[Federal Register: June 5, 2008 (Volume 73, Number 109)]
[Notices]
[Page 32043-32048]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr05jn08-78]
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DEPARTMENT OF THE INTERIOR
Bureau of Indian Affairs
Rate Adjustments for Indian Irrigation Projects
AGENCY: Bureau of Indian Affairs, Interior.
ACTION: Notice of rate adjustments.
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SUMMARY: The Bureau of Indian Affairs (BIA) owns or has an interest in
irrigation projects and facilities located on various Indian
reservations throughout the United States. We are authorized to
establish rates to recover the costs to administer, operate, maintain,
and rehabilitate those facilities. We are notifying you that we have
adjusted the irrigation assessment rates at several of our irrigation
projects and facilities for operation and maintenance.
DATES: Effective Date: The irrigation assessment rates shown in the
tables are effective on January 1, 2008.
FOR FURTHER INFORMATION CONTACT: For details about a particular BIA
irrigation project or facility, please use the tables in SUPPLEMENTARY
INFORMATION section to contact the regional or local office where the
project or facility is located.
SUPPLEMENTARY INFORMATION: A Notice of Proposed Rate Adjustment was
published in the Federal Register on February 8, 2008 (73 FR 7583) to
adjust the irrigation rates at several BIA irrigation projects and
facilities. The public and interested parties were provided an
opportunity to submit written comments during the 60-day period that
ended April 8, 2008.
Did the BIA Defer Any Proposed Rate Increases?
For the Fort Belknap Indian Irrigation Project, the BIA, in
consultation with the Gros Ventre and Assiniboine Tribes and Project
water users, has deferred the rate increase for 2008.
[[Page 32044]]
Did the BIA Receive Any Comments on the Proposed Irrigation Assessment
Rate Adjustments?
Written comments were received for the proposed rate adjustments
for the Blackfeet Irrigation Project, Fort Belknap Irrigation Project,
and the Wind River Irrigation Project.
What Issues Were of Concern by the Commenters?
Individuals and entities commenting on the proposed rates for 2008
were concerned with one or more of the following issues: (1) How funds
are expended for operation and maintenance (O&M) costs; (2) how rate
increases are justified and communicated to water users; (3) how rate
increases impact the local agricultural economy and individual land
owners; (4) the role of the BIA's Central Office in managing projects
and the burden of federal regulations; (4) land owners without access
to project water being assessed irrigation charges; (5) the BIA's non-
delivery of water to water users with outstanding O&M charges; and (6)
the BIA's trust responsibility for projects. The following comment is
specific to the Wind River Irrigation Project: users assert that O&M
rates should not be adjusted until a study of the project's irrigable
and assessable acreage is completed.
How Does the Bia Respond to Concerns Regarding How Funds Are Expended
for O&M Costs?
The BIA considers the following expenses when determining an
irrigation project's budget: project personnel costs; materials and
supplies; vehicle and equipment repairs; equipment; capitalization
expenses; acquisition expenses; rehabilitation costs; maintenance of a
reserve fund for contingencies or emergencies; and other expenses that
we determine are necessary to properly operate and maintain an
irrigation project.
One common misconception water users have is that all salary costs
are administrative. Only a portion of each project's budget is for
administrative costs. The administrative costs for a project includes
office costs, office staff (accounting and clerical), and a portion of
the project manager's salary. Non-administrative costs are the cost to
operate and maintain the project or facility. Operation and maintenance
workers perform operation and maintenance work, thus their salaries are
considered operation and maintenance costs, not administrative costs.
All projects need essential personnel to operate and maintain the
project, including a project manager, accounting staff, and irrigation
system operators (ditchriders).
How Does the Bia Respond to Concerns Regarding the Justification for
and Communication of Rate Increases to Land Owners?
BIA policy states that irrigation project managers are required to
meet, at a minimum, twice annually with their water users--once at the
end of the irrigation season and once before the next season. For
projects that operate year-round, project managers will determine the
best schedule for holding these meetings. At these meetings, irrigation
staff will provide water users with information regarding project
operations--including budget plans and actual annual expenditures--and
obtain feedback and input from water users.
Individuals concerned with the BIA's management of its projects and
its O&M rates may review the BIA's records at their convenience. The
BIA's project budget estimates and expense records are available for
review by stakeholders or interested parties. Stakeholders (water
users, land owners, or tribes) can review these records during normal
business hours at the individual agency office. Alternatively,
stakeholders or interested parties may request project records under
the Freedom of Information Act (FOIA). The BIA will provide copies of
such records to the requesting party in accordance with FOIA.
To review or obtain copies of project records, stakeholders and
interested parties should contact the BIA representative at the
specific project or facility serving them, using the tables in the
SUPPLEMENTARY INFORMATION section below.
How does the BIA respond to concerns regarding the impact of irrigation
assessment rate increases on local agricultural economies and
individual land owners?
The BIA's projects are important economic contributors to the local
communities they serve. These projects contribute millions of dollars
in crop value annually. Historically, the BIA tempered irrigation rate
increases to demonstrate sensitivity to the economic impact on water
users. This past practice resulted in a rate deficiency at some
irrigation projects. The BIA does not have discretionary funds to
subsidize irrigation projects. Funding to operate and maintain these
projects needs to come from revenues from the water users served by
those projects.
Over the past several years, the BIA's irrigation program has been
the subject of several Office of Inspector General (OIG) and GAO
audits. In the most recent OIG audit, No. 96-I-641, March 1996, the OIG
concluded: ``Operation and maintenance revenues were insufficient to
maintain the projects, and some projects had deteriorated to the extent
that their continued capability to deliver water was in doubt. This
occurred because operation and maintenance rates were not based on the
full cost of delivering irrigation water, including the costs of
systematically rehabilitating and replacing project facilities and
equipment, and because project personnel did not seek regular rate
increases to cover the full cost of project operation.'' A previous OIG
audit performed on one of the BIA's largest irrigation projects, the
Wapato Indian Irrigation Project, No. 95-I-1402, September 1995,
reached the same conclusion.
To address the issues noted in these audits, the BIA must
systematically review and evaluate irrigation assessment rates and
adjust them, when necessary, to reflect the full costs to properly
operate and perform all appropriate maintenance on the irrigation
project or facility infrastructure to ensure safe and reliable
operation. If this review and adjustment is not accomplished, a rate
deficiency can accumulate. Rate deficiencies force the BIA to raise
irrigation assessment rates in larger increments over shorter periods
of time than would have been otherwise necessary.
How does the BIA respond to concerns regarding the role of the BIA's
Central Office in managing projects and the costs associated with
complying with federal regulations?
The BIA must follow Federal regulations as it operates and
maintains the projects under its ownership or control. Specifically,
the BIA must follow Federal guidelines in hiring and compensating
personnel to operate and manage irrigation projects. The BIA sets rates
in accordance with the criteria identified above. The BIA Central
Office does not unilaterally impose rate increases on projects. The BIA
is reviewing various options for cost savings, including turning over
projects or sections of projects to water users and sharing personnel
between or among projects.
[[Page 32045]]
How does the BIA respond to concerns regarding land owners without
access to project water being assessed irrigation charges?
As mentioned above, OIG and GAO performed audits on the BIA
irrigation program and noted that the BIA has not set irrigation
assessment rates at levels high enough to operate and maintain its
irrigation projects. The BIA has been increasing rates to address this
concern. Because rates were low for many years, numerous maintenance
items were deferred. At some projects, this deferral resulted in the
BIA's inability to deliver water to all users. To assist water users in
this regard, the BIA updated its Irrigation Operations and Maintenance
regulations, 25 CFR part 171, to allow a water user to apply for a
waiver of irrigation assessment charges if the BIA is incapable of
delivering water to that water user. To apply for this waiver, a water
user must meet with local project staff.
How does the BIA respond to concerns regarding the BIA's refusal to
deliver water to water users with outstanding O&M charges?
The BIA's irrigation regulations, 25 CFR part 171, require the BIA
to withhold irrigation services from users who have delinquent debt
with the BIA, including balances that have been referred to the United
States Treasury.
How does the BIA respond to comments regarding the BIA's trust
responsibility in relation to projects?
The BIA disagrees that increasing O&M rates for projects violates
any trust duty. The BIA has no trust obligation to operate and maintain
irrigation projects. See, e.g., Grey v. United States, 21 Cl. Ct. 285
(1990), aff'd, 935 F.2d 281 (Fed. Cir. 1991), cert. denied, 502 U.S.
1057 (1992). The BIA, pursuant to 25 U.S.C. section 381 et seq. and 25
CFR Part 171, has the responsibility to administer constructed
projects, set rates, collect assessments, and make decisions regarding
water delivery. The BIA must collect O&M assessments to operate and
maintain the irrigation infrastructure on its projects. Over time, the
costs of operating and maintaining these projects increases, and rates
must be adjusted accordingly to enable the BIA to continue to provide
irrigation services. Raising rates to reflect the full costs associated
with operating and maintaining projects is essential because O&M rates
are the only regular source of funding for the BIA's irrigation
projects.
How does the BIA response to the issue raised by users of the Wind
River Irrigation Project, that O&M rates should not be adjusted until
the re-designation study of the project's irrigable and assessable
acreage is completed?
The BIA levies assessments on lands to which its project is
authorized and capable of delivering water. Thus, a parcel's irrigation
history is immaterial to whether it is subject to an irrigation
assessment. The Secretary may deem lands within a project non-
assessable, in which case those lands may be removed from the project--
permanently or temporarily--with the landowner's consent. 25 U.S.C.
sections 389a, 389b. The redesignation study will not determine what
O&M assessment the lands could support. The study only determines if
the lands are irrigable and if they should remain assessable. The
overall O&M assessment for a project is based on its total assessable
acres. If the redeisgnation study recommends removing assessable acres
from the project, the O&M assessment rate would increase significantly
for those acres remaining in the project. Until such time as the land
re-designation study referenced by this commenter is finished,
individual users may apply for an annual assessment waiver under 25 CFR
part 171.
Did the BIA receive comments on any proposed changes other than rate
adjustments?
No.
Does this notice affect me?
This notice affects you if you own or lease land within the
assessable acreage of one of our irrigation projects, or you have a
carriage agreement with one of our irrigation projects.
Where can I get information on the regulatory and legal citations in
this notice?
You can contact the appropriate office(s) stated in the tables for
the irrigation project that serves you, or you can use the Internet
site for the Government Printing Office at http://www.gpo.gov.
What authorizes you to issue this notice?
Our authority to issue this notice is vested in the Secretary of
the Interior by 5 U.S.C. section 301 and the Act of August 14, 1914 (38
Stat. 583; 25 U.S.C. 385). The Secretary has in turn delegated this
authority to the Assistant Secretary--Indian Affairs under Part 209,
Chapter 8.1A, of the Department of the Interior's Departmental Manual.
Whom can I contact for further information?
The following tables are the regional and project/agency contacts
for our irrigation projects and facilities.
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Project name Project/agency contacts
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Northwest Region Contacts
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Stanley Speaks, Regional Director, Bureau of Indian Affairs, Northwest
Regional Office, 911 N.E. 11th Avenue, Portland, OR 97232-4169,
Telephone: (503) 231-6702.
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Flathead Irrigation Project....... Chuck Courville, Acting
Superintendent, Flathead Agency
Irrigation Division, P.O. Box 40,
Pablo, MT 59855-0040, Telephone:
(406) 675-2700.
Fort Hall Irrigation Project...... Eric J. LaPointe, Superintendent,
Alan Oliver, Supervisory General
Engineer, Fort Hall Agency, P.O.
Box 220, Fort Hall, ID 83203-0220,
Telephone: (208) 238-2301.
Wapato Irrigation Project......... Pierce Harrison, Project
Administrator, Wapato Irrigation
Project, P.O. Box 220, Wapato, WA
98951-0220, Telephone: (509) 877-
3155.
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Rocky Mountain Region Contacts
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Ed Parisian, Regional Director, Bureau of Indian Affairs, Rocky Mountain
Regional Office, 316 North 26th Street, Billings, MT 59101, Telephone:
(406) 247-7943.
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Blackfeet Irrigation Project...... Stephen Pollock, Superintendent, Ted
Hall, Irrigation Project Manager,
Box 880, Browning, MT 59417,
Telephones: (406) 338-7544,
Superintendent, (406) 338-7519,
Irrigation Project Manager.
Crow Irrigation Project........... George Gover, Superintendent, Karl
Helvik, Irrigation Project Manager,
P.O. Box 69, Crow Agency, MT 59022,
Telephones: (406) 638-2672,
Superintendent, (406) 638-2863,
Irrigation Project Manager.
[[Page 32046]]
Fort Belknap Irrigation Project... Judy Gray, Superintendent, Ralph
Leo, Irrigation Project Manager,
R.R. 1, Box 980, Harlem, MT 59526,
Telephones: (406) 353-2901,
Superintendent, (406) 353-2905,
Irrigation Project Manager.
Fort Peck Irrigation Project...... Florence White Eagle,
Superintendent, P.O. Box 637,
Poplar, MT 59255, Richard Kurtz,
Irrigation Manager, 602 6th Avenue
North, Wolf Point, MT 59201,
Telephones: (406) 768-5312,
Superintendent, (406) 653-1752,
Irrigation Manager.
Wind River Irrigation Project..... Ed Lone Fight, Superintendent, Ray
Nation, Acting Irrigation Project
Manager, P.O. Box 158, Fort
Washakie, WY 82514, Telephones:
(307) 332-7810, Superintendent,
(307) 332-2596, Irrigation Project
Manager.
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Southwest Region Contacts
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Larry Morrin, Regional Director, Bureau of Indian Affairs, Southwest
Regional Office, 1001 Indian School Road, Albuquerque, NM 87104,
Telephone: (505) 563-3100.
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Pine River Irrigation Project..... Ross P. Denny, Superintendent, John
Formea, Irrigation Engineer, P.O.
Box 315, Ignacio, CO 81137-0315,
Telephones: (970) 563-4511,
Superintendent, (970) 563-9484,
Irrigation Engineer.
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Western Region Contacts
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Allen Anspach, Regional Director, Bureau of Indian Affairs, Western
Regional Office, Two Arizona Center, 400 N. 5th Street, 12th floor,
Phoenix, AZ 85004, Telephone: (602) 379-6600.
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Colorado River Irrigation Project. Perry Baker, Superintendent, Ted
Henry, Irrigation Project Manager,
R.R. 1, Box 9-C, Parker, AZ 85344,
Telephone: (928) 669-7111.
Duck Valley Irrigation Project.... Joseph McDade, Superintendent, 1555
Shoshone Circle, Elko, NV 89801,
Telephone: (775) 738-0569.
Fort Yuma Irrigation Project...... Raymond Fry, Superintendent, P.O.
Box 11000, Yuma, AZ 85366,
Telephone: (520) 782-1202.
San Carlos Irrigation Project Carl Christensen, Supervisory
Joint Works. General Engineer, P.O. Box 250,
Coolidge, AZ 85228, Telephone:
(520) 723-6216.
San Carlos Irrigation Project Joe Revak, Supervisory General
Indian Works. Engineer, Pima Agency, Land
Operations, Box 8, Sacaton, AZ
85247, Telephone: (520) 562-3372.
Uintah Irrigation Project......... Lynn Hansen, Irrigation Manager,
P.O. Box 130, Fort Duchesne, UT
84026, Telephone: (435) 722-4341.
Walker River Irrigation Project... Athena Brown, Superintendent, 311 E.
Washington Street, Carson City, NV
89701, Telephone: (775) 887-3500.
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What irrigation assessments or charges are adjusted by this notice?
The rate table below contains the current rates for all of our
irrigation projects where we recover our costs for operation and
maintenance. The table also contains the final rates for the 2008
season and subsequent years where applicable. An asterisk immediately
following the name of the project notes that the BIA adjusted that
project's rates for 2009.
Northwest Region Rate Table
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Final 2007 Final 2008 Final 2009
Project name Rate category rate rate rate
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Flathead Irrigation Project............. Basic per acre--A.............. $23.45 $23.45 $23.45
Basic per acre--B.............. 10.75 10.75 10.75
Minimum Charge per tract....... 65.00 65.00 65.00
Fort Hall Irrigation Project*........... Basic per acre................. 27.00 31.00 \1\
Minimum Charge per tract....... 25.00 27.00
Fort Hall Irrigation Project--Minor Basic per acre................. 17.00 21.00
Units*.
Minimum Charge per tract....... 25.00 27.00
Fort Hall Irrigation Project--Michaud*.. Basic per acre................. 35.75 39.75
Pressure per acre.............. 50.00 55.50
Minimum Charge per tract....... 25.00 27.00
Wapato Irrigation Project--Toppenish/ Billing Charge per Tract....... 5.00 5.00 5.00
Simcoe Units*.
Minimum Charge for farm unit/ 14.00 14.00 15.00
land tracts up to one acre.
Farm unit/land tracts over one 14.00 14.00 15.00
acre--per acre.
Wapato Irrigation Project--Ahtanum Billing Charge per Tract....... 5.00 5.00 5.00
Units*.
Minimum Charge for farm unit/ 14.00 14.00 15.00
land tracts up to one acre.
Farm unit/land tracts over one 14.00 14.00 15.00
acre--per acre.
Wapato Irrigation Project--Satus Unit*.. Billing Charge per Tract....... 5.00 5.00 5.00
Minimum Charge for farm unit/ 55.00 55.00 58.00
land tracts up to one acre.
``A'' farm unit/land tracts 55.00 55.00 58.00
over one acre--per acre.
Additional Works farm unit/land 60.00 60.00 63.00
tracts over one acre--per acre.
``B'' farm unit/land tracts 65.00 65.00 68.00
over one acre--per acre.
[[Page 32047]]
Water Rental Agreement Lands-- 67.00 67.00 70.00
per acre.
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\1\To be determined.
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Final 2007 Final 2008
Project name Rate category rate rate
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Rocky Mountain Region Rate Table
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Blackfeet Irrigation Basic-per acre. $15.50 $17.00
Project*.
Crow Irrigation Project-- Basic-per acre. 19.30 20.80
Willow* Creek O&M (includes
Agency, Lodge Grass 1, Lodge Grass 2,
Reno, Upper Little Horn, and
Forty Mile Units).
Crow Irrigation Project--All* Basic-per acre. 19.00 20.50
Others (includes Bighorn,
Soap Creek, and Pryor Units).
Crow Irrigation Two Leggins Basic-per acre. 2.00 2.00
Drainage District.
Fort Belknap Irrigation Basic-per acre. 13.88 13.88
Project.
Fort Peck Irrigation Project* Basic-per acre. 20.00 22.00
Wind River Irrigation Basic-per acre. 15.00 16.00
Project*.
Wind River Irrigation Basic-per acre. 17.00 17.00
Project--LeClair District.
------------------------------------------------------------------------
Southwest Region Rate Table
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Pine River Irrigation Project Minimum Charge 50.00 50.00
per tract.
Basic-per acre. 15.00 15.00
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Final 2007 Final 2008
Project name Rate category rate rate Final 2009 rate
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Colorado River Irrigation Project Basic per acre up to $47.00 $47.00 To be determined.
5.75 acre-feet.
Excess Water per 17.00 17.00
acre-foot over 5.75
acre-feet.
Duck Valley Irrigation Project... Basic-per acre...... 5.30 5.30
Fort Yuma Irrigation Project*.... Basic-per acre up to 72.00 77.00
5.0 acre-feet.
(See Note 1)............ Excess Water per 10.50 14.00
acre-foot over 5.0
acre-feet.
Basic-per acre up to ........... 28.00
2.0 acre-feet
(Ranch 5).
San Carlos Irrigation Project Basic-per acre...... 30.00 21.00 21.00
(Joint Works) (See Note 2).
San Carlos Irrigation Project* Basic-per acre...... 77.00 57.00 To be determined.
(Indian Works).
Uintah Irrigation Project*....... Basic-per acre...... 12.00 12.50
Minimum Bill........ 25.00 25.00
Walker River Irrigation Project* Indian per acre..... 10.00 13.00 16.00
(See Note 3).
non-Indian per acre. 16.00 16.00 16.00
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* Irrigation projects where rates were adjusted.
Note 1--The O&M rate for Fort Yuma Irrigation Project has two components. The first component is the
O&M rate established by the Bureau of Reclamation (BOR), the owner and operator of the Project. The BOR rate
for 2008 is $70.00/acre. The second component is for the O&M rate established by the Bureau of Indian Affairs
(BIA) to cover administrative costs including billing and collections for the Project. The 2008 BIA rate
remains unchanged at $7.00/acre. The 2008 BOR rate for ``Ranch 5'' is $28.00/acre. In 2008, the BIA is not
charging administrative costs on ``Ranch 5'' acreage. For 2009, the BIA will be proposing the addition of the
$7.00 BIA administrative fee to the ``Ranch 5'' acreage.
Note 2--The 2008 and 2009 rate was established by final notice published in the Federal Register on
April 20, 2007 (Vol. 72, No. 76, page 19954). The 2010 rate is to be determined. The Arizona Water Settlement
Act is expected to be effective December 31, 2007, and this circumstance may affect what the O&M rate should
be for the SCIPJW in 2010.
Note 3--The 2008 and 2009 irrigation rates are established through this notice.
Consultation and Coordination With Tribal Governments (Executive Order
13175)
To fulfill its consultation responsibility to tribes and tribal
organizations the BIA communicates, coordinates, and consults on a
continuing basis with these entities on issues of water delivery, water
availability, and costs of administration, operation, maintenance, and
rehabilitation of projects that concern them. This is accomplished at
the individual projects by Project, Agency, and Regional
representatives, as appropriate, in accordance with local protocol and
procedures. This notice is one component of the BIA's overall
coordination and consultation process to provide notice to, and request
comments from, these entities when the BIA adjusts irrigation rates.
Actions Concerning Regulations That Significantly Affect Energy Supply,
Distribution, or Use (Executive Order 13211)
The rate adjustments will have no adverse effects on energy supply,
distribution, or use (including a shortfall in supply, price increases,
and increase use of foreign supplies) should the proposed rate
adjustments be implemented. This is a notice for rate adjustments at
BIA-owned and operated projects, except for the Fort Yuma
[[Page 32048]]
Irrigation Project. The Fort Yuma Irrigation Project is owned and
operated by the Bureau of Reclamation with a portion serving the Fort
Yuma Reservation.
Regulatory Planning and Review (Executive Order 12866)
These rate adjustments are not a significant regulatory action and
do not need to be reviewed by the Office of Management and Budget under
Executive Order 12866.
Regulatory Flexibility Act
This rate making is not a rule for the purposes of the Regulatory
Flexibility Act because it is ``a rule of particular applicability
relating to rates.'' 5 U.S.C. 601(2).
Unfunded Mandates Reform Act of 1995
These rate adjustments impose no unfunded mandates on any
governmental or private entity and are in compliance with the
provisions of the Unfunded Mandates Reform Act of 1995.
Takings (Executive Order 12630)
The Department has determined that these rate adjustments do not
have significant ``takings'' implications. The rate adjustments do not
deprive the public, state, or local governments of rights or property.
Federalism (Executive Order 13132)
The Department has determined that these rate adjustments do not
have significant Federalism effects because they pertain solely to
Federal-tribal relations and will not interfere with the roles, rights,
and responsibilities of states.
Civil Justice Reform (Executive Order 12988)
In accordance with Executive Order 12988, the Office of the
Solicitor has determined that this rule does not unduly burden the
judicial system and meets the requirements of sections 3(a) and 3(b)(2)
of the Order.
Paperwork Reduction Act of 1995
These rate adjustments do not affect the collections of information
which have been approved by the Office of Information and Regulatory
Affairs, Office of Management and Budget, under the Paperwork Reduction
Act of 1995. The OMB Control Number is 1076-0141 and expires August 31,
2009.
National Environmental Policy Act
The Department has determined that these rate adjustments do not
constitute a major Federal action significantly affecting the quality
of the human environment and that no detailed statement is required
under the National Environmental Policy Act of 1969 (42 U.S.C. 4321-
4370(d)).
Dated: May 16, 2008.
Carl J. Artman,
Assistant Secretary--Indian Affairs.
[FR Doc. E8-12610 Filed 6-4-08; 8:45 am]
BILLING CODE 4310-W7-P