Utah Administrative Code
The Utah Administrative Code is the body of all effective administrative rules as compiled and organized by the Division of Administrative Rules (see Subsection 63G-3-102(5); see also Sections 63G-3-701 and 702).
NOTE: For a list of rules that have been made effective since August 1, 2019, please see the codification segue page.
NOTE TO RULEFILING AGENCIES: Use the RTF version for submitting rule changes.
R652. Natural Resources; Forestry, Fire and State Lands.
Rule R652-100. Materials Permits.
As in effect on August 1, 2019
Table of Contents
- R652-100-100. Authority.
- R652-100-200. Materials Permits Issued on Sovereign Lands.
- R652-100-300. Rentals and Royalties.
- R652-100-400. Application Procedures.
- R652-100-500. Permit Execution.
- R652-100-600. Terms of Materials Permits.
- R652-100-700. Materials Permit Provisions.
- R652-100-800. Bonding Provisions.
- R652-100-900. Insurance Requirements.
- R652-100-1000. Plans of Operation.
- R652-100-1100. Existing Lease and Permit Conversion.
- R652-100-1200. Materials Permit Assignments.
- R652-100-1300. Reclamation Requirements.
- R652-100-1400. Over-the-Counter Sales.
- R652-100-1500. Termination of Materials Permit.
- R652-100-1600. Collection of Sales Tax.
- Date of Enactment or Last Substantive Amendment
- Notice of Continuation
- Authorizing, Implemented, or Interpreted Law
This rule implements Section 65A-7-1 which authorizes the Division of Forestry, Fire and State Lands to prescribe division objectives, standards and conditions for the issuance of materials permits and for conveyances for common varieties of sand, gravel, cinders, and similar materials on sovereign lands.
The division may issue materials permits or may convey profits a prendre or similar interests on all sovereign lands when the division deems it consistent with division land use plans.
The division may issue materials permits when the sale of such materials would be exempt from sales tax under Sections 59-12-104(2) or 59-12-104(28).
The division may issue profits a prendre in all other instances using the procedures and provisions outlined in Sections R652-100-400, R652-100-500, R652-100-600, R652-100-1000, R652-100-1200, R652-100-1300 and R652-100-1500. The conveyance of a profit a prendre or similar interest in these materials will contain provisions to substantially conform to those found in Sections R652-100-300, R652-100-700, R652-100-800, and R652-100-900.
(a) Rental rates shall be $10 per acre, or fractional part thereof, per annum.
(b) The minimum annual rental on material permits shall be determined periodically by the division.
2. Royalty Rates and Provisions
(a) The division shall charge full market value for all materials purchased under a materials permit. Market value shall be determined by the division through analysis of the local market.
(b) The division may annually establish minimum royalty rates for materials permits based on the type of material being removed.
(c) Royalty payments shall be remitted to the division on a quarterly basis and shall be accompanied by a division approved "Production and Settlement Transmittal Form".
1. Application Filing
Applications for materials permits may be submitted to any office of the division during office hours.
2. Non-refundable Application Fees
All applications must be accompanied by a non-refundable application fee.
(a) If an application for a materials permit is rejected, all monies tendered by the applicant, except the application fee, will be refunded.
(b) Should an applicant desire to withdraw the application, the applicant must make a written request. If the request is received prior to the time that the application is considered for formal action, all monies tendered by the applicant, except the application fee, will be refunded. If the request for withdrawal is received after the application is approved, all monies tendered are forfeited to the division, unless otherwise ordered by the division for a good cause shown.
3. Application Review
Upon receipt of an application, the division shall review the application for completeness. Applicants submitting incomplete applications shall be provided notice of deficiency by certified mail and shall be allowed 60 days to cure the deficiency. Incomplete applications not remedied within the 60-day period may be denied. The director may approve applications for materials permits pursuant to the criteria listed below. Action on applications not meeting the criteria listed below shall be deferred pending appropriate land use designation by the division. The director shall reject applications in those instances where the division declines to designate lands for that use.
(a) When land use designations or general management plans have been approved by the division and the application conforms with the designated use, or
(b) When the subject property has previously been included in a materials permit or sand and gravel mineral lease whether or not excavation occurred and whether or not reclamation work was done, or
(c) When expected royalty income exceeds the estimated fair market value of all sovereign land affected by the permit and the use of the subject property for materials extraction conforms to local planning and zoning ordinances.
4. Bid Solicitation Processes
(a) In the absence of any valid materials permit application, and pursuant to R652-100-400(3), the division may offer for simultaneous bid material permits when exposing the site to the market could reasonably be expected to produce materials sales. A notice of lands available for simultaneous filing for materials permits shall be made in a manner to reasonably solicit simultaneous bid applications. Notices of simultaneous filing shall contain the procedure by which the division shall award the permit.
(b) Upon receipt of any materials permit application the division shall solicit competing applications through publication at least once a week for two consecutive weeks in one or more newspapers of general circulation in the county in which the permit is offered. At least 30 days prior to bid opening, certified notification will be sent to permittees of record, adjacent permittees/lessees, and adjacent landowners. Notices will also be posted in the local governmental administrative building or the county courthouse. Notification and advertising shall include the legal description of the parcel and any other information which may create interest in the parcel. The successful applicant shall bear the cost of the advertising.
(c) The division 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 R652-30-500(2)(g) and R652-80-200.
(d) If no competing applications involving sale, lease or exchanges are received by the deadline published pursuant to R652-100-400(4)(b), then the division shall award the materials permit based on the following criteria:
i) amount of bonus bid.
ii) amount and rate of proposed materials extraction.
iii) other criteria and assurances of performances as the division shall require by permit or advertise prior to bidding.
The permit must be executed by the applicant and returned to the division within 60 days from the date of applicant's receipt of the permit. Failure to execute and return the documents to the division within the 60-day period may result in cancellation of the permit and the discharge of any obligation of the division arising from the approval of the application.
Materials permits issued under these rules shall normally be for no greater than a five year term. Longer or shorter terms may be granted upon application if the director determines that it would be in the best interest of the beneficiaries.
Each materials permit shall contain provisions necessary to ensure responsible surface management including, but not limited to, the following provisions: The rights of the permittee; rights reserved to the permitter; the term of the permit; payment obligations; transfers of permit interest by permittee; permittee's responsibility for reclamation; terms and conditions of permit forfeiture; and protection of the state from liability from all actions of the permittee.
1. Prior to the issuance of a materials permit, or for good cause shown at any time during the term of the materials permit, upon 30 days written notice, the applicant or permittee, as the case may be, may be required to post with the division a bond in the form and amount as may be determined by the division to assure compliance with all terms and conditions of the permit.
2. All bonds posted on materials permits may be used for payment of all monies, rentals, and royalties due to the division, also for costs of reclamation and for compliance with all other terms and conditions of the permit, and rules pertaining to the permit. The bond shall be in effect even if the permittee has conveyed all or part of the permit interest to a sublessee, assignee, or subsequent operator until such time as the permittee fully satisfies the permit obligations, or until the bond is replaced with a new bond posted by the sublessee or assignee.
3. Bonds may be increased in reasonable amounts, at any time as the division may decide, provided the division first gives permittee 30 days written notice stating the increase and the reason(s) for such increase.
4. Bonds may be accepted in any of the following forms at the discretion of the division:
(a) Surety bond with an approved corporate surety registered in Utah.
(b) Cash deposit. However, the state will not be responsible for any investment returns on cash deposits.
(c) Certificates of deposit in the name of "Utah Division of Forestry, Fire and State Lands and permittee, c/o permittee's address", with an approved state or federally insured banking institution registered in Utah. Such certificate of deposit must have a maturity date no greater than 12 months, be automatically renewable, and be deposited with the division, the permittee will be entitled to and receive the interest payments. All certificates of deposit must be endorsed by the permittee prior to acceptance by the director.
(d) Other forms of surety as may be acceptable to the division.
1. Prior to the issuance of a materials permit, the applicant may be required to obtain insurance of a type and in an amount acceptable to the division. Proof of insurance shall be in the form of a certificate of insurance containing sufficient information to satisfy the division that insurance provisions of the permit have been complied with.
2. Such insurance, if required, shall be placed with an insurer with a financial rating assigned by the Best Insurance Guide of A:X or higher, unless this requirement is waived in writing by the division.
3. The division shall retain the right to review the coverage, form, and amount of the insurance required at any time and to require permittee to obtain insurance sufficient in coverage, form, and amount to provide adequate protection upon 30 days written notice, proof of such insurance to be provided pursuant to R652-100-900(1).
1. Prior to the commencement of any activity authorized by a materials permit the permittee shall be required to submit, for the director's approval, a plan of operations which shall include the following:
(a) A map or plat showing
i) the location and sequence of areas from which material is to be excavated;
ii) the location of any processing or stationary equipment or improvements which will be placed on the premises;
iii) transportation and access routes across the premises and adjacent properties;
iv) the location of any fuel storage tanks; and,
v) the location of stockpile areas.
(b) Elevation drawings of the premises before and after the excavation of materials.
(c) Reclamation plans prepared by any governmental agency, or if not acceptable to the director, as required by the director.
Existing sand and gravel leases and materials permits issued prior to the effective date of these rules and in good standing on such date shall continue for the term specified therein and shall be subject to the conditions and provisions contained therein; provided, however, the division may allow such lessees/permittees to convert such existing leases or permits to the new permit.
1. A materials permit may be assigned to any person, firm, association, or corporation qualified under R652-3-200, provided that the assignments are approved by the division; and no assignment is effective until approval is given. Any assignment made without such approval is void.
2. An assignment shall take effect the day of the approval of the assignment. On the effective date of any assignment, the assignee is bound by the terms of the permit to the same extent as if such assignee were the original grantee, any conditions in the assignment to the contrary notwithstanding.
3. An assignment must be a sufficient legal instrument, properly executed and acknowledged, and should clearly set forth the easement number, and land involved, and the name and address of the assignee.
4. An assignment shall be executed according to division procedures.
Following the completion of excavations, the division shall require reclamation measures to stabilize and restore natural surface conditions. Reclamation measures will generally consist of, but not necessarily be limited to, sloping and stabilization of highwalls, contouring of slopes at a ratio not greater than three feet horizontal for each one foot vertical, stabilization of access roads or the closure of access roads as determined by the division, replacement of natural topsoils, revegetation using a seed mixture and rate of application as may be specified by the division, removal of all trash and debris, and the prompt removal of all equipment, buildings, and structures owned by the permittee or permittee's agents.
Materials permits may be issued on an "over-the-counter" basis in areas which have been designated by the director as open for such sales. The director may designate areas as open for such sales using any of the following criteria:
1. An existing pit which has not been fully reclaimed. Reclamation requirements for all or portions of existing pits may be waived by the director for the purpose of "over-the-counter" sales when the pit meets the remaining criteria.
2. Dry stream beds or similar sites where sand or gravel has accumulated, and the extraction of material will cause no degradation.
3. No sales shall be made in excess of a division-established maximum dollar amount. Sales made "over the counter" shall reflect market rates for similar sales.
Any materials permit issued by the division on sovereign land may be terminated in whole or in part for failure to comply with any term or condition of the permit or applicable laws or rules. Upon determination by the director that a materials permit is subject to termination pursuant to the terms of the permit or applicable laws or rules, the director shall issue an appropriate instrument terminating the permit.
The division shall require all permittees not exempt pursuant to Section 59-12-104 to remit sales taxes with the "Production and Settlement Transmittal Form" submitted pursuant to R652-100-300(2)(c).
administrative procedure, materials handling, permits
March 29, 2017
For questions regarding the content or application of rules under Title R652, please contact the promulgating agency (Natural Resources; Forestry, Fire and State Lands). A list of agencies with links to their homepages is available at http://www.utah.gov/government/agencylist.html or from http://www.rules.utah.gov/contact/agencycontacts.htm.