R850-26-200. Coal Leasing of Lands Acquired in Public Law 105-335 Exchange

1. Acquired lands shall mean lands acquired by the agency pursuant to the Utah Schools and Lands Exchange Act of 1998, Public Law 105-335, 112 Stat. 3139 (1998)(the "Exchange Act").

2. Leasing of coal interests in the acquired lands shall be governed by applicable provisions of state law, the Exchange Act, that certain Memorandum of Understanding Between the Utah School and Institutional Trust Lands Administration, the United States Department of Agriculture, and the United States Department of the Interior dated January 5, 1999, as amended from time to time, and by those certain provisions of R850-24 and R850-26 not in conflict with this section.

3. The director shall have broad discretion to determine terms, conditions and procedures for leasing coal interests in the acquired lands by competitive filing, including without limitation:

(a) the determination of rental rates;

(b) lease forms and lease stipulations for particular tracts;

(c) the amount of any required bid deposit;

(d) the minimum acceptable bid for particular tracts;

(e) terms of payment for bonus bids; and

(f) bidding procedures generally.

4. The director may, but is not obligated to, disclose the minimum acceptable bid in advance of offering the lease by competitive filing.

5. In the event that the high bid in any competitive bid filing does not meet the minimum acceptable bid previously determined by the director, the director may, but is not obligated to, negotiate with the high bidder to obtain a negotiated bid that, in the discretion of the director, represents fair market value. Alternatively, the director may re-offer the lands for competitive filing, hold an oral auction of the lands pursuant to Subsection 53C-2-407(4), or withdraw the lands from leasing.

6. Nothing in this rule shall prevent the agency from leasing or otherwise disposing of coal interests in the acquired lands pursuant to Subsection 53C-2-401(1)(d)(ii), subject to compliance with applicable law.