§ 36-5-105 — Criteria for leasing; preferences; assignments, subleases or contracts; lands taken for war purposes; mineral lands excepted; agricultural lands

(a) All state lands leased by the state board of land
commissioners, for grazing and other agricultural purposes shall
be leased in such manner and to such parties as shall inure to
the greatest benefit to the state land trust beneficiaries.
(b) No applicant shall be qualified to lease vacant lands
unless that applicant is qualified under the provisions of W.S.
36-5-101, has or can gain access to the land and offers to pay
an annual rental at not less than fair market value, as
determined by the economic analysis pursuant to W.S. 36-5-
101(b), for the same or similar use of the land for a period of
ten (10) years and who has not been found to have significantly
violated any laws or regulations related to state lands. Also in
leasing vacant lands:
(i) Preference shall be given to applicants who are
the owners, lessees or lawful occupants of adjoining lands,
unless the board determines that the preference should not be
recognized for good cause. The preference shall be administered
as set forth in this paragraph:
(A) In instances where one (1) applicant is
eligible for the preference and a competing bidder is not, the
applicant eligible for the preference may elect to meet the
highest bid of the applicants not eligible for the preference;
(B) When two (2) or more applicants are eligible
for the preference, in determining to which applicant to award
the lease, the director shall request a final bid from the
applicants eligible for the preference in a manner as directed
by the director to determine the successful applicant;
(C) When two (2) or more applicants are eligible
for the preference and one (1) or more applicants are not
eligible for the preference, those applicants who are eligible
for the preference may elect to match the highest bid. If two
(2) or more applicants who are eligible for the preference elect
to meet the highest bid, the lease shall be awarded pursuant to
subparagraph (B) of this paragraph.
(ii) Before accepting applications to lease vacant
land, the director shall provide notice on the website of the
office, directly to each adjoining private landowner as recorded
within the county assessor's office and by any other means as
prescribed by rule;
(iii) If the board determines good cause exists not
to recognize a preference under paragraph (i) of this
subsection, the board shall issue written notice to the
applicant who is not being given a preference. The notice shall
include the board's statement of good cause not to recognize the
preference and the opportunity to request a hearing to appeal
the determination in accordance with the Wyoming Administrative
Procedure Act. The board shall have the burden to demonstrate
the good cause not to recognize the preference;
(iv) As used in this subsection:
(A) "Preference" means the elevated position of
an applicant to participate in the vacant land bidding process
as described in paragraph (i) of this subsection above
applicants who are not the owners, lessees or lawful occupants
of adjoining lands in good standing with the board;
(B) "Vacant land" means land not currently
subject to a grazing and agricultural lease from the board.
(c) An applicant who is the holder of an expiring lease,
and has paid the rental when due, and is not currently in
violation of the provisions of the lease, and is qualified under
the provisions of W.S. 36-5-101, shall have a preferred right to
renew such lease by meeting the highest bid offered by another
qualified applicant whose bid is not less than the minimum fair
market value as determined by the board for the same or a
similar use of land using the formula developed pursuant to W.S.
36-5-101(b) and not more than one hundred twenty percent (120%)
of the maximum fair market value as determined by the board
based on the previous year's values for the state, district or
county, whichever is most localized and available, as determined
by the national agricultural statistics service utilizing:
(i) The private land lease rate per animal unit month
for Wyoming grazing leases; or
(ii) The private land irrigated or nonirrigated
cropland lease rate, as applicable, for Wyoming cropland leases
on irrigated or nonirrigated cropland; and
(iii) A downward adjustment of twenty percent (20%)
to reasonably reflect lessee contributions typically provided as
a part of a private land grazing lease rate or a private
cropland lease rate, as applicable.
(d) If the lessee of state lands shall assign, sublease or
contract all or any part of the lease area, the lease shall be
subject to cancellation unless the director approves the
assignment, sublease or contract subject to criteria established
by the board of land commissioners provided that:
(i) Approval shall not be arbitrarily or unreasonably
withheld;
(ii) All action upon each application shall inure to
the greatest benefit of state land trust beneficiaries;
(iii) In no event shall the lands be subleased unless
one-half (1/2) of the excess rental is paid to the state;
(iv) A lessee of state lands whose lease authorizes
grazing on the state lands shall not be required to obtain the
approval of the director to allow livestock the lessee does not
own to graze on the state lands provided that:
(A) The ratio of owned to non-owned livestock
grazed by the lessee does not exceed one to one (1:1) for more
than two (2) years in any ten (10) year period;
(B) The lessee provides documentation on the
lessee's grazing of non-owned livestock to the office of state
lands and investments; and
(C) The lessee retains full management
responsibility of the livestock that grazes on the state lands.
(v) Use of state lands as provided by paragraph (iv)
of this subsection shall not be considered a sublease;
(vi) For purposes of paragraph (iv) of this
subsection, "full management responsibility" includes all
duties, obligations and liabilities as if the livestock were
owned by the lessee.
(e) Repealed By Laws 2007, Ch. 111, § 2.
(f) Provided further, that whenever any state owned lands
have been or may hereafter be condemned or acquired by the
United States for war purposes and whenever said lands may
hereafter be reconveyed to the state of Wyoming by the said
United States or any department thereof, then in such event the
state board of land commissioners shall give preference to the
lessee holding said lands at the time of the taking of said
lands by the said United States or any department thereof.
(g) Provided further, that this act shall not be
applicable to the leasing of state mineral lands under the
provisions of W.S. 36-6-101 through 36-6-105, as amended.
(h) As used in subsection (c) of this section, "preferred
right" means the right to renew a lease provided to an existing
holder of a grazing and agricultural lease by the board if the
existing lease holder is in compliance with subsection (c) of
this section.
(j) No applicant shall be qualified to lease state lands
for grazing and agricultural purposes without having actual and
necessary use of the land for the production of agricultural
commodities.