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H0510......................................................by STATE AFFAIRS STATE MINERAL LANDS - Amends existing law to provide an exception for reserving state mineral lands from sale when the surface estate is identified by the State Board of Land Commissioners as having the potential highest and best use for development purposes such as residential, commercial or industrial purposes; to provide that a purchaser of lands may acquire right, title or interest in the mineral deposits; to provide for the sale of lands as a single estate when the state land is identified as having the highest and best use for development purposes; to provide that all applications to purchase those state lands that have not been identified as having the potential highest and best use for development purposes approved subsequent to the passage of this chapter shall be subject to a reservation to the state of all mineral deposits in the land. 01/21 House intro - 1st rdg - to printing 01/22 Rpt prt - to St Aff 02/02 Rpt out - rec d/p - to 2nd rdg 02/03 2nd rdg - to 3rd rdg 02/04 3rd rdg - PASSED - 53-13-4 AYES -- Andersen, Bedke, Bell, Black, Block, Boe, Bolz, Campbell, Cannon, Clark(Jorgenson), Cuddy, Deal, Denney, Douglas, Edmunson, Ellsworth, Eskridge, Field(18), Field(23), Gagner, Garrett, Henbest, Jaquet, Jones, Kellogg, Lake, Langford, Langhorst, Martinez, McGeachin, Meyer, Miller, Mitchell, Naccarato, Nielsen, Pasley-Stuart, Raybould, Ridinger, Ring, Roberts, Rydalch, Sayler, Shepherd, Shirley, Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail, Wills, Mr. Speaker NAYS -- Barrett, Bayer, Bradford, Collins, Crow, Eberle, Harwood, Kulczyk, McKague, Moyle, Ringo, Schaefer, Wood Absent and excused -- Barraclough, Bauer, Robison, Sali Floor Sponsor - Jaquet Title apvd - to Senate 02/05 Senate intro - 1st rdg - to Res/Env 02/10 Rpt out - rec d/p - to 2nd rdg 02/11 2nd rdg - to 3rd rdg 02/13 3rd rdg - PASSED - 34-1-0 AYES -- Andreason, Bailey, Brandt, Bunderson, Burkett, Burtenshaw, Calabretta, Cameron, Compton, Darrington, Davis(Davis), Gannon, Geddes, Goedde, Hill, Ingram, Kennedy, Keough, Little, Lodge, Malepeai, Marley, McKenzie, McWilliams, Noble, Noh, Pearce, Richardson, Sorensen, Stegner, Stennett, Sweet, Werk, Williams NAYS -- Schroeder Absent and excused -- None Floor Sponsors - Little & Stennett Title apvd - to House 02/16 To enrol 02/17 Rpt enrol - Sp signed 02/18 Pres signed 02/19 To Governor - Governor signed Session Law Chapter 13 Effective: 07/01/04
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-seventh Legislature Second Regular Session - 2004IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 510 BY STATE AFFAIRS COMMITTEE 1 AN ACT 2 RELATING TO STATE LANDS; AMENDING SECTION 47-701, IDAHO CODE, TO PROVIDE AN 3 EXCEPTION FOR RESERVING MINERAL LANDS FROM SALE WHEN THE SURFACE ESTATE IS 4 IDENTIFIED BY THE STATE BOARD OF LAND COMMISSIONERS AS HAVING THE POTEN- 5 TIAL HIGHEST AND BEST USE FOR DEVELOPMENT PURPOSES, SUCH AS RESIDENTIAL, 6 COMMERCIAL OR INDUSTRIAL PURPOSES AND TO PROVIDE THAT A PURCHASER OF LANDS 7 MAY ACQUIRE RIGHT, TITLE OR INTEREST IN THE MINERAL DEPOSITS; AMENDING 8 SECTION 47-711, IDAHO CODE, TO PROVIDE FOR THE SALE OF LANDS AS A SINGLE 9 ESTATE WHEN THE STATE LAND IS IDENTIFIED AS HAVING THE HIGHEST AND BEST 10 USE FOR DEVELOPMENT PURPOSES SUCH AS RESIDENTIAL, COMMERCIAL OR INDUSTRIAL 11 PURPOSES, TO PROVIDE FOR RESERVATION OF MINERAL DEPOSITS IN CERTAIN 12 INSTANCES AND TO MAKE TECHNICAL CORRECTIONS; AND AMENDING SECTION 47-712, 13 IDAHO CODE, TO PROVIDE THAT ALL APPLICATIONS TO PURCHASE THOSE STATE LANDS 14 THAT HAVE NOT BEEN IDENTIFIED AS HAVING THE POTENTIAL HIGHEST AND BEST USE 15 FOR DEVELOPMENT PURPOSES, SUCH AS RESIDENTIAL, COMMERCIAL OR INDUSTRIAL 16 PURPOSES APPROVED SUBSEQUENT TO THE PASSAGE OF THIS CHAPTER SHALL BE SUB- 17 JECT TO A RESERVATION TO THE STATE OF ALL MINERAL DEPOSITS IN THE LAND. 18 Be It Enacted by the Legislature of the State of Idaho: 19 SECTION 1. That Section 47-701, Idaho Code, be, and the same is hereby 20 amended to read as follows: 21 47-701. RESERVATION OF MINERAL DEPOSITS TO STATE -- TERMS DEFINED. (1) 22 The terms "mineral lands," "mineral," "mineral deposits," "deposit," and 23 "mineral right," as used in this chapter, and amendments thereto shall be con- 24 strued to mean and include all coal, oil, oil shale, gas, phosphate, sodium, 25 asbestos, gold, silver, lead, zinc, copper, antimony, geothermal resources, 26 salable minerals, and all other mineral lands, minerals or deposits of min- 27 erals of whatsoever kind or character. 28 (2) Such deposits in lands belonging to the state are hereby reserved to 29 the state and are reserved from sale except upon a rental and royalty basisas30herein provided,and except when the surface estate is identified by the state 31 board of land commissioners as having the potential highest and best use for 32 development purposes, such as residential, commercial or industrial purposes. 33 Except for the aforementioned purposes, the purchaser ofanyall other state 34 landbelonging to the stateshall acquire no right, title or interest in or to 35 such deposits, and the right of such purchaser shall be subject to the reser- 36 vation of all mineral deposits and to the conditions and limitations pre- 37 scribed by law providing for the state and persons authorized by it to pros- 38 pect for, mine, and remove such deposits and to occupy and use so much of the 39 surface of said land as may be required for all purposes reasonably incident 40 to the mining and removal of such deposits therefrom. 41 (3) An exchange of state land consummated by the board under authority of 42 section 58-138, Idaho Code, shall not be considered a sale of state lands. The 43 transfers of mineral deposits heretofore made in such exchanges are hereby 2 1 approved. 2 SECTION 2. That Section 47-711, Idaho Code, be, and the same is hereby 3 amended to read as follows: 4 47-711. SALE OF STATE LANDS CONTAINING MINERAL DEPOSITS. Lands in which 5 minerals are contained and the surface of which has a value for other purposes 6 may be sold as a single estate under the provisions of chapter 3,oftitle 58, 7of theIdaho Code, relating to the sale of state lands,provided that inwhen 8 the state land is identified as having the potential highest and best use for 9 development purposes, such as residential, commercial or industrial purposes. 10 In the sale ofsuchthe surface estate of all other state lands, there shall 11 be reserved to the state allsuchmineral deposits andthatthe right of the 12 purchaser shall be subject to the conditions and limitations prescribed by law 13 providing for the state or persons authorized by it to prospect for, mine and 14 remove such deposits and to occupy and use so much of the surface of such land 15 as may be required for all purposes reasonably incident to the mining and 16 removal of such deposits therefrom. 17 SECTION 3. That Section 47-712, Idaho Code, be, and the same is hereby 18 amended to read as follows: 19 47-712. APPLICATIONS TO PURCHASE -- CERTIFICATES OF PURCHASE. All appli- 20 cations to purchase those state lands that have not been identified as having 21 the potential highest and best use for development purposes, such as residen- 22 tial, commercial or industrial purposes approved subsequent to the passage of 23 this chapter shall be subject to a reservation to the state of all mineral 24 deposits in said land.and of the right of tThe state or persons authorized by 25 it to prospect for, mine and remove the same as provided by law; andallcer- 26 tificates of purchase issued by the state shall contain such reservation.
STATEMENT OF PURPOSE RS 13481 The changes to IC 47-701 through this legislation will give the State Board of Land Commissioners (Board) authority to include minerals with the sale of State lands, when the surface estate is identified as having the potential highest and best use for development purposes, such as residential, commercial, or industrial purposes. Currently, mineral rights are reserved to the State when any State lands are sold. This mineral reservation can negatively affect the valuation of a parcel where major improvements will be constructed on the surface. A mineral claimant could attempt to mine the property pursuant to Idaho Code title 47, Chapter 7. To maximize income to the endowments, it would be better to sell such lands without a mineral reservation, so that the development can proceed without the risk of mineral development decreasing the value of the property. FISCAL IMPACT Revenue to the endowment funds will increase due to development of high value commercial or industrial businesses that will generate market rent on endowment land. No additional general fund money will be needed. CONTACT Name: Jay Biladeau Agency: Department of Lands Phone: 334-0237 Statement of Purpose/Fiscal Impact H 510