PACIFIC SOUTHWEST RegionInterim Directive
EFFECTIVE DATE: 02/15/2003
DURATION: Expires on 02/15/2004 / ID R5-2209.13-2003-1
Page 1 of 60
FSH r5-2209.13 - grazing permit administration handbook
Chapter 10 – permits with term status
/ Forest Service Handbook
PACIFIC SOUTHWEST Region
VALLEJO, CA

fsH R5-2209.13 – grazing permit administration handbook

chapteR 10 – permits with term status

Interim Directive No.: R5-2209.13-2003-1

Effective Date: February 15, 2003

Duration: February 15, 2004

Approved: JACK BLACKWELL
Regional Forester / Date Approved: February 3, 2003

Posting Instructions: Interim directives are numbered consecutively by Handbook number and calendar year. Post by document name at the end of the chapter. Retain this transmittal as the first page of this document.

New Document(s): / ID R5-2209.13-2003-1 / 60 Pages
Superseded Document(s): / NONE

Digest:

This interim directive (ID) to chapter 10 supplements WO Amendment FSH 2209.13-92-1 effective 8/3/92. The ID issues Regional direction on administering grazing permits with term status. There are numerous small editorial changes throughout the handbook to improve readability. Substantive changes are listed below.

12.3 / Adds guidance relating to implementation of a lower limit requirement.
Restates policy relative to Forest Service employees holding Term Grazing Permits and removes obsolete reference to FSM.
16.13 / Clarifies policy on notification of permit modifications that result in reduced numbers or seasons.
Clarifies Region 5 policy on mediation related to 36 CFR 251 appeal process.
16.21a-d / Adds guidance to the administration of permit violations. Provides specific suspension and cancellation guidelines.
17.1 / Adds additional direction regarding Permittee Convenience nonuse to make the Handbook consistent with the Term Grazing Permit (Form FS-2200-10).
18.1-4 / Adds additional direction regarding Requirements and Conditions for approval of Waiver of Term Grazing Permits and changes wording to make this section consistent with the Term Grazing Permit (Form FS-2200-10). Adds additional guidance on execution of Escrow Waivers. Corrects name and acronym for Farm Service Agency (FSA).

JACK BLACKWELL

Regional Forester

Table of Contents

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

11.1 - Kinds of Grazing Permits With Term Status

11.11 - Term Grazing Permit

11.12 - Term Private Land Grazing Permit

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

11.14- Grazing Agreements. See FSH 2209.13-92-1, Chapter 20.

12.1 - Eligibility Requirements

12.11 - Married Persons

12.12 - Minor Who Is Head of Family

12.13 - Minor Who Has Acquired Base Property or Permitted Livestock

12.14 - Forest Officers

12.15 – Trusts

12.16 – Estates

12.17 - Corporations and Partnerships

12.2 - Qualification Requirements

12.21 - Base Property

12.22 - Livestock Requirements

12.23 - Permit Holders Having Agent or Manager Relationships

12.3 - Upper, Lower and Special Limits

13 - ACQUIRING GRAZING PERMITS WITH TERM STATUS

13.1 - Prior Use

13.11 - On Added Lands

13.12 - Conversion in Kind or Class of Livestock

13.2 - Grant

13.21 - Conditions

13.22 - Grant Priority

13.23 - Related Considerations

13.24 - History of Grant Permits

13.3 - Changes in Ownership

13.4 - Exchange of Permits with Other Agencies

14 - APPLICATION FOR GRAZING PERMITS WITH TERM STATUS

14.1 - Notice to Permit Holders

14.11 - Preferred Applicant Status

14.2 - Applications for Grazing Permits

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

14.22 - Livestock to be Purchased

14.23 - On-and-Off Provision

14.3 - Supporting Documents

14.31 – Corporations and Partnerships

14.32 - Trusts and Estates

14.33 - Certificates of Brand

14.34 - Records

14.35 - Certified or Sworn Statements and Document Examination

14.36 – Information Revision and Updating

14.4 - Action on Applications

14.41 - Approval

14.42 - Disapproval

15 - ISSUANCE OF GRAZING PERMITS WITH TERM STATUS

15.1 - Issuance of Term Grazing Permits

15.11 - Validation

15.12 - Range Allotment Description

15.13 - Number, Kind, and Class of Livestock, Period of Use, and Grazing Allotment

15.13a - Changes in Number Because of Age Class

15.13b - Variable Numbers and Seasons.

15.14 - Grazing Permit Terms and Conditions

15.14a - General Terms and Conditions

15.14b - Special Terms and Conditions

15.2 - Issuance of Term Private Land Grazing Permits

15.21 - General Guidelines

15.22 - Qualification Requirements

15.23 - Grazing Capacity of Private Lands

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

15.31 - General Guidelines

15.32 - Qualification Requirements

15.4 - Only Natural Units Included

16 - CHANGES IN GRAZING PERMITS

16.1 - Modification of Grazing Permits

16.11 - Methods of Modification

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

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

16.14 - Permittee Requested Modifications

16.2 - Suspension or Cancellation of Grazing Permits

16.21 - Permit Violations

16.21a – Notice of Non-Compliance

16.21b - Exception to Written Notice of Non-Compliance and Remedy for Willful Conduct.

16.21c - Exception to Written Notice of Non-Compliance and Remedy Regarding Matters of Public Health, Interest, or Safety.

16.21d – Region 5 Suspension and Cancellation Guidelines

16.22 - Cancellation to Devote Lands to Another Public Purpose

16.23 - Cancellation of Grazing Agreements or Association Permits for Noncompliance With Title VI of Civil Rights Act.

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

16.4 – Mediation

16.5 - Status of Grazing Permits During Administrative Reviews

17 - NONUSE OF GRAZING PERMITS WITH TERM STATUS

17.1 - Permittee Convenience

17.2 - Resource Protection or Development

17.3 - Range Research

17.4 - Changes in Kind or Class of Livestock Grazed

18 - WAIVER AND ISSUANCE OF GRAZING PERMITS WITH TERM STATUS BECAUSE OF CHANGE IN OWNERSHIP

18.1 - Transactions with Permit Waiver

18.11 - Sales with Waiver

18.12 - Sales within Family

18.13 - Contracts to Purchase With Waiver

18.14 – Inheritance

18.15 - Partnership Agreements

18.16 - Division of Interests

18.17 - Changes in Ownership of Corporations and Companies

18.18 - Requirements and Conditions for Approval

18.19 – Nonuse

18.2 - Escrow Waivers

18.21 - Execution of Escrow Waiver

18.3 - Foreclosures in Connection With Grazing Permits.

18.31 - Foreclosure with Waiver of Term Grazing Permit

18.32 - Foreclosure with Escrow Waiver

18.33 – Redemption

18.34 - Foreclosure without Escrow Waiver

18.4 - Transactions without Permit Waiver

19 – BANKRUPTCY

19.1 - Types of Bankruptcy Filings.

19.2 - Status of Permit.

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

Grazing permits with term status are limited to authorizing the use and management of the grazing resource for commercial livestock production purposes. Objectives and policy for issuing grazing permits with term status are in FSM 2230.2 and 2230.3 and in 36CFR §222.3

11.1 - Kinds of Grazing Permits With Term Status

There are four kinds of term permits discussed in the following sections. 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 15.1 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.

11.12 - 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.

11.13 - 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.

11.14- Grazing Agreements. See FSH 2209.13-92-1, 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.

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

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 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

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 will not be 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. Base property requirements for grazing associations will be determined 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 Supervisor may consult with local livestock organizations in determining requirements.

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

New applications for permits based on undivided ownership shall not be accepted. Each permit shall stand on its own and be subject to waiver and issuance without the complication of multiple ownership of an undivided base property.

12.22 - Livestock Requirements

The term grazing permit holder must own the mature livestock grazed on National Forest System lands. Mature livestock are animals which are 6 months of age or older. Under a term grazing permit with on/off provisions, the permittee must own mature livestock for the “on” portion. 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.

All mature cattle shall be branded. The brand must be recorded with the California Department of Food and Agriculture, Brand Inspection Service and the permittee must hold a valid certificate of brand. Contact the State and the local Woolgrowers Association to determine branding requirements and brand ownership for sheep.

If mature livestock placed on Forest Service administered lands do not bear the brand shown on the permit application, refer to Section 16.21d (Item 10) for the appropriate administrative action.

Only require brands registered to the permittee on mature animals. To facilitate marketing, offspring may be branded with other brands registered to the permittee. The authorized officer must approve all brands used in conjunction with the term grazing permit.

Permit holders may allow up to 50 percent of the livestock grazed to be owned by their children or other immediate 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 immediate family member, recognizing the child’s livestock as a portion of the permitted livestock, if the child’s livestock were grazed during the last grazing season under the parent’s permit. This is to encourage continuation of family operations. The permittee may not waive the permit to a non-family 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 so 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 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 instructions of the Forest Officer.

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. Only graze permitted livestock owned by the permittee on National Forest System lands. 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 extent to which the agent or manager can 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 both the permittee and the agent.

12.3 - Upper, Lower and Special Limits

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). Term grazing permit holders who are currently below these numbers will be allowed to continue to hold a term grazing permit, but will only be allowed 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 special lower limits on their Forests with approval from the Regional Forester. Existing permits with less than 25 head of cattle or 175 head of sheep may not be waived except to children or immediate family members as provided under Section 12.22.