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Wetlands Reserve Program Final Rules

61 FR 42137

DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

Natural Resources Conservation Service

7 CFR Parts 620 and 1467
RIN 0578-AA16

Wetlands Reserve Program

AGENCY: Commodity Credit Corporation; Natural Resources Conservation Service, USDA.

ACTION: Final Rule.

SUMMARY: The Commodity Credit Corporation (CCC) and the Natural Resources Conservation Service (NRCS) are issuing its final rule for the Wetlands Reserve Program. This rule adopts as final the interim rule for the Wetlands Reserve Program published on June 1, 1995, responds to comments received from the public during the comment period, and incorporates specific changes required by the Federal Agriculture Improvement and Reform Act of 1996. The final rule will provide the process by which the Wetlands Reserve Program is administered by the NRCS.

EFFECTIVE DATE: August 14, 1996.

FOR FURTHER INFORMATION CONTACT: Robert Misso (202) 720-3534.( E-mail: RMisso@usda.gov).

SUPPLEMENTARY INFORMATION:

Executive Order 12866

The Office of Management and Budget (OMB) has determined that this final rule is significant and was reviewed by the Office of Management and Budget under Executive Order 12866. Pursuant to Sec. 6(a)(3) of Executive Order 12866, CCC and NRCS prepared a cost-benefit assessment of the potential impact of the program. The assessment concluded that several mechanisms at the State and National level of the agency are in place to ensure environmental benefits are maximized for each Federal dollar spent in the WRP. These mechanisms include a comprehensive prioritization and ranking procedure for each site offered for enrollment in the program and the requirement for locally-determined easement payment caps based on the agricultural land value. These mechanisms are developed and implemented on a state-by-state basis, with guidance and coordination from the National level of the agency, to ensure that regional and geophysical variations are addressed. The WRP costs data indicate that the procedures in place are promoting cost-effectiveness. Copies of the cost-benefit assessment are available upon request from Robert Misso, Program Manager, Watersheds and Wetlands Division, Natural Resources Conservation Service, P.O. Box 2890, Washington, D.C. 20250.

Regulatory Flexibility Act

It has been determined that the Regulatory Flexibility Act is not applicable to this rule because neither the CCC or NRCS are required by 5 U.S.C. 553 or any other provision of law to publish a notice of proposed rulemaking with respect to the subject matter of this rule.

Environmental Evaluation

It has been determined through an environmental review that this action is a modification of the existing WRP and is covered under the NRCS 1990 Environmental Assessment entitled, "Wetlands Reserve Program - Environmental Assessment: Wetlands Reserve Provision of the Conservation Program Improvements Act of 1990." NRCS supplemented the environmental assessment to evaluate the changes to the program made pursuant to the Federal Agriculture Improvement and Reform Act of 1996. Copies of the environmental assessment with supplement are available upon request from: Robert Misso, Program Manager, Watersheds and Wetlands Division, Natural Resources Conservation Service, Post Office Box 2890, Washington, D.C. 20250.

Executive Order 12372

This program/activity is not subject to the provisions of Executive Order 12372 because it involves direct payments to individuals and not to State and local officials. See notice related to 7 CFR Part 3015, Subpart V, published at 48 FR 29115 (June 24, 1983).

Federal Domestic Assistance Program

The title and number of the Federal Domestic Assistance Program, as found in the Catalog of Federal Domestic Assistance, to which this rule applies are: Wetlands Reserve Program--10.072.

Paperwork Reduction Act

No substantive changes have been made in this final rule which affect the recordkeeping requirements and estimated burdens previously reviewed and approved under OMB control number 0578-0013.

Executive Order 12778

This final rule has been reviewed in accordance with Executive Order 12778. The provisions of this final rule are not retroactive. Furthermore, except as provided at 16 U.S.C. 3837a(e)(2), the provisions of this final rule preempt State and local laws to the extent such laws are inconsistent with this final rule. Before an action may be brought in a Federal court of competent jurisdiction, the administrative appeal rights afforded persons at 7 CFR Part 614 must be exhausted.

Unfunded Mandates Reform Act of 1995

Pursuant to Title II of the Unfunded Mandates Reform Act of 1995, which the President signed into law on March 22, 1995, the affects of this rulemaking action on State, local, and tribal governments, and the public have been assessed. This action does not compel the expenditure of $100 million or more by any State, local or tribal governments, or anyone in the private sector, and therefore a statement under section 202 of the Unfunded Mandates Reform Act of 1995 is not required.

Discussion of Program

The NRCS published the current regulations for the Wetlands Reserve Program as an interim rule on June 1, 1995 (60 FR 28511). Enacted on April 4, 1996, the Federal Agriculture Improvement and Reform Act (the 1996 Act) authorized the enrollment of non-easement acres into the program through the use of restoration cost-share agreements and made other minor changes to the focus of the program. This final rule adopts the procedures outlined in the interim rule with the addition of the few changes recommended during public comment and/or required by the 1996 Act. These changes are described below. Minor editorial changes have also been made for clarification and administrative purposes. The 1996 Act amended the Food Security Act of 1985 (the 1985 Act), Pub. L. 99-198, to provide that the WRP should be funded by CCC. Accordingly, this final rule is issued by CCC and NRCS.

Discussion of Comments

The NRCS received 16 comments concerning the interim rule during the 60-day public comment period that ended July 31, 1995. Respondents included national wildlife and conservation organizations, state agencies, public utilities, and one State farm organization. Two of the comments simply indicated support for the WRP and did not offer specific suggested changes.

Definitions. NRCS received two comments requesting slight modifications to the definitions in Sec.620.2 of the interim rule. One comment suggested that the definition for "State Technical Committee" be changed to allow the State Conservationist flexibility in delegating the chair position to other members of the committee. Currently, the State Conservationist may delegate the chair position to other NRCS personnel. Even so, implementation of the WRP at the state level remains the responsibility of the State Conservationist and therefore, no changes were made to the definition of State Technical Committee. The commenter also suggested that the definition of "wetland functions and values" be revised from "social worth placed upon these characteristics" to "the socioeconomic value placed upon these characteristics." This change clarifies the intent of the interim rule and is adopted in this final rule.

NRCS also received a comment from a state forestry agency requesting that "timber" be included in the definition for "wetland functions and values." NRCS did not adopt this change because the concept is incorporated in the current definition but the actual term is too specific for a nationwide program which enrolls many different types of wetlands with differing wetland functions and values.

Another commenter indicated that the definition of "Conservation Districts" be modified to reflect better the mission of conservation districts. The NRCS adopts the suggested language as an improvement to the clarity of the definition. Additionally, section 620.3(f) is modified to include conservation districts by specific reference to clarify that NRCS values the special partnership that it has with conservation districts in the effort to improve the Nation's soil, water, and other natural resources, and NRCS will continue to seek input from conservation districts in the administration of its programs.

The Consolidated Farm Service Agency (CFSA) is now known as the Farm Service Agency (FSA). The rule is amended to reflect this name change.

Utility easements. NRCS received two comments from utility companies, both of which expressed concern about how NRCS would approach the overlapping of a WRP easement with a utility easement. Utility easements are addressed during the title clearance process. During that process, the NRCS must determine whether: 1) NRCS can obtain a subordination agreement from the utility easement holder; 2) the exercise of the utility easement holder's rights would be consistent with the purposes of the WRP easement; or, 3) the exercise of the utility easement holder's rights would undermine the purposes for which the WRP easement would be established. If the NRCS is unable to obtain a subordination agreement from the utility easement holder and the exercise of that easement holder's rights would undermine the WRP easement, then the NRCS will not purchase a WRP easement on that property. One of these commenters also expressed support for the preference given permanent easements by the interim rule.

Water quality. One utility company commenter requested that the impact on drinking water sources be a ranking factor for giving priority to purchasing a particular easement. One of the conservation organizations also urged that easements that provided water quality functions receive priority treatment. Because water quality is one of the wetland functions for which the easement is being established, the NRCS considers in its ranking process, directly or indirectly, the impact an easement would have on drinking water sources. Currently, each State Conservationist, in consultation with the State Technical Committee, will determine the weight that water quality in general, and impact on drinking water specifically, should receive in the ranking process. In the future, NRCS along with other agencies with wetland responsibilities will use a system (Hydrogeomorphic Modeling (HGM)) to evaluate wetland functions and values more objectively. NRCS will be better able to rank wetland sites for WRP that differ, thus providing for more consistency within and between States.

Compatible uses. NRCS received four letters from State forestry organizations and one letter from a State farm organization which expressed opposition to language placed in the preamble to the WRP interim rule regarding compatible economic uses of the easement area as it related to forest management activities. NRCS also received a comment, however, from a conservation organization which supported the language used in the preamble, suggesting that some management approaches may not be consistent with the long-term protection of wetland resources.

According to the WRP authorizing language at 16 U.S.C. 3837a(d), compatible economic uses, including forest management, are permitted if consistent with the long-term protection and enhancement of the wetlands resources for which the easement was established. In the preamble, NRCS simply indicated that harvesting methods which are not consistent with the long-term protection and enhancement of wetland functions and values on a particular easement area will not be considered a compatible use. Upon request by a landowner, the NRCS will evaluate the particular site on an easement area and will make a determination of what silvicultural approach, timing, intensity, and duration may be considered compatible with the wetland functions and values.

The document granting permission for forest management activities, or any other request for a compatible use, specifies the amount, method, timing, intensity, and duration of the use being granted. The NRCS, however, reserves its ability to modify a particular use should easement area conditions change. The management plan for an easement area is a "living document" and may be updated with additional compatible use requests as they are received from a landowner over time.

For example, the wetland functions and values that are established by the WRP restoration efforts are not available for mitigation purposes. However, at a later date, the landowner may request permission from the NRCS to enhance further the functions and values established by the WRP restoration effort. If the NRCS determines that the enhancement action is a compatible use and is clearly beyond the scope of restoration actions that would be feasible under any subsequent WRP restoration efforts, the additional increment of functions and values which directly result from the landowner's approved enhancement action may be available to meet mitigation requirements under other federal, state, or local law.

No matter the use, the test remains: "Is a particular proposed use consistent with the long-term protection and enhancement of the wetlands resources for which the easement was established and Federal funds expended?" This approach is consistent with the WRP statute and does not require any change to the WRP rule.

Non-permanent easements. The NRCS received four comments in which the commenters expressed concern that the interim rule gave such priority to the enrollment of permanent easements that the enrollment of non-permanent easements would be completely excluded from the program. One commenter expressed the concern that the priority placed on permanent easements overshadowed the other priority mandated by statute. In particular, the WRP authorizing legislation at 16 U.S.C. 3837c(d) provides that priority should be placed on acquiring easements based on the value of the easement for protecting and enhancing habitat for migratory birds and other wildlife.

Sections 620.8(b)(4) and (5) of the rule require that the NRCS consider whether any permanent easement offer has the ecological and cost characteristics which warrants acquisition before proceeding to acquire a non-permanent easement. The commenters recognized that non-permanent easements receive a different easement payment than a permanent easement, but either did not express specific opposition to the differentiated payment rate or expressed support for it. The 1996 Act amendments require, to the extent practicable after October 1, 1996, that NRCS enroll one-third of total program acres through the use of 30-year easements.

In response to the comments received and explicit direction from statute, NRCS has removed Sec.Sec. 620.8(b)(4) and (5) and thus eliminated these particular constraints upon the enrollment of non-permanent easements. The 1996 amendments also provided that the restoration cost-share rate for a 30-year easement should be from 50 to 75 percent. The interim rule provided that the easement payment rate for a non-permanent easement should parallel the restoration cost-share rate. Therefore, Sec. 620.8(b)(3) has been amended to indicate that the easement payment for a 30-year easement shall be between 50 percent and 75 percent of that which would have been paid for a permanent easement.

One commenter noted that the $50,000 annual easement payment limitation discriminated unduly against the acquisition of less than permanent easements. The interim final rule had established the $50,000 annual easement payment cap for all non-permanent easement acquisitions. However, by statute, the $50,000 annual easement payment limitation for non-permanent easements is a discretionary cap. As such, the NRCS has determined that in special circumstances involving projects with partnership funding or participation, a greater annual easement payment amount may be available. Additionally, the statute provides that payments are exempted from the payment limitation if the payment is received by a State, political subdivision, or agency thereof in connection with agreements entered into under a special wetland and environmental enhancement program carried out by that entity that has been approved by NRCS.
The final rule is amended accordingly.

Section 620.17 addresses the administrative appeal procedures to be used when a person desires review of an administration determination concerning eligibility for participation. The interim final rule for the National Appeals Division (NAD) Rules of Procedures, 60 FR 67298 (December 29, 1995), amended Sec.620.17 to include reference to 7 CFR Part 780 and 7 CFR Part 11. The NAD interim final rule also amended 7 CFR Part 614, the NRCS appeals procedures originally referenced in Sec.620.17. Part 614, as amended, references the other appeal procedures at 7 CFR Part 780 and 7 CFR Part 11, and their additional mention in Sec.620.17 is therefore redundant. This final rule amends Sec.620.17 to remove the redundant reference to 7 CFR Part 780 and 7 CFR Part 11.

Discussion of the Federal Agriculture Improvement and Reform Act

The Federal Agriculture Improvement and Reform Act (the 1996 Act) was enacted on April 4, 1996. The 1996 Act amended the Food Security Act of 1985, 16 U.S.C. Sec. 3801 et seq., to re-authorize the Environmental Conservation Acreage Reserve Program as the umbrella conservation program encompassing the Conservation Reserve Program (16 U.S.C. 3831-3836), the newly-created Environmental Quality Incentives Program (16 U.S.C. 3840), and the Wetlands Reserve Program (16 U.S.C. 3837 et seq.). Under the Environmental Conservation Acreage Reserve Program, the Secretary of Agriculture may designate areas as conservation priority areas to assist landowners to meet nonpoint source pollution requirements and other conservation needs.

The 1996 Act effects several changes to the administration of the WRP. In particular, the 1996 Act amendments authorize the enrollment of land into the Wetlands Reserve Program until 2002, establishes a program cap at 975,000 acres, and provides that eligible land must maximize wildlife benefits and wetland functions and values.

The 1996 Act amendments also require that, to the extent practicable beginning October 1, 1996, one-third of the remaining program acres be enrolled through the use of permanent easements, one-third through the use of 30-year easements, and one-third through the use of restoration cost-share agreements. Further, after October 1, 1996, no new permanent easement can be enrolled until at least 75,000 acres of non-permanent easement are enrolled in the program. Section 721 of the Agriculture Appropriations Act, enacted August 6, 1996, stated that this condition on enrollment "shall be deemed met upon the enrollment of 43,333 acres through the use of temporary easements: Provided further that the Secretary shall not enroll acres .... through the use of new permanent easements in fiscal year 1998 until the Secretary has enrolled at least 31,667 acres in the program through the use of temporary easements." In recognition that the NRCS must enroll lands that maximize wildlife benefits and other wetland functions and values, achieve cost-efficient restoration, and provide the three identified enrollment approaches, the NRCS will emphasize enrolling lands that have the least likelihood of being reconverted. The NRCS will work with landowners and other conservation partners to achieve these lasting benefits for wetland resources.

Through several public forums conducted across the county, the NRCS received comments from the public about the new conservation programs and the changes to existing conservation programs as a result of the enactment of the 1996 Act. The NRCS greatly appreciates the input provided by the public through the forums and written comments submitted to the agency. The NRCS will consider these comments during the formulation of its policies and guidelines.

Many of the changes to the WRP required by the 1996 Act are directives to the agency which do not impact the WRP rule. Some of the amendments, however, require specific, non-discretionary changes to the WRP regulations. Since these changes are mandatory and do not require agency interpretation, the CCC and NRCS have incorporated them into this final rule. The following sections and parts are impacted:

Section 620.2

The 1996 Act made several changes to other programs which relate to WRP, including the wetland conservation provisions, 7 CFR Part 12, and the Conservation Reserve Program, 7 CFR Parts 704 and 1410. Therefore, certain definitions are removed from this part to avoid any inconsistencies with the implementation of these other provisions.

Section 620.3

The 1996 Act requires the Department of Agriculture to avoid duplication of conservation plans required for the implementation of the highly erodible land conservation provisions of the Food Security Act of 1985, CRP, and the WRP. In response to this requirement, Sec.620.3(h) is amended to include coordination of the development of conservation plans as an additional goal in the administration of the WRP. The 1996 Act amendments also provide that areas may be designated as conservation priority areas to help producers comply with nonpoint source pollution requirements and other conservation needs. Therefore, a new sentence is added to Sec.620.3(h) that the Secretary of Agriculture may designate areas as conservation priority areas to assist landowners to meet nonpoint source pollution requirements and other conservation needs.

Section 620.4

The 1996 Act amendments authorize the enrollment of acres into the WRP through the use of restoration cost-share agreements. Therefore, the first sentence of Sec.620.4 has been amended to include the term "restoration cost-share agreements."

The 1996 Act amendments links eligibility for WRP easement or cost-share payments to the highly erodible land and wetland conservation provisions of the 1985 Act, 16 U.S.C. 3801 et seq., 7 CFR part 12. Therefore, landowner eligibility, Sec. 620.4(c), is amended to reflect that a person may not be eligible for participation in WRP if the requirements of 7 CFR part 12 have not been met.

The 1996 Act amendments specify that the 25 percent county enrollment cap and the 10 percent county easement cap only apply to acres enrolled in the Conservation Reserve Program (CRP) and the WRP, and not all acres enrolled in the Environmental Conservation Acreage Reserve Program. Therefore, the reference to the Environmental Conservation Acreage Reserve Program in Sec.620.4(b)(1) has been replaced with specific reference to the CRP and the WRP. In addition to consideration of any adverse affect on the local economy, the 1996 Act amendments require that a waiver from the county caps can only be approved if operators in the county are having difficulties complying with the conservation plans implemented under 16 U.S.C. 3812. Therefore, Sec.620.4(b)(2) has been amended to incorporate this new criterion.

The 1996 Act amendments expanded the eligibility criteria to require specifically that land enrolled in the program maximize wildlife benefits. Therefore, Sec.620.4(d) is amended to incorporate the additional eligibility criterion.

The 1985 Act provides that pasture land established to trees under the CRP is ineligible for enrollment in the WRP. Even though such lands were not enrolled in the program, specific mention of this ineligibility provision was not made in the interim rule. Section 620.4(e) is amended to incorporate specifically this statutory provision.

Section 620.7

The 1996 Act amendments require that after October 1, 1996, to the extent practicable, the NRCS enroll one-third of the acres through the use of permanent easements, one-third of the acres through the use of 30-year easements, and one-third of the acres through the use of restoration cost-share agreements. The NRCS has considered land enrolled in the program at the time the NRCS determines that a landowner's offer is eligible, funds are committed to acquire that particular easement, and the landowner agrees to continue in the program. Because the 1996 Act amendments require that the NRCS track the total acres enrolled through the use of permanent easements, 30-year easements, and restoration cost-share agreements, Sec.620.7(b) is amended to clarify that enrollment occurs at this stage in the process.

Sections 620.8 and 620.13

The 1996 Act amends 16 U.S.C. 3837a(f) to eliminate the specific reference to lump sum payments for permanent easements only, and further provides that annual compensation for any easement may be in not less than 5 nor more than 30 annual payments of either equal or unequal size. Therefore, Sec.620.8(e) and Sec.620.13(b)(1), which incorporated the original statutory provisions as to payments, are amended to reflect this specific change in law regarding easement payments.

Section 620.9 and 620.10

To reflect that the NRCS shall enroll land into the WRP through the use of restoration cost-share agreements, section 620.9 is amended by adding specific reference to restoration cost-share agreements and making associated editorial adjustments to this new type of enrollment mechanism. Additionally, the 1996 Act amendments provide that the cost-share rate for restoration associated with 30-year easements shall be no less than 50 nor more than 75 percent. Section 620.9(a) incorporates this new statutory provision.

Likewise, the requirements in Sec. 620.10, such as the granting of an easement to the United States, are specific to enrollment into the program through the use of an easement and not restoration cost-share agreements. Therefore, the heading to Sec.620.10 reflects that the section is no longer applicable as "Program requirements" but now more appropriately refers to easement enrollment requirements.

Section 620.11

The 1996 Act amendments provide that the development of the restoration plan shall be made through the local NRCS representative, in consultation with the State Technical Committee. The 1996 Act amendments also removes the specific requirement that consultation with the Department of the Interior means agreement at the local level and consultation at the State level. Therefore, NRCS has added these changes to Sec.620.11 by 1) by removing the regulatory language in paragraph (a) which required agreement with the U.S. Fish and Wildlife Service at the local level, and 2) replacing the language with a new paragraph (a) which now references the development of the plan by the local NRCS representative.

Section 620.14

During the implementation of the program under the interim rule, confusion arose regarding the language in Sec.620.14 about "associated" contract. The term "associated" was intended to mean a contract "associated with the program" other than the easement deed. As stated, the term "associated" inadvertently created the mistaken conclusion that the contract is attached to the easement deed. Therefore, the term "associated" has been removed to improve the clarity of this section.

Parts 620 and 1467

Because funds of the Commodity Credit Corporation shall be used for administration of the WRP, the WRP rule is moved from Part 620 to Part 1467 of Title VII of the CFR. Furthermore, certain administrative responsibilities may be assumed by other agencies within the Department of Agriculture, and the rule is modified accordingly.

List of Subjects in 7 CFR Part 1467

Administrative practice and procedure, Agriculture, Soil conservation, Wetlands.

Accordingly, the interim rule establishing 7 CFR part 620 which was published at 60 FR 28511 on June 1, 1995, is adopted as a final rule with the following changes:
7 CFR, Chapter XIV
PART 1467 - WETLANDS RESERVE PROGRAM
Sec.
1467.1 Applicability.
1467.2 Administration
1467.3 Definitions..
1467.4 Program requirements.
1467.5 Application procedures.
1467.6 Establishing priority for enrollment of properties in WRP.
1467.7 Enrollment of easements.
1467.8 Compensation for easements.
1467.9 Cost-share payments.
1467.10 Easement participation requirements.
1467.11 The WRPO development.
1467.12 Modifications.
1467.13 Transfer of land.
1467.14 Violations and remedies.
1467.15 Payments not subject to claims.
1467.16 Assignments.
1467.17 Appeals.
1467.18 Scheme and device.

Authority: 16 U.S.C. 590a, et seq.; 16 U.S.C. 3837, et seq.

Sec. 1467.1 Applicability.

(a) The regulations in this part set forth the policies, procedures, and requirements for the Wetlands Reserve Program (WRP) as administered by the Natural Resources Conservation Service (NRCS) for program implementation and processing outstanding and new applications for enrollment during calendar year 1995 and thereafter.
(b) The Chief, NRCS, may implement WRP in any of the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Virgin Islands of the United States, American Samoa, the Commonwealth of the Northern Mariana Islands, and the Trust Territories of the Pacific Islands.

Sec. 1467.2 Administration.

(a) The regulations in this part will be administered under the general supervision and direction of the Chief.

(b) The Chief is authorized to modify or waive a provision of this part if the Chief deems the application of that provision to a particular limited situation to be inappropriate and inconsistent with the environmental and cost-efficiency goals of the WRP. This authority cannot be further delegated. The Chief may not modify or waive any provision of this part which is required by applicable law.

(c) As determined by the Chief and the Administrator of the Farm Service Agency, the NRCS and the Farm Service Agency will seek agreement in establishing policies, priorities, and guidelines related to the implementation of this part.

(d) The State Conservationist will consult with the State Technical Committee on the development of the rates of compensation for an easement, a priority ranking process, and related policy matters.

(e) The NRCS may delegate at any time easement management, monitoring, and enforcement responsibilities to other Federal or State agencies.

(f) The Department may enter into cooperative agreements with Federal or State agencies, conservation districts, and private conservation organizations to assist the NRCS with educational efforts, easement management and monitoring, outreach efforts, and program implementation assistance.

(g) The NRCS shall consult with the U.S. Fish and Wildlife Service in the implementation of the program and in establishing program policies. The NRCS may consult with the Forest Service, other Federal and State agencies, conservation districts or other organizations in program administration. No determination by the U.S. Fish and Wildlife Service, the Forest Service, Federal or State agency, conservation district, or other organization shall compel the NRCS to take any action which the NRCS determines will not serve the purposes of the program established by this part.

(h) The Chief may allocate funds for such purposes related to: special pilot programs for wetland management and monitoring; acquisition of wetland easements with emergency funding; cooperative agreements with other Federal or State agencies for program implementation; coordination of easement enrollment across State boundaries; coordination of the development of conservation plans; or, for other goals of the WRP found in this part. The Department may designate areas as conservation priority areas where environmental concerns are especially pronounced and to assist landowners in meeting nonpoint source pollution requirements and other conservation needs.

Sec. 1467.3 Definitions.
The following definitions shall be applicable to this part:
Agricultural commodity means any crop planted and produced by annual tilling of the soil or on an annual basis by one trip planters, or alfalfa and other multi-year grasses and legumes in rotation as approved by the Secretary. Land shall be considered planted to an agricultural commodity during a crop year if, as determined by the NRCS, an action of the Secretary prevented land from being planted to the commodity during the crop year.
Chief means the Chief of the Natural Resources Conservation Service or the person delegated authority to act for the Chief.

Commenced conversion wetland means a wetland or converted wetland for which the Farm Service Agency has determined that the wetland manipulation was contracted for, started, or for which financial obligation was incurred before December 23, 1985.

Conservation District is a subdivision of a State government organized pursuant to applicable State law to promote and undertake actions for the conservation of soil, water, and other natural resources.

Conservation Reserve Program (CRP) means the program administered by the Commodity Credit Corporation pursuant to 16 U.S.C. 3831-3836.

Contract means the document that specifies the obligations and rights of any person who has been accepted for participation in the program.

Converted wetland means a wetland that has been drained, dredged, filled, leveled, or otherwise manipulated (including the removal of woody vegetation, or any
activity that results in impairing or reducing the flow, circulation, or reach of water) for the purpose, or that has the effect, of making the production of an agricultural commodity possible if such production would not have been possible but for such action.

Cost-share payment means the payment made by the Department to achieve the restoration of the wetland functions and values of the easement area in accordance with the WRPO.

Department means the United States Department of Agriculture (USDA) and includes the Commodity Credit Corporation or any USDA agency or instrumentality delegated program responsibility by the Secretary of Agriculture.

Easement means a reserved interest easement which is an interest in land defined and delineated in a deed whereby the landowner conveys all rights, title, and interests in a property to the grantee, but the landowner retains those rights, title, and interests in the property which are specifically reserved to the landowner in the easement deed.

Easement area means the land encumbered by an easement.

Easement payment means the consideration paid to a landowner for an easement conveyed to the United States under the WRP.

Farm Service Agency is an agency of the United States Department of Agriculture.

Forest Service is an agency of the United States Department of Agriculture.

Landowner means a person or persons having legal ownership of farmland, including those who may be buying farmland under a purchase agreement. Landowner may include all forms of collective ownership including joint tenants, tenants in common, and life tenants and remaindermen in a farm property.

Lands substantially altered by flooding means areas where flooding has created wetland hydrologic conditions which, with a high degree of certainty, will develop wetland soil and vegetation characteristics over time.

Natural Resources Conservation Service (NRCS) is an agency of the United States Department of Agriculture, formerly called the Soil Conservation Service.

Permanent easement means an easement that lasts in perpetuity.

Person means an individual, partnership, association, corporation, cooperative, estate or trust, or other business enterprise or other legal entity and, whenever applicable, a State, a political subdivision of a State, or any agency thereof.

Practice means a restoration measure necessary or desirable to accomplish the desired program objectives.

Riparian areas mean areas of land that occur along streams, channels, rivers, and other water bodies. These areas are normally distinctly different from the surrounding lands because of unique soil and vegetation characteristics, may be identified by distinctive vegetative communities which are reflective of soil conditions normally wetter than adjacent soils, and generally provide a corridor for the movement of wildlife.

State Technical Committee means a committee established by the Secretary of the U.S. Department of Agriculture in a State pursuant to 16 U.S.C. 3861. For the purposes of the WRP, the State Conservationist will be the chairperson of the State Technical Committee.

U.S. Fish and Wildlife Service is an agency of the United States Department of the Interior.

Wetland means land that:

(1) Has a predominance of hydric soils;

(2) Is inundated or saturated by surface or groundwater at a frequency and duration sufficient to support a prevalence of hydrophytic vegetation typically adapted for life in saturated soil conditions; and

(3) Does support a prevalence of such vegetation under normal circumstances. For purposes of WRP, wetlands shall also refer to adjacent lands that contribute to wetland functions and values.

Wetland functions and values means the hydrological and biological characteristics of wetlands and the socioeconomic value placed upon these characteristics, including:

(1) Habitat for migratory birds and other wildlife, in particular at risk species;

(2) Protection and improvement of water quality;

(3) Attenuation of water flows due to flood;

(4) The recharge of ground water;

(5) Protection and enhancement of open space and aesthetic quality;

(6) Protection of flora and fauna which contributes to the Nation's natural heritage; and

(7) Contribution to educational and scientific scholarship.

Wetland restoration means the rehabilitation of degraded or lost habitat in a manner such that:

(1) The original vegetation community and hydrology are, to the extent practical, re-established; or

(2) A community different from what likely existed prior to degradation of the site is established. The hydrology and native self-sustaining vegetation being established will substantially replace original habitat functions and values but does not involve more than 30 percent of the wetland restoration area.

WRP means the Wetlands Reserve Program.

WRPO means the Wetlands Reserve Plan of Operations.

Sec. 1467.4 Program requirements.

(a) General. Under the WRP, the Department will purchase conservation easements from, or enter into restoration cost-share agreements with, eligible landowners who voluntarily cooperate in the restoration and protection of wetlands and associated lands. To participate in WRP, a landowner will agree to the implementation of a Wetlands Reserve Plan of Operations (WRPO), the effect of which is to restore, protect, enhance, maintain, and manage the hydrologic conditions of inundation or saturation of the soil, native vegetation, and natural topography of eligible lands. The Department may provide cost-share assistance for the activities that promote the restoration, protection, enhancement, maintenance, and management of wetland functions and values. Specific restoration, protection, enhancement, maintenance, and management actions may be undertaken by the landowner or other Department designee.

(b) Acreage limitations.

(1) Except for areas devoted to windbreaks or shelterbelts after November 28, 1990, no more than 25 percent of the total cropland in any county, as determined by the Farm Service Agency, may be enrolled in the CRP and the WRP, and no more than 10 percent of the total cropland in the county may be subject to an easement acquired under the CRP and the WRP.

(2) The NRCS and the Farm Service Agency shall concur before a waiver of either the 25 percent limit or the 10 percent limit of this subsection can be approved for an easement proposed for enrollment in the WRP. Such a waiver will only be approved if it will not adversely affect the local economy, and operators in the county are having difficulties complying with the conservation plans implemented under 16 U.S.C. 3812.

(c) Landowner eligibility. The NRCS may determine that a person is not eligible to participate in the WRP or receive any WRP payment because the person did not comply with the provisions of 7 CFR part 12. To be eligible to enroll an easement in the WRP, a person must:

(1) Be the landowner of eligible land for which enrollment is sought;

(2) Have been the landowner of such land for the 12 months prior to the time the intention to participate is declared unless it is determined by the State Conservationist that the land was acquired by will or succession as a result of the death of the previous landowner, or that adequate assurances have been presented to the State Conservationist that the new landowner of such land did not acquire such land for the purpose of placing it in the WRP; and,

(3) Agree to provide such information to the Department as the agency deems necessary or desirable to assist in its determination of eligibility for program benefits and for other program implementation purposes.

(d) Eligible land.

(1) The NRCS shall determine whether land is eligible for enrollment and whether, once found eligible, the lands may be included in the program based on the likelihood of successful restoration of wetland functions and values when considering the cost of acquiring the easement and restoration, protection, enhancement, maintenance, and management costs.

(2) Land shall only be considered eligible for enrollment in the WRP if the NRCS determines, in consultation with the U.S. Fish and Wildlife Service, that:

(i) Such land maximizes wildlife benefits and wetland values and functions;

(ii) The likelihood of the successful restoration of such land and the resultant wetland values merit inclusion of such land in the program, taking into consideration the cost of such restoration; and

(iii) Such land meets the criteria of paragraph (d)(3) of this section,

(3) The following land may be eligible for enrollment in the WRP, which land may be identified by the NRCS pursuant to regulations and implementing policies pertaining to wetland conservation found at 7 CFR part 12, as:

(i) Wetlands farmed under natural conditions, farmed wetlands, prior converted cropland, commenced conversion wetlands, farmed wetland pastures, and lands substantially altered by flooding so as to develop wetland functions and values;

(ii) Former or degraded wetlands that occur on lands that have been used or are currently being used for the production of food and fiber, including rangeland and forest production lands, where the hydrology has been significantly degraded or modified and will be substantially restored;

(iii) Riparian areas along streams or other waterways that link or, after restoring the riparian area, will link wetlands which are protected by an easement or other device or
circumstance that achieves the same objectives as an easement;
(iv) Land adjacent to the restored wetland which would contribute significantly to wetland functions and values including buffer areas, wetland creations, and non-cropped natural wetlands, but not more than the State Conservationist, in consultation with the State Technical Committee, determines is necessary for such contribution;

(v) Other wetlands that would not otherwise be eligible but would significantly add to the wetland functions and values; and,

(vi) Wetlands that have been restored under a private, State, or Federal restoration program with an easement or deed restriction with a duration of less than 30 years.

(4) To be enrolled in the program, eligible land must be configured in a size and with boundaries that allow for the efficient management of the area for easement purposes and otherwise promote and enhance program objectives.

(e) Ineligible land. The following land is not eligible for enrollment in the WRP:

(1) Converted wetlands if the conversion was commenced after December 23, 1985;

(2) Land that contains timber stands established under a CRP contract or pasture land established to trees under a CRP contract;

(3) Lands owned by an agency of the United States;

(4) Land subject to an easement or deed restriction with a duration of 30 years or more prohibiting the production of agricultural commodities; and,

(5) Lands where implementation of restoration practices would be futile due to on-site or off-site conditions.

(f) Enrollment of CRP lands. Land subject to an existing CRP contract may be enrolled into the WRP only if the land and landowner meet the requirements of this part, and the enrollment is requested by the landowner and agreed to by the NRCS. To enroll in WRP, the CRP contract for the property shall be terminated or otherwise modified subject to such terms and conditions as are mutually agreed upon by the Farm Service Agency and the landowner.

Sec. 1467.5 Application procedures.

(a) Application for participation. To apply for enrollment, a landowner must submit an Application for Participation in the WRP. The application must be submitted during an announced period for such submissions.

(b) Preliminary agency actions. By filing an Application for Participation, the landowner consents to an NRCS representative entering upon the land for purposes of assessing the wetland functions and values, and for other activities such as the development of the preliminary WRPO that are necessary or desirable for the NRCS to make offers of enrollment. The landowner is entitled to accompany an NRCS representative on any site visits.

(c) Voluntary reduction in compensation. In order to enhance the probability of enrollment in WRP, a landowner may voluntarily offer to accept a lesser payment than is being offered by the Department.

Sec. 1467.6 Establishing priority for enrollment of properties in WRP.

(a) The NRCS shall place priority on the enrollment of those lands that will maximize wildlife values (especially related to enhancing habitat for migratory birds and other wildlife); have the least likelihood of re-conversion and loss of these wildlife values at the end of the WRP enrollment period; and that involve State, local, or other partnership matching funds and participation.

(b) Ranking considerations. Based on applications for participation, the State Conservationist, in consultation with the U.S. Fish and Wildlife Service and the State Technical Committee, will rank properties based on: estimated costs of restoration and easement acquisition, availability of matching funds, significance of wetland functions and values, estimated success of restoration measures, and the duration of a proposed easement with permanent easements being given priority over non-permanent easements.

(c) The NRCS may place higher priority on certain geographic regions of the State where restoration of wetlands may better achieve NRCS State and regional goals and objectives.

(d) Notwithstanding any limitation of this part, the State Conservationist may enroll eligible lands at any time in order to encompass total wetland areas subject to multiple ownership or otherwise to achieve program objectives. Similarly, the State Conservationist may, at any time, exclude otherwise eligible lands if the participation of the adjacent landowners is essential to the successful restoration of the wetlands and those adjacent landowners are unwilling to participate.

Sec. 1467.7 Enrollment of easements.
(a) Offers of enrollment. Based on the priority ranking, the Department will notify an affected landowner of tentative acceptance into the program for which the landowner has 15 calendar days to sign a letter of intent to continue. The Department will select lands to maximize environmental benefits per expenditure of Federal funds.

(b) Effect of letter of intent to continue (enrollment). An offer of tentative acceptance into the program does not bind the Department or the United States to acquire an easement, nor does it bind the landowner to convey an easement or agree to WRPO activities. However, receipt of an executed letter of intent to continue will authorize the Department to proceed.

(c) Acceptance of offer of enrollment. A contract will be presented by the Department to the landowner, which will describe the easement area; the easement terms and conditions; and other terms and conditions for participation that may be required by the Department. A landowner accepts enrollment in the WRP by signing contract.

(d) Effect of the acceptance of the offer. After the contract is executed by the Department and the landowner, the Department will proceed with various easement acquisition activities, which may include conducting a survey of the easement area, securing necessary subordination agreements, procuring title insurance, and conducting other activities necessary to record the easement or implement the WRPO.

(e) Withdrawal of offers. Prior to execution by the United States and the landowner of the contract, the Department may withdraw its offer anytime due to availability of funds, inability to clear title, or other reasons. The offer to the landowner shall be void if not executed by the landowner within the time specified. The date of the offer shall be the date of notification to the landowner of tentative acceptance.

Sec. 1467.8 Compensation for easements.

(a) Establishment of rates.
(1) The State Conservationist, in consultation with the State Technical Committee, shall determine easement payment rates to be applied to specific geographic areas within the State or to individual easement areas.
(2) In order to provide for better uniformity among States, the Regional Conservationist and Chief may review and adjust, as appropriate, State or other geographically based easement payment rates.

(b) Determination of easement payment rates.

(1) Easement payment rates will be based upon analyses of the values of the lands when used for agricultural purposes. The landowner will receive the lesser of the following:

(i) the geographic area rate;

(ii) the value based on a market appraisal analysis/assessment; or

(iii) the landowner offer.

(2) Each State Conservationist will determine the easement payment rates using the best information which is readily available in that State for assessing the values of land for agricultural purposes. Such information may include: soil types, type(s) of crops capable of being grown, production history, location, real estate market values, appraisals and market analyses, and tax rates and assessments. The State Conservationist may consult with other Federal agencies, real estate market experts, appraisers, local tax authorities, and other entities or persons which may provide information on productivity and market conditions.

(3) Easement payments for non-permanent easements will be less than those for permanent easements because the quality and duration of the ecological benefits derived from a non-permanent easement are significantly less than those derived from a permanent easement on the same land. Additionally, the economic value of the easement interests being acquired is less for a non-permanent easement than that associated with a permanent easement. An easement payment for the short-term 30-year easements shall be not less than 50 percent nor more than 75 percent of that which would have been paid for a permanent easement.

(c) Maximum payments. In order to ensure that limited program funds are expended to maximize program benefits, the State Conservationist, in consultation with the State Technical Committee, may establish a maximum easement payment for any one easement within a State or for geographic areas within a State.

(d) Preliminary estimates of easement payments. Upon request of the landowner prior to filing an application for enrollment, a landowner may be apprised of the maximum easement payment rates.

(e) Acceptance of offered easement compensation.

(1) The Department will not acquire any easement unless the landowner accepts the amount of the easement payment which is offered by the Department. The easement payment may or may not equal the fair market value of the interests and rights to be conveyed by the landowner under the easement. By voluntarily participating in the program, a landowner waives any claim to additional compensation based on fair market value.

(2) Annual easement payments may be made in no less than 5 annual payments and no more than 30 annual payments of equal or unequal size .

(f) Reimbursement of a landowner's expenses. For completed easement conveyances, the Department will reimburse landowners for their fair and reasonable expenses, if any, incurred for surveying and related costs, as determined by the Department. The State Conservationist, in consultation with the State Technical Committee, may establish maximum payments to reimburse landowners for reasonable expenses.

(g) Tax implications of easement conveyances. Subject to applicable regulations of the Internal Revenue Service, a landowner may be eligible for a bargain sale tax deduction which is the difference between the fair market value of the easement conveyed to the United States and the easement payment made to the landowner. The Department disclaims any representations concerning the tax implications of any easement or cost-share transaction.

(h) Payment limitation on non-permanent easements. With respect to non-permanent easements, the annual amount of easement payments to any person may not exceed $50,000, except for:

(1) Payments made pursuant to projects involving partnership funding or participation; or

(2) Payments received by a State, political subdivision, or agency thereof in connection with agreements entered into under a special wetland and environmental enhancement program carried out by that entity that has been approved by NRCS.

(i) Per acre payments. If easement payments are calculated on a per acre basis, adjustment to stated easement payment will be made based on final determination of acreage.

Sec. 1467.9 Cost-share payments.

(a) The Department may share the cost with landowners of restoring the enrolled land as provided in the WRPO. The amount and terms and conditions of the cost-share assistance shall be subject to the following restrictions on the costs of establishing or installing practices specified in the WRPO:

(1) On enrolled land subject to a permanent easement, the Department shall offer to pay not less than 75 percent nor more than 100 percent of such costs; and

(2) On enrolled land subject to a non-permanent easement or restoration cost-share agreement, the Department shall offer to pay not less than 50 percent nor more than 75 percent of such costs. Restoration cost-share payments offered by NRCS for the short-term, 30-year easements shall be 50 to 75 percent.

(b) Cost-share payments may be made only upon a determination by the NRCS that an eligible practice or an identifiable unit of the practice has been established in compliance with appropriate standards and specifications. Identified practices may be implemented by the landowner or other designee.

(c) Cost-share payments may be made for the establishment and installation of additional eligible practices, or the maintenance or replacement of an eligible practice, but only if NRCS determines the practice is needed to meet the objectives of the easement, and the failure of the original practices was due to reasons beyond the control of the landowner.

(d) A landowner may seek additional cost-share assistance from other public or private organizations as long as the activities funded are in compliance with this part. In no event shall the landowner receive an amount which exceeds 100 percent of the total actual cost of the restoration.

Sec. 1467.10 Easement participation requirements.

(a) To enroll land in WRP, a landowner shall grant an easement to the United States. The easement shall require that the easement area be maintained in accordance with WRP goals and objectives for the duration of the term of the easement, including the restoration, protection, enhancement, maintenance, and management of wetland and other land functions and values.

(b) For the duration of its term, the easement shall require, at a minimum, that the landowner, and the landowner's heirs, successors and assigns, shall cooperate in the restoration, protection, enhancement, maintenance, and management of the land in accordance with the easement and with the terms of the WRPO. In addition, the easement shall grant to the United States, through the NRCS:

(1) A right of access to the easement area;

(2) The right to permit compatible uses of the easement area, including such activities as hunting and fishing, managed timber harvest, or periodic haying or grazing, if such use is consistent with the long-term protection and enhancement of the wetland resources for which the easement was established;

(3) All rights, title and interest in the easement area subject to compatible uses reserved to the landowner; and,

(4) The right to perform restoration, protection, enhancement, maintenance, and management activities on the easement area.

(c) The landowner shall convey title to the easement which is acceptable to the NRCS. The landowner shall warrant that the easement granted to the United States is superior to the rights of all others, except for exceptions to the title which are deemed acceptable by the NRCS.
(d) The landowner shall:

(1) Comply with the terms of the easement;

(2) Comply with all terms and conditions of any associated contract;

(3) Agree to the permanent retirement of any existing cropland base and allotment history for the easement area under any program administered by the Secretary, as determined by the Farm Service Agency;

(4) Agree to the long-term restoration, protection, enhancement, maintenance, and management of the easement in accordance with the terms of the easement and related agreements;

(5) Have the option to enter into an agreement with governmental or private organizations to assist in carrying out any landowner responsibilities on the easement area; and,

(6) Agree that each person who is subject to the easement shall be jointly and severally responsible for compliance with the easement and the provisions of this part and for any refunds or payment adjustment which may be required for violation of any terms or conditions of the easement or the provisions of this part.

Sec. 1467.11 The WRPO development.

(a) The development of the WRPO shall be made through the local NRCS representative, in consultation with the State Technical Committee and with consideration of site specific technical input from the U.S. Fish and Wildlife Service and the Conservation District.

(b) The WRPO shall specify the manner in which the enrolled land shall be restored, protected, enhanced, maintained, and managed to accomplish the goals of the program. The WRPO shall be developed to ensure that cost-effective restoration and maximization of wildlife benefits and wetland functions and values will result.

Sec. 1467.12 Modifications.

(a) Easements.

(1) After an easement has been recorded, no modification will be made in the easement except by mutual agreement with the Chief and the landowner. The Chief will consult with the U.S. Fish and Wildlife Service and the Conservation District prior to making any modifications to easements.

(2) Approved modifications will be made only in an amended easement which is duly prepared and recorded in conformity with standard real estate practices, including requirements for title approval, subordination of liens, and recordation.

(3) The Chief may approve modifications to facilitate the practical administration and management of the easement area or the program so long as the modification will not adversely affect the wetland functions and values for which the easement was acquired.

(4) Modifications must result in equal or greater environmental and economic values to the United States.

(b) WRPO. Insofar as is consistent with the easement and applicable law, the State Conservationist may approve modifications to the WRPO that do no affect provisions of the easement in consultation with the landowner and the State Technical Committee and following consideration of site specific technical input from the U.S. Fish and Wildlife Service and the Conservation District. Any WRPO modification must meet WRP program objectives, and must result in equal or greater wildlife benefits, wetland functions and values, ecological and economic values to the United States. Modifications to the WRPO which are substantial and affect provisions of the easement will require agreement from the landowner and require execution of an amended easement.

Sec. 1467.13 Transfer of land.

(a) Offers voided. Any transfer of the property prior to the landowner acceptance into the program shall void the offer of enrollment. At the option of the State Conservationist, an offer can be extended to the new landowner if the new landowner agrees to the same or more restrictive easement and contract terms and conditions.

(b) Payments to landowners.

(1) For easements with multiple annual payments, any remaining easement payments will be made to the original landowner unless the Department receives an assignment of proceeds.

(2) The new landowner or purchaser shall be held responsible for assuring completion of all measures and practices required by the contract. Eligible cost-share payments shall be made to the new landowner upon presentation of an assignment of rights or other evidence that title had passed.
(c) Claims to payments. With respect to any and all payments owed to landowners, the United States shall bear no responsibility for any full payments or partial distributions of funds between the original landowner and the landowner's successor. In the event of a dispute or claim on the distribution of cost-share payments, the Department may withhold payments without the accrual of interest pending an agreement or adjudication on the rights to the funds.

Sec. 1467.14 Violations and remedies.

(a) In the event of a violation of the easement or any contract directly involving the landowner, the landowner shall be given reasonable notice and an opportunity to voluntarily correct the violation within 30 days of the date of the notice, or such additional time as the State Conservationist may allow.

(b) Notwithstanding paragraph (a) of this section, the NRCS reserves the right to enter upon the easement area at any time to remedy deficiencies or easement violations. Such entry may be made at the discretion of the NRCS when such actions are deemed necessary to protect important wetland functions and values or others rights of the United States under the easement. The landowner shall be liable for any costs incurred by the United States as a result of the landowner's negligence or failure to comply with easement or contractual obligations.

(c) In addition to any and all legal and equitable remedies as may be available to the United States under applicable law, the Department may withhold any easement and cost-share payments owing to landowners at any time there is a material breach of the easement covenants or any contract. Such withheld funds may be used to offset costs incurred by the United States in any remedial actions or retained as damages pursuant to court order or settlement agreement.

(d) The United States shall be entitled to recover any and all administrative and legal costs, including attorney's fees or expenses, associated with any enforcement or remedial action.

Sec. 1467.15 Payments not subject to claims.

Any cost-share or easement payment or portion thereof due any person under this part shall be allowed without regard to any claim or lien in favor of any creditor, except agencies of the United States Government.

Sec. 1467.16 Assignments.

Any person entitled to any cash payment under this program may assign the right to receive such cash payments, in whole or in part.

Sec. 1467.17 Appeals.

(a) A person participating in the WRP may obtain a review of any administrative determination concerning eligibility for participation utilizing the administrative appeal regulations provided in 7 CFR part 614.

(b) Before a person may seek judicial review of any action taken under this part, the person must exhaust all administrative appeal procedures set forth in paragraph (a) of this section, and for purposes of judicial review, no decision shall be a final agency action except a decision of the Chief of NRCS under these procedures.

(c) Any appraisals, market analysis, or supporting documentation that may be used by the Department in determining property value are considered confidential information, and shall only be disclosed as determined at the sole discretion of the Department in accordance with applicable law.

Sec. 1467.18 Scheme and device.

(a) If it is determined by the Department that a landowner has employed a scheme or device to defeat the purposes of this part, any part of any program payment otherwise due or paid such landowner during the applicable period may be withheld or be required to be refunded with interest thereon, as determined appropriate by the Department.

(b) A scheme or device includes, but is not limited to, coercion, fraud, misrepresentation, depriving any other person of payments for cost-share practices or easements for the purpose of obtaining a payment to which a person would otherwise not be entitled.

(c) A landowner who succeeds to the responsibilities under this part shall report in writing to the Department any interest of any kind in enrolled land that is held by a predecessor or any lender. A failure of full disclosure will be considered a scheme or device under this section.


Signed at Washington, D.C. on August 8, 1996.
Paul Johnson,
Chief, Natural Resources Conservation Service, Vice President, Commodity Credit Corporation.
[FR Doc. 96-20623 Filed 8-13-96; 8:45 am]BILLING CODE 3410-16-M