1. (1) Assignments.

   1. (a) A lessee may only assign a lease if the director consents to the assignment. Any assignment made without such approval is voidable in the director's discretion.
   2. (b) On the effective date of the assignment, the assignee is bound by the terms of the lease to the same extent as if the assignee were the original lessee, any conditions in the assignment to the contrary notwithstanding.
   3. (c) An assignee must provide the director with a copy of the assignment document, which must be a sufficient legal instrument, properly executed, with the lease number, the land involved, the name and address of the assignee, and the interest transferred clearly indicated.

   4. (d) As a condition of the approval of an assignment, the director shall require:

      1. (i) the assignee to accept the most current applicable lease form unless continuation of the existing form is clearly in the best interests of the trust beneficiaries; and
      2. (ii) the assignee be satisfactory to the director.

2. (2) Subleases.

   1. (a) A lessee may only sublease a lease if the director consents to the sublease. A sublease made without such approval is voidable in the director's discretion.
   2. (b) The lessee must indemnify the agency for actions or inactions of the sublessee and the director may look to either the lessee or the sublessee for compliance with the lease.
   3. (c) A lessee must provide the agency with a copy of the sublease document, which must be a sufficient legal instrument, properly executed, with the lease number, the land involved, the name and address of the sublessee, the interest subleased, and the financial benefit to lessee clearly indicated.
   4. (d) The director may require lessee and sublessee to provide annual financial documentation that clearly identifies the revenue generated on the property by sublessee and the revenue paid by sublessee to lessee.
   5. (e) The director may charge the lessee sublease rates based on the then current market rental value of the subject property, the revenue paid by sublessee to lessee, and other factors as the director deems reasonable.
   6. (f) Rather than approve the sublease, the director may require that the proposed sublessee enter into a new lease with agency for the subleased portion of the subject property.
3. (3) The Utah Department of Natural Resources may not assign or sublease a lease of an Eligible Property made pursuant to Section R850-30-700.

KEY: administrative procedures, leases, trust land management, request for proposals

Date of Last Change: September 15, 2025

Notice of Continuation: May 26, 2022

Authorizing, and Implemented or Interpreted Law: 53C-1-302(1)(a); 53C-4-101(1); 53C-4-104; 53C-4-202