State lands within Grand Teton National Park.

2016
STATE OF WYOMING
16LSO-0409
ENGROSSED
2.2

SENATE FILE

NO.

SF0088

State lands within Grand Teton National Park.

Sponsored by:
Senator(s) Bebout, Nicholas, P. and Perkins and Representative(s) Berger, Brown, Miller and Stubson

A BILL

for

AN ACT relating to state lands; authorizing that the interest in certain state lands be sold to the United States Department of the Interior; authorizing an exchange of state lands for federal lands; authorizing a lease of state lands; providing terms for the sale or exchange; specifying termination of the authorization; continuing the state land exchange advisory panel; repealing previous authorizations; and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1.

(a)

The board of land commissioners

is authorized to convey all its right, title and interest in the following
described parcels of land within the boundaries of the Grand Teton National Park to the United States Department of the Interior
under
the
conditions specified in this section:

(i)

The parcel known as the Antelope Flats
p
arcel containing six hundred forty (640) acres, more or less, and being more particularly described as: Section 16, Township 43 North, Range 115 West, 6th P.M., Teton County, WY; and

(ii)

The parcel known as the Kelly
p
arcel on Gros Ventre Road containing six hundred forty (640) acres,

more or less, and being more particularly described as:

Section 36, Township 43 North, Range 115 West, 6th P.M.,

Teton County, WY.

(b)

The conveyances authorized by subsection (a) of

this section shall be by sale pursuant to the terms of the

Agreement for the Conveyance of Lands and Interests in Lands Between the State of Wyoming Board of Land Commissioners and the United States of America at Grand Teton National Park, Wyoming, dated December 16, 2010
, and
subject to the provisions of this act
. The parcels shall be sold for the approved cash value as determined by the board of land commissioners but not less than
the higher of
forty-six million dollars ($46,000,000.00) for each parcel
or any
subsequent appraised value
for
each parcel
.
If the board obtains a subsequent appraisal of either parcel it shall use the highest value of the parcel as determined by the following appraisal approaches:

(i)

The cost approach;

(ii)

The comparison approach; and

(iii)

The income approach.

(c)

Proceeds from the sale shall be deposited to the

common school account within the permanent land fund.

(d)

The board of land commissioners shall execute and

deliver to the
d
epartment of the
i
nterior, in a form
r
easonably acceptable to the
d
epartment, a document or form

of deed conveying title to the parcels only upon payment of the

agreed amount for each parcel.

The board shall sell
both parcels in a single transaction unless
,

as part of any sale of one (1) of the parcels the following conditions are met:

(i)

The board shall retain the deed for the first purchased parcel and the department of the interior shall pay
in full
the agreed purchase price for
that
parcel not later than December 31, 2016. Any funds received by the state
under this paragraph
shall be held by the state treasurer in an account subject to the provisions of this paragraph. The deed for the parcel shall not be conveyed to the department of the interior until an agreement is reached to sell both parcels to the department of the interior, with the conveyances to be completed before the termination period specified in this act, including any extension period granted under subsection (e) of this section. If the conveyances are not completed by that termination period, as extended, all monies paid by the department of the interior to the
state under this paragraph
shall be refunded to the department and are appropriated from the account for that purpose
. Any earnings on the funds paid to the state under this
paragraph shall be credited to the common school account within the permanent land income fund
;

(ii)

In addition to the requirements of paragraph (i) of this subsection, a
deposit for purchase of the Kelly parcel of two million five hundred thousand dollars ($2,500,000.00) is paid to the state of Wyoming
prior to December 31, 2016
. Any funds received by the state
under this paragraph
shall be held by the state treasurer in an account subject to the provisions of this paragraph.
The deposit shall
be credited to any subsequent conveyance of the Kelly parcel under this act
. If the Kelly parcel
conveyance
is
not completed before the termination period specified in this act, including any extension
of the
termination period, all monies paid to the
state under this paragraph
shall be refunded and are appropriated from the account for that purpose
. Any earnings on the funds paid to the state under this paragraph shall be credited to the common school account within the permanent land income fund
;

(iii)

The state of Wyoming shall reserve a right of way easement on or across the Kelly parcel of up to one
hundred (100) feet in width. As a condition of the sale, the department of the interior shall agree to maintain any public roads currently existing within the easement.

(e)

The authority to sell
both
parcel
s
shall expire December 31, 2016
,
except that this authority is extended two (2) years
to December 31, 2018

if
t
he department of
the
interior makes a nonrefundable payment of
five hundred thousand
dollars ($
5
00,000.00) in exchange for a
two
(2)
year extension of the authorization to convey the property.
The payment
shall be deposited to the

common school account within the permanent land fund
.

(f)

In exercising its authority to sell the parcels or to extend the time period for any sale under subsection (e) of this section, the board shall determine that the action is consistent with state trust land management objectives. The board shall include in its consideration the status of any pending environmental impact statement affecting the value of the parcels or any other state school trust lands and the impact of any federal moratorium on coal lease bonus payments which otherwise would be
distributed under W.S. 9-4-601(b) to the school capital construction account.

Section 2.

(a)

In addition to the authority under section 1 of this act, the board of land commissioners
may seek to exchange
either the Antelope Flats parcel, Kelly parcel, or both, for
land owned by the federal government within the state
.
The board of land commissioners shall obtain all

necessary documentation, comparable sales and appraisals to

show that any parcels received under this act for the
state
parcels are of

equal or greater value. The fair market value of the
federal
parcels shall be determined using an MAI certified

appraiser. The board may accept a combination of cash and

title to a parcel or combination of parcels if the total

value of the cash and the parcels
received by the state
is of equal or greater

value
of
the exchanged parcel as specified
in sub
section
1(b) of this act
.

(
b
)

The board of land commissioners

may, pursuant to an exchange of parcels, deliver to the

department of the interior, in a form reasonably acceptable

to the
department, a document or form of deed conveying

title to the
state
parcels only upon receipt of a document or form of deed, in

a form reasonably acceptable to the state, conveying title

to parcels that are owned by the federal government within

the state.

(
c
)

The board
of land commissioners shall, to the

extent practicable, ensure that parcels received from the

federal government under this section consist of both the

surface estate and the mineral estate. The board may accept

parcels that consist only of the surface estate if the

receipt of the surface estate otherwise meets state trust

land management objectives.

(
d
)

In evaluating any proposed exchange, the board of

land commissioners shall take into consideration the

appreciative value of the
state
parcels, their

potential to generate a cash sale at full fair market value

if the parcels were sold and the capacity for the cash

obtained to produce future investment income. The lost

opportunity associated with the
state
parcels may be

offset by the potential for reasonably anticipated mineral

development of
parcels to be received by the state in any

proposed exchange.

(
e
)

In determining the value of any parcels to be

received by the state in any proposed exchange, the board

of land commissioners shall:

(i)

Give preference to properties which include

both the surface and mineral estate with high probability

to produce mineral income in the future which will offset

against the future loss speculative value of the
state
parcels;

(ii)

Value the mineral estate in accordance with

customary practices for buying and selling agricultural

land with unproven mineral resources; and

(iii)

Take into consideration the existing

proportionate share of any potential federal mineral

royalty that the state would be entitled to receive if the

minerals were to be produced.

(
f
)

In evaluating land exchanges pursuant to this

section, the board of land commissioners shall consider the

written
advice provided by the state land exchange advisory panel,

which is hereby c
ontinued
. The state land exchange advisory

panel shall be composed of two (2) persons appointed by the

governor and one (1) person appointed jointly by the

president of the senate and the speaker of the house of

representatives. Persons appointed to the panel shall have

expertise in mineral production, mineral development,

mineral valuation and real estate valuation. The panel

shall evaluate potential land and mineral exchanges for the
state
parcels and provide its evaluation and
written
opinion

to the board of land commissioners before the board

authorizes any exchange for the
state
parcels.

(g)

The limitations regarding the sale of parcels in section 1 of this act shall apply to any exchange under section 2 of this act.

Section 3.

In addition to the authority granted under sections 1 and 2 of this act, the board of land commissioners is authorized to accept in lieu of cash
payment or an exchange of property, a continuing revenue stream as partial payment for the state parcels.

In exercising the authorization under this section, the board shall consult with the state land exchange advisory panel and receive the panel's written advice before agreeing to the receipt of a continuing revenue stream as partial payment. The board shall consider the state trust land management objectives, the estimated value of the revenue stream discounted to present value and the projected future income foregone by accepting the revenue stream in lieu of cash or an exchange of property.

Any funds received as a result of an agreement exercising the authority under this section shall be deposited in the common school account within the permanent land fund.

Section 4.

In addition to the authority granted under sections 1 through 3 of this act, the board of land commissioners is authorized to enter into a lease with the United States Department of the Interior for the state parcels. The terms of a lease entered into under this section shall not exceed ninety-nine (99) years. In exercising the authorization under this section, the board shall consult with the state land exchange advisory panel
and receive the panel's written advice before agreeing to the terms of the lease. The board shall consider the state trust land management objectives, the estimated value of the lease and the projected future benefits or detriments of entering into a lease in lieu of cash or an exchange of property. Any funds received as a result of a lease entered into under this section shall be deposited in the common school account within the permanent land income fund.

Section
5
.

2011 Wyoming Session Laws, Chapter 51

and 2014 Wyoming Session Laws, Chapter 48 are repealed.

Section
6
.

This act is effective immediately upon completion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constitution.

(END)

1
SF0088