ft ^47019
Rules  and  Regulations
                                                                              Federal Register

                                                                              Vol. 61,  No. 174

                                                                              Friday, September 6, 1996
 This section- of the FEDERAL.BEGISTER
 contains regulatory documents having general
 applicability and legal effect, most of which
 are keyed to and codified in the Code of ,
 Federal Regulations, which is published under
 50 titles pursuant to 44 U.S.C. 1510.

 The Code of Federal Regulations is sold by
 • the Superintendent of Documents. Prices of-
 new books are listed in the first FEDERAL
 REGISTER issue of each week.
 DEPARTMENT OF AGRICULTURE

 Office of the Secretary

 7CFRPart12

 RIN0578-AA17

 Highly Erodible Land and Wetland
 Conservation

 AGENCY: Office of the Secretary, USDA.
 ACTION: Interim finalrule with request
 for comments.

 SUMMARY: The United States Department
 of Agriculture (USDA) is issuing an
 interim final rule for the Highly
 Erodible Land and Wetland
 Conservation provisions of the Food
 Security Act of. 1985,  as amended. This
 interim final rule incorporates specific
 changes required by the Federal
 Agriculture Improvement and Reform
 Act of 1996 and makes other changes to
 improve the administration of these
 provisions. USDA is seeking comments
 from the public which will be
 considered prior to issuing a final rule.
' DATES: Effective Dates: September 6,
 1996.
   Comments must be received by
 Novembers, 1996.
 ADDRESSES: All comments concerning
 this interim final rule should be
 addressed to Lloyd  E. Wright, Director,
 Conservation Ecosystems Assistance
 Division,  Natural Resources
 Conservation service, P.O. Box 2890,
 Washington, D..C. 20013-2890.
 Attention: HELWC. Fax: 202-720-1838.
 This rule  may also be accessed, and
 comments submitted, via Internet. Users
 can access the NRCS Federal Register
 homepage and submit comments at
 http:/astro.itc.nrcs.usda.gov:6500.
 FOR FURTHER INFORMATION CONTACT:
 Sandra N. Penn, Conservation
 Ecosystems Assistance Division, Natural
 Resources Conservation Service, 202-
 720-1845. .      .   '
                                      SUPPLEMENTARY INFORMATION:
                                      Executive Order 12866

                                        This rule has been determined to be
                                      significant and was reviewed by the
                                      Office of Management and Budget
                                     . (OMB) under Executive Order 12866.
                                      Pursuant to § 6 (a) (3) of Executive Order
                                      12866, CCC and NRCS have conducted
                                      an economic analysis of the potential
                                      impacts associated with this interim
                                      final rule.'The economic analysis
                                     .. concluded that the past  ten years of  .
                                      experience in implementing these
                                      provisions demonstrates that the
                                      provisions are an effective incentive to .-
                                      implementing conservation practices.
                                      Changes in the 1985 Act and the
                                      implementing regulations will help to
                                      increase that incentive by making
                                      compliance achievable by more
                                      producers, providing more liberal
                                      technical assistance, and increasing
                                      flexibility in farm operations that
                                      deterred some producers from
                                      participation in USDA programs in the
                                      past. A copy of this cost-benefit analysis
                                      is available upon request from Sandra
                                      N. Penn, Conservation Ecosystems
                                      Assistance Division, Natural Resources
                                      Conservation Service, P.O. Box 1890,
                                      Washington, D.C. 20013-1890.

                                      Regulatory Flexibility Act

                                        The Regulatory Flexibility Act is not •
                                      applicable to this rule because USDA is -
                                      not required by 5 U.S.C.  533 or any
                                      other provisions 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 assessment that the
                                     . issuance of this interim final rule will .
                                     not have a significant impact upon the
                                     human environment. Copies of the
                                      environmental assessment may be
                                     obtained from Sandra N. Penn, •
                                      Conservation, Ecosystems Assistance
                                     ' Division, Natural Resources
                                     Conservation Service, P.O. Box 2890,
                                     Washington, D.C. 20013-2890.

                                     Paperwork Reduction Act

                                        No substantive changes have been
                                     made in this interim final rule that
                                      affect the recordkeeping  requirements
                                     and estimated burdens previously
                                     reviewed and approved under OMB
                                     control number 0560-0004.
 Executive Order 12788
   This interim final rule has been
 reviewed in accordance with Executive
 Order 12778. The provisions of this
 interim final rule are not retroactive
 except for § 12.5(b)(4)-(8) in relation to
 certain actions or determinations that
 occurred after December 23, 1985,
 relative to the conversion of wetlands or
 the production of an agricultural
 commodity upon a converted wetland.  '
 Furthermore, the provisions of this final
 interim rule preempt State and local
' laws to the extent such laws are
 inconsistent with this interim final rule.
 Before an action may be brought in a
 Federal court of competent jurisdiction,
 the administrative  appeal rights.
 afforded persons at CFR parts
'11,614,780 and 1900 Subpart B of this
 title, as appropriate, must be exercised
 and exhausted.

 Unfunded Mandates Reform Act of
•1995
   Pursuant to Title II of the unfunded
 Mandates Reform Act  of 1995, Pub. L.
 104-4, the effects 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; therefore'a statement under <§ 202
 of the Unfunded Mandates Reform Act
of 1995 is not required.       :
Discussion of Provisions
'  Title XE of the Food Security Act of
 1985, as amended (the 1985 Act),
encourages participants in United States
Department of Agriculture (USDA)
programs to adopt land management
measures by linking eligibility for USDA
program benefits to farming practices on
highly erodible land and converted •
wetlands. In particular, the highly
erodible land provisions (HEL) of the
 1985 Act provide that  after December
23, 1985, a program participant is
ineligible for certain USDA program
benefits for the production of an
agricultural commodity on a field in
which highly erodible  land is
predominant. Additionally, the wetland
conservation (WC)  provisions of the
 1985 Act provide that  after December
23, 1985, a program participant is
ineligible for certain USDA program
benefits for the production of an
agricultural commodity on a converted

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47020   Federal Register / Vol. 61.  No. 174  / Friday, September 6,  1996  /  Rules and Regulations
wetland, or after November 28. 1990, for
the conversion of a wetland that makes
the production of an agriculture
commodity possible. The 1985 Act,
however, affords relief to program
participants who meet certain
conditions identified under the 1985
Act by exempting such actions from the
ineligibility provisions.
  The USDA issued a final rule
implementing the HEL and WC
provisions of the 1985 Act on
September 17, 1987. These regulations,
found at 7 CFR part 12, provided the
terms of program ineligibility, described
the several exemptions from
ineligibility. outlined  the
responsibilities of the  several USDA
agencies involved in implementing the
provisions, and generally established
the framework for administration of the
provisions.
  The Food, Agriculture, Conservation,
and Trade Act of 1990 (the 1990 Act),
amended the 1985 Act and made some
significant modifications to the HEL and
WC conservation provisions. These
statutory changes were incorporated
into part 12 through amendments issued
April 23, 1991, and May 23, 1991.
  The implementing regulations mirror
the 1985 Act's structure by listing the
activities that will cause a person to lose
program benefits, the program benefits
that are at risk, and the conditions
under which these activities can occur
without losing program eligibility. The
current regulations are divided into.
three subparts. Subpart A describes the
terms of ineligibility, USDA programs
encompassed by its terms,  the list of
exemptions from ineligibility, the
agency responsibilities, and the appeal
provisions for persons adversely
affected by an agency determination.
Subpart B describes in greater detail the
technical aspects of the highly credible
land provisions, including the criteria
for identification of highly erodible
lands, criteria for highly  erodible field
determinations, and requirements for
the development of conservation plans
and conservation systems.  Subpart C
describes in greater detail the technical
aspects of the wetland conservation
provisions, including the criteria for
determining a wetland, the criteria for
determining a converted wetland, and
the uses of wetlands and converted
wetlands that can be made without
losing program eligibility.
  Since December 23,  1985, program
participants have farmed in a more
sustainable manner, resulting in more
soil remaining on the field and more
wetlands remaining available to wildlife
and migratory fowl. Meeting the
objectives of the HEL and WC
provisions, however, has been difficult
for some producers. Wherever possible,
USDA helps individual program
participants address their unique
resources concerns in a manner that
meets the requirements of the HEL' and
WC provisions. The Federal Agriculture
Improvement and Reform Act (the 1996
Act), enacted April 4, 1996, made
several modifications to the HEL and
WC provisions which will increase
USDA's ability to meet these individual
situations in a more flexible manner.
                    i
The Federal Agriculture Improvement
and Reform Act
  The  1996 Act amendments to the HEL
and WC provisions became  effective 90
"days after the date of ejnactment, I.e.,
July 3, 1996. Accordingly, delaying
implementation of this rule would be
contrary to the public interest and it has
been determined that this rule should,
therefore, be effective When issued but
subject to further review based on   '
comments submitted in response to this
interim final rule.    i
  The  1996 Act made the following
changes to the implementation of the
HEL and WC provisions:
  • Adds new programs to the list of
USDA program benefits covered.
  • Deletes some programs  from the list
of USDA program benefits covered.
  • Under certain conditions, allows a
person who is determined to be
ineligible for USDA program benefits
because of failure to apply a
conservation system up to 1 year to
implement 'the necessary practices
without loss of benefits.
  • Provides for expedited variances
related to weather, pes^, and disease
problems and establishes a time period
to render a decision on whether to grant
those variances.      ! .
  • Requires a measurement of soil
erosion on a highly erodible field prior
to the implementation [of a conservation
system, based on estiirjated average
annual soil erosion rates.
  • Provides for self-certification of
compliance for HEL and authorizes the
Natural Resources Conservation Service
(NRCS) to exclude that person from
status review on the basis of that
certification of compliance.
  • Provides for revision or
modification of a conservation plan by
a person if the same level of treatment
is maintained.       ;
  • Permits a person to use, on a field-
trial basis, conservation practices other
than those currently approved if NRCS
determines in advance that the practices
have a reasonable likelihood of success.
  • Provides for a review, and relief to
a person, by the local county committee
if applying a conservation system would.
 cause the person undue economic
 hardship.
   • Requires that an employee of USDA
 who notices a conservation compliance
 deficiency on a person's farm while
 providing technical assistance on other
 land inform the person of the deficiency
 and actions necessary to come into
 compliance, and allow up to 1 year for
 the person to fully implement corrective
 action before reporting the observation
 as a compliance violation.
   • Requires that highly erodible land
 exiting the Conservation Reserve
 Program not be held to a higher   .
 conservation compliance standard than
 similar cropland in the same area.
   • Permits a person to cease using
 farmed wetlands, or farmed-wetland
 pastures, as identified by NRCS, for
 cropping or forage production, and
 allows the lands to return to wetland
 conditions, and subsequently bring
 these lands back into agricultural
 production after any length of time
 without loss of eligibility for USDA
 program benefits, given certain
 conditions.
   •  Allows flexibility in determining
 the  programs for which a person who
 violates wetland conservation
 provisions will become ineligible.
 /  •  Ensures that persons the right to
 request and appeal a certified wetland
 determination.
   •  Provides that a certified wetland
 delineation will remain in effect until
 the  person requests a new determination
 and certification.
   •  Ensures that wetlands that were
 certified as prior-converted cropland
 will continue to be considered prior-
 converted cropland even if wetland
 characteristics return as a  result of lack
 of maintenance of the land or other
 circumstances beyond the person's
 control provided the prior-converted
 cropland continues to be used for
 agricultural purposes.
  • •  Requires USDA to identify on a
 regional basis which categories of
 activities constitute a minimal effect on
 wetland functions and,values.
   •  Provides persons who convert a
 wetland greater flexibility to mitigate
 the  loss  of wetland functions and values
 through restoration, enhancement, or
 creation of wetlands.
   •  Allows the Farm Service Agency
 (FSA) to waive a person's  ineUgibility
 for benefits if FSA believes the person
 acted in good faith and without intent
 to violate the wetland provisions.
   •  Provides for a pilot program for
. wetland mitigation banking.
   •  Repeals the requirements for
 consultation with the Fish and Wildlife
 Service  (FWS).

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             Federal Register / Vol. 61, No. 174  /  Friday, September  6.  1996 / Rules and  Regulations    47021
     • Provides that benefits of affiliates of
   a business enterprise who violate HEL
   or VVC provisions will be reduced in
   proportion to the interest held by the
   affiliate in the business enterprise.
     • Defines  "agricultural lands" for the
   purpose of implementing the January 6,
   1994, interagency memorandum of
   agreement on Federal wetland
   delineations on agricultural lands.
   Public Listing Forums
     In April 1996, USD A held nine
   forums to provide opportunities for
   public comment in advance of this  ••'
   rulernaking action. These forums were
   held at Sacramento, California;
   Longmont, Colorado; Columbus,
   Georgia; Springfield, Illinois;
   Wyomissing, Pennsylvania;  Sioux Falls,
   South Dakota; Abilene, Texas, Spokane,
   Washington;  and, Washington, D.C.
   More than 850 people, including 206
   speakers, attended these forums. In
   addition, USDA accepted written
   comments. The USDA considered the
   public comments provided at these
   forums in the preparation of this interim
   final rule. The documents,relating .to
   these forums are available for public
   inspection at Room 6029 South
   Building, USDA, 14th and
  > Independence Ave. SW, Washington,
   D.C. The following discussion is a brief
   Ssummary of how USDA responded to
   the issues generated by the comments:
    USDA received seven comments
   related to the granting of variance for
   persons who  fail to meet the highly
   erodible land conservation
   requirements. Section 12.5(a)(6)(ii)   -•
   addresses procedures for granting
  . variances for  weather, pest, and  disease
,   problems, and the factors that NRC.S
   will consider in granting those
   variances.
    USDA received three comments
   related to procedures for determining
  whether a conservation system results
  in a substantial reduction in  erosion.
  Section 12.23 addresses procedures for
  evaluating conservation systems for
  land with and without cropping history.
    USDA received 25 comments related
  to policies regarding when a  violation is
  in good faith.  Sections 12.5(a)(5) and
  (b) (5) address procedures for         • •'
  determining when a violation is  in good
  faith.               '              '   .
    USDA received 16 comments related
  to procedures for conducting status
  reviews. Although procedures for
  conducting status reviews are not
  addressed in the  rule, the NRCS  will
  consider'these comments in preparing
  its internal operating procedures.
    USDA received 46 comments related
  to*procedures  on wetland mitigation;
'  these included the suggestion that
 mitigation always be in the same
 watershed; that mitigation should place.
 priority on restoration or enhancement
 rather than creation of wetlands; that
 mitigation should be flexible; and, that
 mitigation should meet the
 requirements of the WC provision.
 Section 12.5(b)(4) sets forth procedures
 to be used for wetland mitigation, and
 .adds that the State Conservationist may
 determine that mitigation for certain
 types .or classes of wetlands will not be
 considered because it is not possible to
 achieve equivalent replacement of
 wetland functions and values within a
 reasonable time frame, USDA received  '
 another 28 comments related to
 mitigation banking.
 .  USDA received 68 comments related
 to certification of wetland
 determinations. Some commenters
 favored reviewing all wetland
 determinations and correcting errors;
 other commenters favored not reviewing
 existing wetland determinations. Some,
 commenters suggested that landowners
 should be formally notified of the
 certification of wetland determinations.
 Some commenters suggested that NRCS
 should be the lead agency for wetland
 determinations. Section 12.30(c)
 describes the proposed approach to
 certification of Wetland determinations.
 It  also specifies that a certified wetland
 determination will remain valid and in
 effect until the person affected by the
 certification requests review of the
 certification by NRCS.
   USDA received 17 comments  related
 to the role of FWS in carrying out the
 wetland conservation provisions. Of
 these, four commenters expressed
 support for FWS involvement and eight
 commenters favored decreasing, the role
 of the FWS. Five commenters made no
 specific recommendation. The 1996 Act
 removed the requirement for          \
 consultation with FWS, and that
 requirement has been removed from the
 rule. In addition, § 12.30 defines the role
 of the FWS in carrying out the wetland •
 conservation provisions.
  USDA received 36 comments related
 to  prior-converted cropland issues and
 abandonment of wetlands. Of these, 19
 commenters expressed support for the
 "once a PC, always a PC" change made
 by the 1996 Act; three commenters
 expressed concern .over that change.
Section 12.33 incorporates changes
made by the 1996 Act amendments.
  USDA received four comments stating
 that NRCS should withdraw from the
Interagency Memorandum of Agreement
on Wetlands (MOA) with FWS,
Environmental Protection Agency
 (EPA), and the U.S. Army Corps  of
Engineers (Corps). This comment is
outside the scope of this rule, but as
  discussed in greater detail below, NRCS
  is dedicated to continued coordination
  with the other Federal agencies with
  wetland responsibilities. Currently, the
  MOA provides a useful and available
  framework for this coordination.

  Description of Amendments
    As the summary of the forum
  comments indicates, the statutory
  changes affect provisions throughout 7
  CFR part 12. Because of these numerous
  changes, USDA will republish part 12 in
  its entirety to, help the public form
  opinio'ns and offer comments.-When
  USDA reviews the comments received
  from the public, those comments
  concerning new regulatory provisions
  will receive greater consideration.
  . In addition to revisions necessary to
 accommodate changes in the Ac.t, USDA
 makes several changes tojnterpret,
 clarify, or specify procedures followed
 in the implementation for the HEL and
 WC provisions. USDA invites public
 comment on these changes.

 Amendments to the HEL Provisions
   USDA finds that the following
 regulatory changes will improve the  . ;.
 quality of implementation of the HEL
 provisions of the 1985 Act:     :
  ; « Section 12.5(a)(6)(ii),is amended to
 list factors that NRCS will consider
 when a landowner requests a variance
 related to weather, pest, or disease
 problems.                 .
   • Section 12.22(cJ"is added to clarify
 that when fields are combined, the part
 of the new field that was previously a'
 highly erodible field shall continue to
 be subject to the'highly erodible land  .
 requirements.   '
   • .Section 12.23(a) is amended to
 clarify that the adequacy of a
 conservation system will be evaluated.
 according to whether it conforms to the
 NRCS field'office technical guide in use
 at the time that the plan or system is
 developed or revised.
   • Section 12.23(b) is added to clarify
 procedures to be used to evaluate the
 adequacy of conservation systems for
 achieving substantial reduction in soil
 erosion on land with and without
 cropping history.
  • Section 12.23(c) is added to specify
 that conservation field trials included in
 a person's conservation plan must have
 prior approval by NRCS arid must.be
 documented in the person's
 conservation plan specifying the limited
 time period during which the field trial
is in effect.
  « Section 12.23(j)'sets  forth the
factors to be considered by the FSA
State Committee in determining
whether to grant a person's request for
relief based on undue economic

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47022   Federal Register / Vol. 61, No.  174 /  Friday,  September 6, 1996 / Rules and Regulations
hardship in implementing a
conservation system.  .
Amendments to the WC Provisions
  USDA finds that the following
changes will improve the
implementation of the WC provisions of
the'1985 Act (WC provisions):
  Identification of wetland types: The
WC provisions clearly limit the
conversion of wetlands and the planting
of an agricultural commodity on a
converted wetland, yet the technical
identification of when these provisions
are triggered can prove complex. Even
though the 1985 Act implicitly
identifies three distinct land types
(wetlands, converted wetlands, and
non-wetlands), the inherent complexity
of natural systems and the diversity of
land management methods available to
an agricultural producer require that
greater sophistication be used in
application of broad national standards
to local conditions. Some areas of land
have been planted to an agricultural
commodity but still exhibit the
characteristic of a natural wetland if
cropping ceases for even a short period
of time. Likewise, areas managed for hay
or pasture can exhibit the characteristics
of a natural wetland if the management
of the area ceases. Some activities can
permanently remove most of the water
from an area without making the
production of an agricultural
commodity possible while natural
events can make the production of an
agricultural commodity possible
without permanently removing water
from an area.
  Since 1987, USDA has identified in
policy the threshold characteristics-that
define when: a wetland has been
manipulated sufficiently to make the
production of an agricultural
commodity possible; a wetland is
"converted;" conditions meet a
particular exemption identified under
the 1985 Act: and a producer has
expanded the drainage system beyond
what existed prior to December 23,
1985. The USDA is adding definitions to
§ 12.2 to state more precisely the variety
of wetland types found in the  .
agricultural landscape. Section 12.5 and
§§ 12.30-12.33 are amended to describe
how these wetland types relate to
particular exemptions from ineligibility.
In this manner, agricultural producers
are provided the maximum flexibility to
manage their lands in a manner that will
not trigger the ineligibility provisions of
the 1985 Act.
  Coordination with other Federal
agencies: Consistent with the intent
expressed in the Manager's Report
accompanying the 1996  Act
amendments, the changes made in this
 rule "do not supersede the wetland
 protection authorities land
 responsibilities of the Environmental
 Protection Agency [EPAJ or the Corps of
 Engineers [the Corps] under Section 404
 of the Clean .Water Act." This rule is
 promulgated under the authority of the
 1985 Act, as amended^ and therefore
 does not affect the obligations of any
 person under other Federal statutes, or
 the legal authorities of; any other Federal
 agency including, for example, EPA's
 authority to determine the geographic
 scope of Clean Water Act jurisdiction.
 Nonetheless, NRCS, the Corps, and EPA
 place a high priority op adopting
, procedures and policies that minimize
 duplication and inconsistencies
 between the wetland conservation
 provisions of the 1985| Act and the  , •
 Clean Water Act section 404 programs.
 To help achieve these jimportant policy
 objectives, on January i6, 1994, four
 Federal agencies with Iwetland
 responsibilities (USDA,, EPA, the
 Department of the Interior, the
 Department of the Army) entered, into a
 Memorandum of Agreement (MOA),
 regarding the delineation of wetlands
 for purposes of section 404 of the Clean
 Water Act and the WC( provisions. This
 MOA provides a framework for
 continuing coordination between the
 Federal agencies regarding the
 administration of Federal wetland laws.
 Consistent with the objectives of the
. MOA, the NRCS will continue to
 coordinate with the otjier Federal
 agencies in the development of its
 policies and procedures related  to the
 implementation of these regulations.
   More specifically, the agencies will
 coordinate to develop policies and
 procedures for evaluating the accuracy
 of existing non-certified wetland
 determinations made by NRCS. The
 necessary first step in|these procedures
 will be to make an assessment of the
 quality of previous determinations.
 After completing the quality assessment,
 in order to provide certainty for the
 agricultural community, the Federal
 agencies will complete the process of
 validating prior determinations  in.an
 expeditious manner. I
   It is also the goal of [the agencies to
 minimize duplication; and
 inconsistencies between the WC
 provisions and the Clean Water Act. The
 agencies will coordinate to develop
 policies and procedurps to. minimize
 duplication and inconsistencies
 between the WC provisions and the
 .Clean Water Act programs regarding
 other issues; in particular, conversion
 for non-agricultural use, minimal effects
 determinations (including categorical
 minimal effects exemptions), mitigation
 determination, or other written
agreements between persons and NRCS,
the re-establishment of agriculture use
on abandoned farmed wetlands and
farmed-wetland pasture, conversions
due to NRCS wetland determination
errors, and drainage maintenance. As
part of this effort, the Corps intends to
develop a new Clean Water Act
nationwide permit that addresses NRCS
minimal effects determinations, NRCS
mitigation requirements, and modify the
existing nationwide permit that
addresses voluntary wetland restoration
(See 61 FR part VII (June 17, 1996)).
   In the MOA, the agencies agreed to
follow certain guidelines for delineating
wetlands. The MOA agencies currently
use the 1987 Corps of Engineers
Wetland Delineation Manual (1987
Corps Manual) for delineating wetlands
on areas where the native vegetation is ,
intact (i.e., non-agricultural lands) and
use the National  Food Security Act
Manual, Third ed. (NFSAM), for
delineating wetlands on  areas where the
native vegetation has been removed due
to ongoing agricultural activities (i.e.,
agricultural  lands).
   Copies of the NFSAM and the MOA
are available from the NRCS, P.O. Box
2890, Washington, D.C.,  20013. Copies
of the 1987 Corps Manual are available
from the National Technical Information
Service (NTIS), 5285 Port Royal Road,
Attn: Order  Department, Springfield,
Virginia, 22171. Copies of the
Supplemental guidance issued by the
Corps concerning use of the 1987
Manual (i.e., the  October 7, 1991,
Questions and Answers, and the March
6, 1992, Clarification and Interpretation
"Memorandum) may be obtained by •
contacting the Regulatory Branch of the
local Corps district, the EPA Wetlands
Hotline at (800) 832-7828, or the
Regulatory Branch of Corps
headquarters (Office of the Chief of
Engineers) at (202) 272-0199. NRCS will
publish notice in the Federal Register
concerning a change  in the Federal
wetland delineation criteria that may be
used in implementation  of the WC
provisions.
"   This interim final rule, however, only
applies to administration of Tide XII of
the 1985 Act. As discussed earlier, the
four agencies have identified a need to
expand and revise the MOA to assure
consistency and  fairness in the
implementation  of these acts. The
current MOA will remain in effect until
it is amended or rescinded by the four
agencies.
   A goal of the Administration's 1993
Wetlands Plan is to harmonize the WC
provisions and the Clean Water Act to
the extent practicable. These regulations
are modified in several ways to further
the President's Wetlands Plan. In

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             Federal Register / Vol. 61. No. 174  /  Friday. September  6,  1996 /  Rules and Regulations    47023
   particular, § 12.5(b)(5) provides that
   when a person requests relief on the
   basis that an action was conducted in
   good faith, USDA may consider whether
   the person has a record of violating the
   wetland provisions of these regulations
.   or other Federal, State, or local wetland
   provisions.    "
    Additionally, § 12.6(e) is added to
 ,  state that NRCS may accept the
   assistance of other Federal agencies to
   carry out the wetland responsibilities of
   these regulations. Sections  12,30(a) and
   (b) provide that NRCS will consult with
   FWS at the State level to develop a
   process for implementation of the WC
   provisions.
    Section 12.30(c).describes the
   procedure for certification of wetland  '•
   determinations and specifies that
   certified wetland determinations will
   meet current Federal mapping
   conventions.
    A certified wetland determination
 .will remain in effect unless the person
  affected by the certification requests a
  review under certain circumstances or
  the wetland characteristics are changed
  as a result of human activities.
    Section 12.31(b)(3) is amended to
  provide that the determination of
  prevalence of hydrophytic vegetation
,  will be made in accordance with the
  current Federal wetland delineation
  methodology in use at the time of the
  determination. This change  assures that
  the four agencies will utilize consistent
  and up-to-date technicalstandards and
  criteria.

  Summary of Rule Modifications
    Based on the changes in the 1996 Act
  and the other considerations set forth
  above, the changes to 7 CFR part 12
  adopted in this notice are as follows:
  SubpartA
    This interim final rule adds several
  new definitions to § 12.2. The
  Department of Agriculture
  Reorganization Act of 1994 abolished
 several agencies and established new  -
 agencies to assume Department
 responsibilities. Therefore, § 12.2 is
 amended to reflect the new agencies
 with responsibilities for implementation
 of these regulations.
    Section 12.2: This interim final rule
 adds new definitions for "conservation
 plan," "conservation system," and
 "field" as stated in the statute. It also
 adds several new definitions related to
 types  of wetlands and management
 actions related to wetlands that have
 previously only been identified in
 policy. Definitions for "prior-converted
 •cropland," "farmed wetland," "farmed-
 wetland pasture," and "commenced-
 conversion wetland" have been added.
  Other provisions of the rule have been
  amended, including § 12.5 and
  §§ 12.31-.33, to incorporate these new
  definitions where applicable.
    The 1996 Act amendments provide
  that a person who converts a wetland
  may remain eligible for USDA program
  benefits if the loss of wetland functions
  and values are mitigated through the
  restoration, enhancement, .or creation of
  a wetland. Therefore, definitions for
  "creation", "enhancement", and
  "restoration", have been added to
  clarify this new flexibility.
    Section 12.3: This, interim final rule
  applies to all actions taken after July 3,
  1996, and to determinations made after,
  or pending on, July 3, 1,996, the date on
 which the HEL and WC statutory
 amendments become effective. This
 section is amended to reflect the passage
 of the 1996 Act and the scope of these
 new provisions.
   Section 12.4: Section 12.4 describes
 the actions that will cause  a person to
 lose eligibility for USDA program
 benefits and the program benefits that
 are subject to reduction or  loss. The
 1996 Act treats HEL and WC differently
 regarding the programs  encompassed by
 each provision and the extent of-the
 sanctions if the  provisions  are violated.
 Section 12.4 deletes applicability to
 some programs, such as crop insurance
 and obsolete programs. A person who
 violates the WG provisions may lose all -
 or only a portion of certain USDA
 benefits, but a person who violates HEL
 could  lose all of of these same benefits
 and additional program benefits.
 Sections 12.4(c) is amended to include
 an  interpretation of which crop year's
 benefits are affected by a violation
 decision, and sets forth the factors that
 FSA will consider in determining the
 extent of benefits to be lost  based on the
 seriousness of the violation.'
  Section J2.5:The 1996 Act
 amendments modify the provisions of
 § 12.5 regarding the exemptions from
 ineligibility for USDA program benefits.
 Section 12.5 (a) addresses the
 exemptions that apply to HEL and
 § 12.5 (b) addresses the exemptions that
 apply to WC.
 . Section 12.5(a)(5) specifies that HEL
 violations that are determined to have
 been made in good-faith are eligible for
 graduated sanctions if they were on land
 that was converted from native
vegetation, i.e., rangeland or woodland,
 to crop production after December 23,
 1985. For good faith violations' on land
 that was converted from native
vegetation, i.e., rangeland or woodland,
 to crop production before December 23,
 1985, the person will be allowed up to
one year to correct the problem before
being found ineligible. After one year, if
  the problem is not corrected, the-
  ineligibility provisions of § 12.4 will
  apply. Section 12.5 (a) (6) .grants an
  automatic variance if within'30 days
  NRCS fails to respond to a persons
  request for a variance because of
  weather, pest, or disease. It describes
  criteria that NRCS will consider when
  determining whether to grant a variance
  for a natural disaster such as weather,
  pest, or disease. NRCS is especially
 - soliciting comments on how these
  criteria may be specified to ensure that
  variances are granted where
.. appropriate.              .      •  .
    Under § 12.5(b), the exemptions from
  ineligibility relative to wetland
  conservation,  there exists a new
  exemption for land that was certified as
  having been converted prior to
  December 23,  1985, (prior-converted
  croplands), but had returned to wetland'
  characteristics after that date. This
  exemption provides that if certain
 requirements are met, ,a prior-converted
 cropland willYibt be considered
 abandoned for purposes of
 implementation of these regulations.
„ Likewise, there exists another new
 exemption for areas that NRCS
 determined were manipulated but were
 not completely converted prior to
 December 23,  1985, (farmed wetlands   '
 and farmed-wetland pastures), but may
 revert to wetland status through a
 voluntary restoration, enhancement, or
 creation action. This exemption
 provides that if certain requirements are
 met, the area will not be considered
 abandoned for purposes of
 implementation of these regulations.
   These exemptions do not address how
 the Corps may treat these wetland types
 for purposes of section 404 of the Clean
 Water Act. The Corps has a notice in 61
 FR part Vfl~ (June 17, 1996) to issue,
 reissue, and modify the nationwide
 permits for section 404 of the Clean.
 Water Act that addresses these issues.
   The 1996 Act provides that certain
 wetland conversion activities that were  '
 conducted pursuant to a permit issued
 under section 404 of the Clean Water
 Act may be exempt from ineligibility "
 under the WC pro visions,, if the. '
 conversion activity was adequately
 mitigated for purposes of these
 provisions. This rule provides that a
 person who received an individual .
 permit under section 404 of the Clean
 Water Act after December 23, 1985, and
 met certain sequencing requirements, is
 exempt from the ineligibility provisions
 of these regulations.
  This rule, however, provides that a
 person 'whose conversion activity is
 encompassed by a nationwide or
 regional general permit issued pursuant .
 to section 404 of the Clean Water Act

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 47024    Federal Register  /  Vol.  61,  No. 174 /'Friday, (September 6,  1996 /  Rules and  Regulations
 may not be exempt under these
 regulations. USDA will evaluate
 whether any mitigation was required,
 and whether the wetland functions and
 values lost by the conversion activity
 were adequately replaced before USDA
 decides whether the conversion activity
 is exempt from ineligibility under these
 regulations.
  The regulations that existed prior to
 this interim final rule described a
 detailed procedure by which a person.
 could receive a commenced conversion
 determination from FSA. Persons who
 believed that they qualified for such a
 determination had to request one from
 FSA by September 19, 1988. The
 purpose of the determination was to
 minimize any unnecessary economic
 hardship to someone who had incurred
 substantial financial obligations related
 to the conversion of a wetland prior to
 December 23,1985, but had not actually
 converted the wetland by that date. Any
 person who  received a commehced-
 conversion wetland determination had
 to complete  the conversion activity by
 January 1,1995, to retain the exemption
 status. Because the commenced
 conversion determination had to be
 received by  1988 and the conversion
 had to be completed by the end of 1994,
 the references in the rule related to the
 process to obtain a determination have
 been removed. If a person completed
 conversion activity by January  1,1995,
 the land will qualify for the same
 exemptions from ineligibility as prior-
 converted cropland. If, however, a
 person did not complete the conversion
 activity by that date, the land will be
 subject to the same requirements under,
 this rule as farmed wetlands.
  The 1996 Act provides that a person
 may remain  eligible for an action
 resulting in the conversion of a wetland
 if the wetland functions and values are
 adequately mitigated through the
 restoration of a converted wetland, the
 enhancement of an existing wetland, or
 the creation  of a new wetland. Section
 12.5(b)(4) provides that this exemption
 applies if the mitigation is completed in
 accordance with several requirements,
 including that the person implement a
 mitigation plan approved by NRCS. The"
 mitigation plan may be a single
 document or it may be a component of
 a larger conservation plan created
 voluntarily by the program participant.
The requirements for this exemption are
 similar to the requirements  for
 restoration of a converted wetland
 under the current regulations, such as
 the granting of an easement to USDA,
 recording an easement on the public
 land records, and that such mitigation
 not be at the expense of the Federal
government.
  The 1996 Act provides that USDA
may e'xpend Federal funds for the
establishment of a pilot program for
mitigation banking. USDA has not yet
decided whether it will establish such a
pilot program or what the particulars of
such a program would be. During the
public comment period, USDA is
especially soliciting comments from the
public regarding this subject. "  ,
  The 1996 Act removes the
requirement for graduated sanctions if
the FSA determines that a wetland
violation was committed in good faith.
Central to the determination about
whether a person acted in good faith is
the knowledge available to the person
concerning the existence of a wetland
oh the subject land. This knowledge can
either be direct, such as information
received from NRCS in the form of a
wetland determination, or can be
inferred from a person's past experience
with violating wetland laws or
regulations. This interim final rule
provides that if a person is considered
to have acted in good [faith and the
person agrees to implement a mitigation
plan, then USDA may waive applying
the ineligibility provisions of § 12.4.
  Section 12.6:Sectidfi 12.6 concerns
the respective responsibilities of USDA
agencies; the new responsibilities
created by the 1996 Abt have been
added. Section 12.6(b) is amended to
specify that FSA is responsible for
determining the extent of reduction in
benefits for wetland violations based on
the Seriousness of the 'violation, and for
determining whether a person should
receive relief because Application of a
conservation system would  result in
undue economic hardship. Section
12.6(c) is amended to reflect that NRCS
is responsible for providing information
to FSA relating to the jseriousness of a
violation.          '.
  In response to the n^ed to coordinate
with the MOA agencies regarding
wetland determinations, a new
paragraph has been added to § 12.6 New
paragraph (f) provides  that NRCS may
accept the assistance of the MOA
agencies in implementing these
regulations. This paragraph  also
confirms that NRCS Will continue to
seek the coordination pf.the other
agencies on wetland matters to increase
the public's understanding of the
importance of wetland functions and
values and the objectives of the WC
provisions and the Clean Water Act.
  Section j!2.7:Sectioh 12.7 addresses
certification by a program participant
that such participant is in compliance
with the HEL and WCj provisions.
Section 12.7 is amended to allow a
person to certify application of practices
 jn a plan or measurement of residue
 required by a plan.,
   Section 12.8: Section 12.8 is amended
 to revise the definition of affiliated
 persons for the purpose of determining
 whose benefits may be affected by a
 decision and to what extent. In
 particular, § 12.8(b) is amended to
 provide that spouses who provide
 sufficient evidence of separate
 operations shall not be considered
 affiliates, and partnerships, trusts, and
 joint ventures are not considered
 affiliates, if the interest is held indirectly
 through another business enterprise..
 Section 12.8(d) limits the reduction in
 payments for partnerships, joint
 ventures, trust, or other enterprises to
 the extent of interest held by the person
 responsible for the violation. Section
' 12.8(e) states that limitations on
 affiliations if action has been taken to
 avoid payment reductions for
 partnerships, joint ventures, trusts, or
 the application of the sanctions
 provided for in the regulations.
 Subpart B
   Section 12.21: Section  12.21 is
 amended to include a reference to
 publication of soil loss equations at 7
 CFRpart610.
   Section 12.22:-Section  12.22 is
 amended to allow combining HEL and
 non-HEL fields, but the requirements of
 these regulations continue to apply to
 the previous HEL portion only.
   Section 12.23: Section 12.23 is
 amended to specify that: conservation
 systems shall be technically and
 economically feasible (based on local
 resource conditions and available
 technology), cost effective, arid shall not
 cause undue economic hardship;  the
 standard for determining  whether a plan
 provides a substantial reduction in
 erosion is the estimated annual level of
 erosion compared to the level before the
 system is applied; for new land brought
 into production, in no case will the
 required conservation system permit a
 substantial increase in erosion;
 procedures for conducting field trials as
 on-farm reseach; and procedures and
 criteria used by FSA when a person
 requests relief based on undue
 economic hardship.
 Subpart C           '
   Subpart C addresses the technical
 responsibilities of NRCS and the
 technical criteria used to  make the
 necessary determinations for wetland
 cpnseryation under these regulations.
   Section 12.30: Section' 12.30 is
 amended to reflect that NRCS .will
 continue to work with the Corps,  EPA,
 and FWS to improve the quality of
 wetland determinations and other

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            Federal Register / Vol. 61. No.  174 /  Friday,  September 6,  1996 / Rules and Regulations    47025
 processes that affect the implementation
 of the WC provisions.
   The  1996 Act repealed the          .
 requirement for consultation with FWS,
 thus allowing the Secretary to determine
 under what circumstances FWS should
 be utilized in the implementation.of the
 WC provisions. Section 12.30 is   :  "
 amended to reflect that NRCS will
 develop a process at the State level, in
 coordination with FWS, for
 implementing the WC provisions and
 review such implementation oh an
 annual basis. The technical expertise of
 FWS may be utilized whenever NRCS
 determines that such expertise is
 needed to address adequately the
 requirements of the WC provisions or to
 enhance the quality of implementation.
   Under the new, mitigation flexibility '•
 provided by the 1996 Act, the expertise
, of FWS will be valuable for conducting
 wetland functional assessments
 associated with minimal effects
 determinations and formulation of
 mitigation plans. The State-level process
 is intended, in part, to identify any
 geographic or programmatic areas where
 NRCS may need additional technical
 expertise to assess biological impacts of
 proposed wetland conversions.
   Section 12.30 is also amended to
 address the process for certification of
 wetland determinations for the
 implementation of the WC provisions of
 the 1985 Act. If NRCS certified a
 wetland determination prior to July 3,
 1996, the certification will remain valid.
 Upon request, a person may obtain
 certification of a wetland determination.
 A certified wetland determination
 means that the determination is of
 sufficient quality to make a
 determination of ineligibility for
 program benefits under these
 regulations. As indicated above, NRCS
 will continue to work with the other
 MOA agencies to coordinate the   :
 identification and certification of
 wetlands for the purposes of these
 regulations and for the Clean Water Act.
 The agencies recognize the importance
 of providing certainty for the
 agricultural community as to the status
 of their wetland determinations which
 have not been certified. The Federal
 agencies are therefore considering
 establishing a specific time frame for
 completing the evaluation of existing
 wetland determinations. During this
 time frame, an evaluatiqn would be
 made as to the accuracy of wetland,
 determinations within a given
 geographic area or of a specific type of
 wetland. Based on the evaluation,
 landowners would be notified whether
 their current wetland determinations are
 acceptable for both the WC provisions
 and the Clean Water Act. USDA is
especially seeking comments regarding
implementatipn of this process.
   Section 12.31; Section 12.31 is
amended to reflect that NRCS will
utilize the!987 Corps Manual for
determining the prevalence of
hydrophytic vegetation. Section 12.31 is
also amended to add the criteria for
determining "categorical minimal effect
exemptions." If NRCS identifies any
categories of conversion activities and
conditions which would only have a
minimal effect .on wetland functions
and values, then such activities and
conditions will be placed on a list of
"categorical minimal effect exemptions"
and such conversion activities and
conditions will be considered exempt
from the ineligibility provisions of these
regulations. NRCS will incorporate such
activities and conditions in the
provisions of these regulations USDA is '
especially seeking comments  regarding
implementation of this new exemption.
For purposes of the Clean Water Act, the
Corps intends  to address this  provision
as part of its reissuance of the Clean
Water Act section 404 nationwide
permits (See 61 FR part VII Qune 17,
1996)).   ,
  Sections 12.32 and 12.33: Sections
12.32 and 12.33 have been amended to
incorporate the definitions .for farmed
wetland, farmed-wetland pasture,
commenced-conversion wetland, and
prior-converted cropland, where
appropriate.
  Section 12.33: Section 12.33 has also,
been amended to modify the conditions
under which NRCS will consider a .
particular site to be abandoned for
purposes of these regulations. A person
who wishes to allow a particular site to
revert to wetland conditions should
contact NRCS to ascertain what
documentation is necessaryto prevent
such land from being considered
abandoned for purposes of the WC
provisions of these regulations. For
purposes of the Clean Water Act, the
Corps intends to address this provision
as part of its re-issuance of the Clean
Water Act section 404 nationwide -
permits (See 61 FR part VH 0une 17,
1996)).
  The amendments to part 12 do not
affect the recordkeeping requirements
and estimated .burdens previously
reviewed and approved under .Office of
Management and Budget control
number 0560-0004.
List of Subjects in 7 CFR Part 12
  Administrative practices and
procedures. Soil Conservation,
Wetlands.
  Accordingly, Title 7 of the Code of
Federal Regulations is amended by
revising Part 12 as follows:
 PART 12—HIGHLY ERODIBLE LAND
 AND WETLAND CONSERVATION

 Subpart A—^General Provisions
 Sec.                                 .
 12.1  General.
 12.2  Definitions:
 12.3  Applicability.
 12.4  Determination of ineligibility.    ,   '
 12.5  Exemptions.   '
 12.6  Administration.
 12.7  Certification of compliance.
 12.8  Affiliated persons.
 12.9  Landlords'and tenants.
 12.10  Scheme or device.
 12.11  Action based upon advice or action of
    USDA.  '    .     .
 12.12  Appeals.

 Subpart B—Highly Erodible Land
 Conservation
 12.20  NRCS responsibilities regarding
    highly erodible land.
 12.21  Identification of highly erodihle lands
    criteria.                      •
 12.22  Highly erodibie field determination
    criteria.
 12.23  Conservation plans and conservation
    systems.
 Subpart C—Wetland Conservation
 1.2.30  NRCS responsibilities regarding
    wetlands.
 12.31  Onn-site wetland identification
    criteria.        .      •
 12.32  Converted wetland identification
    criteria.
• 12.33  Use of wetland and converted
    wetland.
 12.34  Paperwork Reduction Act assigned
    number.   '.
  Authority. 16 U.S.C. 3801 etseq.

 Suppart A—General Provisions
 v      .       S              •    ,
 §12.1  General.
  .(a) Scope. This part sets forth the
 terms and conditions under which a
 person who produces an agricultural
 commodity on highly erodible land or
 designates such land for conservation
 use, plants an agricultural commodity
 on a converted wetland, or converts a
 wetland shall be. determined to be
 ineligible for certain benefits provided
 by the United States Department of ,
 Agriculture (USDA) and agencies and
 instrumentalities of USDA.
  (b) Purpose. The purpose of the
 provisions of this part are to remove
 certain incentives for persons to
 produce agricultural commodities on
 highly erodible land or converted
 wetland and to thereby—
  (1) Reduce soil loss due to wind and
 water erosion;
  (2) Protect the Nation's long-term
 capability to produce food and fiber;
  (3) Reduce sedimentation and
 improve water quality; and
  (4) Assist in preserving the functions
 and values of the Nation's wetlands.

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 47026    Federal  Register / Vol. 61, No.  174 / Friday, September 6,  1996  /  Rules and Regulations
 §12.2  Definitions.
  , (a) General, The following definitions
 shall be applicable for the purposes of
 this part:
   Agricultural commodity means any
 crop planted and produced by annual
 tilling of the soil, including tilling by
 one-trip planters, or sugarcane.
   CCC means the Commodity Credit
 Corporation, wholly-owned government
 corporation within USDA organized
 under the provisions of 15 U.S.C. 714 et
 seq.
   Conservation District (CD) means a
 subdivision of a State or local
 government organized pursuant to the
 applicable law to develop and
 implement soil and water conservation
 activities or programs.
   Conservation plan means the
 document that—   .
   (1) Applies to highly erodible
 cropland;
   (2) Describes the conservation system
 applicable to the highly erodible
 cropland and describes the decisions of
 the person with respect to location, land
 use, tillage systems, and conservation
 treatment measures and schedules; and
   (3) Is approved by the local soil
 conservation district in consultation
 with the local committees established
 under section 8(b)(5) of the Soil
 Conservation and Domestic Allotment
 Act (16 U.S.C. 590h(b)(5)) and the
 Natural Resources  Conservation Service
 (NRCS)  for purposes of compliance with
 this part.
   Conservation system means a
 combination of one or more
 conservation measures or management
 practices that are—
   (1) Based on local resource
 conditions, available conservation
 technology, and the standards and
guidelines contained in die NRCS field
office technical guides (available from
NRCS State offices); and
  (2) Designed for purposes of this part
 to achieve, in a cost-effective and
technically practicable mariner, a
substantial reduction in soil erosion or
a substantial improvement in soil
conditions on a field or group of fields
containing highly erodible cropland
when compared to  the level of erosion
or soil conditions that existed before the
application of the conservation
measures and management practices.
  Conservation use or set aside means
cropland that is designated as
conservation-use acreage, set aside, or
other similar designation  for the
purpose of fulfilling provisions under
any acreage-limitation or  land-diversion
program administered by the Secretary
of Agriculture requiring that the
producer devote a specified acreage to
 conservation or other hon-crop
 production uses.
   Creation of a wetland means the
 development of the hydrologic,
 geochemical, and biolbgical components
 necessary to support and maintain a
 wetland where a wetland did not
 previously exist. Any Wetland
 established on a non-hydric soil will be
 considered a created \yetland.
   CSREES means the Cooperative State
 Research, Education, and Extension
 Service, an agency of (JSD A which is
 generally responsible for coordinating
 the information and educational ,
 programs of USDA.   ;
   Department means the United States
 Department of Agriculture (USDA).
   Enhancement of a wetland means the
 alteration of an existing wetland to
 increase its specific functions and  .
 values. Enhancement actions include
 new capabilities, management options,
 structures, or other actions to influence
 one or several functions and values.
   Erodibility index means a numerical
 value that expresses the potential
 credibility of a soil in relation to its soil
 loss tolerance value without
. consideration of applied conservation
 practices or management.
   FSA means the Farm Service Agency,
 an agency of USDA which is generally
 responsible for administering
 commodity productioit adjustment and
 certain conservation programs of USDA.
   Field means a part ojf a farm, that is
 separated from the balance of the farm
 by permanent boundaries such as
 fences, roads, permanent waterways, or
 other similar features. jAt the option of
 the owner or operator of the farm,
 croplines may also be used to delineate
 a field if farming practices make it
 probable that the croplines are not
 subject to change. Any highly erodible
 land on which an agricultural
 commodity is producefi after December
 23, 1985, and is not exjpmpt under
 § 12.5(a), shall be considered part of the
 field in which the land was included on
 December 23, 1985, unless, to carry out
 this title, the owner an'd FSA agree to
 modify the boundaries1 of the field.  ,
   Highly erodible land means land that
 has an credibility index of 8  or more.
   Hydric soils means soils that, in an
 undrained  condition, are saturated,
 flooded, or ponded long enough during
 a growing season to deyelop an
 anaerobic condition that supports the
 growth and regeneration of hydrophytic
 vegetation.           !
   Hydrophytic vegetation means plants
 growing in water or in la substrate that
 is at least periodically deficient in
 oxygen during a growing season as a
 result of excessive water content.
   Landlord means a person who rents or
 leases farmland to another person.
   Local FSA office means the county
 office of the Farm Service Agency
 serving the county or a combination of
 counties in the area in which a person's
 land is located for administrative
 purposes.    •   .               '      •
 ;  NRCS means the Natural Resources
 Conservation Service, an agency within
 USDA which is generally responsible
 for providing technical assistance in
 matters of natural resources
 conservation and for administering
 certain conservation programs of USDA.
   Operator means the person who is in
 general control of the farming
 operations on the farm during the crop
 year.
   Owner means a person who is
 determined to have legal ownership of
 farmland and shall include a person
 who is purchasing farmland under
 contract.
   Person means an individual,
 partnership, association, corporation,
 cooperative, estate, trust, joint venture,
joint operation, or other business
 enterprise or other legal entity and,
 whenever applicable, a State, a political
 subdivision of a State, or any agency '
 thereof, and such person's affiliates as
 provided in § 12.8 of this part.
   Restoration of a wetland means the re-
 establishment of wetland conditions,
 including hydrologic condition or
 native hydrophytic vegetation, to an
 area where a wetland had previously
 existed.                           •
   Secretary means the Secretary of
 USDA.        ;                •
   Sharecropper means a person who
 performs work in connection with the
production of a crop under the
supervision of the operator and who
 receives a share of such crop for such
 labor.
   Soil map unit means an area of the
landscape shown on a soil map which
 consists of one or more soils.
   State means  each 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,'or the
Trust Territory of the Pacific Islands. •
   Tenant means a person usually called
a "cash tenant", "fixed-rent tenant", or
 "standing rent tenant" who rents land
from another.for a fixed amount of cash
or a fixed amount of a commodity to be
paid as rent; or a person (other than a
sharecropper) usually called a. "share
tenant" who rents land from another •
person and pays as rent a share of the
crops or proceeds therefrom. A  tenant
shall not be considered the farm
operator unless the tenant is determined

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           Federal Register / Vol.' 61, No.  174 /  Friday, September 6,  1996 / Rules  arid Regulations   47027
 to be the operator pursuant to this part
 and 7 CFR part 718.
   Wetland, except when such term is a
 part of the term "converted wetland",
 means land, that—
   (I) Has 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) Under normal circumstances does
 not support a  prevalence of such
 vegetation, except that this term does
 not include lands in Alaska identified  as
 having a high potential for agricultural
 development and a predominance of
 permafrost'soils.
   Wetland determination means a
 decision regarding whether or not an
 area is a wetland, including
 identification of wetland type and size.
 A wetland determination may include
 identification of an  area as one of the
 following types of wetland—
  (1) Artificial wetland is an area that
 was formerly non-wetland, but now
 meets wetland criteria due to human
 activities, such as:
  (i) An artificial lake or pond created
 by excavating, or. diking land that is not
 a wetland to collect and retain water
 that is used primarily for livestock,,fish
 production, irrigation; wildlife,  fire
 control, flood  control, cranberry
 growing, or rice production, or as a
 settling pond;  or
  (ii), A wetland that is temporarily or'
 incidentally created as a result of
 adjacent development activity;
  (2)  Commenced-conversion wetland is
 a wetland, farmed wetland, farmed-
 wetland pasture, or  a converted  wetland
 on which conversion began, but was not
 completed, prior to December 23, 1985.
  (3)  Converted wetland is 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 and
 circulation of water) for the purpose of
 or to have the effect of making possible
 the production of an agricultural
 commodity without further application
 of the manipulations described herein
 if:     ' .   .    /
 . (i) Such production would not have
 been possible but for-such action, and
• (ii)  Before such  action such land was
 wetland, farmed wetland, or farmed-
 wetland pasture and was neither highly
 erodible land nor  highly erodible
 cropland;         •
  (4) Farmed wetland is a wetland that
 prior to December 23, 1985, was
 manipulated and used to produce an
 agricultural commodity, and on
 December 23, 1985, did not support .
 woody vegetation and met the following
 hydrologic criteria:
   (i) Is inundated for 15 consecutive
 days or more during the growing season
 or 10 percent of the growing season,
 whichever is less, in most years (50
 percent chance or more), or
   (ii) If a pothole, .playa, or pocosion, is
 ponded for 7 or more consecutive days
 during the growing season in most years
 (50 percent chance of more) or is
 saturated for 14 or more consecutive
'days during  the .growing season in most
 years (50 percent chance or more);
   (5) Farmed- wetland pasture is
 wetland that was manipulated and
 managed for.pasture or hayland prior to
 December  23, 1985,  and on December
 23, 1985, met the following hydrologic
 criteria:
   (i) Inundated or ponded for 7 or more
 consecutive days during the growing
 season in most years (5) percent chance
 or more), or
   (ii) Saturated for 14 or more
 consecutive days during the growing
 season in.most years (50 percent chance
 or more);
   (6) Not-inventoried land, is an area for
 which no evaluation of soils', vegetation,
 or hydrology has been conducted to
 determine  if wetland criteria are met;
   (7) Non-wetland is;
   (i) Land that under natural conditions
 does not meet Wetland criteria, or
   (ii) Is converted wetland the
 conversion of which occurred prior to
 December 23, 1985, and on that date,
 the land did  not meet wetland criteria
 but and agricultural  commodity was not
 produced and the area was not managed
 for pasture, or hay;   • '  -
   (8) Prior-converted cropland is a
 converted wetland where the
 conversion occuif ed prior to December
 23, 1985, an agricultural commodity had
 been produced at least once before
 December 23, 1985, and as of December
 23, 1985, the converted  wetland did not
 support woody Vegetation and met the
 following hydrologic criteria:
   (i) Inundation was less than 15
 consecutive days during the growing
 season or 10  percent of the growing
 season, whichever is less, in most years
 (50 percent chance or more); and
   (ii) If a pothole, playa or pocosin,
 ponding was less than 7 consecutive
 days during the growing season in most
 years (50 percent chance or more) and
 saturation was less than 14 consecutive
 days during the growing season  most
 years (50. percent chance or more); or
   (9) Wetland, as defined above in this
 section. ..    ,
   Wetland delineation means outlining
 the boundaries of a wetland
 determination on aerial  photography,
 digital imagery, other graphic
 representation of the area, or on the
 land.        •
   (b) Terms for FSA operations. In the
 regulations in this part, and in all
 instructions, forms, and documents in
 connection therewith, all other words
 and phrases specifically relating to FSA
 operations shall, unless required by the
 subject matter or the specific provisions
 of this part, have the meanings assigned
 to them in the regulations at part 718 of
 this title that govern reconstituti.ons of
 farms, allotments, and bases and any
 subsequent amendment thereto.

 §12.3  Applicability.
   (a) Geographic scope. The provisions
 of this part shall apply to all land,
 including Indian tribal land, in the fifty
 States, the District of Columbia, the
 Commonwealth of'Puerto Rico, Guam,
 the Virgin Island of the United States, •
 American Samoa, the  Commonwealth of
 the Northern Mariana  Islands, and the
 Federated States of Micronesia, the
 Republic of Palau, and the Republic of
 the Marshall Islands.                /
   (b) Effective date. The provisions of
 this part apply to all actions taken after
 July 3, 1996, and to determinations  .
 made after or pending on July 3, 1996,
 except to the  extent that § 12.5 (a) (5) and
 12.5 (b)(4) through (b)(8) specify
 retroactive application on December 23,'
 1985, and November 28, 1990, for
 certain actions and determinations
 regarding wetlands and converted
 wetlands. Actions taken and
 determinations made prior to July 3,
 1996, are subject to regulations,set forth
 in this part as of July 2, 1996, except as
 otherwise provided in this part. Further,
 to the extent that a person may be
 eligible for an exemption for an action
 taken before July 3, 1996, the action is
subject to the'provisions of this part.

§12.4  Determination of ineligibility.
   (a) Actions. Except as provided in
§ 12.5, a person shall be ineligible for all
or a portion of USD A program benefits
listed in this section if:
   (1) The person produces an
agricultural commodity" on a field in
which highly erodible  land is
predominant, or designates such a field
for conservation use;
   (2) The person produces an
agricultural commodity on wetland,that
was converted after December 23, 1995;
or              ,
 .. (3) After November 28,1990, the
person converts a wetland b'y draining,
dredging, filling, leveling, removing  .
woody vegetation, or other means for
the purpose, or to have the effect, of
making the production of an agricultural
commodity possible.

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 47028    Federal  Register / Vol. 61, No.  174 / Friday. | September 6, 1996 / Rules and Regulations
   (b) Highly erodible land. A person
determined to be ineligible under
paragraph (a)(l) of this section may be
Ineligible for all program benefits listed
In (d) and (e) of this section.
   (c) Wetland conservation. A person
determined to be ineligible under
paragraph (a) (2) of this section shall be
ineligible for all or a portion of the
USDA program benefits listed in
paragraph (d) of this section for which
the person otherwise would have been
eligible during the crop year of the
commodity that was planted on the
converted wetland, A person
determined to be ineligible under
paragraph (a) (3) of this section for the
conversion of a wetland shall be
Ineligible for all or a portion of the
USDA program benefits listed in
paragraph (d) of this section for which
the person otherwise would have been
eligible during the crop year which is
equal to the calendar year during which
the violation occurred and each
subsequent crop year until the
converted wetland is restored or the loss
of wetland functions and values have
been mitigated prior to the beginning of
such calendar year in accordance with
§ 12.5(b)(4)(i) (A) and (C) through (F) of
this part. Ineligibility under paragraph
(a) (2) or (a) (3) of this section may be
reduced, in lieu of the loss of all
benefits specified under paragraph (d) of
this section for such crop year, based on
the seriousness of the violation, as
determined by the FSA Deputy
Administrator for Farm Programs or
designee upon recommendation by the
FSA County Committee. Factors such as
the information that was available to the
affected person prior to the violation,
previous land use patterns, the
existence of previous wetland violations
under this part or under other Federal,
State, or local wetland provisions, the
wetland functions and values affected,
the recovery time for full mitigation of
the wetland functions and values, and
the Impact that a reduction in payments
would have on the person's ability to
repay a USDA farm loan shall be
considered to making this
determination.
  (d) Programs subject to either highly
erodible land or wetland conservation.
USDA program benefits covered by a
determination of ineligibility under this
rule are:
  (1) Contract payments under a
production flexibility contract,
marketing assistance loans, and any
type of price support or payment made
available under the  Agricultural Market
Transition Act. the Commodity Credit
Corporation Charter Act (15 U.S.C. 714
et seq.), or any other Act;
  (2) A farm credit program loan made
or guaranteed under the Consolidated
Farm arid Rural Development Act (7
U.S.C. 1921 etseq.) or any other
provision of law administered by FSA if
the Secretary determines that the
proceeds of such loan! will be used for
a purpose that contributes to the
conversion of wetlands that would make
production of an agricultural
commodity possible o!r for a purpose
that contributes to excessive erosion of
highly erodible land (i.e., production of •
an agricultural commodity or highly
erodible land without a conservation
plan or conservation system as required
by this part);        I
  (3) A payment made pursuant to a
contract entered into under the
Environmental Quality Incentives
Program under chapter 4 of subtitle D of
the Food Security Acb of 1985, as
amended; or a payment under any other
provision of Subtitle D of that Act;
  (4) A payment made under section
401 or 402 of the Agricultural Credit Act
of 1978 (16 U.S.C. 2201 or 2202);
  (5) A payment, loan, or other
assistance under section 3 or 8 of the
Watershed Protection and Flood
Prevention Act (16 U.S.C. 1003 or
1006a).         .    '<    '.  '.   •
  (e) Programs subject to highly erodible
land only. In addition; to programs listed
in paragraph (d) of this section, a person
determined to be ineligible under
paragraph (a) (1) of this section shall be
ineligible as determined by FSA for the
following USDA program benefits for
which the person otherwise would have
been eligible during trie crop year for
which the determination applies:
  (1) A farm storage facility loan made
under section 4(h) of tpe Commodity
Credit Corporation Charter Act (15'
U.S.C. 714b(h));     !
  (2) A disaster payment made under
the  Federal Agricultural  Improvement
and Reform Act, Pub. L.  104-127, or any
other act; and        ;
  (3) A payment made under section 4
or 5 of the Commodity Credit
Corporation Charter Apt  (15 U.S-C- 714b
or 714c) for the storage of ah agricultural
commodity acquired by the Commodity
Credit Corporation.
  (f) Prior loans. The provisions of
paragraphs (a), (b), and (c) of this
section do not apply to any loan
described in paragraphs  (d) or (e) of this
section that was made' prior to
December 23, 1985.  '
  (g) Determination of ineligibility. For
the  purpose of paragraph (a) of this
section, a person shall, be determined  to
have produced an agricultural
commodity on a field in  which highly
erodible land is predominant or to have
designated such a field for conservation
 use, to have produced an agricultural
 commodity on converted wetland, or to
 have converted a wetland if:
   (1) NRCS has determined that—
   (i) Highly erodible land is
 predominant in such field, or
   (ii) All or a portion of the field is
 converted wetland; and
   (2) FSA has determined that the
 person is or was the owner OK operator
 of the land, or. entitled to share in the
 crops available from the land, or in the
 proceeds thereof; and
   (3) With regard to the provisions of
 paragraph (a)(l) and (a) (2) of this
 section, FSA has determined that the
 land is or was planted to an agricultural
 commodity or was designated as
 conversation use during the year for'
 which the person is requesting benefits.
   (h) Intent to participate in USDA
 programs. Persons  who wish to
 participate in any of the USDA .
 programs described in paragraph (d) or
 (e) of this section are responsible for
 contacting the appropriate agency of
 USDA well in advance of the intended
 participated date so that Form AD-1026
 can be completed. This contact will
 help assure that the appropriate
 determinations regarding highly
 erodible land or wetland, and
 conversation plans or conversation
 systems are scheduled in a timely
 manner. A late contact may not allow
 sufficient time for USDA to service the
 request and, could result in a substantial
 delay in receiving a USDA
 determination of eligibility or
 ineligibility.

 §12.5 Exemption.
  (a) Exemptions regarding highly
 erodible land.
  (1) Highly erodible cropland in
production or in USDA programs during
 1981 through 1985 crop years. During
the period beginning on December 23,
 1985, and ending on the later of January
 1,  1990, or the date that is two years
after the date the cropland on which an
agricultural commodity is produced was
surveyed by NRCS  to determine if such
land is highly erodible,  no person shall
be determined to be ineligible for
benefits as provided in § 12.4 as the
result of the production of an
agricultural commodity on any highly
erodible land:
  (i) That was planted to an agricultural
commodity in any year  1081 through
 1985; or
  (ii) That was set aside, diverted, or
otherwise not cultivated in any such
crop years under a program
administered by the Secretary for any
such crops to reduce production of an
agricultural commodity.  ;

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            Federal  Register / Vol. 61, No.  174  /Friday, "September  6.  1996, /  Rules and Regulations    47029
    (2) Compliance with a conservation
 plan or conservation system, as further
 specified in this part, no person shall be
 ineligible for the program benefits
 described in § 12.4 as the result of
 production of an agricultural
. commodity on highly erodible land or
 the designation of such land for
 conservation use if such production or .
 designation is in compliance with a
 conservation plan or conservation
 system approved under paragraph
 (a) (2) (i) or (a) (2) (ii) of this sectioh. A
 person shall not be ineligible for
 program benefits under §12.4 as the
 result of the production of an
 agricultural commodity on highly
 erodible land or as the result of
 designation of such land as conservation
 use if the production or designation .is:
    (i) In an area within'a CD, under a
 conservation system that has been
 approved by the CD after the CD
 determines that the conservation system
 is in conformity  with technical
 standards set forth in the NRCS field
 office technical guide for such district;
 or       •
    (iij In an area not within a CD, under
 a conservation system that has been
 approved by NRCS to be adequate for
 the production of such agricultural
 commodity on highly erodible land or
 for the designation of such land as
 conservation use. .   •
    (3) Reliance upon NRCS
 determination for highly erodible land.
 A. person may be relieved from
 ineligibility for program benefits as the
 result of the production of an
 agricultural commodity which was
 produced on highly erodible land or for
 the designation of such land as  .  •
 conservation use in reliance on a,
 determination by NRCS that such fand
 was not highly erodible land, except
 that this paragraph shall not apply to
 any agricultural commodity that was
 planted on highly erodible land, or for .
 the designation of highly erodible land
 as conservation use after NRCS
 determines that such land is highly
 erodible land, and the person is notified
 of such determinations.
 •  (4) Areas of 2 acres or less. No person
 shall be determined to be ineligible
 under § 12.4 for noncommercial
 production of agricultural commodities
 on highly erodible land on an area of 2
 acres or less if it is determined by FSA
 that such production is not intended to
 circumvent the conservation
 requirements otherwise'applicable •
 under this part..
   (5) Good faith.   -
   (i) No person shall become ineligible
 under § 12.4 as a result of the failure, of
 such person to apply a conservation
 system on highly erodible land that was
 converted from native vegetation, i.e.
 rangeland or woodland, to crop
 production before December 23, 1985, if
 FSA determines such person has acted
 in good faith and.without the intent to
 violate the provisions of this part and if
 NRCS determines that the person
 complies with paragraph (a)(5)(ii) of this
 section.
  (ii) A person is who  determined tq
 meet the requirements of paragraph
 (a)(5)(i) of this section  shall be allowed  ,
 a reasonable period of time, as
 determined by NRCS, but not to exceed
 one year, during, which to implement
. the measures and practices necessary to
 be considered applying the person's
 conservation plan. If a person does not
 take the required corrective actions, the
 person may be determined to be
 ineligible for the crop year during which
 such actions were to be taken as well as
 any subsequent crop years.
 Notwithstanding the good-faith       ;
 requirements of paragraph (a) (5) (i) of
 this section, if NRCS observes a possible
 compliance deficiency while providing
 on-site technical assistance, NRCS shall
 provide to the responsible person, not
 later than 45 days after observing the
 possible violation, information
 regarding'actions needed to comply
with the plan and this subtitle. NRCS
shall provide this information in lieu of
reporting the observation as a violation,
if the responsible person attempts to
correct the deficiencies as soon as
practicable, as .determined by NRCS,
after receiving the information; and if
the person takes corrective action as
directed by NRCS not later than one
year after receiving the information. If a
person does not take the required
corrective actions, the person may be
determined to be ineligible for the crop
year during which the compliance
deficiencies occurred as well as.any
subsequent crop years.
  (iii) No person shall become ineligible
under § 12.4 as a result of failure to
apply a conservation system with
respect to highly erodible cropland that
was converted from native vegetation,
i.e., rangeland or woodland, to crop
production after December 23, 1985, if
such person has acted in good faith and
without an intent to violate the
provisions of this part. The person .shall,
in lieu of the loss of all benefits
specified under § 12.4 (d) and (e) for ,
such crop year, be subject to a reduction
in benefits of not less than $500 nor
more than $5,000 depending upon the
seriousness of the violation, as
determined by FSA. The dollar amount
of the reduction will be determined by
FSA and may be based on the number
of acres and the degree of erosion
hazard for the. area in violation, as
 determined by NRCS, or upon such
 other factors as FSA deems appropriate.
    (iv) Any person whose benefits are
 reduced in a crop year under paragraph
 (a) (5) of this section may be eligible for
 all-of the benefits specified under § 124
 (d) and (e) for any subsequent crop year
 if NRCS determines that such person is
 applying a conservation plan according
 tq the schedule s.et forth in the plan on
 all highly erodible  land planted to an
 agricultural commodity or designated as
 conservation user
    (6) Allowable variances.
    (i) Notwithstanding any other
 provisions of this part, no person shall
 be determined to he ineligible for .
 benefits as a result  of the failure of such
 person to apply a conservation system if •
 NRCS determines that—
   (A) The failure is technical and minor
 in nature and that such violation has
 little effect on the-erosion control
 purposes of the  conservation plan   '
 applicable to the land on which the
 violation, has occurred; or
   (B) The failure is due to
 circumstances beyond the control of the
 person; or .
   (C) NRCS grants a temporary variance
 from the practices specified in the plan
 for the purpose of handling a specific
 problem, including weather, pest, and
 disease problems, which NRCS
 determines cannot reasonably be
 addressed except through such variance.
   (ii) If the person's request for a
 temporary variance involves the use of
 practices or measures to address
 weather, pest, or disease problems,
 NRCS shall make a  decision on whether
 to grant the variance during the 30-day
 period beginning on the date of receipt
 of the request. If NRCS fails to render a
 decision during  the period, the .
 temporary variance shall be considered
 granted unless the person seeking the
 variance had reason to know that the
 variance would not be granted. In
 determining whether to grant a variance
 for natural disasters such as weather,
 pest, or disease problems, NRCS will
 consider such factors as:
  (A) The percent of a stand damaged or
 destroyed by the event;
  (B) The percent of expected crop
 production compared to normal.
 production for that crop;
  (C) The,documented invasion of non-
 native insects, weeds, or diseases for
 which no recognized treatment exists;
  (D) Whether an event is severe or
 unusual based on historical weather
 records; and
 .-(E)  Other specific circumstances
 caused by a natural  event that prevented
'the implementation of conservation
 practices or systems, installation of
 structures, or planting of cover crops.

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 47030    Federal  Register  /  Vol.  61,,No. 174 / Friday, jSeptember  6,  1996 / Rules and Regulations
   (b) Exemptions for wetlands and
 converted wetlands.
   (1) General exemptions. A person
 shall not be determined ,to be ineligible
 for program benefits under § 12.4 as the
 result of the production of an
 agricultural commodity on converted
 wetland or the conversion of wetland if:
   (i) The land is a prior-converted
 cropland and meets the definition of a'
 prior-converted cropland as of the date
 of a wetland determination by NRCS;
   (ii) The land has been determined by
 NRCS to be a prior-converted cropland
 and such determination has been
 certified, and NRCS determines that the
 wetland characteristics returned after
 the date of the wetland certification as
 a result of—
   (A) The lack of maintenance of
 drainage, dikes, levees, or similar
 structures,
   (B) The lack of management of the
 lands containing the wetland, or
   (C) Circumstances beyond the control
 of the person;
   (iii) The land was determined by
 NRCS to be a farmed wetland or a
 farmed-wetland pasture and—
   (A) Such land meets wetland criteria
 through a voluntary restoration,
 enhancement, or creation action after
 that determination,
   (B) The technical determinations
 regarding the baseline site conditions
 and the restoration, enhancement, or
 creation action have been adequately
 documented by NRCS,
   (C) The proposed conversion action is
 documented by the NRCS prior to
 implementation, and
   (D) The extent of the proposed
 conversion is limited so that the
 conditions will be at least equivalent to
 the wetland functions and values that
 existed at the time of implementation of
 the voluntary wetland restoration,
 enhancement, or creation action;
   (iv) NRCS has determined that the
 conversion if for a purpose that does not
 make the production of an agricultural
 commodity possible, such as
 conversions for fish production, trees,
 vineyards, shrubs, cranberries,'
agricultural waste management
structures, livestock ponds, fire control,
 or building and road construction and
 no agricultural commodity is produced
on such land;
   (v) NRCS has determined that the
actions of the person xvith respect to the
 conversion of the wetland or the
 combined effect of the production  of an
 agricultural commodity on a  wetland
 converted by the person or by someone
 else, individually and  in connection
with all, other similar actions authorized
by NRCS in the area, would have only
 a minimal effect on the wetland
functions and values of wetlands in the
area;   '
  (vi) (A) After December 23, 1985, the
Army Corps of Engineers issued an
individual permit pursuant to section
404 of the Clean Water. Act, 33 U.S.C.
1344. authorizing such action and the
permit required mitigation that   •
adequately replaced the functions and
values of the wetlands converted, as
determined by NRCS, lor
  (B) After December |23, 1985, the
action is encompassed under section
404 of the Clean Water Act, 33 U.S.C.
1344, by an Army Corps of Engineers
nationwide or regional general permit
and the wetland functions and values
were adequately mitigated, as
determined by NRCS; lor
  (vii) The land is determined by NRCS
to be—              ;
  (A) An artificial wetland,
  (B) A wet area created by a water
delivery system, irrigation, irrigation
system, or application of water for
irrigation,           .       >
  (C) A nontidal drainage or irrigation
ditch excavated in non-wetland, or
  (D) A wetland converted by actions of
persons other than the person applying
for USDA program benefits or any of the
person's predecessors Jin interest after
December 23, 1985, if such conversion
was not the result of a scheme or device
to avoid compliance with this part.
Further drainage improvement on such
land is not permitted \ivithout loss of
eligibility for USDA program benefits,
unless NRCS determines under
paragraph (b)(l)(v) of this section that
further drainage activities applied to
such land would have;minimal effect on
the wetland functions land values in the
area. In applying this paragraph, a
converted wetland shall be presumed to
have been converted by the person
applying for USDA program benefits
unless the person can show that the
conversion was caused by a third party
with whom the person was not
associated through a scheme or device
as described under § l|Z.10 of this part.
In this regard, activities of a water
resource district, drainage district, or
similar entity will be attributed to all
persons within the jurisdiction of the
district or other entity !who are assessed
for the activities of the district or entity.
Accordingly, where a person's wetland
is converted due to the actions of the
district or entity, the person shall be
considered to have catised or permitted
the drainage. Notwithstanding the
provisions of the preceding sentences
and as determined by FSA to be
consistent with the purposes of this
part, the activities of ai drainage district
or other similar entity Will not be
attributed to a person to the extent that
  the activities of the district or entity
  were beyond the control of the person
  and the wetland converted is not used
  by the person for the production of an
  agricultural commodity or a forage crop1
  for haryest by mechanical means or
  mitigation for the converted wetland
  occurs in accordance with this part.
    (2) Commenced conversion wetlands.
  •  (i) The purpose of a determination of
  a commenced conversion made under
  this paragraph is to implement the
  legislative intent that those persons who
  had actually started conversion of a
  wetland or obligated funds for
  conversion prior to December 23, 1985,
  would be allowed to complete the
  conversion so as to avoid unnecessary
  economic hardship.
    (ii) All persons who believed they had
  a wetland or converted  wetland for
  which conversion began but was not
  completed prior to December 23, 1985,
  must have requested by September 19,
  1988, FSA to make a determination of
  commencement in  order to be
  considered exempt under this section.
    (iii) Any conversion activity
  considered by F,SA to be commenced
  under this section lost its exempt status
  if such activity as not completed on or
•  before January 1,1995.  For purposes of
  this part, land on which such
  conversion activities were completed by
 January 1, 1995, shall be evaluated by
  the same standards and qualify for the
  same exemptions as prior-converted
  croplands. For purposes of this part,
  land on which such conversion
•  activities were not completed by
 January 1, 1995,.shall be evaluated by
  the same standards and qualify for the
 same'exemptions as wetlands or famed
 wetlands, as applicable.
   (iv) Only those wetlands for which
 the construction had begun, or to which,
 the contract or purchased supplies and
 materials related, qualified for a
 determination of commencement.
 However, in those circumstances where
 the conversion of wetland did not meet
 the specific requirements of this
 paragraph, the person could have
 requested a commencement of
 conversion determination from the FSA,:
 Deputy Administrator for Farm
 Programs, upon a showing that undue  •
 economic hardship would have resulted
 because of substantial financial
 obligations incurred prior to December
 23, 1985, for the primary and direct
 purpose of converting the wetland.
   (3) Wetlands farmed under natural
 conditions. A person shall not be
 determined to be ineligible for program
 benefits under § 12.4 of this part as a
 result of the production of an
 agricultural commodity on a wetland on
 which the owner or operator of a farm

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           Federal Register / Vol.  61,  No. 174 / Friday. September 6, 199.6 / Rules  and Regulations   47031
 or ranch uses normal cropping or
 ranching practices to produce
 agricultural commodities in a manner •
 that is consistent for the area, where '
 such production is possible as a result
 of natural conditions, such as drought,
 and is without action by the producer
 that alters the hydrology or removes
 woody vegetation.
   (4) Mitigation.    .             .
   (i) No person shall be determined to
 be ineligible under § 12.4 for any action
 associated with the conversion of a
 wetland if the wetland functions'and
 values are adequately mitigated, as
 determined by NRCS, through the
 restoration'of a converted wetland, the
 enhancement of an existing wetland, or
 the creation of a new wetland, if the
 mitigation—    .  .
   (A) Is in accordance with a mitigation
 plan approved by NRCS;
   (B) Is in advance of, or concurrent
 with, the wetland conversion or the
 production  of an agricultural
 commodity, as applicable;
   (C) Is not at the expense of the federal
 government in  either supporting the
 director indirect costs of the restoration
 activity or costs associated with
 acquiring or securing mitigation sites,
 except if conducted under a mitigation
 banking pilot program established by
 USDA;
   (D) Occurs on lands in the same
 general area of the local watershed as
 the converted wetlands, provided that
 for purposes of this paragraph, lands in
 the same general area of the local
 watershed may include regional
 mitigation banks;
   (E) Is on lands for which the owner
 has granted  an easement to USDA,
 recorded the easement on public land
 records, and has agreed to the
 maintenance of the restored, created, or
 enhanced wetland for as long as the
 converted wetland for which the
 mitigation occurred remains in
 agricultural  use or is not returned to its
 original wetland classification with
 equivalent functions and values; and
   (F) Provides the equivalent functions
 and values that will be lost as a result
 of the wetland conversion-
  . (ii) A mitigation plan is a record of
 decisions that document the actions
 necessary to compensate for the loss of
 wetland functions and values that result
 from converting a wetland. The
 mitigation plan may be a component of
 a larger natural resources conservation
 plan.
 -  (iii) The State Conservationist, in
consultation with the State Technical
 Committee, may name certain types or
classes of wetland riot eligible for
exemption under paragraph (b)(4)(i) of
this section where the State
 Conservationist determines that
 mitigation will not achieve equivalent
 replacement of wetland fuftctions and
 values -within a reasonable time frame or
 for other reasons identified by,the State
 Conservationist. Any type or class of
 wetland that a State Conservationist
 identifies as not eligible for exemption
 under paragraph (b)(4)(i) of this section
 will be published in  the Federal
 Register for inclusion in this part.
   (5)  Good Faith Violations.
   (i) A person who is determined under
 § 12.4 tafae ineligible for benefits as the
 result of the production of an
 agricultural commodity on a wetland
 converted after December 23, 1985, or as
 the result of the conversion'of a .wetland
 after November 28, 1990, may regain
 eligibility for benefits if—
•   (A)  FSA determines that such person
 acted  in good faith and without the
 intent to violate the wetland provisions
 of this part, and
   (B) NRCS determines that the. person
, within an agreed to period, not to
 exceed 1 year, is implementing all
 practices in a mitigation plan.
   (ii) In determining  whether a person
 acted  in good faith under paragraph
 (b)(5)(i)(A) of this section, the FSA shall
 consider such factors as whether—
   (A) The characteristics of the site were
 such that the person should have been
 aware that a wetland  existed on the
 subject land,
   (B) NRCS had informed the person
 about  the existence of a wetland on the
 subject land,           .
   (C) The person did  not convert the
 wetland, but planted  an agricultural
 commodity on converted wetland when
 the person should have known that a   -
 wetland previously existed on the
 subject land,                  ,
 , (D) The,person has  a record of
 violating the wetland provisions of this
 part or other Federal,  State, or local
 wetland provisions, or
   (E) There exists other information that
 demonstrates that the person acted with
 the intent to violate the wetland
 provisions of this part.
   (iii)  After the requirements of
 paragraph (b) (5) (i) of this section are
 met, USDA may waive applying the
 ineligibility provisions of § 12.4.
   (6) Reliance upon NRCS wetland
 determination, (i) A person shall not be
 ineligible for program benefits as a
 result of taking an action in reliance on
 a previous certified wetland
 determination by NRCS.
 . (ii) A person who may be ineligible-
 for program benefits as the result of the
 production of an agricultural
 commodity on converted wetland or for
 the conversion of a wetland may seek
 relief under § 12.11 of this part if such
 action was taken in reliance on an
 incorrect technical determination by
 NRCS as to the status of such land. If the
 error caused the person to make a
 substantial financial investment, as
 determined by the NRCS, for the
 conversion of a wetland, the person may
 be relieved of ineligibility for actions
 related to that portion of the converted
 wetland for which the substantial
 financial investment was expended in
 conversion activities. The relief
.available under this paragraph shall not
 apply to situations in which the person
. knew or reasonably should have known
 that the determination was in error
 because the characteristics of the site •
 were such that the person should have^
 been aware that a wetland existed on
 the subject land/or for other reasons.
   (7) Responsibility to provide evidence.
,It is the responsibility of the person
 seeking an exemption related to
 converted wetlands under this section
 to provide evidence, such as receipts,  .
 crop-history data,  drawings, plans or
 similar information, for purposes of
 determining whetherfthe conversion or
 other action is exempt in accordance
 with this section.

 §12.6  Administration.
   (a) General. A determination of
 ineligibility for benefits in accordance
with the provisions of this part shall be
made by the agency of USDA to which  .
the person has applied for benefits. All
determinations required to be made
under the provisions of this part shall be
made by the agency responsible for
making such determinations, as
provided in this section.
  l(b) Administration by FSA.
  (1) The provisioris of this part which
are applicable to FSA will be  '
administered under the general
supervision of the Administrator, FSA,
and shall be carried out in the field in   '
part by State FSA committees and
county FSA committees (COC).
  (2). The FSA Deputy Administrator for
Farm Programs  may determine, any
question arising Under the provisions of
this part which are applicable to FSA
and may reverse or modify any  •
determination of eligibility with respect
to programs administered by FSA made  .
by a State FSA committee or COC or any
other FSA office or FSA official (except
the Administrator)  in.connection with
the provisions of this part.
  (3) FSA shall  make the following
determinations which are required to be
made in accordance with this part:
  (i) Whether a person produced an
agricultural commodity on a particular
field as determined under § 12.5(a)(l);
  (ii) The establishment of field
boundaries;

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 47032    Federal Register / Vol. 61, No.  174 / Friday,;September 6, 1996 / Rules and Regulations
   (!H) Whether land was planted to an
 agricultural commodity in any of the
 years, 1981 through 1985. for the
 purposes of § 12.5(a)(l);
   (iv) Whether land was set aside,
 diverted, or otherwise not cultivated
 under a program administered by the
 Secretary for any crop to reduce
 production of an agricultural
 commodity under § 12.4(g) and
 §12.5(a)(l);
   (v) Whether for the purposes of § 12.9,
 the production of an agricultural
 commodity on highly erodible land or
 converted wetland by a landlord's
 tenant or sharecropper is required under
 the terms and conditions of the
 agreement between the landlord and
 such tenant or sharecropper;
   (vi) Whether the conversion of a
 particular wetland was commenced
 before December 23,1985, for the
 purposes of § 12.5(b)(3);
   (vlS) Whether the conversion of a
 wetland was caused by a third party
 under §12.5(b)(l)(vii)(D);
   (viii) Whether certain violations were
 made in good faith under §§ 12.5(a)(5)
 or 12.5(b)(5);
   (ix) The determination of the amount
 of reduction in benefits based on the
 seriousness of the violation, based on
 technical information provided by
 NRCS;
  (x) The determination of whether the
 application of the producer's
 conservation system would impose an
 undue economic hardship on the   "
 producer; and
  (xi) Whether the proceeds of a farm
 loan made, insured, or guaranteed by
 FSA will be used for a purpose that will
 contribute to excessive erosion of highly
 erodible land or to the conversion of
wetland.
  (4)  A representative number of farms
selected in accordance with instructions
issued by the Deputy Administrator
shall be inspected by an authorized
representative of FSA to determine
compliance with any requirement
specified in this part as a prerequisite
for obtaining program benefits.
  (5)  FSA may consult with U.S. Fish
and Wildlife Service on third-party
determinations.
  (c) Administration by NRCS.
  (1) The provisions of this part that are
applicable to NRCS shall be
administered under the general
supervision of the Deputy Chief for
Natural Resources Conservation
Programs, and shall be carried out in the
field by the regional conservationist,
state conservationist, area
conservationist, and district
conservationist or other NRCS
representative.
   (2) An NRCS representative shall
 make the following determinations
 which are required to'be made in
 accordance with this part:
   (i) Whether land is highly erodible or
 has a wetland type or ja converted
 wetland identified in accordance with
 the provisions of this jpart;
   (ii) Whether highly erodible land is
 predominant on a particular field under
 § 12.22;             ;
   (iii) Whether the conservation plan
 that a person is applying is based on the
 local NRCS field office technical guide
 and is approved by—
   (A) The CD and NRCS, or
   (B) By NRCS;
   (iv) Whether the conservation system
 that a person is using has been approved
 by the CD under § 12.5 (a) (2) or,  in an
 area not within a CD, k conservation
 system approved by N^RCS to be
 adequate for the production, of an
 agricultural commodity on highly
 erodible land;   •    .
   (v) Whether the actipns of a person(s)
 with respect to the conversion of a
 wetland or production of an agricultural
 commodity on converted wetland.
 would have only a minimal effect on the
 functions and values of wetlands in the
 area;               !
   (vi) Whether an approved
 conservation plan is being applied on
 highly erodible fields in accordance
 with the schedule specified therein or
 whether a failure to apply the plan is
 technical and minor in nature, due  to
 circumstances beyond1 the control of the
 person, or whether a temporary  variance
 form the requirements' of the plan
 should be granted;    '
   (vii) Whether an approved
 conservation system is being used on a
 highly erodible field;
   (viii) Whether the conversion  of a
 wetland is for the purpose or has the
 effect of making the production of an
 agricultural commodity possible;
  (ix) Whether a farmed wetland or
 farmed-wetland pasture is abandoned;
  (x) Whether the planting of an
 agricultural commodity on a wetland is
possible under natural conditions;
  (xi) Whether maintenance of existing
 drainage of a wetland Described  in
§ 12.33 exceeds the scope and effect of
 the original drainage; ;   •
  (xii) Whether a planjfor the mitigation
of a converted wetland will be approved
 and whether the mitigation of a
 converted wetland is accomplished .
 according to the approved mitigation
plan;   ,            ;
  (xiii) Whether all technical
 information relating to| the
determination of a violation and
severity of a violation has been provided
  to FSA for making payment-reduction
  determinations; and
    (xiv) Whether or not a commenced-
  conversion activity was completed by
  January 1, 1995.
    (3) NRCS may provide such other
  technical assistance for implementation
  of the provisions of this part as is
  determined to be necessary.
    (4) A person may obtain a highly
  erodible land or a wetland scope-and-
  effect determination by making a
-  written request on Form AD-1026. The
  determination will be made in writing,
  and a copy will be provided to the
  person.
   (5) A determination of whether or not
  an area meets the highly erodible land
  criteria or whether wetland criteria,
  identified in accordance with the
  current Federal wetland delineation
  methodology in use at the time of the
  determination and that are consistent
  with current mapping conventions, may
  be made by the NRCS representative
  based upon existing records or other
  information and without the need for an
  on-site determination. This
  determination will be made by the •
 NRCS representative as soon as possible
 following a request for such a        •  -
 determination.
   (6) An on-site determination as to
 whether an area meets the applicable
 criteria shall be made by an NRCS
 representative if the person has
 disagreed with the determination made
 under paragraph (c) (5) of this section, or
 if adequate information is not otherwise
 available to an NRCS representative on
 which to make an off-site determination.
   (7) An on-site determination, where
 applicable, will be made by the NRCS
 representative as soon as possible
 following a request for such a
 determination, but" only when site
 conditions are favorable for the
 evaluation of soils, hydrology,  or
 vegetation.
   (8) With regard to wetland
 determinations, if an area is
 continuously inundated or saturated for
 long periods of time during the growing ,
 season to such an extent that access by
 foot to make a determination of
 predominance of hydric soils or
 prevalence of hydrophytic vegetation is
 not feasible, the area will be determined
 to be a wetland.
   (9) Persons who are adversely affected
 by a deterrnination made under this
 section and believe that the
 requirements of this part were
 improperly applied may appeal, under
 § 12.12 of this part, any deterrnination
 by NRCS.
   (d) Administration by CSREES. The
 CSREES shall coordinate the related
 information and education program for

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           Federal  Register / Vol. 61, No. 1747 Friday, September 6, 1996 / Rules and  Regulations    47033
.US'DA concerning implementation of
this rule.
   (e) Assistance of other Federal
agencies. If NRCS determines, through
agreement or otherwise, that the
purposes of this part would be furthered
by the assistance of other Federal
agencies with wetland responsibilities,
NRCS may accept such assistance and
adopt any or all such actions by these
agencies as an action by an NRGS
representative under this part.

§12.7  Certification of compliance.
   (a) Self-certification. In order for a
person to be determined to be eligible
for any of the  benefits specified in
§12.4:
   (1) It must be determined by USD A
whether any field in which the person
applying for the benefits has an interest
and intends to produce an agricultural
commodity contains highly erodible
land;
   (2) The person applying for or
receiving the benefits must certify in
writing on Form AD-1026 that such
person will not produce an agricultural
commodity on highly erodible land, or
designate such land for conservation
use; or plant an agricultural commodity
on a converted wetland; or convert a
wetland  to make possible the
production of an agricultural"
commodity during the  crop year in
which the person is seeking such
benefits, unless such actions are
exempt', under § 12.5, from the
provisions of § 12.4 of this part;     :   -
   (3) A person may certify application
of practices required by the person's
conservation plan. NRCS shall permit a
person who makes such a certification
with respect to a conservation plan to
revise the conservation plan in any
manner,  if the same level of
conservation treatment provided for by
the conservation system under the
person's  conservation plan is
maintained. NRCS may not revise the
person's  conservation plan without the
concurrence of the person;   •.
   (4) The person applying for a FSA
direct or guaranteed farm credit program
loan must certify that such person shall
not use the proceeds' of the loan for a
purpose that will contribute to'excessive
erosion on  highly erodible land or to
conversion of  wetlands for the purpose,
or to have the  effect, of making the
production of an agricultural
commodity possible; and
 '  (5) The person applying for the  •
benefits must authorize and provide
representatives of USDA access to all  •
land in which such person has an
interest for the purpose of verifying any
such certification.
   (b) Availability.to other agencies. Each
 agency "of USDA. shall make all
 certifications bf compliance received by
 such agency and the results of ;
 investigations concerning such
 certifications of compliance available to
 other agencies.        •     '
  . (c) Compliance. A certification made
 in accordance with this section does not
 relieve any person from compliance
 with provisions of this part.

 §12.8 Affiliated persons.
   (a) Ineligibility of affiliated persons.
 Ineligibility of an individual or entity
 under this part for benefits shall also be
 an ineligibility for benefits for
 "affiliated persons" as defined in this
 section.
   (b) Affiliated persons of an individual. -
 If the person requesting benefits is an
 individual, the affiliated persons are:
   (1) The spouse and minor child of
 such person  or guardian of such child;
 except that spouses who establish to the
 satisfaction of the COC that operations
 of the husband and wife are maintained
 separately and independently shall not
'be considered affiliates;
   (2) Any partnership, joint venture, or
 other enterprise in which the person or
 any person listed in paragraphs (b)(l)
 has an ownership interest or financial
 interest; unless such interest is held
 indirectly through another business
 enterprise; or
  (3) Any trust in which the individual,
 business enterprise, 'or any person listed
 in paragraph (b) (1) is a beneficiary or
 has a financial interest, unless such-
 interest is held indirectly through
 another business enterprise;
  (c) Affiliated persons of an entity. If
 the person who has requested benefits
 from USDA is a corptiration,
 partnership,  or other joint venture, the
 affiliated  persons are any participant or
 stockholder therein of the corporation,
 partnership,  or other joint venture,
 except for persons who have.an indirect
 interest through another business
 enterprise in such  corporation,
 partnership,  or other joint venture or
 persons with a 20 percent or less share
 in a corporation.
  (d) Limitation. Any reduction in
 payments which results only from the
 application of the affiliation provisions
 of this section to a partnership, joint
 venture, trust, or other enterprise shall
 be limited to the extent of interest held
 in such partnership, joint venture, trust,
 or other enterprise by the person or
 business enterprise that committed the
 violation. However,  for violations for
 which the business enterprise is
 considered directly responsible under
 the provisions of this part, the business
 enterprise shall be subject to a full loss
 of benefits, including those instances in
 which the business enterprise has an
 interest in the land where the violation
 occurred or Where the business
 enterprise had an interest in the crops
 produced on the land.
   (e) Avoidance of this part. Limitations.
 on affiliation shall not apply as needed
 tb correct for any action that would
 otherwise tend to defeat the purposes of
 this part.

•§12.9  Landlords and tenants.
   (a) Landlord eligibility.
   (1) Except as provided in paragraph
 (a) (2) of this section, the ineligibility of
 a tenant or sharecropper for benefits (as
 determined under § 12.4) shall not cause
 a landlord to be ineligible for USDA
 program benefits accruing with respect
 to land other than those in which the
 tenant or sharecropper has an interest
   (2) The provisions of paragraph (a) (1)
 of this section shall not be applicable to
 a landlord if the production of an
 agricultural commodity on highly   •
 erodible land or converted wetland by
 the landlord's tenant or sharecropper is
required under the terms and conditions
of the agreement between the landlord
and such tenant or sharecropper and
such agreement was entered into after
December 23, 1985, or if the landlord ,'
has acquiesced in such activities by the
tenant or sharecropper.              .
•  (b) Tenant or renter eligibility.
  (1) The ineligibility of a tenant or
renter may;be limited to the program
benefits listed in § 12.4(c) accruing with
respect to qnly the farm on which the
violation occurred if:
  (i) The tenant or renter shows that a
good-faith effort was made to comply by
developing an approved conservation
plan for the highly erodible land in a •
timely manner and prior to any
violation of the provisions of this part;
and                   •  - •
  (ii) The owner of such farm refuses to
apply such a plan and prevents the  '
tenant or renter from implementing
certain practices that are a part of the
approved conservation plan; and
.  (Hi) FSA determines that the lack of
compliance is not a part of a scheme or
device as  described in § 12.10.
  (2) If relief is granted under paragraph
(b)(l) of this section, the tenant or renter
must actively apply those conservation
treatment measures that are determined
to be within the control of the tenant or
renter.

§12.10  Scheme or device.
  All or any part of the benefits listed
in § 12.4 otherwise due a person from
USDA may be withheld or required to
be refunded if the person adopts or
participates in adopting any scheme or

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47034    Federal  Register / Vol. 61, No.  174 /  Friday, ;September  6,  1996 / Rules and Regulations
device designed to evade, or which has
the effect of evading, the provisions of
this part. Such acts shall include, but
are not limited to, concealing from
USDA any information having a bearing
on the application of the provisions of
this part or submitting false information
to USDA or creating entities for the
purpose of concealing the interest of a
person in a farming operation or to
otherwise avoid compliance with the
provisions of this part. Such acts shall
also include acquiescence in, approval
of, or assistance to acts which have the
effect of, or the purpose of,
circumventing these regulations.

§12.11  Action based upon adyice or
action of USDA.
  The provisions of part 718 of this
Title, as amended, relating to
performance based upon the action or
advice of a County Committee (COC) or
State FSA Committee shall be
applicable to the provisions of this part.
In addition, if it is determined by the
appropriate USDA agency that the
action of a person which would form
the basis of any ineligibility under this
part was taken by such person in good-
faith reliance on erroneous advice,
information, or action of any other
authorized representative of USDA, the
appropriate agency may make such
benefits available to the  extent that
similar relief would be allowed under 7
CFR part 718.
§12.12  Appeals.
  Any person who has been or who
would be denied program benefits in
accordance with § 12.4 as the result of
any determination made in  accordance
with the provisions of this part may
obtain a review of such determination in
accordance with the administrative
appeals procedures of the agency which
rendered such determination. Agency
appeal procedures are contained in the
Code of Federal Regulations as follows:
FSA, part 780 of this title; NRCS, part
614 of this title; Rural Utilities Service,
part 1900, subpart B of this title.

Sub-part B—Highly Erodible Land
Conservation

§12.20  NRCS responsibilities regarding
highly credible land.
  In implementing the provisions of this
part, NRCS shall, to the extent
practicable:
  (a) Develop and maintain criteria for
identifying highly erodible lands;
  (b) Prepare and make available to the
public lists of highly erodible soil map
units;
  (c) Make soil surveys for purposes of
Identifying highly erodible land; and
   (d)-Provide technical guidance to
 conservation districts'which approve
 conservation plans and systems, in
 consultation with local county FSA
 committees, for the purposes of this
 part.                .

 § 12.21  Identification of highly erodible
 lands criteria.
   (A) Basis for identification as highly
 erodible. Soil map units and an
 credibility index will be used as the
 basis for identifying highly erodible
 land. The credibility index for a soil is
 determined by dividing the potential
 average annual rate of erosion for each
-soil by its predetermined soil loss
 tolerance (T) value. The T value
 represents the maximum annual rate of
 soil erosion that could occur without
 causing a decline in long-term
 productivity. The equation for
 measuring erosion is described belpw.
   (1) The potential average annual rate
 of sheet and rill erosipn is estimated by
 multiplying the following factors of the
 Universal Soil Loss Equation (USLE):
   (i) Rainfall and runoff (R);
   (ii) The degree to which the soil
 resists water erosion (K); and  '
   (iii) The function (LjS), which
 includes the effects of slope length (L)
 and steepness (S).
   (2) The potential average annual rate
 of wind erosion is estirnated by
 multiplying the following factors  of the
 Wind Erosion Equation (WEQ): Climatic
 characterization of windspeed and
 surface soil moisture (C) and the degree
 to which soil resists wind erosion (I).
   (3) The USLE is explained in the U.S.
 Department of Agriculture  Handbook
 537, "Predicting Rainfall Erosion
 Losses." The WEQ is explained in the
 paper by Woodruff, NlP., and F. H.
 Siddaway, 1965, "A Wind Erosion
 Equation," Soil Science Society of
 America Proceedings, Vol.  29. N,o. 5,
 pages 602-608. Values for all the factors
 used in these equations are contained in
 the NRCS field office technical guide
 and the references.which are a part of
 the guide. The Universal Soil Loss
 Equation, the Revised Universal Soil
 Loss Equation, and the Wind Erosion
 Equation and the rules under which
 NRCS uses the equations are published
 at §§610.11 through 6J10.15 of this title.
   (b) Highly erodible. A soil map unit
 shall be determined to be highly
 erodible if either the RKLS/T or the CI/
 T value for the map uijiit equals or
 exceeds 8.           :
   (c) Potentially highly erodible.
 Whenever a soil map unit description
 contains a range of a slope  length and
 steepness characteristics that produce a
 range of LS values which result in
 RKLS/T quotients both above and below
 8, the soil map unit will be entered on
 the list of highly erodible soil map units
 as "potentially highly erodible." The
 final determination of credibility for an '
 individual field containing these soil
 map unit delineations will be made by
 an on-site investigation.

 § 12.22 Highly erodible field determination
 criteria.
   (a) Predominance. Highly erodible
 land shall be considered to be
 predominant on a field  if either:
   (1) 33.33 percent or more of the total
 field acreage is identified as soil map
 units which are highly erodible; or
   (2) 50 or more acres;in such field are
 identified as soil map units which are
. highly erodible.
   (b) Modification of field boundaries. A
 perspn may request the  modification of
 field boundaries for the purpose of
 excluding highly erodible land from a
 field. Such a request must be submitted
 to, and is subject to the  approval of,
 FSA. FSA shall use the  technical '
 determination of NRCS  in approving
 this request.
   (C) Impact of changing field
 boundaries. When field boundaries are
 changed to include areas of land that
 were included in a field that was
 previously determined to be
 predominately highly erodible
 according to paragraph  (a) of this
 section, such areas shall continue to be
 subject to the requirements for
 predominately highly erodible fields,
 except as provided in paragraph (b) of
 this section.
   (d) Small area ofnoncropland. Small
 areas of noncropland within or adjacent
 to the boundaries of existing highly
 erodible crop fields such as abandoned
 farmsteads, areas around filled or
 capped wells, rock piles, trees, or brush
 which are converted to cropland are
 considered to meet the requirement of
 § 12.5 (a) (2) if they  are included in an
 approved conservation plan for the
 entire highly erodible field.

 § 12.23  Conservation plans and
 conservation systems.
   (a) Use  of field office technical guide.
 A conservation plan or conservation
 system developed  for the purposes of
 § 12.5(a) must be based on, and to the
 extent practicable  conform with, the
 NRCS field office technical guide in use
 at the time the plan is developed or
 revised. For highly erodible croplands
 which were used to produce agricultural
 commodities prior to December 23tl
 1985, the  applicable conservation  •
 systems in the field office technical
 guide are  designed to achieve
 substantial reductions in soil erosion.
 Conservation systems shall be

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            Federal Register  /  Vol. 61, No.  174 / Friday,  September 6,  1996 / Rules and Regulations   '47035
 technically and economically feasible;  •
 based on local resource conditions and
 available conservation technology; cost-
 effective; and shall not cause undue
 economic hardship on the person
 applying the conservation system. Any
 conservation plans or systems that were
 approved prior to July 3, 1996, are
 deemed to be in compliance with this
 paragraph.         .           '  •  •
   (b) Substantial reduction in soil
 erosion. For the purpose of determining
 .whether there is a substantial reduction
 in soil erosion on a field containing
 highly erodible cropland which was
 used to produce an agricultural
 commodity prior to December 23, 1985,'
 the measurement  of erosion reduction
• achieved by applying a conservation
 • plan or system shall be based on a
 comparison  of the estimated annual
 level of erosion that is expected to occur
 on that portion of the field for which a
 conservation plan or.system was
 developed and is being applied, to the
 estimated annual  level of erosion that
 existed on that same portion of the field
 before the application of a conservation
 plan or system. On a field that is
 converted from native vegetation after
 July 3, 1996, and where any crop
 production will result in increased
 erosion, in no case will the required
 conservation plan or system permit a
 substantial increase in erosion.
   (c) Field trials. NRCS may allow a
 person to include  in the person's
 conservation plan or a conservation
 system under the plan, on a field-trial
 basis, practices that are not currently
" approved but that NRCS considers have
 a reasonable likelihood of success.
 These trials must have prior approval by
 NRCS, and must be documented in the
 person's conservation plan specifying
 the limited time period during which
 the field trial is in effect. If, at the end
 of the conservation field trial period,
 NRCS finds that the practice does not
 meet conservation compliance
 requirements, the  person will not he
 ineligible for USDA program benefits
 during the period  of the field trial.
   (d) Jfighly erodible land previously
 under a Conservation Reserve Program
 contract. Any person who owns or
 operates highly erodible land that was
 under a Conservation Reserve Program
 contract as authorized by section 1231
 of the Food Security Act of 1985, as
 amended, shall have 2 years after the
 expiration of termination of the contract
 to fully apply a conservation system if
 the conservation plan for such land
 requires the installation of structural
 measures for the production of an
 agricultural commodity. NRCS officials
 may extend this period one additional
 year for circumstances beyond the
 control of the person. The person shall
 not be required to meet a higher
 conservation"standard thari the standard
 applied to other highly erodible
 cropland located within the area served
 by the field office technical guide for the
 area in which the field is located.
   (e) Information regarding
 conservation options. NRCS, in
 providing assistance to a person for the
 preparation or revision of a conservation
 plan under this part, will provide such
 person with  information concerning
 cost-effective and applicable erosion
 control alternatives, crop flexibility, or
 other conservation assistance options
 that may be available.
   (f)  Timely request for assistance.
 Persons who require NRCS assistance .
 for the development of a conservation
 plan or the installation of a conservation
 system are encouraged to request this
 assistance well in advance of deadline
 dates for compliance; otherwise the  ,
 person may not be able to comply with
 these provisions and maintain eligibility
 for USDA .program benefits.
   (g) Act/on  by conservation districts. >
 Conservation districts approve or
 disapprove conservation plans or
 conservation systems after NRCS
 determines that the plans or systems
 conform to the NRCS field office
 technical guide. If a conservation
 district fails, without due cause, to act
 on a request for conservation plan or
 conservation system approval within 45
 days, or if no conservation district
 exists, NRCS will approve or
 disapprove, as  appropriate, the
 conservation plan or system in question.
   (h) Application of a conservation plan
 or system. A  person is considered to be
 applying a conservation plan for
 purposes of § 12.5(a) if the conservation
 system or plan being applied achieves
 or exceeds the substantial reduction in
 soil erosion as described in paragraph
 (b) which the conservation system or
 plan was designed to achieve. It is the
 responsibility of the person to:
   (1)  Certify that the conservation plan
 or system is being applied; and
   (2)  Arrange for a revision of the -
.conservation plan with NRCS, if
 changes are made in land use, crop
 rotation or management, conservation -
 practices, or in the original schedule of
 practice installation that would, affect
 the achievement of substantial
 reduction in  soil erosion in a given crop
 year.
   (i) Appeal  to FSA.  Persons who are
 adversely affected by the determinations
 made under this subpart and believe
 that the requirements of this subpart
 were improperly applied may appeal
 the decision to FSA under §12.12.-
   0) Undue economic hardship. After a
 technical determination has been made,
 the FSA,county committee shall, if a
 person asserts that the application of the
 person's conservation system would
 impose an'undue economic hardship on
 the person, make a recommendation to
 the State FSA Committee as to whether
 or not the application of the
 conservation system would impose an
 undue economic hardship. The State
 FSA Committee may provide the person
 with a variance on the basis of the
 hardship. Under this variance, and any
 conditions that may be required in the
 variance, the person will be considered
 to be in compliance with the applicable
 provisions of this part. The State FSA
 Committee will consider relevant
 factors, such as the cost of installation
 of required conservation practices and
 benefits earned through programs  '
 subject to compliance with'this part,
 and the  person's general economic
•situation.             .

 Subpart C—Wetland Conservation

 § 12.30  NRCS responsibilities regarding
 wetlands.
   (a) Technical and coordination
. responsibilities. In carrying out the
 provisions of this part, NRCS shall:
   (1) Oversee the development and
 application of criteria to identify hydric
 soils in consultation with the National
 Technical Committee.for Hydric Soils
 and make available to the public an
 approved county list of hydric soil map
 units, which is based upon the National
 List of Hydric Soils;  '
   .(2) Coordinate'with the U.S. Fish and.
 Wildlife Service and others in updating
 the National List of Plant Species that
 Occur in Wetlands;
   (3) Make or approve wetland
 determinations, delineations and
 certifications, functional assessments,
 mitigation plans, categorical minimal
 effects, and other technical
 determinations relative to the  •
 implementation of the wetland '  •
 conservation provisions of this part;
,  . (4) Develop and utilize off-site and
 on-site wetland identification
 procedures;
   (5) Assure  quality of service and
. determinations through procedures
 developed by NRCS in consultation
 with other Federal agencies that have
 wetland responsibilities;
   (6) Investigate complaints and make
 technical determinations regarding
 potential violations;'
   (7) Develop a process at the state
 level, in coordination with the U.S. Fish
 and  Wildlife Service, to ensure that
these provisions are carried out in a
 technically defensible and timely

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47036    Federal Register  /  Vol. 61, No.  174 / Friday,
                    September 6, 1996 / Rules  and Regulations
manner, seek assistance as appropriate,
and annually review the progress being
made on implementation; and
  (8) Conduct reviews of
implementation and provide the Army
Corps of Engineers, Environmental
Protection Agency, and the U.S. Fish
and Wildlife Service an  opportunity to
participate in this review.
  (b) Technical assistance from others
In carrying out the provisions of this
part, NRCS may request technical
assistance from the U.S. Fish and
Wildlife Service, State or local agencies •
conservation districts, or qualified
private entities when NRCS determines
that additional staff resources or
technical expertise are needed to
address adequately the requirements of
this part or to enhance the quality of
implementation of this part.
  (c) Certification of wetland
determinations and wetland
delineations.
  (1) Certification of a wetland
determination means that the wetland
determination is of sufficient quality to
make a determination of ineligibility for
program benefits under § 12.4 of this
part. Certification of a wetland
determination shall be completed
according to delineation procedures
agreed to by the Army Corps of
Engineers, the Environmental Protection
Agency, the U.S. Fish and Wildlife
Service  and NRCS. NRCS may certify a
wetland determination without making
a field investigation. NRCS will notify
the person affected by the certification
and provide an opportunity to appeal
the certification prior to the certification
becoming final. All wetland
determinations made after July 3,1996,
will be done on a tract basis and will be
considered certified wetland  •
determinations. A  not-inventoried
designation within a certified wetland is
subject to change when the soil,
hydrology, and vegetation evaluation is
completed and identified as to type of
wetland or as a non-wetland. This
change from a not-inventoried
designation to an approved wetland
designation will be done at the request
of the landowner or during a formal
Investigation of a potential violation.
  (2) The wetland  determination and
wetland delineation shall be certified as
final by the NRCS official 30 days after
providing the person notice of
certification or, if an appeal is filed with
USDA, after the administrative appeal
procedures are exhausted.
  (3) In the case of an appeal, NRCS will
review and certify the accuracy of the
determination of all lands subject to the
appeal to ensure that the subject lands
have been accurately delineated. Prior
to a decision being rendered on the
appeal, NRCS will conduct an tin-site
investigation of the subject land.
  (4) Before any benefits are withheld,
an on-site investigatio'n of a potential
wetland violation will be made by
NRCS. The affected person will be
provided an opportunity to appeal the
on-site determination!to USDA if the on-
site determination differs from the
original determination. Such action by
NRCS shall be considered a review of
the prior determination and certification
of the delineation. If the prior
determination was a certified wetland
determination, an appeal of the NRCS
on-site determinationlshall be limited to
the determination thajt the wetland was
converted in violation of this part.
  (5) A copy of the information from the
final certified wetland determination
and the wetland delineation shall be
recorded on official U^DA aerial
photography, digital imagery, or other
graphic representation of the area.
  (6) As long as the affected person is
in compliance with the wetland
conservation provision of this part, and
as long as  the area is devoted to the use
and management of the land for
production of food, fiber, horticultural
crops, a certification made under this
section will remain valid and in effect
until such time as the|person affected by
the certification requests review of the
certification by NRCS; A person may
request review of a certification only if
a natural event alters the topography or
hydrology of the subject land to the
extent that the final certification is no
longer a reliable indication of site
conditions, or if NRCS concurs with art
affected person that an error exists in
the current wetland determination

§ 12.31  On-site wetland identification
criteria.              i
  (a) .Hydric soils.
  (1) NRCS shall identify hydric soils
through the use of published soil maps
which reflect soil surveys completed by
NRCS or through the use of ori-site
reviews. If a published soil map is
unavailable for a given area, NRCS may
use unpublished soil rnaps which were
made according to the specifications of
the National Cooperative Soil Survey or
may conduct an on-site evaluation of
the land.            '•
  (2) NRCS shall determine whether an
area of a field or_pther parcel of land has
a predominance of hydric soils that are
inundated or saturated as follows:
  (i) If a soil map unit: has hydric soil
as all or part of its  name, that soil map
unit or portion of the map unit related
to the hydric soil shall be determined to
have a predpminancejof hydric soils;
  (ii) If a soil map  unit is named for  a
miscellaneous area that meets the
criteria for hydric soils (i.e., riverwash,
playas, beaches, or water) the soil map
unit shall be determined to have a
predominance of hydric soils; or
  (iii) If a soil map unit contains
inclusions of hydric soils, that portion
of the soil map unit identified as hydric
soil shall be determined tp have a
predominance of hydric soils.
  (3) List of hydric soils.
  (i) Hydric soils are those soils which
meet criteria set forth in the publication
"Hydric Soils of the United States 1985"
which was developed by the National
Technical Cpmmittee for Hydric Soils
and which is  incorporated by reference.
This publication may be obtained upon
request by writing NRCS at U.S.
Department of Agriculture, P.O. Box
2890, Washington, DC 20013, and is
available for inspection at the Office of
the Federal Register Information Center,
800 North Capitol Street NW., Suite 700,
Washington, DC 20408. Incorporation of
this publication by reference was
approved by the Director of the Federal
Register on June 24, 1986. The materials
are incorporated as they exist on the
date of the approval and a notice of any
change in these'materials will be
published in the Federal Register.'
  (ii) An official list of hydric soil map
units shall be maintained at the local
NRCS office and shall include—
  (A) All soils from the National List of
Hydric Soils that can be found in that
field office area, and
  (B) Any soil map units or areas which
the state conservationist determines to
meet such hydric soil criteria.
  (iii) Any deletions of a hydric soil
unit from the  hydric soil map) Unit list
must be made according to the
established procedure contained in the
publication "Hydric Soils of the United
States 1985" for adding or deleting soils
from the National List of Hydric Soils.
  (b) Hydrophytic vegetation.
Hydrophytic vegetation consists of
plants growing in water or in a substrate
that is at least periodically deficient in r
oxygen during a growing season as a
result of excessive water content.
  (1) A plant  shall be considered  tp be
a plant species that occurs in wetland if
such plant is  listed in the National List
of Plant Species that  Occur in Wetlands.
The publication may be obtained upon
request from the U.S. Fish and Wildlife
Service at National Wetland Inventory,
Monroe Bldg.' Suite 101, 9720 Executive
Center Drive,  St. Petersburg, Florida
33702.                 '
  (2) For the purposes of the definition
of "wetland"  i'n § 12.2 of this part, land
shall be determined to have a
prevalence of hydrophytic vegetation if:
  (i) NRCS determines through the
criteria specified in paragraph (b)(3) of

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           Federal Register / Vol. 61, No.' 174  / Friday, September 6, ' 19.96  /  Rules and Regulations    47037
 this section that un'der normal
 circumstances such land supports a
 prevalence of hydrophytic vegetation.
 The term "normal circumstances" refers
 to the soil and hydrologic conditions
'that are normally present, without
 regard to whether the vegetation has
 been removed; or
   (ii) In the event the vegetation on such
 land has been altered or removed, NRCS
 will determine if a prevalence of
 hydrophytic vegetation typically exists
 in the local area on the same hydric soil
 map unit under non-altered'hydrologic
 conditions.         .''•-•
   (3) The determination of prevalence of
 hydrophytic vegetation will be made in
 accordance with the current Federal
 wetland delineation methodology in use
 by NRCS at the time of the         '
 determination.
   (c) Mitigation wetlands.
 Notwithstanding the provisions of this
 section, wetlands which are created in
 order to mitigate the loss of other
 wetlands as a result of irrigation,
 recreation, municipal water, flood
 control, or other similar projects shall
hot be considered to be artificial
 wetland for the purposes of
 § 12.5 (b) (1) (vii) (A) of this part.
   (d) Minimal effect determination. For
 the purposes of § 12.5 (b) (1) (v) of this
 part, NRCS shall determine' whether the -
 effect of any action of a person
 associated with the conversion of a
wetland, the conversion of wetland and'
 the production of an agricultural
commodity on converted wetland, or
the combined effect of the production of
an agricultural commodity on a wetland
.converted by someone else has a
minimal effect on the  functions and
values of wetlands in  the area. Such
determination shall be based upon a
functional assessment of functions and
values of the wetland  under
consideration and other related
wetlands in the area, and will be made •
through an on-site evaluation. A request
for such determination will be made
prior to the beginning of activities that
would convert the wetland. If a person ,
has converted a wetland and then seeks
a determination that the effect of such
conversion on wetland was minimal,
the burden will be upon the person to
demonstrate to the satisfaction of NRCS
that the effect was minimal.    . '
  The production of an agricultural
commodity on any portion of a
converted wetland in' conformance with"
a minimal-effect determination by NRCS
is exempt under § 12.5(b)(l)(v) of this  •
part. However, any additional action of
a person that will change the functions
and, values of a wetland for which a
minimal-effect determination has been
made shall be reported to NRCS for a
 determination of whether the effect
 continues to be minimal. The loss of a
 minimal effect determination will cause
 a person who produces an agricultural
 commodity on the converted wetland
 after such change in status to be
 ineligible, under § 12.4, for certain •
 program benefits. In situations where
 the wetland functions and values are
 replaced by the restoration,
 enhancement or creation of a wetland in
 accordance with a mitigation plan   .
 approved by NRCS, the exemption
 provided by the determination will.be
 effective after NRCS determines that all
 practices in a mitigation plan are being
 implemented.
  (e) Categorical Minimal Effect
 Exemptions.
  (1) The state conservationist, in
 consultation with the state technical
 committee established under 16 U.S.C.
 3861, shall identify any categories of
 conversion activities and conditions
 which are routinely determined by
 NRCS to have minimal effect on
 wetland functions and values, as
 described in paragraph (d) of this
 section, and recommend to the Chief,
 NRCS, or a designee, inclusion on a list
 of categorical minimal effect
 exemptions.                -.  '.
  (2) The Chief, or designee, shall
 evaluate the conversion practices
 recommended by the state
 conservationists in the region to ensure
 consistency across State and regional  .
 lines, and to determine whether any •
 categories of conversion activities
 identified pursuant to paragraph (e)(l).
 of this section, if such activities were
 exempt from the ineligibility provisions
of § 12.4, would only have a minimal
 effect on wetland functions and values
in a wetland system within the region.
  (3) Any categories of conversion
activities which meet the  criteria of,
paragraph (e) (2) of this section will be
published in the Federal register for
inclusion in this part and shall be
exempt under § 12.5(b)(l)(v) of this part.
  (4) The NRCS local field office shall
maintain a list of any activities and
conditions which are determined by the
Chief, or designee, exempt pursuant to
this section and will provide the list to
a person upon request.

§12.32  Converted wetland identification  .
criteria.
  (a) Converted wetland shall be
identified by determining whether the
wetland was altered so as to meet the
definition of converted wetland'. In
making this..determination, the
following factors are to be considered:
  (1) Where hydric soils have been used
for production of an agricultural
commodity and the effect of the
 .drainage or other altering activity is not
 clearly discernible, NRCS will compare
 the site with other sites containing the
 same,hydric soils in a natural condition
 to determine if the hydric soils can or
 cannot be used to produce an
 agricultural commodity under natural
 conditions. If the soil on the comparison
 site could not produce an agricultural
 commodity under natural conditions,
 the subject wetland will be considered-
 to be. converted wetland.
   (2) Where woody hydrophytic
 vegetation has been removed from
 hydric soils for the purpose of or
 permitting the production of an
 agricultural commodity, the area will be
 considered to be  converted wetland.
   (b) A wetland shall not be considered
 to be converted if:
   (1) Production  of an agricultural
 commodity on such land is possible as
 a result of a natural condition, such as
 drought, and it is determined that the
 actions of the person producing such
 agricultural commodity does not
 permanently alter or destroy natural
 wetland characteristics. Destruction .of
 herbaceous hydrophytic vegetation (i.e.,
 plants other than woody shrubs or trees)
, as a result of the production-of an
 agricultural commodity shall not be
 'considered as altering or destroying .
 natural wetland.characteristic if such
 vegetation could  return following  '
 cessation of the natural condition which
 made production of the agricultural
 commodity possible; or
   (2) Such land is correctly identified as
 farmed wetland or farmed-wetland
 pasture.       s

 § 12.33  Use of wetland and converted
 wetland.                   T
   (a) The provisions of § 12.32(b)(2) are
 intended to protect remaining functions
 and values of the  wetlands  described
 therein. Persons may continue to farm
 such wetlands.under natural conditions
 or as they did prior to December 23,
 1985. However, no action can be taken
 to-increase effects on the water regime
 beyond that which existed on such
 lands on or before December 23, 1985.,
 unless NRCS determines the effect on
 losing remaining wetland values would
 be minimal under § 12.5(b)(l)(v). If, after
 December 23, 1985, changes due to
 human activity occurred in the
 watershed and resulted in an increase in
 the water regime on a person's land, the
 person may be allowed to adjust the
 existing drainage  system to            ,
 accommodate the increased water
 regime on the condition that the person
 affected by this additional water
 provides NRCS with appropriate
 documentation of the increased water
 regime, the causes thereof, and.the

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47038   Federal Register / Vol. 61, No.  174 / Friday,  JSeptember 6. 1996  / Rules and Regulations
planned changes in the existing
drainage system. In order to maintain
program eligibility, a person must
provide sufficient documentation and
receive approval from NRCS prior to
making any changes that will have the
effect of increasing the capacity of the
existing drainage systems.
  (b) unless otherwise provided in this
part, the production of an agricultural
commodity on land determined by
NRCS to be prior-converted cropland is
exempted by law from these regulations
for the area which was converted.
Maintenance or improvement of
drainage systems on prior-converted
croplands are not subject to this rule so
long as the prior-converted croplands
are used for the production of food,
forage, or fiber and as long as such
actions do not alter the hydrology of
nearby wetlands or do not make
possible the production of an
agricultural commodity on these other
wetlands. Other wetlands under this
section means any natural wetland,
farmed wetland, farmed-wetland
pasture, or any converted wetland that
is not exempt under § 12.5 of this part. -
   (c) Abandonment is the cessation for
five consecutive years of management or
maintenance operations related to the
use of a farmed wetland or a farmed-
wetland pasture. Unless the criteria for
receiving an exemption under
§ 12.5(b)(l)(iii) are met, such land is
considered to be abandoned when the
land meets the wetland criteria of
§ 12.31. In order for documentation of
site conditions to be considered
adequate  under § 12.5(b)(l)(iii), the
affected person must provide to NRCS
available  information concerning the
extent of hydrological manipulation; the
extent of woody vegetation, and the
 history of use. In accordance with
§ 12.5(b)(l)(iii),  participation in a USDA
 approved wetland restoration, set-aside,
 diverted acres, or similar programs shall
 not be deemed to  constitute
 abandonment.
   (d) The maintenance of the drainage
 capacity or any  alteration or
 manipulation, including the
 maintenance of a  natural waterway
 operated  and maintained as a drainage
 outlet, that affects the circulation and
 flow of water made to a farmed wetland
 or farmed-wetland pasture would not
 cause a person to be determined .to be
 ineligible under this part, provided that
 the maintenance does not exceed the
 scope and effect of the original
 alteration or manipulation, as
 determined by NRCS, and provided that
 the area is not abandoned. Any resultant
 conversion of wetlands is to be at the
 minimum extent practicable, as
 determined by NRCS.
§ 12.34 Paperwork Reduction Act assigned
number.
  The information collection
requirements contained in this
regulation (7 CFRpart 12) have been
approved by the Office of Management
and Budget under provisions of 44
U.S.C. chapter 35 and have been
assigned OMB Number 0560-0004.
  Signed at Washington, D.C. on August 23,
1996.
Dan Glickman,       :
                    !
Secretary.                       '
[FR Doc. 96-22784 Filed: 9-5-96; 8:45 ami.
BILLING CODE 3410-01-M
Agricultural Marketing Service

7 CFR Part 1075     ;
[DA-96-12]       .   !

Milk in the Black Hills, South Dakota,
Marketing Area; Termination of the
Order
AGENCY: Agricultural Marketing Service,
USDA.             •
ACTION: Final rule; termination order.

SUMMARY: This document terminates all
but certain administrative sections of
the order regulating the handling of
milk in the Black Hilljs, South Dakota,
marketing area. Termination of this
order was requested by Black Hills Milk
Producers, a cooperative association
that represents all of the producers
whose milk is pooled^ under the order.
Thus, termination of the order is
required under the Agricultural
Marketing Agreement Act of 1937, as.
amended.
EFFECTIVE DATE: October 1, 1996.
FOR FURTHER INFORMATION CONTACT:
 Clifford M. Carman, Marketing
 Specialist, USDA/AMS/Dairy Division,
 Order Formulation Branch, Room 2971,
 South Building, P.O. Box 96456,
 Washington, DC 20090-6456, (202) 720-
 9368.  ,            ;   •
 SUPPLEMENTARY INFORMATION: The
 Departrnent is issuing this rule in
 confor'mance with Executive Order
 12866.             :
   This termination order has been
 reviewed under Executive Order 12988,
 Civil Justice Reform. This action is not
 intended to have retroactive effect. This
 rule will not preempt any state or local
 laws, regulations, or policies, unless
 they present an irreconcilable conflict
 with this rule.      (  •.
.    The Agricultural Marketing
 Agreement Act of 19J37, as amended (7.
 U.S.C. 601-674), provides that
 administrative proceedings must be
 exhausted before parties may file suit in
court. Under section 608c (15) (A) .of the
Act, any handler subject to an order may
file with the Secretary a petition s'tating
that the order, any provision of the
order, or any obligation imposed in
connection with the order is not in   •
accordance with the law and requesting
a modification of an order or to be
exempted from the order. A. handler is
afforded the opportunity for a hearing
on the petition. After a hearing, the
Secretary would rule on the petition.
The Act provides that the District Court
of the United States in any district in
which the handler is an inhabitant, or
has its principal place of business, has
jurisdiction in equity to review the
Secretary's ruling on the petition,
provided a bill in equity is filed not
later than 20 days after the date of the
entry of the ruling.
  This order of termination is issued
pursuant to the provisions of the
Agricultural Marketing Agreement Act
and of the order regulating the handling
of milk in the Black Hills, South Dakota,
marketing area.
Small Business Consideration
   During June 1996,  the representative
period determined for this action, 58
producers (all members of the Black
Hills Milk Producers cooperative
association) had their milk pooled
under the Black Hills order. The Small
Business Administration (SBA) criterion
of $500,000 in annual receipts, adjusted
to reflect the  information for one month
 ($500,000 divided by 12, divided by the
 1995 average order blend price of $13.95
per hundredweight) was used to
1 determine that dairy farmers marketing
less than 300,000 pounds of milk meet
 the description of a small dairy farm. On
 the basis of the pounds of milk
 marketed during the representative
 period, 54 of the 58 dairy farmers would
 be small businesses. Of these, 27
 marketed less than 100,000 pounds
 during June,  20 marketed between
 100,000 and  200,000 pounds, and 7
 marketed between 200,000 and 300,000
 pounds.
   In addition to the cooperative, there is
 one other milk handler regulated under
, the Black Hills order in South Dakota.
 Under  SBA criterion, this handler
 would be considered a small business.
 Consequently, nearly all of the parties
 affected by the Black Hills milk order
 would be classified as small entities.
   The  current reporting, recordkeeping
 and other compliance requirements of
 the rule would cease with termination
 of the order. None of the currently-
 affected entities«would be subject to any
 additional reporting or recordkeeping
 requirements for purposes of the Federal
 milk order program as a result of the

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                                                                                                            53491
 Corrections
                                       Federal Register

                                       Vol. 61, No. 199

                                       Friday, October 11, 1996
 This section of the FEDERAL REGISTER
 contains editorial corrections of previously
 published Presidential, Rule, Proposed Rule,
 and Notice documents. These corrections are
 prepared by the Office of the Federal
 Register. Agency prepared corrections are
 .issued as signed documents and appear in
 the appropriate document categories
 elsewhere in the issue.
 DEPARTMENT OF AGRICULTURE

 Office of the Secretary

 7CFRPart12
 RIN0578-AA17

 Highly Erodible Land and Wetland
 Conservation

 Correction
   In rule document 96-22784 beginning
 on page 47019  in the issue of Friday,
 September 6, 1996, make the following
 corrections:       '
   1. On  page 47019:
   a. In the first column, under
 ADDRESSES, in the sixth line, "service"
 should read "Service".
 '  b. In the second column, in the first
 paragraph, the  last two lines should
 read "Conservation Service, P.O.'Box
 2890, Washington, D.C. 20013-2890.".
   c. In the third column, in the second
 paragraph, in the first line, "unfunded."
 should read "Unfunded".
   2. On  page 47020,  in the second
 column, in the fourth line from the top,
 "resources" should read "resource".
   3. On  page 47021,  iri the 1st column:
   a. The heading should read "Public
. Listening Forums".
   b. In the 1st paragraph below the
 heading, in the 9th line, insert a semi-
 colon after "Texas".
   c. In the same paragraph, in the 23rd
 line, "Ssummary" should read
 "summary".                   •
   d. In the next paragraph, in th second
 line, "variance" should read
 "variances".       •  •
   4. On  the same page, in the second
 column, in the  seventh line from, the
 top, "provision" should read
 "provisions".
   5. On  page 47022,  in the second
 column, in the  last line,
 "determination" should read    '
 "determinations".
   6. On  the same page, in the third
 column, in the  second full paragraph, in
 the ninth line, "Supplemental" should
 read "supplemental".
  7. On page 47024, in the second
column, in the fourth full paragraph, in
the fourth line, insert a period after
"§12.6".   .       '
  8. On the same page, in the third
column, in the fourth full paragraph, in
the third line from the bott6m,
"research" was misspelled.
  9. On page 47025, in the second
column, in the first full paragraph, in
the ninth line from the bottom, insert a
period after "regulations".
  10. On the same page, in the third
column, in the table of contents for part
12, in the heading for 12.31, "Onn-site"
should read "On-site".

§12.2   [Corrected]
 . 11. On page 47026, in the first
column, in § 12.2(a), in the.definition .
for CCC, insert "a" before "wholly-
owned";
  12. On page 47027:
  a. In the first column/in § 12.2(a), in
the definition for Wetland, in paragraph
(3), in the second line, remove "not".
  fa. In the second column, in § 12.2(a);
in the definition for farmed-wetland
pasture, in subparagraph (i), in the third
line, "(5) percent" should read "(50)
percent".               •
  c. In the same column, in § 12.2(a), in
the definition for Non-wetland, in
subparagraph (ii), in the fourth line,.
"and" should read "an".

§12.4  [Corrected]
  13. On page 47027, in the third
column, in § 12.4(a)(2), in the third line,
"December 23, 1995" should'read
"December 23, J985".
  14. On page 47028, in the third
column, in § 12.4, in paragraph (g)(3), in
the sixth line and in paragraph (h), in
the eighth line from the bottom,
"conversation" should read
"conservation" each time it appears.

§12.5  [Corrected]
  15. On page 47028, in the third
column, in § 12.5(a)(l)(i), in the second .
line, "1081" should read "1981"
  16. On page 47029, in the first
column, in § 12.5(a)(2), in the second
line, "as" should read "As".
  17. On page 47030, in the third
column, in § 12.5(fa)(2)(iii), in the
second line from the bottom, "farmed"
was misspelled.
  18, On page 47031, in the third
column, in § 12.5(b)(7), in the first line,
"Responsibility" was misspelled.
 §12.6  [Corrected]  .
   19. On page 47032, in the first
 column, in § 12.6(c), in the first line,
 "Administration"^ was misspelled.  •

 §12.21  [Corrected]
 '  20. .On page 47034, in the second
 column, in § 12.21, the first paragraph
 designated "(A)" should read "(a)".

 §12.22  [Corrected]
   2.1. On page 47034, in the third
 'column, in § 12.22, the paragraph
 designated "(C)" should read "(c)".

 §12.30  [Corrected]   ,       .
   22. On page 47036, in the first
 column, in § 12.30(b), in the fifth line,
 insert a comma after "agencies".
   23. On the same page, in the second
 column, in § 12.30(c)(6), in the sixth
 line, insert "or" after "fiber,".
 BILLING CODE 1505-01-D
DEPARTMENT OF EDUCATION

.William D. Ford Federal Direct Loan
Program

Correction   .
  In notice document 96-25709
beginning on page 52778 in the issue of
Tuesday, October 8,, 1996, make the
following correction:
  On page 52779, in the second column,
under Deadlines for Submission of
Records, in the first paragraph, in the
seventh and eighth liries, "(45 days after
publication in the Federal Register)"
should read "November 22, 1996".
BILLING CODE 1505-01-D
OFFICE OF PERSONNEL
MANAGEMENT

5CFRPart550

RI.N 3206-AH09

Pay Under the General Schedule;
Termination of Interim Geographic
Adjustments

Correction
  In the corrections to rule document
96-1835 published on page 50535, in
the issue of Thursday, September 26,
1996; on page 51319 in the issue of
Tuesday, October 1, 1996; and on page
52497 in the issue of Monday, October
7, 1996, in the subject heading,

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