DAR File No. 30794

School and Institutional Trust Lands, Administration

R850-70

Sales of Forest Products from Trust Lands Administration Lands

FIVE-YEAR NOTICE OF REVIEW AND STATEMENT OF CONTINUATION

DAR File No.: 30794
Filed: 12/04/2007, 10:21
Received by: NL

NOTICE OF REVIEW AND STATEMENT OF CONTINUATION

Concise explanation of the particular statutory provisions under which the rule is enacted and how these provisions authorize or require the rule:

Subsection 53C-1-302(1)(a)(ii) authorizes the director of the School and Institutional Trust Lands Administration to provide for the sale of forest products, desert products, and other vegetative material from Trust Lands Administration lands.

Summary of written comments received during and since the last five-year review of the rule from interested persons supporting or opposing the rule:

The Trust Lands Administration made substantial changes to this rule in May 2004, which resulted in comments and suggestions from the Utah Farm Bureau Federation. Their comments were directed at the following: 1) definition for sawlogs; 2) noncompetitive sales that could potentially result in unfair discrimination against qualified buyers; 3) the advertising process used for competitive sales and the limitations on oral auctions; 4) the size of the bond required; 5) the variables to be considered in granting an extension of time; and 6) the amounts of adjustment to be passed to the forest operators under long term agreements, based on changes in the lumber price index. These comments and recommendations were reviewed by the agency and a response was made to the Utah Farm Bureau Federation, in writing, addressing each of their concerns. The changes to this rule became effective on 07/02/2004.

Reasoned justification for continuation of the rule, including reasons why the agency disagrees with comments in opposition to the rule, if any:

The continuation of this rule allows the agency to continue to effectively manage the forest products on the trust lands. The comments and concerns expressed by the Utah Farm Bureau Federation were directed at giving timber operators every advantage possible under an agreement. However, the agency's obligation to make decisions that are in the best interests of the trust beneficiaries takes precedent over giving the operators an advantage for a higher profit and precluded incorporating many of their suggestions.

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
Administration
675 E 500 S
SALT LAKE CITY UT 84102-2818

Direct questions regarding this rule to:

Kim S. Christy at the above address, by phone at 801-538-5183, by FAX at 801-355-0922, or by Internet E-mail at kimchristy@utah.gov

Authorized by:

Kevin S. Carter, Director