Applications for surface leases may be submitted to the Salt
Lake Office, or area offices during office hours.
2. Competitive Leasing
(a) The division may advertise a parcel of
land as open and available for lease.
i) The
advertising shall be done pursuant to R652-30-500(2)(d) and R652-30-500(2)(e),
as well as any additional advertising the director deems appropriate and shall
be considered as a substitute for the competitive advertising process described
in R652-30-500(2)(b).
ii)
Applications received in response to division advertising will be evaluated
pursuant to R652-30-500(2)(g).
(b) Upon receipt of any special use lease
application, the division shall solicit competing lease applications except as
provided for under R652-30-500(3). If the subject parcel meets the established
criteria for sale then applications to purchase shall also be
solicited.
(c) The applicant may
request an exemption from R652-30-500(2)(b) by petitioning the director to
provide for rules exempting that particular class of applications from the
competitive process. Pursuant to this rule, the following classes of leases are
exempt from the requirements of R652-30-500(2):
i) Communication sites within division
approved Communication Site Locations.
ii) Mineral and oil and gas extraction
facilities when the division does not own the mineral estate.
(d) Competing applications will be
solicited through publication at least once a week for three consecutive weeks
in one or more newspapers of general circulation in the county in which the
lease is offered. At least 30 days prior to auction or acceptance of a bid,
certified notification will be sent to lessees/permittees of record, adjoining
permittees/lessees and adjoining landowners. Notices will also be posted in the
local governmental administrative building or courthouses.
(e) Notification and advertising shall
include a general description of the parcel including township, range, and
section, and any other information which may create interest in the parcel
without violating the confidentiality of the initial application. The
successful applicant shall bear the cost of the advertising.
(f) An applicant may claim that information
provided to the division on the initial application except for the legal
description and the lease type should be protected under Section
63G-2-305(1) or
63G-2-305(2).
The claimant shall submit a written request for protected records status
pursuant to
R652-6-500(3).
The appropriate information shall receive protected records status during the
solicitation period.
(g) 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 to
lease, purchase or exchange the subject parcel. Applicants not submitting a
proposal within the prescribed time period shall have their application(s)
rejected. The sealed bid proposal for a lease shall contain the first year's
rental. A sealed bid proposal for a sale shall contain 10% of the offer to
purchase. These deposits are refundable if the applicant is not successful or
if the applicant withdraws the application prior to the issuance of the record
of decision. Competing bids are evaluated using the following criteria:
i) Income potential,
ii) Ability of proposed use to enhance
adjacent state property,
iii)
Proposed timetable for development,
iv) Ability of applicant to perform
satisfactorily, and
v)
Desirability of proposed use.
(h) The director shall select the preferred
applicant based on R652-30-500(2)(g). If the preferred application is for a
lease, it shall proceed through the review process as outlined in
R652-30-500(5). If the preferred application is for an exchange, it shall be
reviewed pursuant to
R652-80-200.
(i) If a competing application received
pursuant to R652-30-500(2) qualifies as a unit development lease as defined in
R652-30-1100,
the division shall extend the sealed bid proposal deadline to 120
days.
3. Non-competitive
Leasing
Subsequent to completing public notification requirements of
Subsection
65A-7-5(4)(c)
and R361-1-4(E), the division may enter into surface leases through negotiation
rather than a competitive process. The proposed use shall be evaluated using
the criteria in R652-30-500(2)(g) with particular attention to its desirability
in the context of contributing to the sovereign land management objectives in
R652-2. This action shall be documented in a record of decision which shall be
subject to consistency review pursuant to R652-9.
4. Application Requirements
(a) All applications shall be received with
an application processing charge, a deposit to cover applicable advertising and
appraisal costs, and the lease processing charge as established by the division
which shall all be refunded if the subject parcel is withdrawn for planning
purposes. The director may waive any of these charges when the application is
to be processed non-competitively.
(b) The deposit to cover advertising,
appraisal costs and the lease processing charge shall be forfeited if the lease
is offered but not executed by the applicant.
5. Refunds and Withdrawals
(a) If an application for a surface lease 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 and any amounts expended on advertising or appraisals prior to
the receipt of the withdrawal request, 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.
6.
Application Review
(a) Upon receipt of an
application, the division shall review the application for completeness.
Applicants submitting incomplete applications shall be allowed 60 days to
provide the required data. Incomplete applications not remedied within the
60-day period may be denied, and the application fee forfeited to the
division.
(b) The lease must be
executed by the applicant and returned to the division within 60 days from the
date of applicant's receipt of the written lease. Leases not received within
the 60-day period shall be subject to immediate cancellation without further
notice.