R657-28-19. Agricultural Leases

(1) The division may lease lands or water rights for purposes of cultivated crop production only when the division determines that such a lease would provide a net benefit for wildlife or would facilitate wildlife management activities that would provide a net benefit for wildlife.

(2) Leases may be issued for a term no greater than one year, with an option to renew in accordance with Subsection (10).

(3) Compensation received by the division for agricultural leases may be either a fixed rate per acre or in-kind or a combination of both as specified by the division, providing that the value received is customary and reasonable.

(4) The lessee is obligated to satisfy its compensation obligations regardless of whether the lessee uses the lease.

(5) The division may require the lessee to acquire crop insurance if the division is to receive a share of the harvested crop.

(6) At the time of initial lease payment, the lessee may be required to post with the division a bond in the form and amount as may be determined by the division to assure compliance with all terms and conditions of the lease.

(7) Agricultural leases may be issued by the division through a competitive proposal solicitation process set forth in R657-28-20.

(8) Agricultural Leases issued by the division shall include:

(a) The name, and a map, of the subject property to be leased;

(b) A description of the vegetation management goals to be achieved, including type of crop to be grown and a description of crop residue, if any, to be left after harvest to benefit wildlife; or any other vegetation parameter desired for the subject lease property;

(c) A description of the benefit expected for wildlife;

(d) A description of the rights of the lessee and the division;

(e) The type and amount of compensation to be delivered to the division, and the date compensation is due;

(f) A provision for adjusting the base rental fee, if any, over the life of the lease to reflect changes in the market value of the lease;

(g) A statement describing how reporting is to be made of the quantity of crop harvested if a crop share is identified as in-kind compensation;

(h) A statement that the division may unilaterally terminate the lease if lessee breaches the terms of the lease contract;

(i) Identification of the type of compensation required by the division. Description of the compensation required shall be sufficiently specific as to be clearly understood by the lessee and the division;

(j) Requirement that all applications to appropriate water on division land be filed only with the permission of the division, filed in the name of the division, and that express written consent from the division is needed prior to the conveyance of water off division land;

(k) A statement assuring non-motorized public access to division property by the lessee;

(l) A statement that the lessee is solely responsible for fence maintenance of the leased property;

(m) A statement that the division is held harmless and indemnified for acts of God or any and all losses due to domestic livestock or public or wildlife use of the subject property during the period of the lease;

(n) A statement indemnifying the state from all actions of the lessee;

(o) Lessee's consent to suit or arbitration arising under terms of the lease or as a result of operations carried on under the lease;

(9) The division shall determine the degree to which a lessee has complied with the provisions of the lease, and shall report to the lessee whether compliance was satisfactory or unsatisfactory.

(10) Lessees who receive a satisfactory review for the previous year may have the option to renew the lease for the coming year provided the division determines the lease continues to provide a net benefit for wildlife or facilitates wildlife management activities that provide a net benefit for wildlife; except the division may at its discretion;

(a) Withdraw the subject property from lease if the division determines the lease has failed to benefit wildlife or facilitate wildlife management goals;

(b) Alter the non-compensatory provisions of the lease if the division determines that such alteration will better achieve its wildlife management goals;

(c) Identify a different in-kind compensation on division property that is reasonably comparable in value to the market-adjusted in-kind compensation of the original lease;

(i) the division may negotiate the terms of the new in-kind compensation, and total compensation due the division without opening the lease to competitive proposal solicitation.

(d) Should the terms of the original lease agreement be changed by the division, the lessee shall have the option to renew the lease.

(i) A lessee may hold a lease on a subject division property for a maximum period of ten years through the exercising of an option to renew; except the division may put the lease out to competitive proposal solicitation at the conclusion of the fifth year;

(ii) The lessee having the lease for the preceding ten years on a subject division property is entitled to submit a competitive proposal on the same division property if the lessee has not been disqualified from consideration as a lessee on division lands.

(e) The division reserves the right to issue leases without options to renew, or with options to renew for a shorter aggregate term.

(11) No improvement, including the building of fences, corrals, and water structures used to impound, divert, or convey water claimed solely under a division water right; or management practice, including prescribed burning, seeding, chaining, harrowing, irrigation, etc.; shall be constructed or conducted on division lands without the express written consent of the division.

(12) All improvements, including fences, corrals, water structures, etc., constructed on division property by lessee and which are affixed to the property shall be property of the division.

(a) Lessee shall not be compensated for such improvements unless previously agreed upon in writing between the division and the lessee.

(13) All lessees are prohibited from filing an application to appropriate water on division lands unless the application is approved by the division in writing and is filed in the name of the State of Utah, Utah Division of Wildlife Resources.