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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 - 2004
IN 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 basis as
30 herein 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 of any all other state
34 land belonging to the state shall 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, of title 58,
7 of the Idaho Code, relating to the sale of state lands, provided that in when
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 of such the surface estate of all other state lands, there shall
11 be reserved to the state all such mineral deposits and that the 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; and all cer-
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