DAR File No. 39960
This rule was published in the December 15, 2015, issue (Vol. 2015, No. 24) of the Utah State Bulletin.
School and Institutional Trust Lands, Administration
Notice of Proposed Rule
DAR File No.: 39960
Filed: 11/25/2015 11:25:16 AM
Purpose of the rule or reason for the change:
The changes to this rule will provide the agency with the tools to better administer the grazing program.
Summary of the rule or change:
Changes to this rule address: 1) establishing a fee of $10 per animal unit month (AUM) when grazing permits are assigned; 2) amendments to give the agency the tools needed to better manage grazing on trust lands and to deal with permittees found in violation of the rules; and 3) make minor cosmetic changes in order to better conform to standards outlined in the Rulewriting Manual for Utah (12th Edition), published by the Division of Administrative Rules.
State statutory or constitutional authorization for this rule:
- Subsection 53C-1-302(1)(a)(ii)
- Subsection 53C-2-201(1)(a)
- Section 53C-5-102
Anticipated cost or savings to:
the state budget:
There are no anticipated additional costs or savings to the state budget as a result of these changes. The agency will receive an increase in revenue as a result of setting the $10 per AUM fee when grazing permits are assigned, but cost to the agency for administering the program will remain the same. The only state entity which holds grazing permits is the Division of Wildlife Resources (DWR) and they don't assign their permits so the $10 per AUM fee will not affect them.
Local government entities do not hold any grazing permits, so there would not be any cost or savings to them.
No grazing permits are held by small businesses so there are no anticipated costs or savings to them.
persons other than small businesses, businesses, or local governmental entities:
There will be an increase in costs to persons other than small businesses, businesses, or local government entities, if they choose to assign their grazing permit to another entity. In the past, there was a set $30 fee to assign a permit; where with this rule change, a permittee will pay $10 per AUM to assign the permit. The additional cost to the permittee will depend on the number of AUMs they assign.
Compliance costs for affected persons:
The cost for affected persons to comply with these rule changes will vary depending on the number of AUMs they assign. If they are assigning 100 AUMs at $10 per AUM, the cost would be $1,000.
Comments by the department head on the fiscal impact the rule may have on businesses:
This rule will have a business impact on the livestock industry. Because of this impact, administration staff worked with the industry over the course of the year to find ways to implement the rule in a way that would cause the least harm. Ultimately, the rule allows the administration to capture market value for the sale of trust resources, consistent with its constitutional and statutory mandates.
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
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@example.com
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:
This rule may become effective on:
Kevin Carter, Director
R850. School and Institutional Trust Lands, Administration.
R850-50. Range Management.
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-5-102 which
authorize the Director of the School and Institutional Trust Lands
Administration to establish rules prescribing standards and
conditions for the utilization of forage and related [
development] of range resources on trust lands.
1. Pursuant to Section 53C-2-201(1)(a),
the issuance of grazing permits [
within this category of activity ]carries no
planning obligations by the agency beyond existing rule-based
analysis and approval processes.
2. Range improvement projects authorized pursuant to this section carry the following planning obligations beyond existing rule-based analysis and approval processes:
To] the extent required by the Memorandum of Understanding [ between] the State Planning Coordinator [ and the School and Institutional Trust Lands
submit the proposal for review by the
Resource Development Coordinating Committee (RDCC); and
Evaluation of] and [ response] to comments received through the RDCC process.
3. Applications for modified grazing permits which do not involve surface disturbing activities are governed by paragraph 1, above. Applications for modified grazing permits which involve surface disturbing activities are subject to the planning obligations set forth in paragraph 2, above.
R850-50-200. Grazing Management.
Management of trust lands
for grazing purposes is based upon [
grazing] capacity which permits optimum forage utilization
and seeks to maintain or improve range conditions.
Grazing] capacity shall be established after consideration
of historical stocking rates, forage utilization, range condition,
and climatic conditions.
Unless land has been withdrawn from grazing or has been
determined to be unsuitable for grazing,] applications [ shall] be accepted [ for grazing rights upon] all trust lands not otherwise subject to a grazing permit
School and institutional trust] lands may be [ declared] unsuitable for grazing if it is determined that
range conditions [
are] incapable of supporting economic grazing practices
or if ]grazing would substantially interfere with
another [ trust land ]use that is better able to provide for
the support of the beneficiaries[ .]
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, 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.
.] All expiring
grazing permits shall be posted on the
agency's website by January 1 of the year in which the permit
. 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.
.] 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.
The] person holding 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 must do so on forms acceptable to the agency. Forms are
available at the offices listed in R850-6-200(2)(b) or from the
agency's website. Applications [
a non-refundable application fee[
a one-time bonus bid[
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 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 may be
accepted only if the agency determines that the applicant's
grazing activity 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, and
adjoining federal permittees may be considered acceptable as
competing applicants unless specific problems are [
(b) Applicants not meeting the requirements in (a) above, whose uses would not unreasonably conflict with the uses of other permittees in the area, 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]. 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
(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.
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
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.
Grazing permits shall be issued for a maximum of 15 years
. Every grazing permit 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
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
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
Trust land on which a grazing permit has
been cancelled and which is ineligible for reinstatement pursuant
to R850-5-500(1)(c) may be advertised as available pursuant to
R850-50-400(2). If [
the advertisement does not bring forth any competing
applications, or if ]the agency does not advertise the
property, the person previously holding the permit may apply for a
new permit by submitting an application and all applicable fees[ including a fee equal to the reinstatement
R850-50-800. Grazing Permits--Legal Effect.
Grazing permits transfer no ] right, title, or interest
in any lands or resources[ held by the agency], nor any exclusive right of
possession and grant only the authorized utilization of forage.
R850-50-900. Non-Use Provisions.
The granting of non-use [
for trust lands ]shall be at the discretion of the
agency.[ The following criteria shall apply to all non-use
1]. [ The permittee shall submit an application] for non-use
in advance or, if the trust land is within
a federal grazing allotment, as soon as notification of non-use is
received from the applicable federal agency.
The request ] [ shall ]be accompanied by the [ applicable ]application fee and by any [ appropriate ]documentation which is the basis for
the request. In the event [ of ] approved
[ grazing non-use, fees ] [ shall not be waived or refunded but ]shall be
applied to the
2]. Non-use shall not be approved for periods of time
exceeding one year
3. Non-use may be approved in times of emergency
4]. Non-use for personal convenience with no payment of [ fees ] shall not be approved.
R850-50-1000. Assignment and Subleasing of Grazing Permits.
1. Permittee shall not assign, [
partially assign,] sublease,
[ mortgage, pledge, ]or otherwise transfer, dispose
, or encumber any interest in [ the ] permit without the written consent of the agency. To do so
shall automatically, and without notice, work the forfeiture and
cancellation of the permit.
2.] 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.[ The approval of any sublease shall be subject to the
(a)] [ Consent for subleasing shall only be given if the sublease
is compatible with the best interests of the beneficiaries and
long-term management of the land and will not unreasonably conflict
with the interests of other permittees in the area.]
(b) Subleases in-lieu of a collateral assignment shall not
No sublease shall be effective ] [ for more than ]five years.
An additional fee based upon either the fair market value
of the permit or a flat fee per AUM may be charged for the approval
of any assignment or partial assignment.]
Mortgage agreements or collateral assignments are
for the convenience of the
term of a ]mortgage agreement or collateral
not exceed the remaining term of the permit[
If the grazing permit is renewed, the permittee may also
renew the mortgage agreement or collateral assignment of the permit
pursuant to these rules.]
R850-50-1100. Range Improvement Projects.
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
All] range improvement [ activity ] must be approved by the agency in writing before
construction begins. Line cabins and similar structures will not be
authorized as range improvement projects. They may, however, 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
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 Natural Resources
Conservation Service or any other depreciation schedules approved
by the board[
In the event that 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 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
R850-50-1200. Additional Leases.
If the agency determines that there is unused forage available on a parcel of trust land resulting from temporary conditions, it may issue an additional permit or permits. These permit(s) shall be issued in accordance to R850-50-400. Existing permittees shall have a first right of refusal to unused forage.
R850-50-1300. Rights Reserved to the Agency.
In all grazing permits the agency shall expressly reserve the right to:
special use leases, timber sales, materials
permits, easements, rights-of-entry
and any other interest in the trust land[
2. issue permits for the harvesting of
seed from plants on the trust land. If loss of use occurs from
harvesting activities, a credit for the amount of loss shall be
made to the following year's assessment[
3. enter upon and inspect the trust land
or to allow scientific studies upon trust land at any reasonable
4. allow the public the right to use the
trust land for purposes and periods of time permitted by policy and
rules. However, nothing in these rules purports to authorize
trespass on private land to reach trust land[
5. require that all water rights on trust
land be filed in the name of the [
trust ] and to require express written approval prior to the
conveyance of water off trust land[ .]
6. require a permittee, when an
agency-owned water right is associated with the grazing permit, to
ensure that the water right, to the extent allowed under the
permit, is maintained in compliance with state law[
7. close roads for the purpose of range or
road protection, or other administrative purposes[
8. dispose of the property without
compensation to the permittee, subject to R850-50-1100(7)[
9. terminate a grazing permit in order to facilitate higher and better uses of trust lands.
1. Unauthorized activities which occur on
trust land shall be considered trespass and damages shall be
assessed pursuant to 53C-2-301. These activities include[
, but are not limited to:]
The] use of forage at times and at places not authorized [ in] the permit[ .]
The placement of numbers of livestock on the trust land
which, if left on the trust land for the length of time allowed in
the permit, would result in] forage [ being used ]in excess of that authorized by the
Grazing] or trailing livestock on or across trust land
without a valid permit or right-of-entry[ .]
The] dumping of garbage or any other material on the trust
2. The permittee shall cooperate with the
agency in taking civil action against the owners of trespass
on trust lands ]to recover damages for lost forage
[ or] other [ values].
R850-50-1500. Trailing Livestock Across Trust Land.
1. The trailing of livestock across trust land by a person not holding a grazing permit may be authorized if no other reasonable means of access is available.
2. Written approval in the form of a right-of-entry shall be obtained in advance from the agency.
3. The authorization to trail livestock
across trust land shall restrict and limit the route, the number
and type of animals, and the time and duration,
to ]exceed two consecutive days
of the trailing.
R850-50-1600. Modified Grazing Permit.
1. At the discretion of the director, the
agency may issue modified grazing permits in instances where the
proposed use is grazing related but is more intensive than
livestock grazing alone and when improvements, if any, are
primarily temporary in nature. Such uses may include[
, but are not limited to, uses authorized under
R850-30-300(1)(d),] camps, corrals, feed yards, irrigated
livestock pastures, or other related uses.
2. Modified grazing permits may be approved pursuant to the
following process: (a) Applications for modified grazing permits shall be
submitted pursuant to R850-3. (b) Applications, if accepted, shall be accompanied with
an application fee equal to the application fee for special use
leases. (c) Applications shall be evaluated pursuant to R850-3-400
3]. Modified grazing permits shall be subject to the
following terms and conditions:
(a) The term of a modified grazing permit shall be no longer than 15 years and contain terms, conditions, and provisions the agency, in its discretion, deems necessary to protect the interest of the trust beneficiaries.
(b) A modified grazing permit is subject
to cancellation pursuant to R850-50-600[
Annual] rental for a modified grazing permit shall be
based on the fair market value of the permitted property. Fair
market value of the permitted property and annual rental rates
shall be determined by the agency pursuant to R850-30-400. Periodic
rental reviews may be completed pursuant to R850-30-400[ (4)].
(d) Upon cancellation of the modified
: i) ] the permittee shall be allowed 90 days to
remove [ approved temporary range improvements;][ and ii) at the discretion of the director, the agency may
reimburse the permittee for approved permanent range improvements
pursuant to R850-50-1100; or iii) the permittee shall be allowed 90 days to remove
approved permanent range improvements.]
(e) Prior to the issuance of a modified
grazing permit, or for good cause shown at any time during the term
of the modified grazing permit, the applicant or permittee[
, as the case may be,] may be required to post [ with the agency ]a bond
in the form and amount as may be determined
by the agency to assure compliance with all terms and conditions of
the permit. Any bond posted pursuant to this rule is subject to
R850-30-800(2) through (4).
KEY: administrative procedures, range management
Date of Enactment or Last Substantive Amendment: [
August 11, 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
More information about a Notice of Proposed Rule is available online.
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For questions regarding the content or application of this rule, please contact Kim Christy at the above address, by phone at 801-538-5183, by FAX at 801-355-0922, or by Internet E-mail at firstname.lastname@example.org. For questions about the rulemaking process, please contact the Division of Administrative Rules.