LRMP

Standards ....................................................................................................................... 56

R6/PNW SUPPLEMENT FSH-2209.13-2005-1

EFFECTIVE DATE: December 15, 2005

DURATION: This supplement is effective until superseded or removed.

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FSH 2209.13 - GRAZING PERMIT ADMINISTRATION HANDBOOK

CHAPTER 10 - PERMITS WITH TERM STATUS

11 - GRAZING PERMITS WITH TERM STATUS (EXCEPT GRAZING AGREEMENTS)

Grazing permits with term status are limited to authorizing use and management of the grazing resource for commercial livestock production purposes. See FSM 2230.2 and 2230.3 for objectives and policy for issuing grazing permits with term status. .

11.1 - Kinds of Grazing Permits With Term Status

There are four kinds of permits, which provide term status (sec. 11.11 - 11.13). Term status is also provided through Grazing Agreements, which are covered in chapter 20.

11.11 - Term Grazing Permit

The permit is normally issued for a 10-year term and provides priority for renewal to the holder provided the holder has fully complied with the terms and conditions of the expiring permit (36

CFR 222.3(c)(1)(ii)). See section 15 for term grazing permit issuance procedures.

The authorized officer shall issue permits for the full 10-year period, unless one of the following situations exist:

1. The land is pending disposal;

2. The land will be devoted to non-grazing uses prior to the end of 10 years; or

3. It will be in the best interest of sound land management to specify a shorter term. A permit may be issued for less than 10 years under this provision if a project level decision determines that a shorter period is necessary to provide for resource protection or improvement.

11.13 - Term Private Land Grazing Permit

A term private land-grazing permit may be issued to a qualified applicant who owns or controls land in an allotment under Forest Service control. To receive this permit, the applicant must waive exclusive grazing use of the private land involved to the United States for the full period the permit is to be issued. In return, the applicant is authorized to graze livestock in the allotment containing the waived private land. See section 15.2 for term private land grazing permit issuance procedures.

11.14 - Term Grazing Permit with On-and-Off Provisions

A term grazing permit with provisions for grazing on-and-off National Forest System lands and other lands under Forest Service control may be issued to a qualified applicant when a logical grazing area contains both lands under Forest Service administration and lands controlled by the applicant. See section 15.3 for term grazing permit with on-and-off provisions issuance procedures.

R6/PNW SUPPLEMENT FSH-2209.13-2005-1

EFFECTIVE DATE: December 15, 2005

DURATION: This supplement is effective until superseded or removed.

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FSH 2209.13 - GRAZING PERMIT ADMINISTRATION HANDBOOK

CHAPTER 10 - PERMITS WITH TERM STATUS

11.14- Grazing Agreements (See Chapter 20).

12 - ELIGIBILITY AND QUALIFICATION REQUIREMENTS FOR PERMITS WITH

TERM STATUS

Issue grazing permits only to private individuals, partnerships, corporations, trusts, estates or tribal governments. Federal, State and local governments, or units thereof, are not eligible to receive or hold grazing permits.

Subject to limitations contained within this handbook, the following are eligible to hold term grazing permits.

1. A citizen of the United States.

States.

2. A citizen of a foreign country who has filed a petition for naturalization in the United

3. A corporation, partnership or other business entity, including grazing associations or districts organized under State law that is authorized to conduct business in the State where the grazing activity is to be permitted regardless of the location of the entity's headquarters.

4. Tribal governments.

12.1 - Eligibility Requirements

12.11 - Married Persons

Consider husband and wife as an entity for permit purposes. Comply with State law concerning community property. In the case of divorce, the term grazing permit will be allocated based on the terms of the divorce settlement approved by the court of jurisdiction.

In some cases husbands and wives or other family members may be shown as "Joint Tenants with Right of Survivorship (JTROS)". This is a legal entity.

12.12 - Minor Who Is Head of Family

A minor who is the head of a family and provides its principal support has the same status as an applicant of legal age and is eligible to hold a term grazing permit.

12.13 - Minor Who Has Acquired Base Property or Permitted Livestock

A minor who is dependent upon parents or a guardian and who acquires base property or permitted livestock from any source may be issued a grazing permit with term status. Require

R6/PNW SUPPLEMENT FSH-2209.13-2005-1

EFFECTIVE DATE: December 15, 2005

DURATION: This supplement is effective until superseded or removed.

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FSH 2209.13 - GRAZING PERMIT ADMINISTRATION HANDBOOK

CHAPTER 10 - PERMITS WITH TERM STATUS co-signature of the permit by a parent, guardian, or trustee who assumes responsibility for compliance with terms and conditions of the permit.

12.14 - Forest Officers

No employee of the Forest Service may hold any type of a term grazing permit unless they have received written approval from the Regional Forester.

12.15

– Trusts

The regulations and qualification requirements that apply to individuals also apply to trusts. The trust must hold legal title to permitted livestock and base property.

Trusts are created in various ways and their purposes, management, and methods of termination vary. Consequently, secure assistance of the Regional Office Range Management Specialists to resolve questions regarding legality of a particular trust and its eligibility for holding a permit.

12.16 – Estates

The regulations and qualification requirements that apply to individuals also apply to estates. To be eligible to hold a grazing permit with term status, the estate must hold legal title to permitted livestock and base property. The Court appointed executor will sign for the estate.

In those States where ownership of base property and livestock automatically pass to the surviving spouse under State law, the surviving spouse will continue to enjoy the privileges of a grazing permit, including execution of waivers.

12.17 - Corporations and Partnerships

Regulations and qualification requirements applying to individuals also apply to corporations and partnerships.

To qualify, corporations and partnerships must hold title to both permitted livestock and base property. Normally, one corporation owns both the base property and the permitted livestock.

However, in cases involving estate planning, the ranching operation might be organized into two corporations and/or partnerships. Require the corporation or partnership to have the same persons make up each legal entity.

Resolve questions regarding the legality of a particular corporation's or partnership's eligibility to hold a permit by consulting with the Regional Office Range Management Specialist.

12.2 - Qualification Requirements

R6/PNW SUPPLEMENT FSH-2209.13-2005-1

EFFECTIVE DATE: December 15, 2005

DURATION: This supplement is effective until superseded or removed.

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FSH 2209.13 - GRAZING PERMIT ADMINISTRATION HANDBOOK

CHAPTER 10 - PERMITS WITH TERM STATUS

To qualify for a grazing permit with term status, an applicant must own base property and livestock to be permitted (with exceptions noted in subsequent sections). Ownership of base property, livestock, and registered brands shall all be in the name of the same legal entity.

State authorized leasing of brands is not recognized as ownership.

12.21 - Base Property

Base property is land owned and used by the permittee for a farm or ranch operation and cannot be leased to another entity. Base property shall include basic livestock management facilities.

Determine base property requirements for grazing associations in the grazing agreement.

Base property requirements apply to term grazing permits and the on portion of on-and-off permits. Base property is not required for term private land permits.

Forest Supervisors shall establish base property requirements for National Forests within limits established by the Regional Forester. Forest Supervisors may consult with local livestock organizations in determining requirements.

Limits established by Regional Foresters are as follow:

Region 1: The Regional Forester requires no additional limits to what is described above.

Region 2: The Regional Forester requires no additional limits to what is described above.

Region 4: Base property will be a maximum of 40 acres containing livestock handling facilities (such as water developments and corrals). above.

Region 5: The Regional Forester requires no limits in addition to what is described

Region 6: At this time the Regional Forester requires no limits, in addition to what is described. However, the goal of each permit is to have a maximum of 40 acres containing livestock handling facilities (such as water developments and corrals). Any adjustments to base property should be handled at the time of permit reauthorization.

The authorized officer shall approve changes in base property proposed by the permittee if the new base property meets the established base property requirements.

Do not accept new applications for permits based on undivided ownership . Each permit must stand on its own and be subject to waiver and issuance without the complications resulting from undivided base property.

R6/PNW SUPPLEMENT FSH-2209.13-2005-1

EFFECTIVE DATE: December 15, 2005

DURATION: This supplement is effective until superseded or removed.

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FSH 2209.13 - GRAZING PERMIT ADMINISTRATION HANDBOOK

CHAPTER 10 - PERMITS WITH TERM STATUS

12.22 - Livestock Requirements

The permit holder must own the mature livestock (animals which are 6 months of age or older) grazed on National Forest System lands under a term grazing permit and the "on" mature livestock of on-and-off permits. Livestock ownership is not required for livestock grazed under term private land grazing permits or for the "off" mature livestock of on-and-off permits.

Livestock shall be branded. The brand must be recorded with the State Brands Department and the permittee must hold a valid certificate of brand. Some States do not require registration of sheep brands. Branding is done with paint on the sheep's wool. Contact the State and the local

Woolgrowers Association to determine branding requirements and brand ownership.

Require a valid certificate of brand if mature livestock placed on Forest Service administered lands do not bear the brand shown on the permit application.. If the permittee does not provide the certificate, instruct them to remove the animals from Forest Service administered lands and notify them that action may be taken against their term grazing privileges. (sec. 16.2)

Require brands registered to the permittee on mature animals only. Offspring may be branded with other brands to facilitate marketing. The permittee must advise the authorized officer that offspring will bear other brands.

Permit holders may allow up to 50 percent of the livestock grazed to be owned by their children or other family members if they are establishing a livestock herd of their own with the intent of acquiring the ranch operation, or are involved in a farm youth program such as FFA or 4-H.

The permit holder must advise the authorized officer annually that livestock will be grazed under this provision. The authorized officer shall approve the use of the children’s brands prior to the grazing season. The term grazing permit holder may waive the entire permit to a child or other family member recognizing their livestock as a portion of the permitted livestock in the waiver if the animals were grazed during the last grazing season under the parents permit. This is to encourage continuation of family operations. The permittee may not waive the permit to a nonfamily member using this provision.

The requirements of ownership are not intended to interfere with routine marketing of livestock.

Annual sale and purchase of a portion of the base herd, offspring, or yearlings are acceptable as long as there is a bona fide transaction as evidenced by the actual transfer of funds between parties for the animals. The Forest Service does not consider a resale agreement or issuance of notes or checks and subsequent return of the note or check upon return of the livestock to be a bona fide transaction.

12.23 - Permit Holders Having Agent or Manager Relationships

The permittee may make legal arrangements with a second party to operate the ranch and manage the permitted livestock under an agent or manager relationship. The permit holder shall not lease base ranch property or livestock and allow the lessee to use and manage the grazing

R6/PNW SUPPLEMENT FSH-2209.13-2005-1

EFFECTIVE DATE: December 15, 2005

DURATION: This supplement is effective until superseded or removed.

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FSH 2209.13 - GRAZING PERMIT ADMINISTRATION HANDBOOK

CHAPTER 10 - PERMITS WITH TERM STATUS permit. Under a managerial arrangement, the permit holder retains full responsibility for compliance with the provisions and requirements specified in the grazing permit, the regulations of the Secretary of Agriculture on which the permit is based, and the instructions of Forest

Officers issued there under.

An agent or manager relationship must comply with the following specific requirements:

1. The permit holder shall retain ownership of both base property and livestock.

2. The agent or manager may graze on National Forest System lands only those livestock owned by the permittee and authorized to graze by permit. All mature livestock under permit must be branded or marked with the brand of the permit holder.

3. Ownership of base property and permitted livestock must be supported by deeds or contracts to purchase, assessment records, and tax payments on both real property and livestock.

4. The authorized officer must approve in advance an agreement made between a permittee and manager or agent involving a Forest Service grazing permit. Copies of the agreement must be filed with the authorized officer. The agreement must state the scope of authority conferred on the manager or agent, and must state the method of payment for management services.

5. The extent to which the agent or manager can sign or act for the permit holder in matters pertaining to the grazing permit depends on the scope of the authority delegated by the permittee as shown in the agreement. Ensure that all correspondence regarding the grazing permit is provided to the permittee as well as the agent.

12.3 - Limitations on Livestock Numbers

There are no upper or special limits governing the total number of livestock, which an entity is entitled to hold under a Term Grazing Permit. Lower limits are established for the Region from authority delegated in FSM 2204.3.

Lower limits will be 25 head of cattle or 175 head of sheep. The lower limit applies to all numbers under Permit, not just those authorized and billed for on a Term Grazing Permit (Form

FS 2200-10). Allow term grazing permit holders who are currently below these numbers to continue to hold a term grazing permit, but only allowthese permit holders to waive their term grazing permit to another term grazing permit holder who will as a result of this acquisition be at or above the lower limit requirements. Forest Supervisors may set lower limits for their Forests which are equal to or higher than those established by the Regional Forester.

13 - ACQUIRING GRAZING PERMITS WITH TERM STATUS

R6/PNW SUPPLEMENT FSH-2209.13-2005-1

EFFECTIVE DATE: December 15, 2005

DURATION: This supplement is effective until superseded or removed.

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FSH 2209.13 - GRAZING PERMIT ADMINISTRATION HANDBOOK

CHAPTER 10 - PERMITS WITH TERM STATUS

Grazing permits with term status may be acquired in several ways as listed below.

13.1 - Prior Use

13.11 - On Added Lands

When the National Forest System acquires lands through purchase, donation, or exchange, term grazing permits may be issued for the grazing capacity of the added lands in accordance with stipulations contained in the acquisition document. In the absence of such stipulation, the grazing capacity shall be available for grant (sec. 13.2).

On lands added through other action such as proclamation, legislation, administrative order, transfer, and interchange term grazing permits may be issued to those individuals who submit proof of having used the added lands during at least the two consecutive years immediately preceding the year in which the addition is effective, or to individuals who are otherwise provided for in the land transfer or interchange agreement, or in accordance with section 13.2.

13.13 - Conversion of Kind or Class of Livestock

Term grazing permits may be modified to permit a different kind of livestock at the authorized officer's discretion. The effects resulting from a conversion of livestock kind must have been disclosed in an existing NEPA analysis, or the authorized officer must complete an analysis.

Update the allotment management plan to reflect the change in livestock (See sec. 17.4 for

Changes in Kind and Class of Livestock and non-use).

Range improvements for management system adjustments required by changes in kind of livestock requested by a permittee will be funded and built entirely by the permittee.

Authorized officers may develop local conversion factors to express differences in kind or class of livestock and their forage consumption. Conversion factors that are locally derived should reflect information developed from historic data or specific livestock breed forage consumption intake rates.

Where community allotments are involved, consult with all affected permittees before approving conversion.

13.2 - Grant

The authorized officer may increase existing or issue new grazing permits with term status provided the range resource can support increased use. All eligibility and qualification requirements apply.

R6/PNW SUPPLEMENT FSH-2209.13-2005-1

EFFECTIVE DATE: December 15, 2005

DURATION: This supplement is effective until superseded or removed.

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FSH 2209.13 - GRAZING PERMIT ADMINISTRATION HANDBOOK

CHAPTER 10 - PERMITS WITH TERM STATUS

13.21 - Qualifications

13.21a - Conditions

Grazing capacity is only available for grant after all the following conditions have been met:

1. The proportionate needs of other resources and values have been met in accordance with land and resource management plan (LRMP) direction. a. Reasonable efforts have been made to use this and other vacant allotments to solve resource problems on other allotments. b. Issuance of a term grazing permit on a vacant allotment does not interfere with the ability to complete rangeland priorities on allotments that are stocked.

2. An allotment management plan which meets land and resource management plan direction and is NEPA sufficient exists for the allotment, including: a. Determination of forage availability based on monitoring and/or inventories, and b. Resolution of any conflicts between allocation of surplus forage and habitat requirements for wildlife species.

3. Range improvements necessary for proper livestock control are in place (sec. 13.12).

13.21b - Grant Priority

When a decision to grant additional grazing capacity is made, the authorized officer shall make the grant based upon the following factors in descending order of priority:

1. To permittees on the allotment under consideration for their proportionate share of any increase in grazing capacity resulting from development programs to which they have contributed or to restore reductions made for resource improvement purposes within the previous

10 years (sec. 16.12).

2. To relieve overstocking by permitted livestock on other allotments on the specific or adjacent National Forest System unit.

3. To present permittees on the allotment.

4. To permittees on other allotments.

5. To owners of livestock now on ranges administered by the Bureau of Land

Management (BLM) to the extent that the BLM ranges need adjustments provided for in the

Memorandum of Understanding dated November 5, 1966 (FSM 1531.12b).

R6/PNW SUPPLEMENT FSH-2209.13-2005-1

EFFECTIVE DATE: December 15, 2005

DURATION: This supplement is effective until superseded or removed.

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CHAPTER 10 - PERMITS WITH TERM STATUS

6. To new applicants.

Grant increased numbers of livestock or increased seasons of use to existing permittees through modification of their term grazing permits.

13.22 - Related Considerations

Consider the following in addition to the priorities listed in section 13.22 when granting available forage:

1. Applicants' record of compliance with the terms and conditions of existing federal grazing permits. Give first consideration for the allocation of additional available forage to permittees who have complied with the terms and conditions of their permits, and have consistently demonstrated good livestock management and accountability practices.

2. Eligible applicants owning and operating a ranch as the sole source of their livelihood shall have priority over applicants engaged in some other business and operating the ranch as a sideline.

13.23 - History of Grant Permits

The authorized officer shall file a brief statement with the new term grazing permit giving its history and justification.

13.3 - Changes in Ownership

See section 18 for requirements and procedures for issuing permits because of changes in ownership. A term grazing permit may be issued to an applicant under the following circumstances:

1. The current permit holder has executed a waiver (Form FS-2200-12) to the United

States in favor of the applicant, who has purchased: a. The permitted livestock, including any replacement animals retained, that are currently grazing on the allotment or which grazed on the allotment the previous grazing season, and/or b. The designated base property.

2. The applicant is a lender who holds a foreclosed mortgage and the authorized officer has confirmed an escrow waiver identifying the applicant as the lender and the redemption period under state law has expired.

3. The applicant has inherited permitted livestock or base property.

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4. A term grazing permit holder wishes to change the livestock operation from individual ownership to a partnership or a corporation.

5. The individual applicant was a member of a now dissolved partnership or a corporation that held a grazing permit with term status.

13.4 - Exchange of Permits with Other Agencies

An exchange may be desirable when two or more permittees graze livestock under term grazing permit or license on lands administered by the Forest Service, as well as lands administered by another public land managing agency. Exchanges of this kind should consolidate all use by one permittee on land administered by one agency. The exchange should result in issuance of new grazing permits by each agency. The exchange must result in improved management and administration of the resource and holders of Forest Service grazing permits must meet Forest

Service qualifications.

Grazing privileges may be exchanged between the Forest Service and Federal, State or local government agencies. Such exchanges must be of mutual advantage to the Forest Service and the other agencies. Document the exchange in a letter to all involved parties.

14 - APPLICATION FOR GRAZING PERMITS WITH TERM STATUS

The authorized officer shall require a written application (Form FS-2200-16) for the issuance of grazing permits with term status. Require any other documentation deemed necessary to assure qualification of the applicant. Authorized officers may require an interim application at any time, when there is reason to question a permit holder's qualification.

Permittees' successors must file an application and be qualified applicants in order to receive a grazing permit.

14.1 - Notice to Applicants

The authorized officer shall notify the holder of a term grazing permit of the time and place to file an application for issuance of a new term grazing permit.

14.11 - Preferred Applicant Status

The authorized officer shall not issue a term grazing permit to a permit applicant until all qualification requirements are satisfied (see sec. 12.2). Following the permit holder’s submission of a Waiver of Term Grazing Permit (Form FS-2200-12) in favor of an entity that purchased the permit holder’s base property and/or permitted livestock and the entity’s submission of an Application for Term Grazing Permit (Form FS-2200-16), the authorized officer shall place the entity in preferred applicant status if they fail to satisfy the base property or livestock ownership qualifications requirements.

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The authorized officer shall not issue a term grazing permit to a non-qualified applicant until the applicant meets all qualification requirements. Following the issuance of the term grazing permit, the permit must be validated during the first grazing season following issuance (sec.

15.11). However, the applicant may graze under a temporary grazing permit prior to issuance of a term grazing permit.

A preferred applicant is not authorized to graze livestock or execute a waiver, howeve, the authorized officer may issue a temporary grazing or livestock use permit to authorize grazing pending the preferred applicant’s satisfaction of the qualification requirements. The preferred applicant is responsible for maintaining the range improvements, that would be assigned in the term grazing permit unless another entity is authorized to graze and is assigned the maintenance by the authorized officer.

14.2 - Applications for Grazing Permits

Application for grazing permits shall be on the forms specified below:

1. Term Grazing Permit - Form FS-2200-16, Application for Term Grazing Permit.

2. Term Private Land Grazing Permit - Form FS-2200-17, Application for Term Private

Land Grazing Permit.

3. Term Grazing Permit with On-and-Off Provisions - Form FS-2200-16, Application for

Term Grazing Permit.

4. Grazing Agreement. No official application form exists (ch. 20.)

Although an applicant may hold term grazing permits on more than one allotment or administrative unit or with two or more kinds of livestock, only one application is necessary.

14.21 - Number, Kind, and Class of Livestock and Period of Use

Applications for a grazing permit with term status, either at the beginning of a term period or because of any change, must show number, kind, and class of livestock and period of use desired. Show the major composition of the herd on the grazing applications as cattle-cow/calf, cattle-yearling, sheep-dry ewes, and so forth.

14.24 - Livestock to be Purchased

An application for permit issuance in connection with a waiver may be accepted even though the applicant does not yet own the livestock. Require satisfactory evidence however, of ownership of the purchased livestock before issuing a term grazing permit. Notify the applicant that until

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CHAPTER 10 - PERMITS WITH TERM STATUS proof of ownership of livestock is supplied they will be considered a preferred applicant for the period specified in their preferred applicant notification (sec. 14.11).

14.25 - On-and-Off Provision

In applying for term grazing permits with on-and-off provision, only the "on" number should be shown in Section A of the application. The total number of animals the applicant desires to graze under this provision is shown in Section A-9 of the application (Form FS-2200-16) and in

Part III of the Term Grazing Permit (Form FS-2200-10e).

14.3 - Supporting Documents

The authorized officer may require an applicant to furnish whatever supplementary information is necessary to determine whether that applicant meets qualification requirements.

14.32 - Trusts and Estates

A trust or an estate filing an application must submit a certified copy of the will, deed, court order, or other appropriate instrument establishing the trust or estate as a legal entity. This document should also designate the trust's or estate's authorized representative.

14.33 - Certificates of Brand

Require that an applicant submit a copy of the certificate of brand registration from the State

Brand Division for the record. In the case of sheep, if the state does not require registration of brands for sheep, obtain information indicating the applicant from State or local Woolgrowers representatives uses the brand shown on the application.

14.34 - Records

An applicant may be required to submit for inspection all books, papers, and records pertaining to purchase, sale, or ownership of any livestock for which an application is filed. Such information is generally considered confidential unless the interests of the United States require its use in court or appeal proceedings. Requests for this information are subject to the Freedom of Information Act and Privacy Act (FSM 6270 and FSH 6209.13).

14.35 - Certified or Sworn Statements

The authorized officer may require the applicant to submit a sworn statement with the application, setting forth all material facts. Carefully examine deeds, leases, and other such documents submitted to determine their authenticity and whether they accurately describe the lands included in the application.

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14.37

– Corporations and Partnerships

When a corporation submits an application for a term grazing permit, the authorized officer will request a list of officers and directors, a copy of the articles of incorporation, a list of the shareholders, and the agent(s) authorized to act on the corporation’s behalf with respect to the grazing activities that would be authorized by the permit.

When a partnership submits an application for a term grazing permit, it must include a list of all partners, their relative interest in the partnership, and the documentation authorizing the establishment of the partnership.14.37 - Information Revision And Updating.

14.38

– Document Examination

The authorized officer must carefully examine documents submitted as part of an application for a term grazing permits to ensure their accuracy and authenticity. 14.4 - Action on Applications.

14.39

– Information Revision and Updating

It is the ongoing obligation of the permit applicant to ensure that the information contained in documents submitted as part of an application for a term grazing permit remain current and valid.

It is also the responsibility of the permit applicant to notify the authorized officer of any changes to the information set forth in these documents on a timely basis. Failure to do so may result in permit action by the authorized officer.

14.4 - Action on Applications

14.41 - Approval

If all information in the application is found to be correct and complete and the applicant is qualified, the application may be approved and a grazing permit with term status may be issued to the applicant.

Annual authorization of grazing permits with term status may be accomplished on Form FS-

6500-89, Bill for Collection. The bill should show number, kind and class of animals that are approved, period of use, head months, rate per head month, allotment, and total fees.

14.42 - Disapproval

In cases of disapproval of an application, the authorized officer shall provide written notice stating the reason for disapproval.

15 - ISSUANCE OF GRAZING PERMITS WITH TERM STATUS

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The permit is not valid until signed by both the permittee and the authorized officer. The authorized officer shall not issue the permit until signed by the applicant. Do not issue the permit if the permittee deletes, alters, or otherwise indicates in writing that any term or condition is unacceptable.

After both the permittee and the authorized officer sign the permit, send a copy to the permittee, and retain the original in the authorized officer's files and, if the livestock are to graze on more than one Ranger District or National Forest, provide copies to the other District(s) or Forest(s).

Each permit issued must have a unique identification number, which the authorized officer enters on Part 1 and on each additional permit page. The Forest Supervisor will develop the numbering system for their unit, to ensure consistency.

When the allotments used by the permittee are located on more than one Ranger District,

National Forest, or National Grassland either authorized officer, may issue and/or administer the permit as determined through agreement and consent of the other authorized officer.

Grazing permits authorizing use on multiple allotments may be combined on one term grazing permit form (Form FS-2200-10) for administrative convenience. It is recognized that each allotment authorized on the permit constitutes a separate permit for purposes of administrative action, including the recognition of waivers and escrow waivers.

15.1 - Issuance of Term Grazing Permits

Issue the term grazing permit on Form FS 2200-10. Do not issue term grazing permits and temporary grazing permits on the same permit form.

Authorize pack and saddle stock, pastured on NFS lands and used for the management of permitted livestock, by either a term grazing permit or a paid livestock use permit. Including these animals on the term grazing permit is the most efficient approach in most cases. When this is done include the following clause in term grazing permit:

Pack and saddle stock authorized by this term grazing permit shall be for management of permitted livestock only. These livestock cannot be waived independently, but only as part of a total waiver of the term grazing permit.

15.1a - Validation

Validation is a one-time occurrence when a new entity acquires a grazing permit with term status. Validation is accomplished by the issuance of a Bill for Collection (Form FS-6500-89), payment of the bill, and placement of at least 90 percent of the number of livestock shown on the face of the permit in Part 1, Section.3 on the designated allotment the first grazing season following issuance. Failure to meet this validation requirement subjects the term grazing permit to partial or total cancellation.

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Placement of less than the permitted number of livestock on the designated allotments in the first full grazing season following issuance will result in partial validation of the permit, up to the number of livestock actually placed on the allotment. The authorized officer may initiate permit cancellation proceedings regarding the permitted livestock numbers that were not validated.

These un-validated permitted livestock numbers may be available for grant in accordance with section 13 above.

Permittee convenience nonuse is not available until after a permit has been validated. If an applicant does not qualify for issuance of a term grazing permit or indicates they may not be able to validate their grazing privilege as required under this section, consider them a preferred applicant (sec. 14.11). Term grazing permits cannot be waived until validated. Do not issue term grazing permits until the applicant is fully qualified and do not waive until validated.

The validation requirements of this section do not apply to the issuance of a permit to the same permit holder to replace an expiring term grazing permit or to entities that re-organized into corporations or partnerships composed of the same membership. Follow the nonuse requirements in section 17.1 in this situation.

15.11 - Range Allotment Description

Clearly delineate the grazing allotment on a map accompanying and made a part of the permit.

Show closed rangeland and private lands, including "off", waived, and unwaived private lands within the allotment on the map. Include on any map which is part of a grazing permit a statement to the effect that:

This map shows the (name) Allotment designated for use on grazing permit Number , issued to (name of permittee) by

(name and title) on (date).

15.12 - Number, Kind, and Class of Livestock, Period of Use, and Grazing

Allotment

The number, kind, class of livestock, period of use, and allotment shown on the term grazing permit are those permitted. For example:

NUMBER

60

20

LIVESTOCK

KIND

Cattle

Cattle

CLASS

Cow-calf

Yearling

PERIOD OF USE

FROM

6/1

6/1

TO

9/30

9/30

GRAZING

ALLOTMENT

Elm Spring

Elm Spring

15.12a - Changes in Number Because of Age Class

Annual changes in use permitted by a grazing permit with term status, such as adjustments in class of livestock, and any changes for use of increased forage production may be authorized on

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CHAPTER 10 - PERMITS WITH TERM STATUS either a Bill for Collection (Form FS-6500-89) or a permit modification. Make permanent changes to a grazing permit with term status by modifying the term permit.

15.12b - Variable Numbers and Seasons

A livestock operation may be following an approved plan of management that calls for alternating the number grazed and season of use depending on the complexity of the plan. This may occur on a year-by-year basis. In such variable management operations, enter the following statement in Part 1, paragraph 2 of the term grazing permit in lieu of actual numbers of livestock and periods of use:

Variable numbers and periods of use are specified in the management plan that is part of this permit. The average use under this permit is equivalent to head for period of use.

In management systems described in this section, do not consider yearlong rest periods as nonuse.

The management system that allows for this type of management to occur should be shown in

Part 3 of the Term Grazing Permit.

Billing shall be for each year's authorized use, not on average use.

15.13 - Grazing Permit Terms and Conditions

15.13a - General Terms and Conditions

Do not alter standard terms and conditions in Parts 1 and 2 of Form FS-2200-10.

Form FS-2200-10, Term Grazing Permit, Part 2, Paragraph 4, covers the effective period of the permit. Permits are issued for ten years, including the year the permit is approved (for example,

March 14, 2002 – 12/31/2011), and expire on December 31 of the last year, unless the authorized officer determines that a shorter term is appropriate (sec. 11.11).

15.13b - Special Terms and Conditions

Use Part 3 of the permit for those special terms and conditions not generally applicable to all permits. In addition, in Part 3, the authorized officer shall include as terms and conditions of the grazing permit those applicable standards and guidelines contained in the Forest Plan and/or

NEPA analysis and decisions that specify appropriate management requirements. Appropriate standards and guidelines would include those relating to the management of vegetation, soil, water and other resources that may be affected by livestock grazing.

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In those instances where this requirement is met by incorporating the allotment management plan by reference; the authorized officer should use the following clause:

The Allotment Management Plan for the (name) Allotment, approved by

(name and title) on (date) is hereby made a part of this permit.

Provide a copy of an approved allotment management plan to each permittee and place the original copy in the official 2210-1 file.

The Regional Forester may prescribe special terms and conditions for Region-wide use.

Authorized officers may include any terms and conditions necessary to obtain compliance with grazing regulations and to secure proper management of livestock.

The permittee may be required, as a condition of permit issuance, to monitor livestock operations and undertake appropriate management actions annually to comply with the terms and conditions of the grazing permit. The authorized officer may require the permittee to provide monitoring information related to livestock operation compliance with terms and conditions of the permit, including, but not limited to, actual livestock numbers grazed, time of grazing, livestock distribution, structural and nonstructural improvement condition, maintenance activities conducted, vegetation use, and other standards in the permit. Discuss these requirements fully with the permittee prior to initiation and offer any training necessary to achieve desired permittee performance.

Include special terms and conditions on Form FS-2200-10 (a) through 10(e) as appropriate.

15.2 - Issuance of Term Grazing Association Permits

15.21 - General Guidelines

The Forest Service has no obligation to issue private land permits solely for the convenience of the applicant. Issuance is justified only on the basis of advantage to the United States. Optimum management of the rangeland resource within an allotment is the primary consideration. Deny applicants if:

1. Offered land is not suited to the kind of livestock currently grazing on the allotment where the land offered is located.

2. Resultant grazing would reduce the value of some other National Forest System resource.

3. The applicant has previously demonstrated unwillingness or inability to observe

Forest Service grazing requirements.

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The authorized officer cannot require a private landowner or lessee to waive the grazing use of private land to the United States. If an applicant chooses to apply for a term grazing permit with on-and-off provisions (sec. 15.3) rather than a term private land-grazing permit, the authorized officer must determine if issuing the on-and-off permit is in the best interest of the United States.

If the authorized officer determines that issuing an on-and-off permit is not in the best interest of the United States, and the applicant determines that applying for a term private land grazing permit is not in their best interest, then do not issue a permit for the grazing capacity of the private land.

Issue term private land permits on Form FS-2200-11, Term Private Land Grazing Permit. A term private land-grazing permit may be issued to a qualified applicant who owns or controls land in an allotment under Forest Service control. This permit may be issued for ten years on the basis of a lease as long as the permittee annually provides proof that the lease, if for less than ten years, has been renewed. Failure to provide this notification will result in cancellation of this permit. In return, the applicant is authorized to graze livestock within the allotment associated with the waived private land.

Term private land grazing permits may be issued to owners or lessees of private or state land within grazing allotments who desire to waive livestock management on these lands to the

United States for the entire period of the permit. The permit term may not exceed 10 years or the term of the lease, whichever is less (ex.01).

Permit issuance is based on and shall not exceed the estimated grazing capacity of the offered lands, as determined by the authorized officer.

15.22 - Qualification Requirements

Holders of term private land grazing permits are not required to own base property, permitted livestock, or the waived land (sec. 12.2). The holder must have the right to use the waived land for grazing.

15.3 - Issuance of Term Private Land Grazing Permits

15.33 - Grazing Capacity of Private Lands

Estimate the grazing capacity of lands offered as a basis for issuing a private land permit. The estimated grazing capacity as well as advantages or disadvantages of issuing the permit must be determined by field examination. However, the authorized officer makes the final determination of the grazing capacity on the waived lands.

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15.4 - Issuance of Term Grazing Permits with On-and-Off Provisions

15.41 - General Guidelines

A term grazing permit with provisions for grazing on-and-off National Forest System lands and other lands under Forest Service control may be issued to a qualified applicant when a logical grazing area contains both lands under Forest Service administration and lands controlled by the applicant. Permits with on-and-off provisions are issued when a minor portion, usually less than

1/3, of a logical grazing area is composed of NFS lands. The intent is to promote efficient use of intermingled ownership, while at the same time achieving desired conditions on NFS lands.

Issue a private land permit rather than an on-and-off permit where it is practical and possible.

Carefully review a request for on-and-off provision to determine if the land offered can and should be managed with the Forest Service-administered land as a natural unit. The total number of livestock approved must not exceed what the natural unit can support. Deny applications if:

1. The private land is only a small portion of the natural range unit,

2. Livestock use would be concentrated on the National Forest System lands,

3. Resultant grazing would reduce the value of some other National Forest System resource, or

4. The applicant has demonstrated unwillingness or inability to observe Forest Service grazing requirements.

Permits with on-and-off provisions are the same as any other grazing permit with term status with respect to "on" numbers shown. Issue the permit on Form FS-2200-10, Term Grazing

Permit. Show only the "on" number in Part 1 of the permit.

For example, in a permit where 100 head of livestock are allowed to graze on a natural unit with

30 percent of the grazing capacity on Forest Service-administered land and 70 percent of the grazing capacity on lands controlled by the permittee, show only 30 head in Part 1 of the permit.

Show the total number of 100 head as a special provision on Form FS-2200-10e, Grazing Permit,

Part 3.

15.42 - Qualification Requirements

The permittee must meet base property and livestock ownership requirements for the "on" numbers (sec. 12.2). The permittee must have the right to use the off land for grazing.

15.43 - Only Natural Units Included

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Issue a Term Private Land Grazing Permit or Term Grazing Permit with on-and-off provisions only if livestock move between Forest Service-administered range and adjoining or intermingled land of other ownerships (except Bureau of Land Management (BLM)) and where lands under both ownerships form a natural grazing unit best managed as a single unit.

If the natural unit includes BLM administered lands, follow the provisions of the Memorandum of Understanding (MOU) regarding interchange of grazing privileges between the Forest Service and BLM dated October 26, 1966. (FSM 1531.12b)

15.4 - Exhibit 01

Comparison of Term Private Land Grazing Permit and

Term Grazing Permit With On-and-Off Provisions

Term Private Land Permit Term Permit with On-Off Provision

United States administers more than 1/3 of the carrying capacity.

Private lands are waived to the United States for management of livestock grazing during the term of the permit.

Waived lands will not be grazed outside the designated season.

Private entity controls more than 2/3 of the carrying capacity.

Private lands are not waived; however, the

United States specifies season of use, numbers, and grazing area.

Off lands will not be grazed outside the designated season.

United States determines private land capacity. United States agrees to estimate of Off lands capacity.

Private lands are managed with NFS lands to meet LRMP standards.

Off lands are managed with NFS lands.

Term of permit is same as term of lease if applicant does not own lands offered.

Improvement maintenance required in proportion to amount of permitted use

Term of permit is same as term of lease if Off lands are not owned by applicant.

Improvement maintenance required in proportion to amount of permitted use authorized on allotment.

Applicant must demonstrate control of land offered.

Applicant need not own waived land.

Applicant need not own livestock to be grazed under permit.

Permitted animals are run in conjunction with other term livestock authorized on the allotment.

Waived lands cannot be claimed as base property for a term grazing permit. authorized on allotment.

Applicant must demonstrate control of Off lands.

Applicant need not own Off land.

Applicant need not own livestock authorized for Off lands, but must own for the On lands.

Off livestock are run in conjunction with On livestock.

Off lands cannot be claimed as base property for a term grazing permit.

No base property required. Base property required for on portion.

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16 - CHANGES IN GRAZING PERMITS

Changes in grazing permits may be made for the following reasons:

1. To achieve resource management objectives identified in LRMPs and/or NEPA analysis and decisions through proper forage resource use by livestock.

2. To comply with the requirements of or changes in laws, regulations, AMPs, policy, or other legally binding documents.

3. To adapt to changed resource conditions.

4. To suspend or cancel grazing permits to insure permittee compliance with the provisions and requirements of the permit.

16.1 - Modification of Grazing Permits

Discuss modification to a term grazing permit with a permittee prior to the modification. While it is desirable that modification of a term grazing permit be signed by the permittee, it is not necessary. Permit modifications may be made even though the permittee is not in agreement with the change in accordance with 36 CFR 222.4(a)(7).

Grazing permits may be modified at any time during the term period to:

1. Respond to permittee request.

2. Increase or decrease livestock numbers or period of use.

3. Change kind or class of livestock or area to be grazed.

4. Change or include an allotment management plan.

5. Modify other terms and conditions of the permit, including provision for construction or reconstruction, and/or maintenance of range Improvements.

6. Comply with laws, regulations, executive orders, or other resource needs.

7. Devote lands to another public purpose when no change in permitted numbers or season of use are anticipated.

16.1a - Methods of Modification

Make modification to permit by letter, a standard modification form, or (where significant changes have occurred) issuance of a new Term Grazing Permit (Form FS 2200-10).

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In modification letter make reference to the permit being modified and provide the permittee with the opportunity to accept the modification, although permittee acceptance is not necessary.

The following statement may be used:

This modification is hereby made part of your grazing permit number issued

(date) by (name and title). It should be attached to your permit as pages through .

Furnish a copy of the letter to the permittee and attach a copy of letter to each copy of the permit.

When a significant modification occurs, such as changing the basic permit clauses, include a statement in the letter of transmittal and Part I of the new grazing permit indicating:

This permit supersedes and cancels grazing permit number ____ , issued (date) by (name and title).

16.12 - Modifications That Result in Increased Numbers or Period of Use

The number of livestock or period of use under a grazing permit may be increased to (see also section 13.2):

1. Authorize use of additional grazing capacity resulting from improvement work or management improvement involving the direct permittee's participation in proportion to the extent of such participation.

2. Restore previous reductions made for resource purposes. Initial distribution of increased capacity resulting from resource improvement reductions shall be among current permittees on that allotment if the reduction occurred within the previous 10 years.

16.13 - Modifications That Result in Reduced Numbers or Period of Use

Authorized officers may modify numbers permitted, periods of use, or both as determined necessary because of resource conditions. Give permittees as much notice as possible, but not less than six months, of such modification, except in cases of an emergency or unless the permittee waives this requirement. Such notice shall be by certified or registered letter. Include notification of appeal provisions under 36 CFR 251, Subpart C, in the letter to permittee.

Document agreement if the permittee and the authorized officer agree to a program for making changes in a permit. The provisions of the agreement may waive the advance notice requirement.

Before formally implementing any required permit change, thoroughly discuss the need for such action with the permittee. Give the permittee an opportunity to inspect the range with local

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Forest officers. Make reports of studies and other pertinent records on which range conditions were judged available for review by the permittee or an authorized representative. The authorized officer should use every reasonable method to assure that the permittee is fully informed concerning the action to be taken prior to making any adjustments in grazing use.

Make adjustments in livestock numbers or in the authorized season of use when available information indicates that changes are appropriate. Attempt to negotiate mutually agreeable adjustments with the permittee. However, if a negotiated agreement cannot be reached, concurrence is not mandatory before modifying the permit. Do not delay adjustments until the expiration or waiver of a term grazing permit.

16.14 - Permittee Requested Modifications

Modifications of grazing permits, to include numbers, seasons of use, kind and class of livestock allowed on the allotment are permissible providing they meet the land management objectives prescribed for lands within the grazing allotment.

Changes involving kind or class of livestock will likely necessitate a change in permitted numbers. If such a request results in a change in environmental effects that would require an updated NEPA decision, the permittee may be required in whole or in part to pay the costs of the analysis and document preparation.

Require permittee requests for modification in writing to show the modification was at the request of the permittee. Document that the modification is consistent with land and resource management plan direction.

16.2 - Suspension or Cancellation of Grazing Permits

Grazing permits may be suspended or cancelled, in whole or in part, for various reasons (which are set forth in 36 CFR 222.4). Consider circumstances and prevailing conditions in deciding the kind and extent of appropriate action. Suspensions or cancellations may be made in the numbers of livestock permitted and/or in the season of use permitted.

Suspend a permit if a temporary change is necessary to accomplish a specific compliance purpose. Suspensions may also be made as a penalty for violation of terms and conditions of a grazing permit. Suspension of a grazing permit may be considered before taking cancellation action, but it is not a necessary first step.

Suspensions, for a minimum of 2 years up to a maximum of 5 years, may be effective in obtaining compliance with the grazing permit and allotment management plan. If violations persist, partial to total cancellation is appropriate. Do not issue a temporary permit to the permittee in lieu of the suspended term permit.

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Cancellation applies if a permanent change in the permit is necessary. Total cancellation may be justified for first offense violations, depending on the circumstances of the case.

16.2a - Permit Violations

It should be recognized that some violations may be very minor in nature, inadvertent on the part of the permittee, and easily corrected. It is not the intention of these guidelines to formalize adverse permit action for every minor permit violation that may occur. Examples of such minor violations could include a minor number of livestock being in the wrong pasture due to a gate being left open or fence in need of repair, a minor number of livestock that may have wandered off the allotment, or finding a few stray livestock that could not be found when a pasture was cleared or at the end of the grazing season. In these cases, a verbal contact with the permittee, followed by documentation to the file, is all that is necessary, provided the permittee takes appropriate action and it does not become a continuing problem. If the permittee does not take appropriate action or it becomes a chronic problem, then it is appropriate to formalize administrative action according to these guidelines.

16.2b – Notice of Non-Compliance

When non-compliance occurs, ensure that the permittee is provided with a clear, documented explanation in a notice of non-compliance letter as to:

1. Specific provisions of the Term Permit, AMP, AOI, or other document that are in noncompliance;

2. Specific actions that are required of the permittee to remedy the non-compliance, and to what standard they must be performed,

3. Timeframe the within which the action(s) must be performed; and,

4. Consequences for failure to comply.

When inspections document instances of non-compliance, notify the permittee and ensure that, to the extent feasible, they have an opportunity to correct the situation and bring their permit back into compliance. Conduct documented, follow-up inspections to determine whether or not compliance has been achieved. If so, document the findings in a letter to the permittee. If not, issue a decision with the appropriate administrative action. The decision letter must notify the permittee of appeal provisions under 36 CFR 251, Subpart C. If a suspension or cancellation decision by an authorized officer is appealed under 36 CFR 251, implement the decision unless a stay is granted (36 CFR 251.91).

16.2c - Exception to Written Notice of Non-Compliance and Remedy for Willful

Conduct

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In cases where it can be determined that the permittee acted in a willful manner to violate provisions of the grazing permit, the authorized officer may by-pass the written notice of noncompliance and opportunity for remedy and issue a final decision suspending or canceling the grazing permit in part or whole.

When the authorized officer makes a determination to bypass the written notice and opportunity for remedy, based on a determination of permittee willfulness, the notice of permit action for non-compliance letter must expressly make this finding clear and explain how the determination was made.

Generally, a permittee who intentionally conceals or misrepresents pertinent information (for example, ownership of base property or livestock) or who expressly rejects Forest Service regulatory authority over National Forest System lands (for example, by refusing to pay grazing fees or deliberately placing livestock on National Forest System lands without authorization) is more likely to be found acting “willfully” than a permittee who acts (or fails to act) inadvertently even if it was done “intentionally” or in “careless disregard” of the permit requirements (for example, failing to maintain range improvements to standard or failing to pay grazing fees on time).

Use the “willfulness” exception sparingly and only in the most serious cases. Documentation of permittee behavior will significantly improve ability to prove “willfulness.” Prior to making a determination to initiate permit action under the “willfulness” exception, consult with regional range specialists and/or your regional contact in the Office of the General Counsel.

16.2d - Exception to Written Notice of Non-Compliance and Remedy Regarding

Matters of Public Health, Interest, or Safety

Another exception to the written notice of non-compliance and opportunity for remedy deals with cases in which “public health, interest, or safety requires otherwise.” The purpose of this exception is to facilitate the prompt termination of permits held by individuals whose misconduct causes immediate danger to the public. In exercising this exception, the agency must balance the harm to the permittee resulting from the permit cancellation against the harm to the public resulting from the time needed to complete the notice and opportunity to cure requirements.

Because this exception applies only when immediate action is required, its applicability to grazing permittees on National Forest System lands may be limited. For example, it may be reasonable to assert the “public interest” exception to cancel a grazing permit based on violations of permit terms and conditions that adversely impact species listed under the Endangered Species

Act or their critical habitat.

As with “willfulness” determinations (sec. 16.21b above), use the exception for public health, interest, or safety sparingly. Authorized officers should consult with regional range managers and/or the Office of the General Counsel before making such a determination. Set forth the justification for the determination in the letter that institutes the suspension or cancellation proceedings.

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16.2e - Suspension and Cancellation Guidelines

Forests may not supplement the following guidance for consistent actions in grazing permit administration for the categories listed. The objectives are:

1. To obtain consistency on administrative actions taken on non-conformance with the terms and conditions of the term grazing permit.

2. To ensure consistency with recent Court decisions (Anchustegui) and guidance;

3. To provide a firm but fair approach.

If non-conformance with the permit terms and conditions occurs, these guidelines provide recommended actions deemed appropriate, while recognizing that situations and circumstances can vary. These guidelines are not all inclusive of potential situations. Direct questions to regional rangeland management specialists.

Non-compliance with the term grazing permit terms and conditions are generally cumulative.

This means that any and all recent prior occurrences of non-compliance with permit terms and conditions should be considered in determining second and third offenses. Permit noncompliance instances in year 1 should be considered in actions taken on non-compliance situations occurring in year 2 or 3. However, do not consider an isolated non-compliance situation that occurred a number of years previous as evidence of a recurrent history of violations.

In addition to cancellation or suspension action, require the permittee to pay the unauthorized use rate for excess use where appropriate. Excess use is grazing livestock in greater numbers, or at times or places other than authorized by the permit or the bill for collection.

For many situations of non-compliance, the letter of non-compliance should contain an offer from the authorized officer to hear the permittee’s viewpoint. This opportunity for the permittee to be heard may take the form of a written letter or a personal meeting between the permittee and the authorized officer.

Follow guidelines below for determining the extent of suspensions and cancellations unless the authorized officer determines a different action is appropriate due to the specific circumstances of the violation.

1. Excess Use. Any livestock owned by the holder of a National Forest System grazing permit, but grazing on National Forest System lands in greater numbers, at times, or in places other than permitted in Part 1 of the grazing permit or authorized on the annual Bill for

Collection, including any modifications made by the authorized officer, constitutes excess use.

Failure to remove livestock at the end of the grazing season or when instructed by the authorized officer is excess use. Grazing Permit, Part 2, Section 8(c), 8(d), and 8(e).

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CHAPTER 10 - PERMITS WITH TERM STATUS a. Notice of Non-Compliance and Opportunity to Remedy. Contact the permittee by phone or in person to notify them of the non-compliance, specifying what parts of the

Term Permit, AMP and/or AOI are in non-compliance; and, require livestock removal in full within 72 hours. Send a letter documenting the verbal discussion, including what parts of the Term Permit, AMP and/or AOI are in non-compliance, what action is expected of the permittee to remedy the situation, to what standard, and by when.

Bill for excess use at the unauthorized use rate. b. Notice of Permit Action for Non-Compliance. When documented inspection indicates that excess use has occurred for a second time, or if the initial noncompliance has not been remedied as specified, notify the permittee with a notice of permit action for non-compliance letter, by Certified Delivery – Return Receipt

Requested, suspending 25 percent or more of the permitted numbers or seasons for a period of at least two years. Bill for excess use at the unauthorized use rate. c. Repeat Offenses. When documented inspection indicates that excess use has occurred under repeat situations and/or the previous situations have not been remedied as specified, send a notice of permit action for non-compliance letter, by

Certified Delivery – Return Receipt Requested, documenting the repeat noncompliance and indicating that the permit is being canceled in whole or in part as appropriate to the circumstances. Bill for excess use at the unauthorized use rate.

2. Failure to Follow Management Instructions. The allotment management plan, annual operating instructions, or other management instructions for the land described on page 1, part 1 are part of the permit. The permittee must carry out the permit provisions, other instructions, or both as issued by the authorized officer for the area under permit, and require employees, agents, contractors and subcontractors to do likewise. Grazing Permit, Part 1, Section 3, Part 2, Section 8

(a-h). a. Notice of Non-Compliance and Opportunity to Remedy. Contact the permittee by phone or in person to notify them of the non-compliance, including what provisions of the AMP and/or AOI are in non-compliance, and require correction of the problems associated with the situation within 72 hours. Specify precisely what action is required to bring the permit back into compliance. Follow-up with a letter documenting the verbal discussion including what parts of the Term Permit, AMP, and/or AOI are in non-compliance, what action is expected of the permittee to remedy the situation, to what standard, and by when. b. Notice Permit Action for Non-Compliance. When documented inspection indicates that the initial non-compliance has not been remedied as specified, or if a second situation of non-compliance has occurred, contact the permittee by phone or in person describing the specific non-compliance and require correction within 72 hours or less. Follow-up with a notice of permit action for non-compliance letter,

Certified Delivery – Return Receipt Requested, to the permittee indicating that a

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CHAPTER 10 - PERMITS WITH TERM STATUS specified part of the permitted numbers or seasons is being suspended for a period of at least two years. c. Repeated Offenses. When a documented inspection indicates repeated noncompliance with the AMP and/or AOI, send a notice of permit action for noncompliance letter, Certified Delivery – Return Receipt Requested, documenting the repeat non-compliance finding and canceling the permit in full.

3. Failure to Maintain Improvements. The term grazing permit is issued and accepted with the provision that the permittee will maintain range improvements, whether private or

Government owned, that are assigned to them for maintenance in the grazing permit. Grazing

Permit, Part 2, Section 8(i) and Part 3. a. Notice of Non-Compliance and Opportunity to Remedy. When a documented inspection indicates non-compliance with requirements to maintain improvements to standard within specified timeframes, contact the permittee in person or by phone and describe the results of the inspection, and the provisions in the Term Permit, AMP and/or AOI that are in non-compliance. Specify what action is required to remedy the non-compliance, to what standard, and within what time frame. Follow-up the personal contact with a letter indicating the specific instances of non-compliance, the provisions of the Term Permit, AMP and/or AOI which are in non-compliance, and specify what actions are required, to what standards and what timeframes. Document the inspection, with photographs if possible.

If maintenance is not completed according to specifications, and within specified timeframes, require the permittee to keep their livestock off or remove their livestock from the allotment, until maintenance is completed to standard. b. Notice Permit Action for Non-Compliance. When a documented inspection indicates that the initial non-compliance has not been remedied as specified, or if a second offense has occurred, send the permittee a notice of permit action for noncompliance letter, Certified Delivery – Return Receipt Requested documenting the inspection and suspending 25% or more of the permitted numbers or season for a minimum of two years. Do not permit livestock on the allotment until improvement maintenance is completed to standard. c. Repeated Failure to Maintain Improvements. Send a notice of permit action for non-compliance letter, Certified Delivery – Return Receipt Requested, canceling the permit in full.

4. Nonuse without Approval. Permits may be canceled, in whole or part, if the term permit holder fails to graze at least 90% of permitted numbers without obtaining approval for nonuse. Grazing Permit, Part 2, Section 9.

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CHAPTER 10 - PERMITS WITH TERM STATUS a. Notice of Non-Compliance and Opportunity to Remedy. In the AOI, and during each year where permittee convenience non-use is requested and approved, document in writing to the permittee the requirements for stocking the allotment in the absence of approved non-use. This constitutes the opportunity to remedy. Where a documented inspection indicates that a permittee has failed to stock without first receiving approval of non-use, Certified Delivery – Return Receipt Requested, notice of non-compliance letter suspending for one year or more, the number equal to the authorized number not placed on the permitted area. Do not allow credit or refund of grazing fees paid. b. Notice of Permit Action for Non-Compliance. When documented inspection indicates that a repeat offense has occurred, or when the permittee fails to stock the permitted area after personal convenience non-use has been exhausted, send a notice of permit action for non-compliance letter, Certified Delivery – Return Receipt

Requested, canceling the permit to the extent of un-approved non-use. Do not allow credit or refund of grazing fees paid.

5. Failure to Pay Grazing Fees – Failure To Pay By The Due Date Where No Livestock

Have Entered National Forest System Lands. The permittee may not allow owned or controlled livestock to be on Forest Service-administered lands unless the fees specified in the Bill for

Collection are paid. Charge interest, penalties, and administrative costs on any payment not made in accordance with 31 U.S.C. 3716 and 7 CFR Part 3, Subpart B and Grazing Permit, Part

2, Section 4 and 5. a. Notice of Non-Compliance and Opportunity to Remedy. Contact the permittee by phone or in person, with a follow-up letter, and remind them that it is a permit violation, Part 2, Sections 4 and 5, if livestock are allowed to enter National Forest

System lands before fees specified in the Bill for Collection are paid. Do not consider the violation willful, if the permittee can demonstrate that they made appropriate effort to pay the bill on time. Bill for appropriate interest, penalties, and administrative costs. b. Notice of Permit Action for Non-Compliance. If the non-compliance re-occurs, or has not been remedied as specified, contact the permittee by phone or in person specifying the non-compliance and the provisions of the Term Permit that are in noncompliance. Follow-up this contact with a notice of permit action for noncompliance letter, Certified Delivery – Return Receipt Requested, suspending at least

25% of the permitted numbers or seasons for at least one season. Bill for excess use at unauthorized use rate and bill for appropriate interest, penalties, and administrative costs.

6. Failure to Notify Authorized Officer of Change in Qualifications to Hold Term

Grazing Permit within a Reasonable Time (30 Days). Grazing Permit, Part 2, Section 11 (b).

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CHAPTER 10 - PERMITS WITH TERM STATUS a. Notice of Non-Compliance and Opportunity to Remedy. Send a certified letter documenting the non-compliance, indicating specific terms and conditions of the permit that were violated. Request the permittee to remedy the situation by providing the required documentation within a specified time frame, normally 30 days. If the required information is not provided as specified, suspend 25% or more of the permitted numbers or season for a minimum of two years. b. Notice of Permit Action for Non-compliance. If repeat offense occur send a notice of permit action for non-compliance letter, Certified Delivery – Return Receipt

Requested, canceling the permit.

7. Conviction for Failure to Comply with Federal, State, or Local Laws. In cases where the permittee or the permittee's agents or affiliates are convicted for violation of Federal laws or regulations or State laws concerning animal control, protection of air, water, soil, vegetation, fish, wildlife, or other environmental values related to the grazing use authorized by the permit.

Grazing Permit, Part 1, Section 3. a. Notice of Non-Compliance and Opportunity to Remedy. When documentation indicates that a conviction for failure to comply with appropriate Federal, State or

Local Laws has occurred, send a certified delivery letter to the permittee, documenting the specific non-compliance. Offer the permittee the opportunity to provide rationale as to why action should not be taken against the permit. If sufficient rationale cannot be provided, suspend 25% or more of the permitted numbers or season for a minimum of two years depending on the specific circumstances of the conviction. b. Notice of Permit Action for Non-Compliance. Where the conviction is directly related to, and have a negative impact on, management of the area or resources under

Term Permit, send a notice of permit action for non-compliance letter, Certified

Delivery – Return Receipt Requested, to the permittee documenting the specific facts regarding the non-compliance situation and cancel the permit.

8. Failure to Conform With Base Property Requirements. The permittee must notify the authorized officer if they dispose of the base property on which the permit is based. Grazing

Permit Part 2, Section 7(b) and 11(b). a. Notice of Non-Compliance and Opportunity to Remedy. If the authorized officer finds that the permittee has failed to conform to base property requirements, the authorized officer shall provide written notice to the permittee that they have one year from the date that they ceased to own base property to acquire replacement base property. b. Notice of Permit Action for Non-Compliance. If the permittee fails to provide the required documentation to prove ownership of suitable replacement base property

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CHAPTER 10 - PERMITS WITH TERM STATUS after the specified one-year period, send the permittee a notice of permit action for non-compliance letter, Certified Delivery – Return Receipt Requested , canceling the permit.

9. Failure to Validate the Grazing Permit. The issuance of a Bill for Collection, payment of fees, and actual turning on at least 90 percent of permitted livestock the first grazing season after the permit is issued will validate the permit for the number, kind, and class of livestock, grazing allotment, and period of use for the particular year. Grazing Permit, Part 2, Section 1.

Notice of Permit Action for Non-Compliance. Unless specific circumstances indicate otherwise, this violation is considered to be willful and no opportunity for remedy is provided. When documented inspection indicates that validation has not occurred, notify the permittee with a notice of permit action for non-compliance letter,

Certified Delivery – Return Receipt Requested, explaining the non-compliance and indicating that the permit is being cancelled to the extent that validation has not occurred.

10. Grazing Livestock Not Owned by Permittee. Only livestock owned by the permittee are authorized to graze under the permit. Leased brands are not recognized as proof of ownership. Livestock purchased and subsequently sold back to the original owner, within a 24month period is not considered evidence of valid ownership of the livestock. Grazing Permit,

Part 2, Clause 7 (a) and (c).

Notice of Permit Action for Non-Compliance. Unless specific circumstances indicate otherwise, this violation is considered to be willful and no opportunity for remedy is provided. When documented inspection indicates that grazing of livestock not owned by the permittee has occurred, call or meet with the permittee in person to explain the non-compliance. Indicate what parts of the Term Permit are in non-compliance and require full removal of the livestock, or submission of positive proof of ownership, within 72 hours. If acceptable proof of ownership is not provided within 72 hours, notify the permittee by notice of permit action for non-compliance letter, Certified

Delivery – Return Receipt Requested , that the permit is being cancelled.

11. Making False Statements. If at any time after issuing a grazing permit, it is discovered that the permit was secured or maintained by deliberate misrepresentation or suppression of material facts, the permit may be canceled (Grazing Permit, Part 1, Section 3).

When a term grazing permit was issued as a result of purchase of base property or livestock later found to be fraudulent or defective, and the new permittee had no knowledge of fraud or defect, a later discovery of defect shall not be cause for suspension or cancellation.

Notice of Permit Action for Non-Compliance. Unless specific circumstances indicate otherwise, this violation is considered to be willful and no opportunity for remedy is provided. During the issuance of the Term Permit, inform the permittee of the permit terms and conditions regarding false statements and what actions will follow if such

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CHAPTER 10 - PERMITS WITH TERM STATUS occurs. If at any time, an authorized officer has reason to believe the information currently on record, in the form of grazing applications or supporting information supplied, does not reflect the actual situation, it is appropriate to ask the permittee to submit an updated application and supporting documentation. If updated information provided by the permittee conflicts with previously furnished or other known information to the extent that the documentation shows that a deliberate misrepresentation has occurred, send a notice of permit action for non-compliance letter, Certified Delivery – Return Receipt Requested , canceling the permit in whole.

12. Failure to Pay Grazing Fees - Allowing Livestock to Enter NFS Lands Before Paying

Grazing Fees. The permittee must not allow owned or controlled livestock to be on Forest

Service-administered lands unless the fees specified in the Bill for Collection are paid. Charge interest, penalties, and administrative costs on any payment not made in accordance with 31

U.S.C. 3716 and 7 CFR Part 3, Subpart B and Grazing Permit, Part 2, Section 4 and 5.

Notice of Permit Action for Non-Compliance. Unless specific circumstances indicate otherwise, this violation is considered to be willful and no opportunity for remedy is provided. Contact the permittee by phone or in person. Specify the specific noncompliance and the provisions of the Term Permit that are in non-compliance.

Require removal of the livestock within a specified timeframe. Follow-up this contact with a notice of permit action for non-compliance letter, Certified Delivery –

Return Receipt Requested, canceling the permit in whole. Bill for excess use at the unauthorized use rate and bill for appropriate interest, penalties, and administrative costs.

13. Leasing the Permit. The permittee may not transfer, assign, lease, or sublet the permit in whole or in part, including the lease of base property or permitted livestock to some one else to allow the lessee to use the NFS grazing privilege. Grazing Permit, Part 2, Section

11(e).

Notice of Permit Action for Non-Compliance. Unless specific circumstances indicate otherwise, this violation is considered to be willful and no opportunity for remedy is provided. When there is documented evidence that the permittee has leased or sublet the permit as specified above, send a notice of permit action for non-compliance letter, Certified Delivery – Return Receipt Requested , to the permittee. Offer the permittee the opportunity to provide information to prove that the leasing has not occurred. If satisfactory evidence is not presented to indicate that non-compliance has not occurred, cancel the permit.

16.24 - To Devote Lands to Other Public Purpose

Grazing permits on lands that are to be devoted to another public purpose may be canceled in whole or in part. An example of devoting lands to another public purpose is action such as military withdrawals or land exchanges. Decisions in Land and Resource Management Plans or

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CHAPTER 10 - PERMITS WITH TERM STATUS project level decisions which eliminate or reduce grazing for purposes of resource protection or other resource uses are not considered devoting lands to another public purpose.

A 2-year notification is required (36 CFR 222.4(4)(1) unless the permittee waives the time requirement in writing. Provide such notification in all cases where reductions in permitted number and/or season of use is anticipated. Changes that do not require reduction in permitted number or season of use do not require the 2-year notification.

See chapter 70 for policy concerning compensation for permittee interest in range improvements.

16.29 - Cancellation of Grazing Agreements or Association Permits for

Noncompliance With Title VI of Civil Rights Act

Term grazing association permits or grazing agreements may be canceled for noncompliance with Title VI of the Civil Rights Act of 1964 and Department of Agriculture regulations promulgated there under.

16.3 - Changes Which May Affect Lands Administered by Other Federal and State

Agencies

If needed changes on National Forest System lands may affect grazing on ranges administered by the Bureau of Land Management, the authorized officer shall notify the BLM representative about what is being planned or considered. Give notice well in advance of proposed changes.

The representative of the Bureau of Land Management should be asked to notify the authorized officer of similar prospective changes on lands the BLM administers. The same instruction applies in principle to lands administered by other Federal and State agencies.

16.4 - Status of Grazing Permits During Administrative Reviews

Procedures for Administrative Review of decisions made concerning grazing are covered in FSM

1570 and 36 CFR 251.80 or 36 CFR 215.

16.5 – Mediation

Section 282 of the Federal Crop Insurance Reform and Department of Agriculture

Reorganization Act of 1994 (P. L. 103-354) amended section 501 of the Agricultural Credit Act of 1987 to expand the number of issues in Department of Agriculture (USDA) programs that are subject to mediation under State Mediation programs that have been established. One of the areas included as being subject to mediation is grazing on National Forest System lands. A State

Mediation Program certified by the Secretary of Agriculture must conduct this mediation program.

Mediation is a part of 36 CFR 251.103 appeal process and an appeal of the decision in question must be filed before mediation can be undertaken. When mediation is undertaken, the appeal process is stayed until mediation is concluded. The regulations require that mediation be

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CHAPTER 10 - PERMITS WITH TERM STATUS completed within a 45-day period unless the deciding officer and appellant believe that a mediated resolution can be reached with an extension. In this circumstance, an additional 15 days may be granted to conclude the agreement; allow a maximum period of 60 days for the mediation process. If mediation is successful, the appellant will request that their appeal be terminated. If mediation is not successful, the appeal filed will be reviewed as indicated in 36

CFR 251.

All mediation conducted between the decision maker, the mediator, and the permittee is confidential. There are no interveners in this process. The mediation process is non-binding on the Agency.

17 - NONUSE OF GRAZING PERMITS WITH TERM STATUS

Non-use is measured in numbers of animals grazed. See FSH 2209.13, section 31, Temporary

Grazing Permits for direction on use of temporary grazing permits to fill in behind permittee convenience non-use.

17.1 - Personal Convenience of Permittee

Application for nonuse of grazing permits with term status must be made in writing. The authorized officer must approve nonuse for permittee convenience by term grazing permit holders in writing on a year-to-year basis. While approval of nonuse is not automatic and reasons for the nonuse request should be discussed with the permittee, approval of a permittee's request for nonuse is normally a routine process.

Requests for nonuse must be submitted sufficiently in advance of the grazing season to allow the authorized officer time to consider other use alternatives. Failure to place livestock on NFS lands without approved nonuse will subject the permit to suspension or cancellation (sec. 16.21).

Approve partial or total nonuse by letter on an annual basis. Include a statement in the letter informing the permittee that no more than 3 consecutive years of nonuse may be taken, when approved, nor may nonuse be granted for more than 4 years total during any 10-year period. The letter should also inform the permittee of the requirement(s) concerning waiver of term grazing permits in nonuse for permittee convenience based on the sale of base property or permitted livestock, and that assigned improvements must be maintained. In addition, show approved partial nonuse in the bill for collection.

The letter approving the last successive year of either partial or total nonuse must contain notice to the permittee that they must graze at least 90% of the permitted livestock numbers the next grazing season to retain the permit in total. A copy of this letter will be sent to holders of

Escrow Waivers.

The policy for granting nonuse is more liberal for permit holders who enter the Armed Forces.

They may be granted nonuse during the period of first enlistment or obligated active duty.

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Following completion of the first enlistment or obligated active duty, act on an application for nonuse in accordance with the regular policy.

17.2 - For Resource Protection or Development

The authorized officer may implement non-use if necessary to facilitate the protection or development of National Forest System lands and resources. This nonuse may be on an allotment, watershed or landscape scale, dependent on the scale of the rangeland resource needing protection or development. Notify the permittee(s) who have agreed to participate in the protection or development activities in writing of a decision to implement resource protection nonuse , as well as any permittees who's authorized grazing may be shifted to accomplish the protection or development activity and escrow waiver holder where applicable. This letter shall specify the period of nonuse, not to exceed the term of the grazing permit(s) involved, shall describe the objective(s) to be accomplished by the nonuse, and shall include the monitoring requirements which will be implemented to determine if the nonuse is effective in accomplishing the objective(s). Incorporate the decision as an amendment to the term grazing permits of the permittee(s) involved and is an appealable decision under 36 CFR 251, Subpart C.

Additional resource protection nonuse may be implemented upon issuance of new term grazing permit(s), following expiration, for the area involved. Nonuse periods may be extended if the authorized officer determines that additional protection or development nonuse is necessary.

However, the authorized officer should make adjustments in permitted livestock grazing, either numbers or seasons of use, if resource or development nonuse is determined by the monitoring conducted to not be effective in restoring the rangeland resource to the desired condition.

See section 18.5 for policy on waiver of a grazing permit when nonuse has been approved for resource protection and development purposes.

17.3 - For Range Research

Occasionally, a fact-finding institution or organization uses an allotment as a study area and grazes it with livestock not owned by the permittee. This may be done with consent of the grazing permit holder under agreement (MOU) between the Forest Service and other involved parties and under guidelines established by the Regional Forester.

Term permits in nonuse for research purposes may be waived in the same manner as permits that are in nonuse status for resource protection or development.

17.4 - For Changes in Kind or Class of Livestock Grazed

Do not approve nonuse in conjunction with requests for changes in kind or class of livestock to be grazed. Modify the existing term permit to allow for trial changes in kind or class of livestock to be grazed. Estimates of grazing capacities should be conservative and subject to adjustment

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CHAPTER 10 - PERMITS WITH TERM STATUS during the trial. Do not make commitments to change kind or class of livestock until a final assessment of the proposal has been made.

18 - WAIVER AND ISSUANCE OF GRAZING PERMITS WITH TERM STATUS

BECAUSE OF CHANGES IN OWNERSHIP

18a - Forest Service Disclosures Associated with Sale of Permitted Livestock,

Base Property, or Both

Upon notification by a permittee or a prospective purchaser of permitted livestock, base property, or both, that a sale or waiver is in progress the authorized officer shall offer to provide both parties with information concerning the status of the term grazing permit. Before accepting a waiver from the seller and issuing a new permit to the buyer, the authorized officer shall provide both parties with a thorough explanation of the requirements for waiver of the existing permit and issuance of a new permit. As part of this disclosure, the authorized officer should advise the seller and buyer about the current condition of rangeland resources and anticipated changes to the grazing capacity or management systems that may be reasonably foreseeable in the near future. Where applicable, the authorized officer should notify the prospective purchaser that the permit, if issued, may be subject to the following:

1. Planned modifications to permitted livestock numbers, seasons of use, or grazing management systems.

2. Changes that allotment monitoring indicate are necessary.

3. Applicable direction in land and resource management plans and allotment management plans.

4. Existing resource protection nonuse agreements.

5. Other changes that may become necessary as the result of changes in law, regulation,

LRMPs, AMPs, NEPA analysis and project decisions, or other similar and legally binding requirements.

In cases of a sale consummated before the authorized officer receives notification, the authorized officer shall provide the purchaser with the above information before issuing the permit.

18.1 - Transactions with Permit Waiver

Subject to applicable eligibility and qualification requirements (and upper and lower limit restrictions, where applicable (sec. 12.5)), the following briefly describes some of the transactions that may be the basis for the waiver of term grazing permits from the permit holder to the Forest Service and for the authorized officer’s issuance of a new permit to a permit applicant.

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18.11 - Sales with Waiver

The most common type of transaction typically involves a contract reflecting an “arms length” agreement between a seller and a buyer under which the former transfers title to the base ranch property, permitted livestock, or both to the latter based upon the latter’s payment of money or other “good and valuable consideration” either as a one time payment or by payments over time.

18.12 - Sales Within family

Children who purchase or otherwise acquire base property or permitted livestock from their parents who are permittees may be issued a permit. In order to encourage continuation of family operations, parent permittees may directly waive term grazing permits to their children recognizing the children's livestock as a portion of the permitted livestock in the waiver if the animals were grazed during the last grazing season under the parents' term grazing permit.

18.13 - Contracts to Purchase with Waiver

Issuance of a term grazing permit in connection with a contract to purchase base property or permitted livestock may be allowed in the same manner as term grazing permits issued because of sale and purchase of base property or permitted livestock. However, terms of the contract should be examined to ensure it is a bona fide transaction. Full or partial payment for the livestock and/or base property should be made under the contract prior to the issuance of a new term grazing permit.

18.14 - Inheritance

Term grazing permits may be issued to parties who inherit base property or permitted livestock and who are otherwise eligible and qualified to hold a term grazing permit. Recognize such permits in the same manner as term grazing permits issued because of sale and purchase of base property or permitted livestock.

Strict compliance with the qualification requirements may not be appropriate during settlement of an estate. An estate shall be required to meet all qualification requirements within three years unless the Administrator of the Estate can document why it would be inequitable to do so.

18.15 - Partnership Agreements

Permittees may enter into partnership agreements among themselves or establish corporations.

Alternatively, permittees may enter into a partnership agreement or establish corporations with individuals who are not permittees. In either case, arrangements which result in a change in the status of a permittee will require the waiver of the old permit to the Forest Service and the issuance of a new permit by the authorized officer to the new entity assuming it meets base property and livestock ownership qualification requirements.

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In order to qualify for the new permit, ownership of both the base property and livestock must be in the name of the same entity. Thus, the qualification requirements will not be satisfied, for example, if one entity owns the base property while another entity owns the permitted livestock unless for estate planning purposes two separate entities comprised of the same individuals are formed – one to hold the base property and one to hold the livestock. While the individuals comprising each entity must be the same, their ownership percentages in the entities may be different. Formation and documentation of partnerships and corporations must be in accordance with applicable state law and regulations.

18.16 - Division of Interests

Permits held by partnerships or corporations may be waived to the Forest Service upon the dissolution of the partnership or corporation. In this situation, the authorized officer may issue term grazing permits to the former partners or shareholders in proportion to their ownership interest in the dissolved partnership or corporation or in accordance with the terms of the dissolution agreement. However, each former partner or shareholder seeking a permit must meet the requisite eligibility and qualification requirements for term grazing permits.

18.17 - Changes in Ownership of Corporation and Companies

When change in ownership involves actual sale or purchase of permitted livestock and/or base property, handle the transaction as a sale with waiver. For changes involving simply a change in partners or stockholders or the relative partnership interest or number of shares owned by the shareholders, waiver of the existing permit is unnecessary as there is no change in the actual permittee. Waiver would be appropriate only when the partnership or corporation merges with or is acquired by a separate entity and thereby loses its identity.

18.2 - Escrow Waivers

The escrow waiver documents a loan arrangement between a lender (mortgagee) and the permit holder (mortgagor). In recognition of a loan made by the lender to the permit holder, the Escrow

Waiver of Term Grazing Permit Privileges (Form FS-2200-13) results in the waiver by the permit holder to the Forest Service of all privileges associated with the term grazing permit except the privilege of grazing livestock. The Forest Service retains these privileges in escrow until such time as the permit holder satisfies his loan obligations with the lender and the lender’s

“release” of the escrow waiver. Escrow waivers recognize the mortgagee as the lien holder.

Original escrow waiver forms (both active and released) must be retained in the official permit files.

An escrow waiver may have been executed in connection with the mortgage of land, livestock, or both if a lender made or discounted a loan. If a permittee has executed an escrow waiver consider the permit privileges as held in escrow. However, the permit is subject to the same administrative action as any other permit. During the period of escrow, the permittee surrenders to the United States all privileges previously allowed except the privilege of continuing to graze

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CHAPTER 10 - PERMITS WITH TERM STATUS livestock. The escrow waiver establishes preferred applicant status in the lender in the event of foreclosure. The confirmation of an escrow waiver by the authorized officer does not establish collateral in the amount of the outstanding indebtedness.

The escrow waiver is released upon receipt of a written statement from the lender that acknowledges that the escrow arrangement is no longer necessary. This should normally be done by completing the required information on the reverse of Form FS-2200-13.

As a courtesy, the authorized officer shall notify all lenders listed on the escrow waiver of actions to cancel or suspend a term grazing permit in whole or in part or modifications of a term grazing permit which reduce numbers and/or seasons of permitted use. However, it is not necessary for the authorized officer to defer making such a change because a term grazing permit is held in escrow. The permittees shall contact the lender regarding changes in the status of the term grazing permit.

The authorized officer shall only recognize one lien holder on an escrow waiver. The only entity authorized to hold a second escrow waiver is the Farm Services Agency in which case the authorized officer may accept a second escrow waiver form.

The escrow waiver system was originally established in a 1938 MOU between the Secretary of

Agriculture and the Governor of the Farm Credit Administration. This agreement was terminated on August, 1990 A new MOU was executed in December, 1990 by the Farm Credit

Banks and the Forest Service that clarified the Forest Service’s ability to take action on violations of grazing permit terms and conditions held in escrow. The 1990 MOU also updated terminology that had been used in the 1938 agreement. (See ex. 01).

The Farm Credit Banks are often referred to as Federal Land Banks. While these banks are organized under a Federal Bank Charter, they are not Federal Banks and have no ties to the

United States government. As such they are not sister agencies in the government of the United

States.

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18.2 – Exhibit 01, MOU with Farm Credit Banks

MEMORANDUM OF UNDERSTANDING between the

FARM CREDIT BANKS and the

FOREST SERVICE

UNITED STATES DEPARTMENT OF AGRICULTURE

This memorandum of understanding between the United States Department of Agriculture,

Forest Service (hereafter Forest Service), and the undersigned Farm Credit Banks for and on behalf of themselves, the direct lending Farm Credit associations in their respective districts, and other financing institutions as described in Section 1.7(b)(1)(B) of the Farm Credit Act, as amended (12 U.S.C. 2015(b)(1)(B)), with respect to loans that are discounted by or pledged to the Bank under Section 1.7(b)(1) of the Act (12 U.S.C. 2015(b)(1)) (hereafter collectively referred to as Lender), dated December 21, 1990, is for the purpose of encouraging a maximum degree of cooperation and stating the policy regarding the limitation of the use of the grazing privilege by a permittee when he secures a loan from or whose loan is discounted by, a Farm

Credit Bank, association, or other financing institution, pledging as security therefor his livestock or ranch unit, or both.

In providing instructions for escrow waivers of the term grazing permit privilege to the United

States to be held in escrow, it is with distinct understanding that there shall be no limitation, restriction, or impairment of the authority of the Forest Service to dispose of the escrowed privilege as circumstances justify.

This memorandum is further based upon the following stipulations:

1. It is mutually understood, agreed, and recognized that: (a) the grazing privilege is not a property right, and (b) no vested right may or shall be created by reason of this cooperative agreement.

2. It is recognized by the Lender that such a limitation as is proposed herein meets the

"reasonable assurance" of continued use required under the Federal Farm Loan Act and any acts amendatory thereof or successor thereto where loans are made to livestock producers who graze on National Forest System lands.

3. Before a loan is made to a National Forest System grazing permittee, the Lender shall definitely ascertain from the authorized Forest Officer the status of the grazing privilege and the degree, if any, to which it is involved in any other transaction, waiver, etc. The Forest Service will state specifically the status of the privilege and the probable effect on that privilege of applying the provisions of the regulations and currently approved policies.

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18.2 – Exhibit 01 (Continued)

4. If the permittee elects to qualify temporarily his personal privilege by the execution of a waiver in negotiating a loan on his livestock or land, or both, he may do so by surrendering to the United States on "Escrow Waiver of Term Grazing Permit Privileges" all privilege heretofore carried by his permit except the privilege of continuing to graze his stock on the National Forest

System range under the provisions of his grazing permit, pending satisfaction of the mortgage or a written statement by the Lender that it no longer relies upon the escrow arrangement. When the waiver, thus executed on such a special form provided for the purpose, has been filed with the authorized officer, no waiver subsequently presented will be recognized.

5. If for any reason it should become necessary to cancel or suspend, in whole or in part, further use of the permittee-borrower's permit to graze, the permittee and the Lender will be given written notice of the reason(s) and the action against the permit being considered. Such notice will give the permittee and Lender a specific period to respond before the Forest Service makes its decision to cancel or suspend the permittee's permit to graze.

If the cancellation or suspension is a result of the permittee's noncompliance with the permit or regulations, the action against the permit will be effective on the deadline specified in the decision.

6. If a permit is modified for resource protection as determined by the Forest Service, the action against the permit will be effective 1 year from the date of the Forest Service decision.

This will allow time for the permittee to adjust his operation.

7. Should it become necessary for a Lender to liquidate a loan in connection with which a privilege has been waived to the Government, the Forest Service will, subject to its regulations and general administrative policy, recognize the Lender as the logical successor to the privilege and will accord the Lender the same consideration with respect to cuts, renewals, and range allotment as would customarily be accorded individual local permittees, recognizing, however, that after obtaining possession of the base ranch properties or permitted livestock there may be some instances when disposition may require a longer period than to the beginning of the second season. The Lender mentioned in the "Escrow Waiver of Term Grazing Privileges" or receiver or liquidator appointed under foreclosure of its mortgage may qualify for a permit if any institution of the Farm Credit System owns or controls the base property or the livestock that will be run on the Forest lands by virtue of this permit. It is recognized that a "special limit" will be approved when base ranch properties and associated grazing privileges are accumulated by a

Lender where such accumulation is only incidental to the liquidation of mortgage loans through foreclosure or otherwise.

8. Questions pertaining to the handling of permittee-borrower cases not specifically provided for in this agreement will be governed by Secretary of Agriculture regulations and

Forest Service policy and instructions, as set forth in their manual and handbooks.

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18.2 – Exhibit 01 (Continued)

9. This agreement shall continue in full force and effect for an indefinite period unless terminated by written notice by either party to the other. Provided, however, that it is understood and agreed that any renewal of a term or annual permit shall be in the discretion of the Forest

Service and made subject to the policy with respect to reduction and other conditions deemed necessary for the proper administration of the range on the part of the Forest Service; and provided further that in case the agreement is terminated, it is understood and agreed that any outstanding loans in connection with which the grazing privilege has been escrowed with the

United States will continue to be covered, and the arrangement shall continue in effect until the mortgage is satisfied or the Lender formally indicates that it no longer relies upon the escrow arrangement.

Approved by the United States Department of Agriculture, Forest Service, and the undersigned

Farm Credit Banks, for and on behalf of themselves, the direct lending Farm Credit associations in their respective districts, and other financing institutions as described in Section 1.7(b)(1)(B) of the Farm Credit Act, as amended (12 U.S.C. 2015(b)(1)(B), with respect to loans that are discounted by or pledged to the Bank under Section 1.7(b)(1) of the Act, on the day and year first above written.

UNITED STATES DEPARTMENT OF AGRICULTURE

FOREST SERVICE

By /s/ George M. Leonard

F.DALE ROBERTSON, Chief (Title)

FARM CREDIT BANK OF OMAHA

By /s/ Frank J. Hutfless

Frank J. Hutfless, Sr. VP &

General Counsel

(Title)

FARM CREDIT BANK OF SPOKANE

By /s/ Doyle L. Cook

Doyle L. Cook, President and (Title)

Chief Executive Officer

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18.2 – Exhibit 01 (Continued)

FARM CREDIT BANK OF ST. PAUL

By /s/ Raymond A. Johns

Executive Vice Pres.

FARM CREDIT BANK OF TEXAS

(Title)

By /s/ J. E. Lewis

J.E. Lewis, Sr. Vice President (Title)

FARM CREDIT BANK OF WICHITA

By /s/ R. S. Carpenter

RICK CARPENTER, Acting President (Title)

WESTERN FARM CREDIT BANK

By /s/ George D. Beitzel, C.E.O

(Title)

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18.3 - Foreclosure in Connection With Grazing Permits

18.31 - Foreclosure With Waiver Of Term Grazing Permit

A mortgagee at a forced sale who presents the authorized officer with a duly executed Waiver of

Term Grazing Permit on Form 2200-12 shall have priority applicant status and use of the permit for one full grazing season after assuming control of the livestock operation, regardless of the status of the mortgagee's other qualifications. Thereafter, the mortgagee must comply with the eligibility and qualification requirements in order to qualify for issuance of the permit.

18.32 - Foreclosure With Escrow Waiver

Procedures for all escrow waivers were established in the terminated Memorandum of

Understanding between the Department of Agriculture and the Farm Credit Administration dated

February 10, 1938. The Memorandum of Understanding between the Department of Agriculture and the Farm Credit Administration dated December 21, 1990 (FSM 1540) includes this direction and also provided clarification of the role of the Forest Service in actions concerning grazing permits with term status and escrow waivers. The word "preference" as used in exhibit

01 has the same meaning as grazing permit with term status under present instructions. Form

2200-13, Escrow Waiver of Term Grazing Permit Privileges currently replaces Special Form

763(a).

18.33 - Foreclosure Without Escrow Waiver

An entity that acquires livestock or base property through foreclosure proceedings without an escrow waiver shall receive no special consideration over an ordinary purchaser.

18.34 - Repossession by Previous Owner

Repossession by the previous owner through legal foreclosure is not considered a sale.

Consequently, the two-year prohibition against the resale of permitted livestock or base property purchased in connection with issuance of a term grazing permit to the previous seller is inapplicable. (sec. 18.4, No.2).

18.35 - Redemption

Redemption is a process under State law that allows an individual to recover property that has been foreclosed upon and subsequently sold. Generally, a party may redeem property by paying into the court the amount that was due and owing at the time of the foreclosure. If this is done within the time prescribed by law, the party may recover the property that was foreclosed upon and resume operations thereon.

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Because redemption is a right which may be freely sold or granted to another individual, it is advisable for the authorized officer to delay issuing a new term grazing permit to the individual who acquires the property through a foreclosure sale until the redemption period has expired.

Redemption procedures vary from state to state and therefore it is recommended that the authorized officer consult with the regional range management specialist or an attorney in the local Office of the General Counsel office to become more familiar with the specific requirements in a particular state. .

18.4 - Transactions Without Escrow Waiver

A buyer who purchases ranch property or permitted livestock from a term permit holder who does not execute a waiver shall receive no special consideration over other applicants.

18.5- Bankruptcy

If unable to pay its debts, a term permit holder may file a petition with the United States

Bankruptcy Court under one of the chapters of the Bankruptcy Code to gain relief from the collection of these debts.

When a permittee files a petition for bankruptcy, the Bankruptcy Court will appoint a trustee in bankruptcy (or the permittee will be designated by the court as the Debtor-in-Possession) to administer the permittee’s estate during the proceedings. Generally, the Debtor-in-Possession has all of the rights and duties of a trustee in bankruptcy.

Once a petition for bankruptcy is filed and a trustee or debtor in possession is designated, the authorized officer should direct all correspondence regarding the administration of the permittee’s term grazing permit to the attention of the trustee or debtor in possession. The trustee’s duties include, among other things, collecting and reducing to cash the assets of the estate, operating the debtor’s business to preserve the value of the business assets, examining the debtor at a meeting of creditors, filing inventories and making periodic reports to the court on the financial condition of the estate, examining the debtor’s financial affairs, examining proofs of claims and objecting to improper claims, and furnishing information to related to the bankruptcy to interested parties.

The filing of a petition for bankruptcy by a permit holder generally results in the following:

1. The permittee’s property becomes an "estate" under the jurisdiction of the Bankruptcy

Court (11 USC 1471 and 541).

2. Creditors and other persons are prevented from taking action directly against the permittee and his/her property by an automatic stay. Violation of the stay may be treated as contempt of court by the Bankruptcy Court.

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3. Actions by the Forest Service to collect grazing fees or to cancel, suspend, or modify a permit may require approval of the Bankruptcy Court because the permit action could have a significant effect on the value of the permittee’s estate. Approvals of such requests may be granted by the Clerk of the Bankruptcy Court in the form of a "Relief from Stay" order.

Bankruptcy is a highly specialized field and specific questions should be directed to the appropriate attorneys in OGC.

18.51 - Types of Bankruptcy Filings

Bankruptcy filings are made under various Chapters of the Bankruptcy Code. Specifically, those chapters are

1. Chapter 7. This chapter provides for liquidation (selling of assets) of the debtor's estate. In Chapter 7 proceedings, a trustee is appointed to handle the sales of the estate and to distribute the proceeds to the creditors. After administration costs for the liquidation of the debtor's estate are paid, the trustee pays all or part of the creditor’s claims against the estate.

2. Chapter 11. This chapter provides a means for Debtors to reorganize their business operations and be restored to economic health. Generally, the Debtor is in charge of this effort and is referred to as the "Debtor-in-Possession." The Debtor-in-Possession may be authorized by the Bankruptcy Court to deal with the Forest Service on all issues pertaining to grazing of livestock on NFS lands. Consult the Clerk of the Bankruptcy Court to determine who the authorized officer should be dealing with in regard to grazing of livestock on NFS lands.

3. Chapter 12. This chapter provides a special procedure for the reorganization of agricultural debts of a family farmer with regular annual income. This chapter has features resembling both Chapters 11 and 13. The treatment of the eligible "family farmer" is substantially similar to Chapter 13 and the protections and remedies afforded to creditors are essentially similar to Chapter 11. As in Chapter 11 cases, there is a presumption that the debtor will continue as the Debtor-in-Possession with respect to the farming and/or ranching operation.

4. Chapter 13. This chapter provides a procedure for persons with regular income to adjust their debts. As in chapters 11 and 12, the debtor usually remains as the Debtor-in-

Possession. If this is not clear, the authorized officer should check with the Clerk of the

Bankruptcy Court to determine what authority the Debtor-in-Possession has to deal with the

Forest Service.

18.52 - Status of Permit

The term grazing permit does not automatically become a part of the bankrupt’s estate. The debtor, the Debtor-in-Possession, nor Trustee is bound to perform the terms and conditions of the permit after a petition in bankruptcy is filed with the Bankruptcy Court. A definite action must be taken by them to assume the requirements of the permit. If the permit is not assumed by the

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Trustee or Debtor-in-Possession, neither the estate nor the debtor have any remaining privileges under the permit.

It should be understood that the Forest Service’s responsibility to administer livestock grazing activities on NFS lands according to applicable law and regulation exists regardless of whether a permit holder has filed a petition for bankruptcy. As a result, the authorized officer must be willing to take appropriate action to administer grazing on the permittee’s allotment(s) after the bankruptcy petition is filed even if to do so might result in a reduction in the value of the estate.

During the course of bankruptcy proceedings, it may be necessary to explain to the court that term grazing permits are privileges issued by the Federal Government to the permittee and not contracts. The Bankruptcy Court may attempt to treat these relationships as contracts. Constant reminders to the Bankruptcy Court of the difference between rights and privileges may be necessary to ensure that mistakes in dealing with the bankrupt estate are not made due to a misunderstanding.

All correspondence concerning the term grazing permit and actions required to maintain it in good standing must be addressed to the Trustee or the Debtor-in-Possession. The name and address of this individual can be obtained from the clerk of the Bankruptcy Court.

The United States is represented in Bankruptcy Court by the United States Attorney in the State where the bankruptcy is filed. All actions involving the Bankruptcy Court must be coordinated with the Regional Range Management Specialist, who will work with the Office of the General

Counsel and the U.S. Attorney to ensure the interests of the United States are protected.

18.53 - Actions by the Authorized Officer

Listed below are a series of actions that should be taken when the authorized officer learns of the possibility of bankruptcy by a term grazing permit holder:

1. Confirm that a bankruptcy proceeding has been filed by contacting the permittee or the Clerk of the Bankruptcy Court. The Clerk can provide information about: a. The date bankruptcy was filed. b. The Chapter the bankruptcy was filed under. c. The name and address of the trustee in bankruptcy or Debtor-in-Possession. d. Whether the term grazing permit(s) is listed as one of the assets of the debtor’s estate.

2. The authorized officer shall determine the amount of any outstanding debts owed to the Forest Service by the bankrupt and should notify the regional range management specialist of

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CHAPTER 10 - PERMITS WITH TERM STATUS the bankruptcy filing. The regional range management specialist will contact the Office of the

General Counsel that will initiate discussions with the Office of the United States Attorney in the state in which the bankruptcy was filed. The U.S. Attorney will assure the interests of the United

States are protected.

3. The authorized officer should determine if the Debtor-in-Possession or the Trustee wants to assume the term grazing permit as a part of the debtor's estate or if they have rejected it. If the latter situation occurs, the authorized officer should notify the Bankruptcy Court of the consequences of this action and also that, with the permission of the Bankruptcy Court, the authorized officer may take actions to permit livestock grazing on the allotment(s) by another party.18.5 - Prohibition on Direct Permit Transfers from Sellers to Buyers of Base Property and/or Permitted Livestock

When a document that purports to assign or transfer a grazing permit from the seller of base property and/or livestock to the purchaser is received, the authorized officer should notify the seller, purchaser, lending agency, and any other agent(s) in writing of the following:

Documents offered as evidence of the purchase of livestock or base property are unacceptable to the extent they purport to assign or transfer a grazing permit. Purported assignments of grazing permits are not of legal consequence to the United States.

18.6 - Documentation Required for Permit Issuance Following Sale and Purchase of Permitted Livestock and/or Base Property

The authorized officer must have satisfactory evidence that the sale and purchase of permitted livestock and/or base property was a bona fide transaction between the seller and purchaser prior to issuing a new term permit to the purchaser. In order to demonstrate that the transaction was conducted in good faith, the purchaser of permitted livestock and/or base property must present, at a minimum, the following documents:

1. A completed Waiver of Term Grazing Permit (Form FS-2200-12).

2. An Application for Term Grazing Permit (Form FS-2200-16). A permit application submitted by a purchaser of permitted livestock, base property, or both may be rejected or a term grazing permit issued to such a purchaser may be canceled if: i) livestock identified in the application for the term grazing permit were not the same livestock (or offspring retained for herd replacement) that were grazing on the affected National Forest System lands at the time of purchase (or the immediately preceding grazing season if the purchase occurred outside the designated grazing season); ii) the purchaser does not desire to graze the purchased livestock on

National Forest System lands or other lands under Forest Service control during the season following purchase, fails to document the reasons in a letter to the authorized officer, and does not receive written approval from the authorized officer to not stock the allotment. Reasons might include, among others, the need for greater than normal replacement, beef or lamb sales,

R6/PNW SUPPLEMENT FSH-2209.13-2005-1

EFFECTIVE DATE: December 15, 2005

DURATION: This supplement is effective until superseded or removed.

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CHAPTER 10 - PERMITS WITH TERM STATUS culling, disease, or change in class of livestock. If the applicant will not have sufficient livestock to validate the term grazing permit, a term grazing permit shall not be issued and the applicant shall be notified of their preferred applicant status in a letter (sec. 14.11). The purchaser does not use base property purchased in connection with issuance of a grazing permit with term status as base property during the year immediately following the purchase; the ownership of livestock or base property reverts from the buyer back to the seller within two years of the date of sale except under foreclosure proceedings (sec. 18.7).

3. A properly executed and recorded or notarized bill of sale, with canceled check or receipt to document sale of permitted livestock, and/or properly executed and recorded deed or contract to purchase base property.

4. Any additional documents deemed necessary by the authorized officer as evidence of the conveyance.

When an applicant for a term grazing permit furnishes the required information in good faith, which is later determined to have errors or defects; a term grazing permit issued based on such information maybe continued. No correction that would have adverse effects on the permittee’s operation should be made, but corrections that would not cause adverse effects must be made.

The later discovery of error or defect will not be cause for suspension nor cancellation.

18.7 - Nonuse

Permits in partial nonuse for permittee convenience can be waived based on the sale of permitted livestock only to the extent of the livestock numbers placed on NFS lands during that grazing season. Permits in total or partial nonuse for permittee convenience can be waived based on the sale of base property.

Permits in nonuse for research and resource protection or development may be waived in their entirety on the basis of either sale of livestock or base property

19

– GENERAL ADMINISTRATION OF GRAZING PERMITS

19.1 - Determination for Priority for Allotment Administration

The goal of allotment administration is to monitor every allotment every year to a professional standard. However, where staff and resources are limited, the authorized officer must determine which grazing allotments are the highest in priority for administration. Annually each unit shall identify certain allotments and associated grazing permits, in a priority order to be monitored. In determining allotment priority, the authorized officer shall consider the permittee’s history of compliance, identified resource problems which have not been resolved, new or emerging resource issues allotments with outdated AMPs and allotments with new AMPs that are currently being implemented and evaluated for compliance and effectiveness.

R6/PNW SUPPLEMENT FSH-2209.13-2005-1

EFFECTIVE DATE: December 15, 2005

DURATION: This supplement is effective until superseded or removed.

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Priority allotments will be monitored by an Agency employee qualified in grazing permit administration. Monitoring is accomplished through evaluation of the effects of grazing use by authorized livestock on the rangeland resource while implementing direction found in LRMPs,

AMPs term grazing permits or grazing agreements, biological opinions or other documents developed to guide livestock grazing on the a area.

Attainment of desired condition should not be confused with administering an allotment to

“Standard”. Administering an allotment “to standard” may lead to the attainment of desired conditions (in either the short or long term) or may merely reflect that additional modifications in the grazing strategy are necessary.

19.2 - Documentation of Allotment Administration

Documentation of allotment inspections and monitoring shall be done electronically using the format in INFRA or other corporate databases to the degree feasible and should also include timely documentation and notification to the permittee(s). An electronic format provides a consistent form to collect and document pertinent allotment administration and inspection information. It can be utilized to collect and code LRMP monitoring information for later inclusion in annual or periodic LRMP or Biological Opinion monitoring reports.

As soon as possible after allotment inspection or monitoring occurs, field personnel should record pertinent information from personal observations and written notes taken during the inspection. The permittee must be notified in person or by telephone of any items needing immediate attention. An inspection report should be completed as a minimum on those allotments identified as priorities to be administers for the year in a timely manner to allow the permittee full access to information needed to make corrections in livestock management and ensure compliance with the terms and conditions of the term grazing permit, including the AOI.

Electronic inspection notes can be printed and filed in the official 2230 permit folder with a copy sent to the permittee.

This documentation can serve as a basis for discussions with permittees regarding:

1. Corrective actions needed to ensure compliance, including as appropriate Notices of

Noncompliance and decision letters (sec. 16.2).

2. Completion of annual reporting

3. Development of AOIs for the next grazing season and,

4. Documentation of management success stories and the permittees contribution to that success.

R6/PNW SUPPLEMENT FSH-2209.13-2005-1

EFFECTIVE DATE: December 15, 2005

DURATION: This supplement is effective until superseded or removed.

2209.13,10

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19.3 - Definitions and Monitoring Methodology for Land and Resource

Management Plan (LRMP) Standards

LRMPs may not provide specific direction on how standards related to livestock grazing are applied or measured and it may be necessary to clarify in the project level decision (AMP) how

LRMP standards will be applied and measured to ensure uniform understanding. LRMP standards must be clearly understood by both Agency personnel and permittee(s) before documentation of compliance with them can be accomplished.

List applicable LRMP standards and guidelines pertaining to livestock grazing for fisheries, riparian or upland vegetation and wildlife habitat that will be the basis of monitoring and administration of livestock grazing in Part 3 (FS 2200-10 a) of the term grazing permit. A detailed description of how the LRMP standards and guidelines listed in Part 3 of the term grazing permit will be interpreted and measured on the should be provided in the AOI each year.

This will ensure consistency between observers and understanding with grazing permittees as to how compliance is measured and determined.

19.4 - Documentation of Compliance with Grazing Permit Terms and Conditions and LRMP Standards

Permittees are responsible for meeting the terms and conditions of the grazing permit and moving livestock to ensure compliance with management guidelines. Agency personnel are responsible for ensuring permittees comply with grazing permit terms and conditions and performing monitoring to determine if objectives are being met.

For priority allotments a determination of compliance with grazing permit terms and conditions and LRMP standards should occur annually and be completed by the authorized officer and necessary data entered into INFRA by the end of the grazing season. This compliance determination should be documented electronically on appropriate inspection forms and in letters to the permittee. Based on inspection data and personal knowledge of the allotment, the authorized officer should determine whether livestock grazing on the allotment met LRMP standards and grazing permit terms and conditions during the grazing season. Where standards were not met, the authorized officer should identify corrective actions that will result in improved management in the next grazing season. A determination of compliance will not be made if an allotment did not receive a physical inspection by a technically qualified agency employee during or after the grazing season.

The permittee should be provided with all inspection reports in a timely manner. The intent is to ensure full communication between the Agency and the permittee(s) to ensure meeting of required management standards and to allow the permittee(s) a reasonable opportunity to correct any management deficiencies in a timely manner. It is also desirable to ensure that the permittee(s) are made aware of the status of the allotment as to whether it is reported as meeting or not meeting standards.

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