Wyo. Code R. 060-0002-5
Land Commissioners, Board of
Chapter 5: Special Use Leasing
Effective Date: 04/28/1993 to 02/06/1998
Rule Type: Superceded Rules & Regulations
Reference Number: 060.0002.5.04281993
Date Filed 04/28/93 Expr Date Supr Date Repeal Date Document Type RULES
BOARD OF LAND COMMISSIONERS
Section 1. Authority. This chapter is promulgated under the authority of W.S. 36-2-107.
Section 2. Definitions. As used in this chapter:
Section 3. Lease Purposes. The Board may lease suitable state land for special uses under the provisions of this chapter.
Section 4. Existing Lease Impairment. The leased premises of a special use lease may coincide with the leased premises of an existing surface lease. Prior to issuing a special use lease, the Board shall determine whether or not the proposed special use lease would result in substantive impairment of an existing surface lease.
(a) Lessee consultation and consent. If the applicant obtains written consent from the existing lessee(s) to the issuance of a special use lease, the special use lease shall be deemed to not result in substantive impairment of the existing lessee(s). Such consent shall also specify the division of mutually held lease rights, if any, as to the common surface area of the leases.
(b) Board determination. If the applicant is unable to obtain written consent from the existing lessee(s) to the issuance of the special use lease, the Board shall determine whether the issuance of the proposed special use lease will substantively impair the existing lessee(s). The office shall notify the existing lessee(s) at least 20 days before the proposed special use lease is to be considered by the Board.
Section 5. Term of Leases. Leases for special uses may be for any term, up to twenty-five years, in the discretion
(a) Forms. All applications to lease lands for special uses shall be made on forms furnished by the office. Application forms must be completed in full. Any false or incomplete statement willfully made that materially affects the application will be considered as fraud, deceit, or misrepresentation and shall be cause for the rejection of the application.
(b) Signature. If an application is signed by a party other than the applicant, the legal instrument authorizing such signature, i.e., power of attorney, letters of administration, letters testamentary, final decree of distribution, etc., together with the required filing fee must accompany the application.
(c) Filing periods.
(i) For land under an expiring lease, applications shall be accepted for a period of 90 days prior to the expiration of the lease. If the expiration date falls on Saturday, Sunday or legal holiday, applications shall be accepted on the following workday. At least 90 days prior to the expiration of a lease, the office shall mail a lease application form to the lessee or his authorized agent.
(ii) Specific filing periods for particular tracts of vacant land may be established by advertisement. Otherwise applications to lease vacant land shall be accepted at any time. Applications received during an advertised filing period shall be considered 'conflicting applications' under the provisions of subsection (d) of this section. All other applications shall be considered on an as filed basis.
(d) Conflicting applications. If two or more applications to lease the same land for incompatible purposes are filed within the filing periods established in subsection (c) of this section, they shall be considered to be in conflict and shall be handled under the provisions of W.S. 36-3-102 and Chapter I of these rules.
(a) The annual rental for special use leases shall be:
(i) The amount bid by the applicant, if accepted by the Board, or
(ii) As set by the Board as part of its decision in a case of conflicting applications.
However, in no event shall the rental be less than the minimum rate as established in subsection (b).
(b) The minimum annual rental shall be 5½% of the appraised value of the land and any improvements owned by the state, or $100, whichever is greater, except that the Board may set the minimum annual rental at between 2% and 5½% of the appraised value of the land and any improvements owned by the state, if:
(i) The market rate for rental of similar leases is less than 5½% of the appraised value of the land and improvements, and
(ii) The Board determines that issuing the lease at this rate would be in the best interest of the state land trust.
(c) All rental rates are subject to review and adjustment as specified in the special use lease.
(d) Annual rentals are due and payable 90 days before the anniversary date of the lease. Annual rental payments are considered in default after 30 days from the due date. When a default occurs, certified notice shall be mailed to the lessee or his authorized agent. If the annual rental is not received in the office on or before the last day of the current lease year, the lease shall terminate automatically by operation of law.
(a) A special use lease may not be assigned without prior approval of the Board. Lessees or their assignees shall request Board approval of proposed assignments, pursuant to W.S. 36-5-116, on a form provided by the office.
(b) If a request for Board approval of an assignment is signed by a party other than the lessee, the legal instrument authorizing such signature must accompany the request.
Section 9. Board Approval of Subleases. The leased premises under a special use lease may not be subleased in any manner or made subject to any contract or other agreement of any kind, without prior approval of the Board. Such approval may be conditioned upon payment of additional rental to the Board. Lessees shall request Board approval of proposed subleases, pursuant to W.S. 36-5-116, by submitting a copy of the proposed sublease agreement to the office.
Section 10. Security Interests in Leases. Whenever a security interest in a leasehold is created or released, the secured party shall notify the office on a form provided by the office.
(a) Lessees shall request Board permission to construct or make improvements in excess of $750 in value on the leased premises by submitting to the office a completed application form furnished by the office. Lessees need not obtain Board permission for improvements that have been approved by the Board concurrently with the granting of a special use lease.
(b) In the event that the Board must determine the value of improvements, pursuant to W.S. 36-5-111, the new lessee and the owner of the improvements shall each appoint an appraiser, and the two so appointed shall appoint a third appraiser and the three appraisers shall proceed to fix the value of the improvement.
Section 12. Cancellation. The office shall investigate any allegation of fraud, deceit, or misrepresentation in the procurement of leases and shall monitor all leases for violations of lease covenants. When grounds for cancellation exist, the Director shall request that the Board cancel leases under the procedure at Chapter I, Section 9, of these rules.
(a) Third parties desiring to enter upon the leased premises shall contact the lessee prior to entry, unless otherwise provided in subsection (c) of this section.
(b) For all entries by third parties, the lessee may negotiate a payment for damage to the surface of the leased premises. Payments shall be made payable to the office and the lessee jointly. The lessee shall endorse the check or money order and forward it to the office. After approval by the Board, the office shall pay to the lessee fifty percent (50%) of the payment, less any portion of the payment attributable to the cutting, destruction or removal of any timber.
(c) The following shall not be considered third parties subject to the requirements of this section:
(i) The Board and its representatives when entering for purposes of management or administration of state lands.
(ii) Members of the public when entering for purposes of hunting and fishing and casual recreational use pursuant to the privilege extended by the Board under the provisions of Chapter XIII of these rules.
Section 14. Special Use Lease Form. The attached general form shall be used in the leasing of land for special uses.