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Hazard Mitigation Assistance and the Mineral Rights Policy

Hazard Mitigation Assistance and the Mineral Rights Policy. Gene Gruber FEMA Region III Director, Mitigation Division. Policy.

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Hazard Mitigation Assistance and the Mineral Rights Policy

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  1. Hazard Mitigation Assistance and the Mineral Rights Policy Gene Gruber FEMA Region III Director, Mitigation Division

  2. Policy • Subsurface hydraulic fracturing and horizontal directional drilling (HDD) generally are not authorized uses of properties acquired with FEMA Hazard Mitigation Assistance (HMA) funds. • FEMA generally will not approve property acquisition for open space projects involving properties with underground oil, gas or other mineral encumbrances that may allow hydraulic fracturing or HDD to occur. • Sub-grantees cannot enter into leases or other encumbrances that permit oil, gas or other mineral extraction by hydraulic fracturing or HDD. • Owners, or holders of previously acquired HMA properties generally cannot encumber the property with or transfer underground oil, gas or other mineral rights that may allow hydraulic fracturing or HDD to occur on that property.

  3. General Guidance • What Mitigation Actions are Subject to this Policy? • Proposed property acquisitions under Hazard Mitigation Assistance (HMA) Grants involving properties with underground mineral and gas rights leases. • Why? • Subsurface Hydraulic Fracturing and Horizontal Directional Drilling (HDD) are practices with currently unresolved environmental impacts and unknown compatibility with open space requirements. • National Environmental Policy Act Review (NEPA) - 1970 • FEMA is required to “review the environmental impact of a proposed major federal action that could significantly affect the environment”. • 44 Code of Federal Regulations (CFR). Part 80, Sec. 80.17: • Properties generally must be acquired under the HMA programs with clear title. Any incompatible easements or other encumbrances to the property must be extinguished before acquisition.

  4. Frequently Asked Questions • Can this be appealed? • Yes, eligible sub-applicants, sub-grantees or grantees may petition FEMA for review of application denials due to the existence of encumbrances using existing processes in the HMA program. • If a lease must be extinguished, is that an eligible cost? • HMA program guidance allows costs for acquisition projects including fees associated with the title transfer, contract review, and other costs associated with conducting real estate settlement, including recording the deed and deed restrictions. The cost must still meet the other eligible cost criteria. • Will FEMA pay to elevate structures that it can’t acquire because of these encumbrances? • Elevation projects will be evaluated according to relevant laws, regulation, and program guidance. This policy does not preclude elevation projects from moving forward.

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