No. 26865 (Amendment): R652-40-1800. Abandonment

DAR File No.: 26865
Filed: 12/22/2003, 09:31
Received by: NL

 

RULE ANALYSIS

Purpose of the rule or reason for the change:

The Division grants easements on, through and over sovereign land for a variety of purposes including power lines, roads, trails, pipelines and communication lines. Approximately 150 easements of record are shown on the Division's lease management system. Most of these have a clause that requires the easement holder to pay an administrative fee every third year. Recently, and most often with communication line easements, the Division has experienced trouble with collecting administrative fees. The procedure is to send a courtesy billing to the easement holder approximately thirty days before payment is due. If no payment is received by the due date, the courtesy billing is followed by a bill that includes a late fee. This late billing is sent via certified mail with return receipt. This late bill is often ignored, subjecting the easement to immediate cancellation. Institutional memory is not very clear regarding the rationale for imposition of administrative fees. Perhaps the abandonment provision was relatively more important when state lands were commonly sold or exchanged. Easements are encumbrances that may affect land values. Since the Division now rarely exchanges land and does not sell land, knowledge of easement abandonment is less important than it was before. In many cases it is obvious whether or not an easement is still in use. Most of the easements granted by the Division are non-exclusive and do not prevent others from using the same alignment. Also, the ability to negotiate one-time fees in lieu of every-third-year administrative payments seems to argue against using administrative fees to determine whether or not an easement is still in use. Also arguing against administrative fees is the fact that easement land uses may be granted to government entities under a sovereign land general permit rather than an easement document, and without an administrative fee requirement. At the time of the split from the School and Institutional Trust Lands Administration (SITLA), the Division agreed to waive its share of administrative fees collected on easements crossing both SITLA and sovereign land. Some customers, primarily electric transmission line and petroleum pipeline customers, have become accustomed to the every-third-year fee and have built these payments into automated accounting systems. Many have not. With recent sales, mergers and bankruptcies in the telecommunications business, tracking down the party responsible for payment of administrative fees is challenging. Since the applicant for an easement pays the cost of the easement before it is granted, the Division receives full compensation.

 

Summary of the rule or change:

The amendment eliminates the administrative fee due every third year.

 

State statutory or constitutional authorization for this rule:

Section 65A-7-8

 

Anticipated cost or savings to:

the state budget:

Elimination of the administrative fee will result in approximately $1,000 less per year going into the sovereign lands management account.

 

local governments:

A saving of approximately $180 per easement over the 30-year easement term for units of local government holding sovereign land easements.

 

other persons:

A saving of approximately $180 per easement over the 30-year easement term for persons holding sovereign land easements.

 

Compliance costs for affected persons:

No compliance costs are applicable. All persons holding sovereign land easements pay the full cost of the easement up front.

 

Comments by the department head on the fiscal impact the rule may have on businesses:

Holders of sovereign land easements will welcome this change because of reduced costs and paperwork.

 

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Natural Resources
Forestry, Fire and State Lands
1594 W NORTH TEMPLE
SALT LAKE CITY UT 84116-3154

 

Direct questions regarding this rule to:

Jennifer Gregerson or Karl Kappe at the above address, by phone at 801-538-5418 or 801-538-5495, by FAX at 801-533-4111 or 801-533-4111, or by Internet E-mail at [e-mail] or [e-mail]

 

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

02/17/2004

 

This rule may become effective on:

02/18/2004

 

Authorized by:

Karl Kappe, FFSL Strategic Planner

 

 

RULE TEXT

R652. Natural Resources; Forestry, Fire and State Lands.

R652-40. Easements.

[R652-40-1800. Abandonment.

In order to facilitate the determination of an abandonment of easement, the grantee shall pay an administrative fee every three years during the term of the easement as provided in R652-4. This fee shall not be construed as rent. In lieu of this fee, the division may allow a grantee to pay to the division a one-time negotiated fee.]

 

KEY: natural resources, management, surveys, administrative procedure

[1993]February 18, 2004

Notice of Continuation April 2, 2002

65A-7-8