R652.  Natural Resources; Forestry, Fire and State Lands.
R652-80.  Land Exchanges.
R652-80-100.  Authority.
	This rule implements Section 65A-7-1 which authorizes the Division of Forestry, Fire and State Lands to specify application procedures and review criteria for the exchange of sovereign lands.

R652-80-200.  Exchange Criteria.
	1.  The division may exchange sovereign land for land or other assets.  The criteria by which an exchange proposal will be considered follows.
	(a)  Asset is herein defined as personal property, including cash, which has a readily determined market value.
	(b)  The percentage of cash which may be included in an exchange transaction shall not exceed 25% of the value.
	2.  Sovereign land exchanges must be in the best interest of the public trust as documented in a record of decision by the division.  The record of decision shall address:
	(a)  the value of the affected lands or other assets as determined by a certified general appraiser, county tax assessment records, market analysis conducted by the division, or other method approved by the director;
	(b)  an assessment of the degree to which the exchange of sovereign land for land or other assets to be acquired may enhance commerce, navigation, wildlife habitat, public recreation, or other public trust value;
	(c)  management costs and opportunities;
	(d)  the criterion that the exchange promotes the interest of the public without any substantial impairment of the public interest in the lands and waters remaining.
	3.  The record of decision shall verify that the exchange will not result in an unmanageable and uneconomical parcel of sovereign land, nor eliminate access to a remnant holding, without appropriate remuneration or compensation.

R652-80-300.  Application Requirements.
	This section does not apply to exchange proposals initiated by the division.
	1.  Preapplication review:  In order to avoid unnecessary expenses, persons requesting an exchange shall be afforded the opportunity to discuss the concept of the exchange with the division prior to submitting a formal application.
	2.  A completed application form must be received with an application processing charge, which shall be refunded if the subject parcel is withdrawn for planning purposes.  A deposit to cover applicable advertising and appraisal costs may also be required.
	3.  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 with the application fee forfeited to the state.

R652-80-400.  Competitive Offering.
	1.  Upon receipt of an exchange application, the division may solicit competing exchange proposals, lease applications and sale applications.  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 sovereign land is located.  At least 30 days prior to consummation of an exchange, sale or lease, certified notification will be sent to permittees of record, adjoining permittees/lessees and adjoining landowners.  Notices will be posted in the local governmental administrative building or courthouse, and published in a newspaper of general circulation in the county in which the land is located.  Lease applications shall be processed in accordance with R652-30-500(2).
	2.  In addition to the advertising requirements of R652-80-400(1), the division may advertise for competing applications for exchange, lease, or sale to the extent which the director has determined may reasonably increase the potential for additional competing applications.
	3.  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.
	4.  Competing proposals shall be evaluated using the criteria found in R652-30-500(2)(g) and R652-80-200.
	5.  The successful applicant shall be charged an amount equal to all appraisal and advertisement costs.  All monies, except application fees, tendered by unsuccessful applicants will be refunded.
	6.  Applicants desiring reconsideration of division action relative to exchange determinations may petition for review pursuant to division rule.

R652-80-500.  Existing Improvements.
	1.  Any exchange of sovereign land upon which authorized improvements have been made shall be subject to the reimbursement of the depreciated value of the improvements to the owner of the improvements by the person receiving the land in the exchange.  Unauthorized improvements shall not be subject to reimbursement.
	2.  The division may require an exchange applicant to remove, repair, or clean up improvements located on land to be acquired by the division, at the applicant's expense, prior to consummation of the exchange.

R652-80-600.  Mineral Estates and Leases.
	1.  State mineral interests may be exchanged in accordance with Section 65A-6-1(2).
	2.  Mineral estate exchanges must clearly be in the best interest of the beneficiaries as documented by a record of decision.  The record of decision shall address those criteria listed in R652-80-200.
	3.  In exchanges with persons other than the federal government, all mineral estates are reserved to the state unless exceptional circumstances justify the exchange of the mineral estate.
	4.  Upon the exchange of state mineral estate, state mineral leases shall continue to be administered by the division until the termination, relinquishment or expiration of the lease.  Upon termination of the mineral lease the administration of the mineral estate transfers to the acquiring party.

R652-80-700.  Existing Rights on Acquired Lands.
	Valid existing rights on lands acquired from the federal government will be managed in accordance with Section 65A-9-2(5) and 65A-7-7(2).

R652-80-800.  Existing Leases and Permits.
	Prior to completion of exchanges, state lessees and permittees shall be notified and leases and permits cancelled or amended in accordance with the terms of the lease or permit.

KEY:  land exchange, administrative procedure
Date of Enactment or Last Substantive Amendment:  March 17, 1995
Notice of Continuation:  January 14, 2016
Authorizing, and Implemented or Interpreted Law:  65A-7-1