DAR File No. 39429

School and Institutional Trust Lands, Administration

Rule R850-50

Range Management

Notice of Proposed Rule

(Amendment)

DAR File No.: 39429
Filed: 06/04/2015 04:11:41 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule is being amended in an effort to clarify various aspects and bring it up-to-date with board policy.

Summary of the rule or change:

The proposed changes allow for: 1) the publishing of notice for expiring grazing permits; 2) clarifying of procedures for the reimbursement to permittees who lose the use of an approved range improvement; 3) prohibiting the extension of time for a grazing permit beyond 15 years; and 4) aligning the rule with existing board policy addressing grazing tenure of permits associated with land exchanges, which calls for two-term non-compete protections for grazing permits transferring from BLM to the agency.

State statutory or constitutional authorization for this rule:

• Section 53C-5-102
• Subsection 53C-1-302(1)(a)(ii)
• Subsection 53C-2-201(1)(a)

Anticipated cost or savings to:

the state budget:

There is a potential for the state to receive an increase in the amount of revenue generated by publishing notice of expiring permits and by not allowing extensions of permits beyond 15 years. The increase in revenue would be dependent upon the amount of competition for a permit and the offered bonus bid.

local governments:

Local government would be affected only if they were competing for a grazing permit, which would be very unlikely.

small businesses:

Small businesses could potentially be affected if they were competing for a grazing permit and there was competition for it. The financial impact would depend totally on the amount of competition and the small businesses' desires to be successful in obtaining the permit.

persons other than small businesses, businesses, or local governmental entities:

Persons other than small businesses, businesses, or local government entities could potentially be affected if they were competing for a grazing permit and there was competition for the permit. The financial impact would depend totally on the amount of competition and the persons' desires to be successful in obtaining the permit.

Compliance costs for affected persons:

Compliance costs for affected persons would be dependent upon whether or not a competing bid is submitted for a grazing permit and the amount offered as a bonus bid.

Comments by the department head on the fiscal impact the rule may have on businesses:

This rule change implements minor notification practices which comport with the agency's duty to receive fair-market-value for use of trust resources. Consequently, it may require incumbent permittees to expend additional funds if they choose to meet a competing bid.

Kevin S. Carter, Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

School and Institutional Trust Lands
AdministrationRoom 500
675 E 500 S
SALT LAKE CITY, UT 84102-2818

Direct questions regarding this rule to:

• Kim Christy at the above address, by phone at 801-538-5183, by FAX at 801-355-0922, or by Internet E-mail at [email protected]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

07/31/2015

This rule may become effective on:

08/07/2015

Authorized by:

Kevin Carter, Director

R850. School and Institutional Trust Lands, Administration.

R850-50. Range Management.

R850-50-400. Permit Approval Process.

Applications shall be accepted on lands available for permitting under R850-50-300 or upon termination of an existing permit as follows:

1. On trust lands that are open and unpermitted and which are available for grazing,[ but are not subject to an existing permit,] applications may be solicited through advertising or any other method the agency determines is appropriate, including notification of adjacent landowners and other permittees in an allotment.

2. On trust lands subject to an expiring grazing permit, competing applications shall be accepted from April 1 to April 30, or the next working day if either of these days is a weekend or holiday, of the year in which the permit terminates.

(a). All expiring grazing permits shall be posted on the agency's website by January 1 of the year in which the permit expires. The website notice shall include any reimbursable investment made by the existing permittee on a range improvement. Notice that expiring grazing permits may be found on the agency's website may also be published.

(b). Grazing permits issued on trust lands acquired through an exchange with the federal government (after the expiration of the federal permit) shall not be subject to the provisions of this rule for two successive 15-year terms unless the permit has been sold or otherwise terminated.

3. [If no competing applications are received, the]The person holding [the]an expiring grazing permit shall have the right to renew the permit , provided that no competing applications are received, by submitting a completed application along with the first year's rent and other applicable fees.

4. Persons desiring to submit a competing application [shall]must do so on forms acceptable to the agency. Forms [may be acquired]are available at the offices listed in R850-6-200(2)(b) or from the agency's website. Applications shall include [payment in the amount of the]a non-refundable application fee, [and the]a one-time bonus bid, and an amount determined by the agency pursuant to R850-50-1100(7), which will be required to reimburse the holder of an authorized range improvement project should the competing application be accepted. Bonus bids and range improvement reimbursements[. Bids] shall be refunded to unsuccessful applicants. Upon establishment of the yearly rental rate, the successful applicant shall be required to submit the first year's rental and other required fees.

5. Applications shall be evaluated by the agency and [shall]may be accepted only if the agency determines that the applicant's grazing activity [shall]will not create unmanageable problems of trespass, range and resource management, or access.

(a) For purposes of this evaluation , adjoining permittees and lessees, adjoining property owners, [or]and adjoining federal permittees [shall]may be considered acceptable as competing applicants unless specific problems are clearly demonstrated.

(b) Applicants not meeting the requirements in (a) above, whose uses would not unreasonably conflict with the uses of other permittees [of trust lands ]in the area, [shall]may nevertheless be accepted if the size of the grazing area, the access to the grazing area, and other factors demonstrate that the applicant is able to utilize the area without adverse impact on the range resources, adjoining lands, or beneficiaries of affected trust lands.

(c) For purposes of evaluating an applicant's acceptability for a grazing permit, the agency may consider the applicant's ability to maintain any water rights appurtenant to the lands described in the application.

6. [An existing permittee]The holder of a permit which is expiring, on which a competing application has been received, shall have a preference right to permit the property provided he agrees to pay an amount equal to the highest bonus bid submitted by a competing [application]applicant.

(a) In the event that the existing permittee fails to match the highest bonus bid, the permittee may be refunded the value of the amount the permittee contributed to the cost of any approved range improvement project at the expense of the successful bonus bid applicant.

(b) In the event that all, or a portion of, the property on which a bonus bid was submitted is sold, exchanged, or otherwise made unavailable, the permittee shall receive the refund of a prorated amount of the bonus bid based on the AUMs lost to the use of the permittee.

 

R850-50-500. AUM Assessments and Annual Adjustments.

1.  An annual assessment shall be charged for each AUM used by livestock on trust lands. This assessment shall be established by the board and shall be reviewed annually and adjusted if appropriate.

2. Grazing fees for lands designated as "'High Value Grazing Lands" will be assessed at a higher rate than trust lands not so designated. High Value Grazing Lands are typically, but not necessarily, contained in a named land block. Blocked or scattered lands may be designated as High Value Grazing Land through a Director's Finding.

3. In the event that the agency acquires High Value Grazing Lands through an exchange with the federal government, the application of the agency's grazing fees to the holders of grazing privileges on the acquired land shall be phased in over a five-year period in equal increments after the term of the federal permit has expired.

4. The application of the agency's grazing fees on lands acquired through an exchange with the federal government, and not designated as High Value Grazing Lands, shall be phased-in over a three-year period in equal increments after the term of the federal permit has expired.

 

R850-50-600. Grazing Permit Terms.

[No grazing]Grazing permits shall be issued for a [period of time exceeding]maximum of 15 years. [The agency may at its discretion, however, extend the period of time beyond 15 years if it determines that substantial range improvements approved pursuant to R850-50-1100 warrant such an extension. ]Every grazing permit [executed]issued under these rules shall include the following terms and conditions:

1. Terms, conditions, and provisions that shall protect the interests of the trust beneficiaries with reference to securing the payment to the agency of all amounts owed.

2. Terms, conditions, and provisions that shall protect the range resources from improper and unauthorized grazing uses.

3. Other terms, conditions, and provisions that may be deemed necessary by the agency or board in effecting the purpose of these rules and not inconsistent with any of its provisions.

4. The agency may cancel or suspend grazing permits, in whole or in part, after 30 days notice by certified mail to the permittee for a violation of the terms of the permit, or of these rules, or upon the issuance of a lease or permit, the purpose of which the agency has determined to be a higher and better use, or disposal of the trust land. Failure to pay the required rental within the time prescribed shall automatically work a forfeiture and cancellation of the permits and all rights thereunder.

5. Locked gates on trust land without written approval are prohibited. If such approval is granted, keys shall be supplied to the agency and other appropriate parties requiring access to the area as approved by the agency, including those with fire and regulatory responsibilities.

6. Supplemental livestock feeding on trust grazing lease lands may be permitted subject to written authorization by the agency with the designation of a specific area, length of time, number and class of livestock, and subject to a determination that this shall not inflict long term damage upon the land. The agency may assess an additional fee for authorized supplemental feeding. Emergency supplemental feeding shall be allowed for ten days prior to notification.

 

R850-50-1100. Range Improvement Projects.

1. Range Improvement Projects shall be submitted for approval on appropriate application forms. Range Improvement Projects shall be approved or denied by the agency based on a written finding.

2. All range improvement activity [shall]must be approved by the agency in writing before construction begins. Line cabins and similar structures [shall]will not be authorized as range improvement projects.  They may, however,[and shall] be authorized by a special use lease pursuant to R850-30.

3. Agency authorization for range improvement projects shall be valid for periods of time not to exceed two years from the date the applicant is notified of the authorization. Extensions of time may be granted only in extraordinary circumstances.

4. Range improvements constructed or placed upon trust land without prior approval shall become the property of the agency.

5. Range improvements shall not be authorized if they would be:

(a) located on a parcel that the agency has determined has potential for sale, lease or exchange and the possibility exists that improvements may encumber these actions.

(b) located on a parcel designated for disposal.

(c) a project or structure that does not fill a critical need or enhance the value of the resource.

6. Range improvements which are necessary to rehabilitate lands whose forage production has been diminished by poor grazing practices or poor stewardship of the permittee shall not be considered a reimbursable improvement but rather a requirement to keep the grazing permit in effect.

7. Authorized Range Improvement Projects shall be depreciated using schedules consistent with typical schedules published by the USDA [Soil]Natural Resources Conservation Service or any other depreciation schedules approved by the board. In the event [of disposal of the]that the property[, the issuance of a permit to a competing applicant, or withdrawal of the property,]on which an approved range improvement project is located is sold, exchanged, or withdrawn from use, the permittee shall receive no more than the amount the permittee contributed towards the original cost of the range improvement project, minus the indicated depreciation [costs]amount; or in the alternative, shall be allowed 90 days to remove improvements pursuant to section 53C-4-202(6).

8. If the range improvement project is designed to increase carrying capacity, the permittee shall agree to pay for the increase in AUMs annually starting no later than two years after project completion. The agency may allow any increase in fees to be phased-in at 20% per year.

9. The agency may participate in cost-sharing of designated range improvement projects, or maintenance of existing range improvement projects, by providing funding in amounts and at rates determined by the agency.

10. The agency's cost/share portion of the project may be in the form of project materials. In these instances, the permittee shall be required to provide all necessary equipment and manpower to complete the project to specifications required by the agency.

 

KEY: administrative procedures, range management

Date of Enactment or Last Substantive Amendment: [June 7, 2010]August 7, 2015

Notice of Continuation: June 27, 2012

Authorizing, and Implemented or Interpreted Law: 53C-1-302(1)(a)(ii); 53C-2-201(1)(a); 53C-5-102