R634-3-6. Conservation Banks

  (1) Jurisdiction.

  (a) The Department has jurisdiction over the creation and regulation of Conservation Banks for Sage-grouse in Utah. Any person desiring to operate a Conservation Bank and transfer Credits generated by the Conservation Bank must first receive authorization from the Department.

  (2) Application; Minimum Qualifications.

  (a) Any person desiring to establish a Conservation Bank in Utah to create and protect in perpetuity Functional Habitat, Corridors or Protected Habitat to generate Credits to mitigate for the impacts of Permanent Disturbance to sage-grouse habitat within Utah, must:

  (i) own, manage and control at least 640 contiguous acres of land that is not Functional Habitat, Corridor(s) or Protected Habitat that can be made into Functional Habitat, Corridors and/or Protected Habitat in any SGMA in Utah;

  (ii) file a completed application with the Department, which shall include:

  (A) the name and address of property owner(s);

  (B) legal description and number of acres included in the proposed Bank Property;

  (C) title search of property identifying current owner(s) and title holder(s) and a list of any existing liens on the property;

  (D) list of any mineral owners of the property and a mineral title report if a split estate is involved;

  (E) name and address of Bank Manager;

  (F) a proposed property management plan, including identified Credit Generation Projects and monitoring and maintenance activities to take place on the bank; and

  (g) the applicable Application Fee.

  (b) The Department may reject any bank application that is incomplete or does not meet the requirements of this Section.

  (3) Establishment of Conservation Bank Agreement.

  (a) The Department may review any completed application and determine whether the property identified in the application may be eligible to operate as a Conservation Bank.

  (b) The Department will consult with the concerned county government(s) and other appropriate agencies before approving the application.

  (c) Upon review and preliminary approval of the application, the Department will provide a written notice of contingent bank approval to the applicant and shall identify the total number of Credits potentially available on the property upon completion of any Credit Generation Projects.

  (i) No split-estate property shall receive informal approval unless the applicant provides a mineral report and written guarantee from the owner(s) of the mineral estate that mineral owners, or their lessees or assigns, will not occupy or disturb the surface in any way for mineral exploration or development while the Conservation Bank Agreement is in place. Such written guarantee shall be recorded, and shall run with the land and be binding on successors and assigns of the mineral owner for the term of the Agreement.

  (d) After the applicant receives the notice of contingent bank approval, the applicant and the Department may enter into a Conservation Bank Agreement which will, at a minimum, identify:

  (i) the Bank Manager;

  (ii) the legal description of the Bank Property;

  (iii) a property management plan identifying any habitat enhancement and maintenance activities to be conducted by Bank Manager to generate Credits on the Bank Property;

  (iv) the Bank Manager's monitoring and reporting requirements and schedule;

  (v) any Remedial Actions and adaptive management strategies to be taken in case of a Reversal;

  (vi) the amount and type of legal or financial assurances the Bank Manager provides for the conservation and maintenance of the Conservation Bank and Credits;

  (vii) a means by which the bank or bank property may be transferred to a third party; and

  (e) Prior to executing the Conservation Bank Agreement or transferring Credits on the Credit Exchange Service, the owner of the Conservation Bank shall grant a Conservation Easement, record a deed restriction, or place the property in an irrevocable trust ensuring the perpetual protection of the property for the benefit of sage-grouse and the protection of sage-grouse habitat.

  (f) Once the Conservation Bank Agreement is executed, recorded in the county registry and the Agreement Fee is received, the Department will issue a Certificate of Credits to the Bank Manager for the number of acres of Occupied Habitat placed under perpetual protection by the Bank in 3-6(3)(e).

  (f) The Conservation Bank Agreement may be implemented in phases, as needed and appropriate, to generate and transfer Credits on a periodic basis, and may be modified or amended by mutual agreement between the Bank and the Department.

  (4) Credit Generation Projects.

  (a) Prior to initiating any Credit Generation Projects, the Bank Manager or the Department will survey the Project Area to verify the number of acres of existing Functional Habitat or Corridors present and report the survey results to the Department.

  (b) Once the Conservation Bank Agreement is fully executed by all parties and the survey results in subsection (1) are reported to the Department, the Bank Manager may begin Credit Generation Projects utilizing the plans and procedures identified in the Conservation Bank Agreement. The Bank Manager shall provide written notification to the Department whenever Credit Generation Projects are completed on the Bank Property.

  (5) Verification and Tracking Credits.

  (a) Upon completion of any Credit Generation Projects, as identified in the Conservation Bank Agreement, a Verifier will inspect the Credit Generation Project area to determine the number of acres of Functional Habitat or Corridor that exist on the Bank Property using the scientific methods approved or developed by the Department. When the Verifier determines that Functional Habitat or Corridors exist following Credit Generation Projects, the Verifier will provide a report to the DNR and to the Bank Manager identifying the number of Credits available on the property to be potentially transferred to a Credit Buyer through the Credit Exchange Service.

  (b) Upon Verifying the Credits and receiving payment of the Agreement Fee, the Department will issue a Certificate of Credits to the Bank Manager and track the Credits on the Credit Exchange Service as identified in Section 3-7(1).

  (6) Management and Monitoring Duties.

  (a) The Bank Manager shall manage the Bank Property in accordance with the management plans prescribed in the Conservation Bank Agreement.

  (b) The Bank Manager shall be responsible for monitoring and maintaining the condition of the Credits on the Bank Property and shall collect data as prescribed in the Conservation Bank Agreement, in accordance with the Department's Monitoring and Credit Maintenance policies and procedures.

  (c) The Bank Manager or a designee will submit an annual assessment and monitoring report to the Department utilizing the reporting guidelines developed by the Department.

  (7) Conservation Bank Agreement Revisions.

  (a) The Bank Manager and the Department shall meet and confer upon request of either party to consider revisions to the Conservation Bank Agreement which may be necessary to better conserve the habitat and conservation values of the Bank Property.

  (8) Compliance Inspection.

  (a) The Department may conduct any necessary assessment, monitoring and verification of the Bank Property to Verify that Credits generated continue to qualify as Functional Habitat, Corridors or Protected Habitat; to recommend Remedial Action, as needed; or for any other purpose determined necessary by the Department to assess compliance with the Conservation Bank Agreement.

  (b) In the event the Department or any person terminates the Conservation Bank Agreement prior to the terms outlined in the agreement, the Conservation Bank shall pay the Department its actual costs to obtain or create replacement Credits for any Transferred Credits to complete the remaining years listed in the agreement.