R850-50-1000. Assignment and Subleasing of Grazing Permits

  1. Permittee shall not assign, or sublease, in whole or in part, or otherwise transfer, dispose of, or encumber any interest in a permit without the written consent of the agency. To do so shall automatically, and without notice, work the forfeiture and termination of the permit.

  2. The approval of a sublease shall be subject to the following restrictions:

  (a) An annual assessment equal to 50% of the difference between the base AUM assessment established under R850-50-500, and the AUM payment received by the permittee through the sublease, multiplied by the number of AUMs subleased, or a $1.00 per AUM minimum assessment, whichever is greater, shall be charged for the approval of any sublease.

  (b) Applications to sublease a grazing permit shall only be approved after a determination that the sub-lessee meets the requirements of R850-50-400(6).

  (c) Sublease approvals are valid for a maximum period of five years.

  3. The approval of an assignment shall be subject to the following restrictions:

  (a) A determination that the assignee meets the requirements of R850-50-400(6).

  (b) A payment, based on the number of AUMs transferred multiplied by $10.00, shall be paid to the agency prior to the approval of any assignment or partial assignment. Assignments made for no consideration in money, services, or goods, to include inter vivos or testamentary assignments made to immediate family members (parents, spouse, children, grandchildren, and full siblings) and assignments from and to business entities wholly owned by an immediate family member or members, may be exempt from this additional payment. In such cases, a minimum assignment fee as listed on the Master Fee Schedule shall be assessed.

  (c) For purposes of this rule, a shareholder or member of a grazing association or cooperative shall be deemed a permittee and subject to the requirements of R850-50-1000(3)(a). In order to facilitate the enforcement of this rule, each grazing association or cooperative shall submit a list of all members to the agency annually prior to June 30. This list shall include each member's contact information and the number of AUMs allowed.

  4. The agency's consent to allow a mortgage agreement or collateral assignment is for the convenience of the permittee.

  5. The mortgage agreement or collateral assignment shall:

  (a) not exceed the remaining term of the permit; and

  (b) contain an acknowledgment by the lender that the grazing permit is terminable pursuant to R850-50-600(2) and R850-50-1000(1) and that the agency assumes no liability in providing such consent.