R850-90. Land Exchanges, R850. School and Institutional Trust Lands, Administration, Utah Administrative Code

Utah Administrative Code (Current through November 1, 2019)

R850. School and Institutional Trust Lands, Administration

R850-90-100. Authorities

Latest version.

This rule implements Sections 6, 8, 10, and 12 of the Utah Enabling Act, Articles X and XX of the Utah Constitution, and Sections 53C-1-302(1)(a)(ii) and 53C-4-101(1) which authorize the Director of the School and Institutional Trust Lands Administration to specify application procedures and review criteria for the exchange of trust lands.

R850-90-150. Planning

Latest version.

Pursuant to Section 53C-2-201(1)(a), the Trust Lands Administration shall also undertake to complete the following planning obligations, in addition to the rule-based analysis and approval processes that are prescribed by this rule:

1. To the extent required by the Memorandum of Understanding between the State Planning Coordinator and the School and Institutional Trust Lands Administration, submit the proposal for review by the Resource Development Coordinating Committee (RDCC);

2. Evaluation of and response to comments received through the RDCC process; and

3. Evaluation of and response to any comments received through the solicitation process conducted pursuant to R850-90-400(1).

R850-90-200. Exchange Criteria

Latest version.

The agency may exchange trust land for land and other assets which the director finds suitable and of equal or greater value and utility.

1. Exchanges must clearly be in the best interest of the appropriate trust as documented in a director's finding. The finding shall address:

(a) the appraised value of affected lands and other assets and the amount of cash involved;

(b) the likelihood that the acquired land and other assets will provide income in excess of that being generated from existing trust land;

(d) potential management and administrative costs and opportunities.

2. The finding shall verify that the exchange will not result in an unmanageable and/or uneconomical parcel of trust land, nor eliminate access to a remnant holding, without appropriate remuneration or compensation.

3. The percentage of cash which may be included in an exchange shall not exceed 25% of the value of the trust land involved unless the director has determined that a higher percentage is in the best interests of the trust beneficiary.

R850-90-300. Application Requirements

Latest version.

This section does not apply to exchange proposals initiated by the agency.

1. Preapplication review: In order to avoid unnecessary expenses, persons requesting an exchange shall be afforded the opportunity to discuss the concept of the exchange with the agency prior to submitting a formal application.

2. A completed application form must be received pursuant to R850-3.

R850-90-400. Competitive Offering

Latest version.

1. Upon receipt of an exchange application, the agency shall solicit competing exchange proposals, lease applications and sale applications. Competing applications will be solicited through publication at least once a week for three consecutive weeks in one or more newspapers of general circulation in the county in which the trust land is located. At least 30 days prior to consummation of an exchange, sale or lease, certified notification will be sent to permittees of record, adjoining permittees/lessees and adjoining landowners. Notices will also be posted in the local governmental administrative building or courthouse. Lease applications shall be processed in accordance with R850-30-500(2). Sale applications shall be reviewed pursuant to R850-80-500.

2. In addition to the advertising requirements of R850-90-400(1), the agency may advertise for competing applications for exchange, lease, or sale to the extent which the director has determined may reasonably increase the potential for additional competing applications.

3. The agency shall allow all applicants at least 20 days from the date of mailing of notice, as evidenced by the certified mail posting receipt (Postal Service form 3800), within which to submit a sealed bid containing their proposal for the subject parcel. Competing bids will be evaluated using the criteria found in R850-30-500(2)(g), R850-80-500, and R850-90-200.

R850-90-500. Determination for the Exchange of Trust Lands

Latest version.

1. The agency shall choose the successful applicant by conducting a market analysis pursuant to R850-80-500(2) on each option for which an application has been received. The determination as to which application will be approved shall be based on R850-80-500(3) and R850-90-200(2).

2. The successful applicant shall be charged an amount equal to all appraisal and advertisement costs. All monies, except application fees, tendered by unsuccessful applicants will be refunded.

3. The director may approve the exchange when the criteria specified in R850-90-200 have been satisfied.

4. Applicants desiring reconsideration of agency action relative to exchange determinations may petition for review pursuant to agency rule.

R850-90-600. Land Exchange Appraisals

Latest version.

1. The agency shall contract for appraisals of properties proposed for exchange utilizing the deposit paid by the applicant. Appraisals to determine values of trust land shall be provided protected records status pursuant to Subsection 63G-2-305(7).

2. Appraisals for land exchanges with the federal government shall be, whenever possible, completed jointly and be subject to review and approval of both parties and to agreements undertaken pursuant to the Federal Land Exchange Facilitation Act, 43 U.S.C. 1716.

R850-90-700. Private Exchange Procedures

Latest version.

1. Political subdivisions of the state and agencies of the federal government shall be eligible for private exchange.

2. In order to determine that a private exchange is in the best interests of the trust beneficiaries, advertising to provide notice of this action shall be required pursuant to Section 53C-4-102(3). The cost of this advertising shall be negotiated.

3. All agency rules governing land exchanges shall apply to private exchanges except R850-90-400 and R850-90-500. R850-90-300(2), R850-90-500(2), and R850-90-900(4) may be waived when the agency is a co-applicant.

R850-90-800. Existing Improvements

Latest version.

Any exchange of trust land upon which authorized improvements have been made shall be subject to the reimbursement of the depreciated value of the improvements to the owner of the improvements by the person receiving the land in the exchange.

R850-90-900. Mineral Estates and Leases

Latest version.

1. Trust Lands Administration mineral interests may be exchanged in accordance with Section 53C-2-401(2).

2. Mineral estate exchanges must clearly be in the best interest of the applicable trust as documented by the agency's record. The record shall address those criteria listed in R850-90-200.

3. In exchanges with persons other than the federal government, all mineral estates are reserved to the Trust Lands Administration unless exceptional circumstances justify the exchange of the mineral estate.

4. Upon the exchange of Trust Lands Administration mineral estate, Trust Lands Administration mineral leases shall continue to be administered by the agency until the termination, relinquishment or expiration of the lease. Upon termination of the mineral lease the administration of the mineral estate transfers to the acquiring party.

5. Acquired mineral estates shall be managed in accordance with Sections 53C-2-407(3), 53C-2-412 and 53C-2-413.

R850-90-1000. Existing Rights on Acquired Lands

Latest version.

Valid existing rights on lands acquired from the federal government will be managed in accordance with Sections 53C-5-102(2) and 53C-4-301(2).

R850-90-1100. Existing Leases and Permits

Latest version.

Prior to completion of exchanges, Trust Lands Administration lessees and permittees shall be notified and leases and permits cancelled or amended in accordance with the terms of the lease or permit.