INDEX TO THE BOARD OF LAND COMMISSIONERS MATTERS
Transcription
INDEX TO THE BOARD OF LAND COMMISSIONERS MATTERS
AGENDA OF THE STATE BOARD OF LAND COMMISSIONERS February 6, 2014 Herschler Bldg., Rm. B63 8:00 a.m. to 12:00 p.m. A. MINUTES 1. December 12, 2013, State Board of Land Commissioners Meeting B. REPORTS C. POLICY MATTERS-NONE D. SURFACE LEASE MATTERS 1. Consider Grazing Lease Applications and Lease Renewals 2. Consider Grazing Lease Applications and Lease Renewals 3. Consideration of Grazing and Special Use Lease Assignments 4. Consideration of Subleases 5. Consider Applications for Construction of Improvements 6. Consider Director’s Request for Cancellation of Lease, Special Use Lease No. SU-512 (Attachment) 7. Consider Amendment of Existing Special Use Lease No. SU-562, Edge Wireless, LLC, Teton County, Wyoming 8. Consider Special Use Lease Application, Lease No. SU-759, Big Horn County, Big Horn County, Wyoming (Attachment) 9. Consider Special Use Lease Application, Lease No. SU-775, MGTC, Inc., a Wyoming Corporation, Campbell County, Wyoming 10. Consider Special Use Lease Application, Lease No. SU-779, Legacy Reserves Operating, L.P., Crook County, Wyoming 11. Consider Special Use Lease Application, Lease No. SU-784, Yates Petroleum Corporation, Campbell County, Wyoming 12. Consider Special Use Lease Application, Lease No. SU-785, Helis Oil & Gas Company, LLC, Converse County, Wyoming 13. Consider Special Use Lease Application, Lease No. SU-786, Helis Oil & Gas Company, LLC, Converse County, Wyoming 14. Consider Special Use Lease Application, Lease No. SU-788, Sinclair Wyoming Refining Company, Carbon County, Wyoming 15. Consider Special Use Lease Application, Lease No. SU-791, Fremont County Community College District dba Central Wyoming College, Fremont County, Wyoming (Institutional Land) E. OIL AND GAS MATTERS 1. Consideration of Requests from Lessees/Operators for Suspension of Production Operations for the Listed Wyoming Oil and Gas Leases, Fifth or Less Suspension Request 2. Consideration of Requests from Lessees/Operators for Suspensions of Production Operations for the Listed Wyoming Oil and Gas Leases Beyond the Fifth Suspension 3. Consider Request from Chesapeake Energy for Royalty-Free Disposition of State Interest in Gas from the WYOMING 36-35-72 ST A 1H Well on State Oil and Gas Lease No. 11-00303, Section 36, Township 35 North, Range 72 West, Converse County, Wyoming (Attachment) 4. Consider Applications for Over-the-Counter Oil and Gas Leases 5. Consider Request for State of Wyoming Oil and Gas Lease Term Extension, Lease No. 05-00101 (Attachment) 6. Consider Request for State of Wyoming Oil and Gas Lease Term Extension, Lease No. 09-00312 (Attachment) F. MISCELLANEOUS MINERAL MATTERS 1. Consider Renewal Applications for Metallic and Non-Metallic Leases 2. Consider Applications for All Metallic and Non-Metallic Leases 3. Consider Application for Bentonite Lease 4. Consider Application for Bentonite Lease Renewal Page 1 of 2 5. 6. 7. 8. 9. Consider Applications for Coal Leases Consider Application for Sand, Gravel, Rock Crushed for Aggregate and Borrow Material Lease Renewal Consider Application for Sand, Gravel, Rock Crushed for Aggregate and Borrow Material Lease Renewal Consider Applications for Uranium Leases Consider Renewal Application for Uranium Lease G. EASEMENTS AND TEMPORARY USE PERMITS 1. Consider Easement Applications 2. Consider Temporary Use Permit Applications H. MISCELLANEOUS LAND MATTERS 1. Consideration for Proposed Disposal of State Trust Land, 856.43 Acres, Natrona County, Wyoming (Attachment) 2. Consider Amendment to the Agreement for the Transfer of Land and Interests in Land Between the Board of Land Commissioners and the United States of America at Grand Teton National Park (Attachment) I. FORESTRY MATTERS 1. Permit Sales – Information Only 2. Final Conditional Approval of Forestry Division Trust Land Preservation and Enhancement Account Project *Possible Interested Parties Page 2 of 2 MINUTES THE STATE BOARD OF LAND COMMISSIONERS December 12, 2013 Opening: The regular meeting of the State Board of Land Commissioners (SBLC) was called to order by Acting Chairman Max Maxfield at 8:20 a.m. on December 12, 2013, at the Herschler Building, Room B63. Board Members Present: Max Maxfield, Acting Chairman/Secretary of State Cynthia Cloud, State Auditor Mark Gordon, State Treasurer Cindy Hill, Superintendent of Public Instruction Matthew Mead, Chairman/Governor (via conference call) Office of State Lands and Investments (OSLI) Staff Members Present: Bridget Hill, Director Susan Child Lorraine Fresquez Bill Crapser Jason Crowder Ben Bump Justin Daraie – Attorney General’s Office A. Minutes 1. October 3, 2013, State Board of Land Commissioners Meeting Cindy Hill moved to approve the Minutes for October 3, 2013. Mark Gordon seconded the motion. The motion carried. Board Action: Approved (Maxfield, Mead, Cloud, Gordon, and Hill voting Aye) B. Reports Director Hill addressed standard reports to the Board. C. Policy Matters – None Director Hill presented the following board matters that were amenable for treatment on a consent list by the Board: Board Matters D-2 through D-21; E-1 through E-7; F-1 through F-6; G-1 through G-2; H-3; and I-2. Board Matter I-1 is information only. Director Hill noted that all relevant information within these board matters had been presented to the Board, in advance, for review, and that Board Matter H-1 was withdrawn from the agenda. NOTE: Cindy Hill recused herself from voting on the consent list due to a conflict of interest. Cynthia Cloud moved to approve the consent list. Mark Gordon seconded the motion. The motion carried. (Maxfield, Mead, Cloud, and Gordon voting Aye; Hill recusal) Cynthia Cloud moved to approve the Director’s recommendations for the items set forth on the consent list. Mark Gordon seconded the motion. The motion carried. (Maxfield, Mead, Cloud, Gordon voting Aye; Hill recusal) D. Surface Lease Matters 1. Consider accepting and issuing an order based on the Office of Administrative Hearings' recommended decision to cancel Langley Energy Inc.'s special-use lease (No. SU-526), and requiring Langley to reclaim the lease site Director Hill recommended the Board accept the Office of Administrative Hearings' Recommended Findings of Fact, Conclusions of Law, and Order, to issue an order to cancel the Special-Use Lease No. 526 held by Langley Energy, Inc., and require Langley Energy to remove all buildings and debris from the leased lands and to reclaim the leased area. D. Surface Lease Matters (Continued) Acting Chairman Maxfield invited the public to comment on Board Matter D-1. Due to no one present in audience to speak on Board Matter D-1, Mark Gordon moved to approve the Director’s recommendation. Cynthia Cloud seconded the motion. The motion carried. Board Action: Approved (Maxfield, Mead, Cloud, Gordon, and Hill voting Aye) 2. Consider Grazing & Special Use Lease Assignments Page 1 of 5 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. D. Board Action: Approved (Maxfield, Mead, Cloud, and Gordon voting Aye; Hill recusal) Consider Subleases Board Action: Approved (Maxfield, Mead, Cloud, and Gordon voting Aye; Hill recusal) Consider Applications for Construction of Improvements Board Action: Approved (Maxfield, Mead, Cloud, and Gordon voting Aye; Hill recusal) Consider Amendment of Existing Special Use Lease No. SU-95, Devon Energy Production Company, L.P., Campbell County, Wyoming Board Action: Approved (Maxfield, Mead, Cloud, and Gordon voting Aye; Hill recusal) Consider Special Use Lease Application for Renewal, Lease No. SU-118, William D. Bauer d/b/a Windbreak Cable, Platte County, Wyoming Board Action: Approved (Maxfield, Mead, Cloud, and Gordon voting Aye; Hill recusal) Consider Special Use Lease Application for Renewal, Lease No. SU-427, Osage Partners, LLC, Weston County, Wyoming Board Action: Approved (Maxfield, Mead, Cloud, and Gordon voting Aye; Hill recusal) Consider Amendment of Existing Special Use Lease No. Su-589, Devon Energy Production Company, L.P., Sweetwater County, Wyoming Board Action: Approved (Maxfield, Mead, Cloud, and Gordon voting Aye; Hill recusal) Consider Special Use Lease Application, Lease No. SU-758, Roger Haefele, Converse County, Wyoming Board Action: Approved (Maxfield, Mead, Cloud, and Gordon voting Aye; Hill recusal) Consider Special Use Lease Application, Lease No. SU-761, Yates Petroleum Corporation, Campbell County, Wyoming Board Action: Approved (Maxfield, Mead, Cloud, and Gordon voting Aye; Hill recusal) Consider Special Use Lease Application, Lease No. SU-762, Yates Petroleum Corporation, Campbell County, Wyoming Board Action: Approved (Maxfield, Mead, Cloud, and Gordon voting Aye; Hill recusal) Consider Special Use Lease Application, Lease No. SU-767, Sunshine Valley Petroleum Corporation, Niobrara County, Wyoming Board Action: Approved (Maxfield, Mead, Cloud, and Gordon voting Aye; Hill recusal) Consider Special Use Lease Application, Lease No. SU-769, American Towers, LLC, Campbell County, Wyoming Board Action: Approved (Maxfield, Mead, Cloud, and Gordon voting Aye; Hill recusal) Consider Special Use Lease Application, Lease No. SU-771, Phoenix Production Company, Hot Springs County, Wyoming Board Action: Approved (Maxfield, Mead, Cloud, and Gordon voting Aye; Hill recusal) Consider Special Use Lease Application, Lease No. SU-772, Phoenix Production Company, Park County, Wyoming Board Action: Approved (Maxfield, Mead, Cloud, and Gordon voting Aye; Hill recusal) Consider Special Use Lease Application, Lease No. SU-773, Beren Corporation, Crook County, Wyoming Board Action: Approved (Maxfield, Mead, Cloud, and Gordon voting Aye; Hill recusal) Consider Special Use Lease Application, Lease No. SU-774, SM Energy Company, Converse County, Wyoming Board Action: Approved (Maxfield, Mead, Cloud, and Gordon voting Aye; Hill recusal) Surface Lease Matters (Continued) 18. Consider Special Use Lease Application, Lease No. SU-776, BreitBurn Operating, LP, Park County, Wyoming Board Action: Approved (Maxfield, Mead, Cloud, and Gordon voting Aye; Hill recusal) 19. Consider Special Use Lease Application, Lease No. SU-777, Storm Cat Energy (USA) Operating Corporation, Campbell County, Wyoming Board Action: Approved (Maxfield, Mead, Cloud, and Gordon voting Aye; Hill recusal) 20. Consider Special Use Lease Application, Lease No. SU-781, Thorofare Resources, Inc., Carbon County, Wyoming Page 2 of 5 21. Board Action: Approved (Maxfield, Mead, Cloud, and Gordon voting Aye; Hill recusal) Consider Special Use Lease Application, Lease No. SU-783, Wexpro Company, Sweetwater County, Wyoming Board Action: Approved (Maxfield, Mead, Cloud, and Gordon voting Aye; Hill recusal) E. Oil and Gas Matters 1. Consider Request for State of Wyoming Oil and Gas Lease Term Extension, EOG Resources, Inc. Board Action: Approved (Maxfield, Mead, Cloud, and Gordon voting Aye; Hill recusal) 2. Consider Request for State of Wyoming Oil and Gas Lease Term Extensions, Chesapeake Exploration, LLC Board Action: Approved (Maxfield, Mead, Cloud, and Gordon voting Aye; Hill recusal) 3. Consider Results of November 6, 2013 State of Wyoming Oil and Gas Lease Auction Board Action: Approved (Maxfield, Mead, Cloud, and Gordon voting Aye; Hill recusal) 4. Consider Applications for Over-the-Counter Oil and Gas Leases Board Action: Approved (Maxfield, Mead, Cloud, and Gordon voting Aye; Hill recusal) 5. Consideration of Requests from Lessees/Operators for Suspension of Production Operations for the Listed Wyoming Oil and Gas Leases, Fifth or Less Suspension Request Board Action: Approved (Maxfield, Mead, Cloud, and Gordon voting Aye; Hill recusal) 6. Consideration of Requests from Lessees/Operators for Suspension of Production Operations for the Listed Wyoming Oil and Gas Leases Beyond the Fifth Suspension Board Action: Approved (Maxfield, Mead, Cloud, and Gordon voting Aye; Hill recusal) 7. Consideration of Requests from Lessees/Operators for Suspension of Production Operations for the Listed Wyoming Oil and Gas Leases Beyond the Fifth Suspension for Brennan Oil & Gas, LLC Board Action: Approved (Maxfield, Mead, Cloud, and Gordon voting Aye; Hill recusal) F. Miscellaneous Mineral Matters 1. Consider Application for Bentonite Lease Renewal Board Action: Approved (Maxfield, Mead, Cloud, and Gordon voting Aye; Hill recusal) 2. Consider Applications for Coal Leases Board Action: Approved (Maxfield, Mead, Cloud, and Gordon voting Aye; Hill recusal) Consider Applications for Coal Leases 3. Board Action: Approved (Maxfield, Mead, Cloud, and Gordon voting Aye; Hill recusal) 4. Consider Sand, Gravel, Rock Crushed for Aggregate and Borrow Material Application Board Action: Approved (Maxfield, Mead, Cloud, and Gordon voting Aye; Hill recusal) 5. Consider Sand, Gravel, Rock Crushed for Aggregate and Borrow Material Applications Board Action: Approved (Maxfield, Mead, Cloud, and Gordon voting Aye; Hill recusal) 6. Consider Application for Sand, Gravel, Rock Crushed for Aggregate and Borrow Material Lease Renewal Board Action: Approved (Maxfield, Mead, Cloud, and Gordon voting Aye; Hill recusal) G. Easements and Temporary Use Permits 1. Consider Easement Applications Board Action: Approved (Maxfield, Mead, Cloud, and Gordon voting Aye; Hill recusal) 2. Consider Temporary Use Permit Applications Board Action: Approved (Maxfield, Mead, Cloud, and Gordon voting Aye; Hill recusal) H. Miscellaneous Land Matters 1. WITHDRAWN Page 3 of 5 2. Consider Recreational Shooting Restriction on State Trust Lands, Union Chapel Section, Campbell County, Wyoming Director Hill reported to the Board that OSLI has received numerous complaints regarding vandalism on the State parcel in Campbell County. She recommended the Board approve the recreational shooting restriction on the above referenced parcel by adopting Board Order 2013-8, consistent with Wyoming Statute 36-2107(b). The Board discussed that there wasn’t enough evidence of the facts to close the road and recommended that the parcel be patrolled during hunting season, apply more signage and reacquaint Wyoming citizens with stewardship of State parcels. Acting Chairman Maxfield invited the public to comment on Board Matter H-2. Public comment: Anthony Borchard. Director, Wyoming Gun Owners Association, reported to the Board that the association is opposed to the recommendation to restrict the parcel from recreational shooting. Mr. Borchard further reported that there was not enough evidence to close the parcel and specified that the local police were not involved in the complaints. Mr. Borchard advised the Board to stop penalizing law-abiding citizens and recommended that there should be more enforcement to monitor the area, ban certain targets and make laws that are enforceable and consistent. Mark Gordon moved to table Board Matter H-2 in order for OSLI to present more evidence. The Board indicated that it would like more awareness in the public, particularly in the schools, as to the proper use of State Trust Lands. Matthew Mead seconded the motion. The motion carried. Board Action: Tabled (Maxfield, Mead, Cloud, Gordon, and Hill voting Aye) 3. I. Consideration of Revised Duncan Ranch Coordinated Resource Management Plan Board Action: Approved (Maxfield, Mead, Cloud, and Gordon voting Aye; Hill recusal) Forestry Matters 1. Permit Sales – Information Only Board Action: No Action; Information Only 2. Consideration of Boxelder Creek 3 Forest Product Auction, Sections 27, 33 & 34, Township 30 N., Range 76 W, Converse County, Wyoming Board Action: Approved (Maxfield, Mead, Cloud, and Gordon voting Aye; Hill recusal) Walk In Matter 1. Consider Request for State of Wyoming Oil and Gas Lease Term Extensions Director Hill recommended the Board approve a one (1)-year lease term extension for Oil and Gas Lease Nos. 09-00319 and 09-00320. The extensions would be contingent upon the submittal of the required $10,000.00 liquidated damages bonds. Acting Chairman Maxfield invited the public to comment on Walk In Matter No. 1. Due to no one in the audience to comment on Walk In Matter No. 1, Cindy Hill moved to accept the Director’s recommendation. Mark Gordon seconded the motion. The motion carried. Board Action: Approved (Maxfield, Mead, Cloud, Gordon, and Hill voting Aye) Other Business Director Hill introduced to the Board two new employees of the Office State Lands and Investments, Matt Munford and Nick Leventis. Director Hill also announced to the Board the retirement of Lorraine Fresquez; Executive Assistant; this would be the last Board meeting for Ms. Fresquez. Adjournment: Cynthia Cloud moved to adjourn the State Board of Land Commissioners meeting. Cindy Hill seconded the motion. (Maxfield, Mead, Cloud, Gordon, and Hill voting Aye) The State Board of Land Commissioners meeting was adjourned at 9:20 a.m. on December 12, 2013. The next State Board of Land Commissioners meeting will be February 6, 2014, 8:00 a.m. in the Herschler Building, Room B63. Page 4 of 5 Minutes submitted by: Approved by: Lorraine S. Fresquez, Executive Assistant Bridget Hill Secretary of the State Loan and Investment Board Page 5 of 5 Summary of State Trust Land Revenue Data as of December 31, 2013 Narrative Summary: Analysis of a four year revenue trend, total trust land revenues recorded from fiscal year 2010 through fiscal year 2013, show an average net decrease of 4.5%. Special notation should be made to events that occurred in the last quarter of fiscal year 2010 and continued through fiscal year 2011 and into fiscal year 2012 which significantly influenced revenue recorded for these periods. Competitive Oil and Gas Lease Auction Sales brought a record $192 million to State coffers during fiscal years 2010, 2011 and 2012. Fiscal year 2014 projected revenues show an 11.25% decrease from 2013 revenues. Surface lease rentals and mineral royalties continue to be the major contributors to the state’s trust land income for the five year period presented, averaging 99.71% of total revenues; 5.54% and 94.17%, respectively. Notable Items: Coal Production FY 2014 coal production shows a projected 18% decrease in revenue from 2013 revenues. FY 2013 coal production continued to bring to the state recorded high royalties of $44.3 million, the majority received from a single producer, Peabody Energy (DBA Powder River Coal Company). Coal royalties do not necessarily exhibit the same general continuous production pattern once a lease is in productive status as do oil and gas wells, which are subject to production decline curves. Coal mines generally have a known areal extent which constitutes minable reserves, which are embraced in a mine plan approval. Receipt of such approval does not "force" a particular mine-out of an area before moving within dragline/pit patterns or drifts or mining panels. Thus, in the case of mining on a State lease, a portion may be mined in concert with other "pit" areas, or, may be mined through in a particular portion of the State section, and then, mining may move completely off the lease although reserves exist that still must be mined. Currently, the royalty for coal results from concentrated mining of thirteen (13) State land leases. Land Sales Revenue from the sale of state land is recorded on the installment method or cash basis, which can greatly influence the fluctuation of surface revenues in any given fiscal period. FY 2014 land sale revenue shows a projected 99% decrease in revenue from 2013 revenues. FY 2013 land sale revenue included $16 million received from the federal government for the purchase of the Snake River Parcel in Grand Teton National Park. Comparative Schedules: Attached are summary schedules of revenues earned on state trust lands for the period ending December 31, 2013. These schedules reflect various aspects of revenue activity for the permanent land and land income funds, including an analysis of trust land revenue over a period of five (5) years. Page 1 of 2 Schedule 1 Trust Land Revenue Summary, Five Year Comparison Schedule 1 provides a summary of trust land revenue by fiscal year, 2010 through 2014. The schedule presents actual revenue received for fiscal years 2010 through 2013. Fiscal year 2014 revenue is projected for the twelve month period beginning July 1, 2013 and ending June 30, 2014. Projected dollars are based on actual revenues received as of December 31, 2013. Schedule 2 Trust Land Revenue Comparisons by Category Schedule 2 compares trust land revenues for the fiscal years 2014 and 2013. Revenues are presented by category and shown as a percentage of total revenue projected/collected for the period. Notation has been made on the schedule relative to material changes in revenue collections for each fiscal period. Schedule 3 Trust Land Revenue Distributions Schedule 3 presents revenue distributions to the permanent land funds, land income funds and the general fund, as designated by W.S. 9-4-310. Additional presentation is made showing distribution of revenue to the individual funds within these fund classes. Notation is made to present trend information and/or material differences in collections between years. Schedule 4 Mineral Royalty Revenue by Source Schedule 4 details subsurface revenues by source and as a percentage of total revenue collected by the division. Comparisons are made between fiscal years 2014 and 2013. Additional notation is made on the schedule to present trend information and/or material differences in collections between years. Schedule 5 Other Trust Land Revenue by Source Similar to Schedule 4, Schedule 5 is a presentation of trust land revenue collected by the trust land management division. Schedule 5 details revenues by source and as a percentage of total collections for fiscal years 2014 and 2013. Notation is made to present trend information and/or material differences in collections between years. Page 2 of 2 Schedule 1: Five Year Trust Land Revenue Summary Five Year Trust Land Revenue Summary, As of December 31, 2013 $350,000,000 $314,455,947 $300,000,000 $232,864,061 $250,000,000 $233,467,253 $223,042,930 $197,946,332 $200,000,000 $150,000,000 $100,000,000 $50,000,000 PROJECTED FY14 ACTUAL FY13 ACTUAL FY12 ACTUAL FY11 ACTUAL FY10 Fiscal Year Five Year Trust Land Revenue Summary by Category, As of December 31, 2013 $299,368,726 $300,000,000 $222,259,026 $219,588,323 $250,000,000 $194,262,535 $186,409,913 $200,000,000 $150,000,000 $PROJECTED FY14 MINERAL ROYALTY ACTUAL FY13 ACTUAL FY12 OTHER TRUST LAND REVENUE ACTUAL FY11 TIMBER ACTUAL FY10 MISCELLANEOUS $1,167 $125,378 $11,081,682 $1,909 $124,390 $14,960,923 $2,485 $130,025 $13,143,227 $1,468 $164,726 $28,614,202 $6,722 $570,091 $50,000,000 $10,959,606 $100,000,000 Schedule 2: Trust Land Revenue Comparison Projected Fiscal Year 2014 $197,946,332 Trust Land Revenue, As of December 31, 2013 MINERAL ROYALTY $186,409,912.62 94.17% MISCELLANEOUS $6,722.10 0.00% OTHER TRUST LAND REVENUE $10,959,606.47 5.54% TIMBER $570,091.24 0.29% Fiscal Year 2013 $223,042,930 Trust Land Revenue MINERAL REVENUE $194,262,534.60 87.10% MISCELLANEOUS $1,467.51 0.00% TIMBER $164,725.96 0.07% OTHER TRUST LAND REVENUE $28,614,201.90 12.83% Note: Other Trust Land Revenue includes $16 million for the purchase of the Snake River Parcel in Grand Teton National Park by the federal government. Schedule 3: Trust Land Revenue Distributions Projected Fiscal Year 2014 $197,946,332 Distribution to Funds, As of December 31, 2013 PERMANENT FUNDS $169,307,823.28 85.53% INCOME FUNDS $17,105,839.16 8.64% SCHOOL CAP CON $8,000,000.00 GENERAL FUND 4.04% $3,532,669.88 1.78% Projected Fiscal Year 2014 $169,307,823 Distribution to Permanent Funds, As of December 31, 2013 COMMON SCHOOL $157,941,622.88 93.29% ALL OTHER $4,678,262.54 2.76% UNIVERSITY $655,771.64 0.39% PENITENTIARY $2,397,329.72 1.42% STATE HOSPITAL $78,082.12 0.05% OMNIBUS $3,556,754.38 2.10% Note: Permanent lands funds receive income from sale of public lands, mineral royalties and any money designated by the Wyoming constitution or statute (any depletable land resource). Permanent funds remain in perpetuity. Projected Fiscal Year 2014 $17,105,839 Trust Land Revenue Distributions to Permanent Income Funds, As of December 31, 2013 COMMON SCHOOL $16,482,539.06 96.36% MINERS HOSPITAL $49,393.89 0.29% FISH HATCHERY $18,241.80 0.11% STATE HOME BLIND $8,621.34 0.05% OMNIBUS $121,124.41 0.71% AG COLLEGE $285,132.46 1.67% UNIVERSITY OF WY $140,786.20 0.82% Note: Permanent land income funds receive income from rental and lease of granted lands, from the investment of the corpus of the corresponding permanent land account and from the investment of the funds in the permanent land income funds themselves. Income funds may be expended for the establishment, maintenance and support of institutions to which they are tied. Ag College, University and Common School income accounts can only be spent for those specific institutions. Money in Common School account is distributed to school districts by a statutory formula. Schedule 4: Mineral Revenue Projected Fiscal Year 2014 $186,409,913 Mineral Royalty Revenue, As of December 31, 2013 OIL & GAS $136,701,187.27 73.33% COAL $36,324,817.93 19.49% SODIUM & TRONA $6,722,846.74 3.61% ALL MINERAL LEASES $5,152,151.76 2.76% SAND & GRAVEL $281,394.08 0.15% BENTONITE $970,163.46 0.52% OTHER (INCLUEDS URANIUM) $257,351.38 0.14% Fiscal Year 2013 $194,262,535 Mineral Revenue OIL & GAS $139,734,586.01 71.93% SODIUM & TRONA $4,639,681.87 2.39% ALL MINERAL LEASES $3,854,880.85 1.98% COAL $44,356,644.22 22.83% SAND & GRAVEL $442,021.34 0.23% OTHER (INCLUDES URANIUM) $120,572.01 0.06% BENTONITE $1,114,148.30 0.57% Schedule 5: Other Trust Land Revenue Projected Fiscal Year 2014 $10,959,606 Other Trust Land Revenue, As of December 31, 2013 TRUST LAND LEASES $6,811,861.34 62.15% FEES $35,386.26 0.32% RIGHT OF WAY EASEMENTS $1,377,742.86 12.57% LAND SALES $13,245.83 0.12% SURFACE DAMAGE $1,818,369.98 16.59% TEMPORARY LEASES/PERMITS $903,000.20 8.24% Fiscal Year 2013 $28,614,202 Other Trust Land Revenue SURFACE DAMAGE $1,764,194.85 TEMPORARY 6.17% LEASES/PERMITS $961,152.04 3.36% TRUST LAND LEASES $7,324,490.54 25.60% FEES $31,675.72 0.11% LAND SALES $17,907,272.73 62.58% RIGHT OF WAY EASEMENTS $625,416.02 2.19% Note: Land Sales revenue includes $16 million for the purchase of the Snake River Parcel in Grand Teton National Park by the federal government. February 6, 2014 SURFACE IMPACT PAYMENT REPORT Grazing Lease No. County Grazing Lessee Name Consideration Basis Total SIP State % GRZ-1-7063 GRZ-1-7063 GRZ-1-7209 GRZ-1-7209 GRZ-1-7317 GRZ-1-7334 GRZ-1-7544 GRZ-1-7551 GRZ-1-7587 GRZ-1-7660 GRZ-1-7664 Laramie Laramie Converse Converse Goshen Converse Laramie Converse Goshen Goshen Goshen GRZ-1-7708 Niobrara QCS 2, LLC QCS 2, LLC True Ranches, LLC True Ranches, LLC The Yates Ranch Company Parkerton Ranch, Inc. Gerald and Alyce Krakow Smith Sheep Company C.W. Kessler Ranch Mike and Marie K. Brown Daryl G. Evans, Peggy J. Evans, and Kevin D. Evans Benchmark Ranch, LLC GRZ-1-7839 Converse Lee Moore Land Trust GRZ-1-7841 GRZ-1-7841 Niobrara Niobrara Tetrad Corporation Tetrad Corporation GRZ-1-7841 GRZ-1-7841 GRZ-1-7841 GRZ-1-7855 GRZ-1-7928 GRZ-1-8052 GRZ-1-8218 GRZ-1-8267 GRZ-1-8295 Niobrara Niobrara Niobrara Goshen Converse Converse Goshen Goshen Goshen Tetrad Corporation Tetrad Corporation Tetrad Corporation Scheer Circle Triangle Ranch, Inc. Parkerton Ranch, Inc. Mountain Valley Livestock Marion Thaler and Dennis Thaler 4A Ranch, LLC Indian Meadows Ranches, Inc. State's Share Lessee's Share Seismic - $10.00/acre Seismic - $10.00/acre Seismic - $15.00/acre Seismic - $15.00/acre Seismic - $10.00/acre Seismic - $15.00/acre Seismic - $10.00/acre Powerline - $5.00/rod Seismic - $10.00/acre Seismic - $10.00/acre Seismic - $10.00/acre $400.00 $6,400.00 $3,600.00 $1,200.00 $800.00 $1,200.00 $1,200.00 $1,795.75 $400.00 $8,000.00 $8,000.00 60 60/70 60 60 60 60 60 80 60 60/70 60/70 $240.00 $3,980.00 $2,160.00 $720.00 $480.00 $720.00 $720.00 $1,436.60 $240.00 $5,100.00 $5,100.00 $160.00 $2,420.00 $1,440.00 $480.00 $320.00 $480.00 $480.00 $359.15 $160.00 $2,900.00 $2,900.00 Well - $750/wellbore Road - $5.00/rod Well - $750/wellbore Road - $2.00/rod Road - $.50/rod Road - $4.00/rod Road - $.50/rod Road - $5.00/rod Road - $4.00/rod Flowline - $18.00/rod Seismic - $10.00/acre Seismic - $15.00/acre Powerline - $20.00/rod Seismic - $10.00/acre Seismic - $10.00/acre Seismic - $10.00/acre $2,265.00 80 $1,812.00 $453.00 $1,024.00 80 $819.20 $204.80 $30.50 $526.50 80 80 $24.40 $421.20 $6.10 $105.30 $692.40 $579.20 $439.56 $1,920.00 $2,160.00 $3,966.00 $1,380.00 $1,680.00 $4,820.00 $173.10 $144.80 $293.04 $1,280.00 $1,440.00 $2,414.00 $920.00 $1,120.00 $2,780.00 $865.50 $724.00 $732.60 $3,200.00 $3,600.00 $6,380.00 $2,300.00 $2,800.00 $7,600.00 80 80 60 60 60 60/70 60 60 60/70 PAGE 1 OF 4 February 6, 2014 SURFACE IMPACT PAYMENT REPORT Grazing Lease No. County Grazing Lessee Name Consideration Basis Total SIP State % GRZ-1-8421 GRZ-2-3542 GRZ-2-3578 Natrona Sheridan Johnson Teapot Land LLC GGM LLC Charles K. Lawrence Order Buying Company GRZ-2-3661 Campbell Richard W. Leavitt Trust GRZ-2-3661 Campbell Richard W. Leavitt Trust GRZ-2-3683 Campbell Lexington Greer and Amanda Greer GRZ-2-3735 GRZ-2-3753 GRZ-2-3761 Campbell Campbell Campbell Floyd Land and Livestock, Inc. Bow & Arrow Ranch, Inc. Michael D. Odegard and Chris W. Odegard GRZ-2-3810 GRZ-2-3826 Campbell Campbell Michael Merle Jordan Gabrielle H. Manigault GRZ-2-3902 Campbell Iberlin Ranch GRZ-2-3958 Campbell Marilyn R. and Dudley P. Mackey GRZ-2-3988 Crook Thomas J. Wesley GRZ-2-4001 Campbell The Drake Family Revocable Land Trust GRZ-2-4001 Campbell The Drake Family Revocable Land Trust Road - $5.00/rod Well - $200/wellbore Road - $1.25/rod UCG Gasifier Location - $300/acre GRZ-2-4001 Campbell The Drake Family Revocable Land Trust Monitoring Wells - $300/site State's Share Lessee's Share Seismic - $15.00/acre Well - $1,000/wellbore Well - $1,200/wellbore $259.05 $1,000.00 $1,200.00 60 80 80 $155.43 $800.00 $960.00 $103.62 $200.00 $240.00 Well - $500/wellbore Road - $3.00/rod Well - $7,500/wellbore Road - $18.00/rod Well - $200/wellbore Road - $1.25/rod Well - $1,000/wellbore Well - $1,250/wellbore Well - $818.78/wellbore Road - $5.00/rod Pipeline - $2.63/rod Electric Line - $2.93/rod Pipeline - $3.00/rod Well - $614.73/wellbore Road - $2.99/rod Well - $713.57/wellbore Road - $4.27/rod Well - $1,428.20/wellbore Road - $3.82/rod Uranium Exploration - $100/hole $1,223.00 80 $978.40 $244.60 $10,560.00 60/70/80 $6,948.00 $3,612.00 $456.00 $114.00 $570.00 80 $1,000.00 $6,250.00 $14,404.44 80 80 60/70/80 $800.00 $5,000.00 $11,523.55 $200.00 $1,250.00 $2,880.89 $2,428.92 $1,395.96 80 80 $1,943.14 $1,116.77 $485.78 $279.19 $974.04 60/70/80 $779.23 $194.81 $1,435.84 60/70/80 $1,148.67 $287.17 $3,516.15 60 $2,109.69 $1,406.46 $480.00 80 $384.00 $96.00 $20,760.00 80 $16,608.00 $4,152.00 $6,000.00 80 $4,800.00 $1,200.00 PAGE 2 OF 4 February 6, 2014 SURFACE IMPACT PAYMENT REPORT Grazing Lease No. County Grazing Lessee Name Consideration Basis GRZ-2-4001 GRZ-2-4001 GRZ-2-4067 GRZ-2-4074 Campbell Campbell Campbell Campbell The Drake Family Revocable Land Trust The Drake Family Revocable Land Trust J M Land & Developing Co. Iberlin Ranch GRZ-2-4093 Campbell Neal B. and Amanda B. Sorenson GRZ-2-5169 Sheridan Hat Curved Arrow Ranch, Inc. GRZ-2-5234 GRZ-2-5320 Sheridan Campbell Susan A. Puckett Walker Creek Livestock Company, LLC GRZ-2-5401 GRZ-2-5550 GRZ-2-5659 Campbell Johnson Crook T-Chair Land Company Dry Creek Cattle Company Melvin Snook and Deborah Snook GRZ-2-5663 GRZ-2-5664 Sheridan Johnson GRZ-2-5670 GRZ-2-5673 GRZ-2-5673 GRZ-3-6732 Johnson Johnson Johnson Uinta Earl R. and Patsye McKey Dry Fork Land and Livestock Limited Partnership William Long Indian Creek Land Company LLC Indian Creek Land Company LLC Jerry C. Aimone and Christine Gillins Aimone Road - $5.00/rod Road - $5.00/rod Well - $500/wellbore Well - $1,000/wellbore Road - $5.00/rod Well - $300/wellbore Road - $2.50/rod Well -$300/wellbore Road - $3.00/rod Valve Set - $200/set Well - $1,250/wellbore Well - $15,000/1st 6 acres Well - $2,500/additional acre Well - $5,000/2nd wellbore Road - $10.00/rod Well - $1,000/wellbore Well - $1,250/wellbore Well - $1,625/acre Road - $6.00/rod Well - $12,000/wellbore Well - $750/second wellbore GRZ-3-6939 Park Pitchfork Ranch, LLC GRZ-3-7184 Carbon Battle Mountain Co. Total SIP State % State's Share Lessee's Share $732.00 $345.70 $500.00 $1,000.00 80 80 80 80 $585.60 $276.56 $400.00 $800.00 $146.40 $69.14 $100.00 $200.00 $1,347.50 80 $1,078.00 $269.50 $921.82 80 $737.46 $184.36 $3,750.00 $32,746.00 80 60/70/80 $3,000.00 $24,696.80 $750.00 $8,049.20 $7,000.00 $1,250.00 $6,681.80 80 80 60/70 $5,600.00 $1,000.00 $4,177.26 $1,400.00 $250.00 $2,504.54 $12,000.00 $750.00 60/70/80 60 $8,100.00 $450.00 $3,900.00 $300.00 Well - $1,000/wellbore Well - $1,250/wellbore Well - $1,250/wellbore Road - $4.50/rod $1,000.00 $1,250.00 $1,250.00 $75.56 80 80 80 80 $800.00 $1,000.00 $1,000.00 $60.45 $200.00 $250.00 $250.00 $15.11 Well - $5,000/acre Road - $20.00/rod Pipeline - $15.00/rod Seismic - $1.00/acre $9,962.70 60/70 $6,473.89 $3,488.81 $623.36 60/70 $374.02 $249.34 PAGE 3 OF 4 February 6, 2014 SURFACE IMPACT PAYMENT REPORT Grazing Lease No. County Grazing Lessee Name Consideration Basis Total SIP State % GRZ-3-7268 GRZ-3-7268 GRZ-3-7268 GRZ-3-7268 GRZ-3-7268 GRZ-3-7372 Sublette Sublette Sublette Sublette Sublette Lincoln Gros Ventre Investment Co. Gros Ventre Investment Co. Gros Ventre Investment Co. Gros Ventre Investment Co. Gros Ventre Investment Co. Uinta Development GRZ-3-7501 GRZ-3-7501 GRZ-3-8554 Sublette Quarter Circle Five Ranch, LLC Sublette Quarter Circle Five Ranch LLC Sweetwater Peter R. and Susan A. Arambel GRZ-3-8651 GRZ-3-8763 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $5,395.84 Sweetwater Vermillion Ranch Limited Partnership Well - $1,000/wellbore Well - $1,000/wellbore Well - $1,000/wellbore Well Pad - $1,000/site Well Pad - $1,000/site Well - $2,500/wellbore Road - $9.00/rod Road - $10.00/rod Well - $1,000/wellbore Well - $1,014.53/acre Road - $6.09/rod Pipeline - $5.00/rod Carbon Well - $3,000/wellbore $15,000.00 TOTALS Three Forks Ranch Corporation State's Share Lessee's Share 80 80 80 80 80 60/70 $800.00 $800.00 $800.00 $800.00 $800.00 $3,277.09 $200.00 $200.00 $200.00 $200.00 $200.00 $2,118.75 $354.30 $1,000.00 $6,919.91 60 80 80 $212.58 $800.00 $5,535.93 $141.72 $200.00 $1,383.98 $568.65 80 $454.92 $113.73 $10,500.00 $4,500.00 $183,512.00 $72,414.39 $255,926.39 60/70/80 PAGE 4 OF 4 Office of State Lands & Investments TRUST LAND SALES W.S. 9-4-715 (k) & (o) As of December 31, 2013 Appropriations & Cash Initial Common School Appropriation 2005 Chpt. 191 Section 060, Footnote 4 Revenue Received Prior to FY 2014 FY 2014 Revenue # $ 2,000,000.00 4,000,000.00 33,240,543.54 1,269.59 Total Available to date $ 39,241,813.13 # FY13 Revenue includes $16 million for Snake River Parcel purchase in Grand Teton National Park by the federal government. Expenditures Duncan Ranch X Bar Ranch Equalization Payment Bonham Ranch Equalization Payment Moriah Ranch Sodergreen Lake (5,940,019.00) (640,957.00) (11,250.00) (11,148,498.99) (595,012.80) Total Expended to date Amount Available ## $16,002,000 is limited to purchasing federal lands and improvements within Wyoming per W.S. 9-4-715 (o) (18,335,737.79) $ 20,906,075.34 ## TRUST LAND SALES, EXCHANGES AND ACQUISITIONS Total Trust Land Sales County Albany Common School Trust Land Sales Total Trust Land Exchanges Statehood to 02-06-2014 7-01-1999 to 02-06-2014 Statehood to 02-06-2014 7-01-1999 to 02-06-2014 Acres Disposed Acres Disposed Acres Disposed Acres Disposed 30,585.75 5,847.44 23,674.55 3,776.61 11.96 Common School Trust Land Exchanges Statehood to 02-06-2014 Acres Disposed Acres Acquired 20,314.74 8-01-1999 to 02-06-2014 Acres Disposed Statehood to 02-06-2014 Acres Acquired 7-01-1999 to 02-06-2014 Acres Acquired Acres Disposed 11,786.91 20,167.81 11,626.91 17,542.71 Acres Disposed Acres Acquired 9,986.54 17,395.28 9,826.54 Big Horn 14,416.59 331.96 13,072.94 Carbon 48,985.75 86.00 42,492.15 86.00 3,260.40 6,081.50 2,860.40 5,658.20 3,243.14 6,081.50 2,843.14 5,658.20 Campbell 33,279.17 2,401.03 27,733.57 2,401.03 760.00 3,632.27 120.00 120.00 760.00 3,632.27 120.00 120.00 Converse 46,255.10 640.00 25,587.36 640.00 840.64 567.45 840.64 567.45 640.00 320.00 640.00 320.00 Crook 25,979.17 290.90 528.68 290.90 528.68 290.90 528.68 160.00 320.00 1,400.00 1,538.27 2,946.26 2,414.44 2,716.26 1,774.35 781.16 827.01 21.16 18.81 1,813.22 1,381.33 440.00 480.00 24,466.74 18,726.58 24,022.51 Fremont 12,446.89 Goshen 24,419.41 1,320.53 10,673.19 1,240.53 290.90 528.68 160.00 320.00 Hot Springs 11,306.56 80.00 8,874.80 80.00 Johnson 21,081.31 735.97 16,562.24 642.64 Laramie 71,511.57 1,395.18 53,980.14 1,882.03 1,579.81 1,395.18 4,993.76 4,892.21 2,796.26 1,851.35 Lincoln 17,505.38 38.70 10,191.35 38.70 Natrona 20,786.37 1,446.22 16,818.14 1,446.22 781.16 827.01 21.16 18.81 1,946.42 1,448.03 Niobrara 18,462.96 40.00 10,410.47 40.00 Park 29,577.09 8.02 16,706.40 8.02 4.15 10.00 Platte 39,503.79 1,001.69 26,093.59 1,161.69 440.00 480.00 Sublette 16,012.78 590.55 840.69 Sheridan 19,821.20 14,011.35 440.00 480.00 4.15 10.00 440.00 480.00 590.55 840.69 102,511.27 1,292.31 47,666.48 1,204.59 540.90 163.00 60.90 80.00 Sweetwater 9,548.21 79.68 7,582.92 39.54 3,200.00 11,201.12 3,200.00 1,526.12 Teton 3,889.96 86.32 3,717.27 86.32 39.59 39.85 39.59 39.85 Uinta 4,279.26 4,117.87 16,175.82 13,640.49 Washakie Weston Grand Totals 10,059.19 50.00 9,186.43 50.00 2,452.12 577.54 628,579.35 16,881.05 446,637.41 14,349.03 42,497.36 44,976.07 Acres Disposed through Exchange Acres Sold Land Sold to State Parks Land Sold to Game & Fish Summary of Common School Lands since July 1999 Acres Acquired through 24,325.58 Exchange 18,587.77 14,349.03 Petrotomics Donation 2,641.09 1,523.59 Westland Acquistion 1,105.56 Duncan Acquistion 6,439.11 15.30 Sodergreen Acquisition Total Acres Disp: 27,537.17 40,213.50 278.26 Moriah Acquisition 12,947.27 Total Acres Acquired: 41,999.06 Net Gain State Acreage: 1,785.56 20,851.40 2,452.12 577.54 36,364.70 30,584.24 February 6, 2014 BOARD MATTER D - 1 ACTION: CONSIDER GRAZING LEASE APPLICATIONS AND LEASE RENEWAL AUTHORITY: W.S. 36-5-105(a); Board of Land Commissioners’ Rules and Regulations, Chapter 4 Lease No Applicant County Address 1-7062 JAMES G. FITZHUGH Converse 1-7068 LONE BEAR RANCH CO. 1-7195 Aums Annual Rental Douglas, WY 15 $76.95 Natrona Midwest, WY 171 $877.23 DOROTHY JOAN REILLY Niobrara Van Tassell, WY 0 $800.00 1-7373 MCWILLIAMS LAND COMPANY, LLC Laramie Cheyenne, WY 243 $1,246.59 1-7522 LESLIE F. TALKINGTON AND NANCY L. TALKINGTON Laramie Hillsdale, WY 246 $1,261.98 1-7998 TRH RANCH INC., A WYOMING CORPORATION Niobrara Lance Creek, WY 169 $866.97 1-8008 TEMPTAN, INC., A LOUISIANA CORPORATION Goshen Niobrara Deridder, LA 296 $1,518.48 1-8013 MAGOON RANCH, A GENERAL PARTNERSHIP Niobrara Lusk, WY 231 $1,185.03 1-8065 DANIEL J. GAUKEL AND CHERYL A. GAUKEL, HUSBAND AND WIFE, AS TENANTS IN COMMON Niobrara Keeline, WY 226 $1,159.38 1-8067 MARK A. AND ROSE F. BEBO, HUSBAND AND WIFE Niobrara Wheatland, WY 138 $707.94 1-8070 MONTY L. FINLEY, BARBARA F. FINLEY, MICHELLE KREMERS, CODY KREMERS Niobrara Lance Creek, WY 141 $723.33 1-8089 JOHNSON FAMILY RANCHES, LLC Niobrara Lusk, WY 1,004 $5,150.52 1-8094 ROBERT L. STODDARD AND GAIL L. STODDARD Niobrara Douglas, WY 163 $836.19 1-8117 JAMES J. WASSERBURGER Niobrara Lusk, WY 171 $877.23 1-8130 ROBERT F. CHRISTENSEN AND JANET K. CHRISTENSEN Niobrara Gillette, WY 0 $5,112.50 1-8136 D & B MOEN RANCH, LLC Niobrara Lusk, WY 300 $1,539.00 Page 1 of 3 1-8166 JAMES WILLIAM KRUSE LAND TRUST Niobrara Lance Creek, WY 173 $887.49 1-8167 FOSHER'S HIDDEN VALLEY RANCH, LLC, A WYOMING LIMITED LIABILITY COMPANY Niobrara Manville, WY 56 $287.28 1-8172 IRENE STORY, TRUSTEE OF THE STORY FAMILY TRUST DATED FEBRUARY 18, 2004 Niobrara Lusk, WY 69 $353.97 1-8181 GLENN E. DIAZ Niobrara Pattison, MS 133 $682.29 1-8196 J.P. WERNER & SONS INC. Niobrara Lance Creek, WY 194 $995.22 1-8214 MARK STEVEN LOHR, TRUSTEE OF THE MARK STEVEN LOHR TRUST OF JUNE 18, 1998 Niobrara Lusk, WY 280 $1,436.40 1-8215 CARRIE TSCHACHER Niobrara Lusk, WY 16 $82.08 1-8242 BONANDER RANCHES LLC, A WYOMING LIMITED LIABILITY COMPANY Albany Casper, WY 124 $636.12 1-8251 ROBERT J. GASKILL, TRUSTEE OF ROBERT J. GASKILL REVOCABLE LIVING TRUST U/A DECEMBER 17, 1999 Niobrara Newcastle, WY 141 $723.33 1-8274 ISENBERGER LAND LLC Campbell Converse Gillette, WY 359 $1,841.67 1-8303 FLYING COWBOY, INC. Niobrara Lance Creek, WY 194 $995.22 1-8312 WYOMING MILITARY DEPARTMENT Platte Cheyenne, WY 76 $389.88 1-8331 ROCK CREEK RANCH I, LTD., A TEXAS LIMITED PARTNERSHIP Goshen Houston, TX 216 $20,041.40 1-8332 TOLLMAN RANCH LLC Niobrara Lusk, WY 149 $764.37 1-8338 TETRAD CORPORATION, A WYOMING CORPORATION Niobrara Lusk, WY 36 $184.68 1-8436 FERGUSON RANCH, INC. Albany Cheyenne, WY 17 $87.21 1-8656 TRAVIS REID WILLS TRUST, TRAVIS R. WILLS, TRUSTEE Converse Douglas, WY 5 $25.65 1-8792 GEOFFREY THOMPSON AND SHAUNA MCKUSKER, HUSBAND AND WIFE Laramie Cheyenne, WY 40 $205.20 1-8803 JAMES B. MENG AND DEBORAH S. MENG, HUSBAND AND WIFE Niobrara Lusk, WY 208 $1,067.04 Page 2 of 3 1-8830 BARRY TRAVNICEK AND SARA TRAVNICEK, HUSBAND AND WIFE, AS JOINT TENANTS WITH RIGHT OF SURVIVORSHIP Niobrara Keeline, WY 1-8866 HARRY L. & MARYEVELYN J. KREJCI Niobrara Lance Creek, WY 31 $159.03 184 $943.92 DIRECTOR'S RECOMMENDATION: The Director recommends approval of these lease applications at the annual rental shown. The annual rental is based on $5.13/AUM for 2014. The leases are to be issued for a ten (10) year term. BOARD ACTION: _____________________________________________________________________________________________ Page 3 of 3 February 6, 2014 BOARD MATTER D - 2 ACTION: CONSIDER GRAZING LEASE APPLICATIONS AND LEASE RENEWAL AUTHORITY: W.S. 36-5-105(a); Board of Land Commissioners’ Rules and Regulations, Chapter 4 Lease No Applicant County Address 2-3924 STUART FRANK GOSNEY AND CYDNEY GOSNEY LONG Johnson 2-3926 LONETREE LAND AND LIVESTOCK LLC 2-3927 Aums Annual Rental Kaycee, WY 110 $564.30 Weston Newcastle, WY 171 $877.23 DALE E. GOSNEY Johnson Kaycee, WY 43 $220.59 2-3928 ESTATE OF CHARLES H. EVITT Johnson Buffalo, WY 171 $877.23 2-3930 AC RANCH INC., A WYOMING CORPORATION Sheridan Sheridan, WY 60 $307.80 2-3933 GEORGE G. KOBIELUSZ AND LORRAINE V. KOBIELUSZ Sheridan Wyarno, WY 47 $241.11 2-3934 RBJ RANCH WEST, LLC Crook Sundance, WY 118 $605.34 2-3935 TIM & JACKIE REIMLER Johnson Buffalo, WY 193 $990.09 2-3936 WILLIAM P. PARKS, III Campbell Weston, WY 210 $1,077.30 2-3937 KRISTY KAY BENSON Weston Sundance, WY 241 $1,236.33 2-3938 RED CANYON RANCH, INC., A WYOMING CORPORATION Johnson Kaycee, WY 24 $123.12 2-3939 DIANE SIMON Weston Newcastle, WY 11 $56.43 2-3942 JOHN D. SWENSON Crook Sundance, WY 61 $312.93 2-3943 AARON L. PELTIER Campbell Recluse, WY 433 $2,221.29 2-3944 J2, INC., A WYOMING CORPORATION Sheridan Sheridan, WY 69 $353.97 2-3945 WILLIAM L. BUTCHER AND JACQUES Y. BUTCHER Campbell Custer, SD 504 $2,585.52 Page 1 of 11 2-3947 DOROTHY R. ELSOM, TRUSTEE OF THE D & D ELSOM TRUST DATED JULY 18, 1997 Johnson Buffalo, WY 39 $200.07 2-3949 WALTER L. ELM Johnson Kaycee, WY 120 $615.60 2-3950 ALLEN E. SLAGLE Weston Newcastle, WY 133 $682.29 2-3952 ALBERTA L. REYNOLDS Crook Oshoto, WY 187 $959.31 2-3953 DEER TRACK RANCH, LLC Campbell Gillette, WY 172 $882.36 2-3954 EDITH CLARKE HARPER Sheridan Parkman, WY 36 $184.68 2-3955 HELEN M. ESPY, CLAY E. ESPY, MYRTLE DELL NABZESKA Johnson Coarsegold, CA 133 $682.29 2-3956 JANET PERINO Weston Newcastle, WY 293 $1,503.09 2-3958 HAROLD'S PLACE, LLC Campbell Gillette, WY 135 $692.55 2-3959 SPRING CREEK LIVESTOCK COMPANY Crook Sundance, WY 109 $559.17 2-3960 JOHN WILLIAM WALSH Sheridan San Antonio, TX 138 $707.94 2-3961 KAYCEE LAND & LIVESTOCK, A GENERAL PARTNERHSIP Johnson Casper, WY 29 $148.77 2-3962 HARDESTY LAND & LIVESTOCK, LLC, A WYOMING LIMITED LIABILITY COMPANY Sheridan Wyarno, WY 410 $2,103.30 2-3963 HAP GODLEY TRUST, GARY M. GODLEY AND CHERYL A. GODLEY Johnson Kaycee, WY 196 $1,005.48 2-3964 BEN N. GARMAN AND LORI L. GARMAN Crook Belle Fourche, SD 200 $1,026.00 2-3965 ROBERT R. ROUSH AND DONA M. ROUSH Campbell Gillette, WY 170 $872.10 2-3966 INYAN KARA GRAZING ASSOCIATION Weston Newcastle, WY 101 $518.13 2-3967 PAXTON E. MACKEY REVOCABLE TRUST Campbell Gillette, WY 181 $928.53 2-3968 CARL KENARD KNUDSON Johnson Arvada, WY 124 $636.12 2-3969 FARMLAND RESERVE, INC. Sheridan Clearmont, WY 34 $174.42 Page 2 of 11 2-3970 D & W LIVESTOCK COMPANY, INCORPORATED Weston Newcastle, WY 2-3971 TWENTY MILE LAND COMPANY, LLC Campbell 2-3972 WARREN J. BURKE 2-3973 2,142 $10,988.46 Gillette, WY 197 $1,010.61 Sheridan Sheridan, WY 132 $677.16 DRY FORK LAND & LIVESTOCK, LIMITED PARTNERSHIP Johnson Edgerton, WY 151 $774.63 2-3974 SUNNY I. TAYLOR AND ROBIN L. TAYLOR Johnson Kaycee, WY 207 $1,061.91 2-3975 KEN BALKENBUSH Sheridan Sheridan, WY 165 $846.45 2-3976 DELBERT L. EITEL AND KEITH EITEL Crook Kaycee, WY 32 $164.16 2-3977 DON BALDWIN FAMILY LIMITED PARTNERSHIP AND GENE BALDWIN Weston Newcastle, WY 270 $1,385.10 2-3978 IBERLIN RANCH PARTNERSHIP, A WYOMING GENERAL PARTNERSHIP Johnson Buffalo, WY 169 $866.97 2-3980 L-G LAND & CATTLE, LLC Johnson Casper, WY 58 $297.54 2-3981 ROBERT L. DILLINGER AND CLARALEE DILLINGER HUSBAND AND WIFE AS TENANTS BY THE ENTIRETIES Campbell Gillette, WY 23 $117.99 2-3983 RICHARD D. HAGLUND & PATRICIA ANN HAGLUND Weston Newcastle, WY 192 $984.96 2-3984 BOBBY HARRIS Campbell Highmore, SD 417 $2,139.21 2-3987 JOSEPHINE A. FULTON AND BONNIE JO (FULTON) WHITNEY Weston Upton, WY 153 $784.89 2-3988 THOMAS J. WESLEY Crook Oshoto, WY 80 $410.40 2-3990 SOURDOUGH RANCH, INC. Crook Hulett, WY 80 $410.40 2-3991 PICKREL LAND & CATTLE CO., INC. Crook Gillette, WY 162 $831.06 2-3992 FLOYD C. RENO AND SONS, INC. Campbell Gillette, WY 175 $897.75 2-3993 FLYING T LAND COMPANY LIMITED PARTNERSHIP, AN UNDIVIDED 1/2 INTEREST AND LITTLE BUFFALO RANCH, LLC, AN UNDIVIDED 1/2 INTEREST Campbell Gillette, WY 186 $954.18 Page 3 of 11 2-3994 PATRICK A. AND MARY S. TLUSTOS, HUSBAND AND WIFE, AS JOINT TENANTS WITH FULL RIGHT OF SURVIVORSHIP Weston Rapid City, SD 52 $266.76 2-3995 SHEELEY RANCH (A CORPORATION) Sheridan Parkman, WY 17 $87.21 2-3999 TERRANCE AND CINDY PERSSON, HUSBAND AND WIFE, TENANTS BY ENTIRETY Campbell Gillette, WY 199 $1,020.87 2-4000 BALLEK LAND & LIVESTOCK, INC. Johnson Clearmont, WY 568 $2,913.84 2-4001 THE DRAKE FAMILY REVOCABLE LAND TRUST, DATED SEPTEMBER 8, 2004 Campbell Phoenix, AZ 194 $995.22 2-4002 WILLIAM D. RAMSBOTTOM Johnson Buffalo, WY 197 $1,010.61 2-4003 BANK OF JACKSON HOLE, TRUSTEE OF THE JOY LUCILLE HALL AND DEAN W. HALL TRUST DATED JULY 10, 1973 Campbell Jackson, WY 179 $918.27 2-4004 FIRST NORTHERN BANK OF WYOMING, SUCCESSOR TRUSTEE OF THE ALFRED J. & PEGGE A. COOKSLEY TRUST, DTD 10-24-06 Sheridan Buffalo, WY 189 $969.57 2-4005 CARL KRETSCHMAN, ONE HALF INTEREST AND RUTH ELLEN RECH, PATTY JO FISHER, WANDA JEAN CROWLEY, JANICE DIANE COOK, JIMMY DEAN OLIVER, JACKIE LYNN OLIVER, MICHELE MARIE OLIVER, KELLY SUE OLIVER, ONE HALF INTEREST Campbell Weston, WY 61 $312.93 2-4006 T.R. LAND, LLC, A WYOMING LIMITED LIABILITY COMPANY Johnson Buffalo, WY 199 $1,020.87 2-4007 BAR 76 LIMITED LIABILITY COMPANY, A WYOMING LIMITED LIABILITY COMPANY Campbell Gillette, WY 196 $1,005.48 2-4008 GMK LLC, A WYOMING LIMITED LIABILITY COMPANY Johnson Stamford, CT 223 $1,143.99 2-4009 SAUNDERS LAND & LIVESTOCK COMPANY, LLC Weston Gillette, WY 225 $1,154.25 2-4010 PADLOCK RANCH COMPANY, INC. Sheridan Ranchester, WY 143 $733.59 2-4011 WILLIAM H. POWNALL Campbell Gillette, WY 180 $923.40 2-4012 JACK R. WILSON Sheridan Lodge Grass, MT 32 $164.16 2-4013 JOHN A. ELSOM AND VALERIE LONG Johnson Buffalo, WY 65 $333.45 2-4014 RANDALL LEE CLABAUGH Sheridan Arvada, WY 10 $51.30 Page 4 of 11 2-4015 DANIELS FAMILY TRUST, AN UNDIVIDED 1/3 INTEREST, SECOND AMENDMENT TO AND COMPLETE RESTATEMENT OF THE DECLARATION OF TRUST OF THE DANIELS FAMILY TRUST, MARILYN LEE DANIELS, TRUSTEE, AN UNDIVIDED 1/6 INTEREST, CARRIE LANGLEY, AN UNDIVIDED 1/6 INTEREST, JOYCE L. O'DONNELL, AN UNDIVIDED 1/6 INTEREST AND JACKIE L. KENNEDY, AN UNDIVIDED 1/6 INTEREST Johnson San Diego, CA 12 $61.56 2-4016 R K STROH, INC. Weston Thief River Falls, MN 157 $805.41 2-4017 STREETER RANCH, A PARTNERSHIP Johnson Kaycee, WY 160 $820.80 2-4018 LEANDRO RIZZUTO Sheridan Sheridan, WY 54 $277.02 2-4019 HAIAR ENTERPRISE, INC., A WYOMING CORPORATION Crook Spearfish, SD 150 $769.50 2-4020 DONALD C. GOSE AND EDA K. GOSE Weston Upton, WY 145 $743.85 2-4021 BURGESS LAND CO., L.L.C. Sheridan Wyarno, WY 2,731 $14,010.03 2-4022 ESTATE OF CHARLES H. EVITT Johnson Buffalo, WY 90 $461.70 2-4023 JAMES E. MARTENS AND KATHLEEN M. MARTENS, AS JOINT TENANTS WITH RIGHT OF SURVIVORSHIP Weston Upton, WY 129 $661.77 2-4024 NEIL DELAPP Sheridan Kaycee, WY 195 $1,000.35 2-4025 CHARLES A. MORKEN Crook Mankato, MN 26 $133.38 2-4028 J & P LIMITED LIABILITY COMPANY Johnson Casper, WY 437 $2,241.81 2-4029 RONALD E. BRUNNER AND BARBARA J. BRUNNER, HUSBAND AND WIFE Weston Sundance, WY 75 $384.75 2-4030 TARVER HEART X PARTNERSHIP Campbell Gillette, WY 327 $1,677.51 2-4031 BRUCE L. MC AMIS & PEGGY C. MC AMIS Crook Alva, WY 117 $600.21 2-4033 PICKREL LAND AND CATTLE CO., INC. Campbell Gillette, WY 170 $872.10 2-4034 FADDIS-KENNEDY CATTLE COMPANY Johnson Sheridan Sheridan, WY 1,118 $5,735.34 2-4035 WATSON LAND, LLC Crook Sundance, WY 166 $851.58 Page 5 of 11 2-4036 EUGENE A. WOCICKI, ARLENE B. ZERBST AND LINDA K. ELLIOTT Weston Newcastle, WY 104 $533.52 2-4038 COW CREEK RANCH I, LLC Campbell Gillette, WY 95 $487.35 2-4039 DOUBLE TRIANGLE RANCH, INC. Weston Newcastle, WY 75 $384.75 2-4040 JERRY ISTA, JUDY ISTA AND ALAN ISTA Crook Hulett, WY 606 $3,108.78 2-4041 BRUCE RILEY, GLENN RILEY AND ARDIS RILEY Crook Beulah, WY 368 $1,887.84 2-4042 JOHN D. SWENSON Crook Sundance, WY 136 $697.68 2-4043 ALAN JOHN KOBIELUSZ AND NANCY KOBIELUSZ, HUSBAND AND WIFE, AS TENANTS BY THE ENTIRETIES Sheridan Sheridan, WY 218 $1,118.34 2-4044 ALAN JOHN KOBIELUSZ AND NANCY KOBIELUSZ, HUSBAND AND WIFE Sheridan Sheridan, WY 155 $795.15 2-4045 JEFFREY D. DUNAWAY AND LUCINDA G. DUNAWAY, HUSBAND AND WIFE AS TENANTS BY THE ENTIRETIES Johnson Plainfield, IN 171 $877.23 2-4047 LARRY ELLSBURY Crook Sundance, WY 217 $1,113.21 2-4049 BRUCE RANCH, INC. Weston Newcastle, WY 178 $913.14 2-4050 HELEN V. HAPE TRUST DATED FEBRUARY 11, 2000 Sheridan Sheridan, WY 220 $1,128.60 2-4051 LORRAINE VANNOY Sheridan Clearmont, WY 126 $646.38 2-4057 JERRY ISTA, JUDY ISTA, ALAN ISTA Crook Hulett, WY 52 $266.76 2-4058 THE HANFT RANCH, A WYOMING LIMITED PARTNERSHIP Sheridan Dayton, WY 463 $2,375.19 2-4059 MYRL J. CAMPBELL AND HOWARD CAMPBELL Sheridan Wyarno, WY 526 $2,698.38 2-4061 SINCLAIR OIL COMPANY D/B/A SUNLIGHT RANCH COMPANY Sheridan Parkman, WY 512 $2,626.56 2-4062 BRYAN STROH, INC., A COLORADO CORPORATION Weston Newcastle, WY 380 $1,949.40 2-4063 JAMES R. PURDY Johnson Buffalo, WY 191 $979.83 Page 6 of 11 2-4064 SIPE RANCHES, A GENERAL PARTNERSHIP Crook Belle Fourche, SD 185 $949.05 2-4065 KUHN RANCH, LLC Johnson Cheyenne, WY 208 $1,067.04 2-4066 D & W LIVESTOCK CO., INC. Weston Newcastle, WY 140 $718.20 2-4067 MATT T. COTTON Campbell Gillette, WY 87 $446.31 2-4068 RAMSBOTTOM RANCH COMPANY, LLC Johnson Buffalo, WY 12 $61.56 2-4069 CRUMP LAND & LIVESTOCK, LLC Crook Gillette, WY 31 $159.03 2-4070 THE HOLE-IN-THE-WALL LIVESTOCK COMPANY, LLC Johnson Kaycee, WY 722 $3,703.86 2-4072 SHIRLEY CUMMINGS AND ROBERT CUMMINGS Crook Hulett, WY 397 $2,036.61 2-4073 CARLTON P. DEWEY Sheridan Sheridan, WY 133 $682.29 2-4074 IBERLIN RANCH, A PARTNERSHIP Campbell Johnson Buffalo, WY 700 $3,591.00 2-4075 F. A. BUSH, INC., A COPRORATION Crook Denver, CO 208 $1,067.04 2-4076 GRAHAM LIVESTOCK, INC. Crook Moorcroft, WY 129 $661.77 2-4077 RECULUSA RANCH, LLC Johnson Kaycee, WY 71 $364.23 2-4079 DUANE D. ODEGARD AND MARY KATHERINE ODEGARD, HIS WIFE Campbell Sheridan Arvada, WY 113 $2,053.14 2-4080 JENSEN RANCH, LLC Crook Belle Fourche, DC 38 $194.94 2-4081 RENKERT MIDDLE FORK RANCH LLC Johnson Kaycee, WY 182 $933.66 2-4082 ROSALIE BRIMMER Crook Moorcroft, WY 53 $271.89 2-4084 CATO SOLDIER CREEK RANCH, LLC, A WYOMING LIMITED LIABILITY COMPANY Johnson Sheridan, WY 684 $3,508.92 2-4085 ROBINSON FAMILY LIMITED PARTNERSHIP, LLP Crook Moorcroft, WY 206 $1,056.78 Page 7 of 11 2-4087 JOHN E. RICE & SONS, INC. Sheridan Sheridan, WY 2-4088 BRIDLE BIT RANCH COMPANY Campbell 2-5072 SMITH CANYON RANCH PARTNERSHIP 2-5075 1,067 $5,473.71 Gillette, WY 171 $877.23 Sheridan Dayton, WY 94 $482.22 RAE ANN SCOTT MORSS AND FIRST INTERSTATE BANK, SHERIDAN, WY, CO-TRUSTEES OF THE RAE ANN SCOTT MORSS LIVING TRUST UAD NOVEMBER 8, 2005 Sheridan Sheridan, WY 94 $482.22 2-5271 RANKIN RANCH, LLC Weston Upton, WY 176 $902.88 2-5275 TOWNSEND COMPANY, INC. Weston Newcastle, WY 18 $92.34 2-5300 CAZA RANCHES LLC, A TEXAS LIMITED LIABILITY COMPANY Johnson Artesia, NM 156 $800.28 2-5400 TARVER HEART X PARTNERSHIP Campbell Gillette, WY 43 $220.59 2-5401 T-CHAIR LAND COMPANY Campbell Gillette, WY 348 $1,785.24 2-5402 SCHLAUTMANN RANCH, LLC, A WYOMING LIMITED LIABILITY COMPANY Campbell Gillette, WY 233 $1,195.29 2-5403 DIAMOND T LIMITED LIABILITY COMPANY Campbell Buffalo, WY 40 $205.20 2-5404 DAVID SOPPE AND CINDY MACLEOD-SOPPE, HUSBAND AND WIFE, AS JOINT TENANTS WITH RIGHT OF SURVIVORSHIP Johnson Kaycee, WY 16 $82.08 2-5405 THUNDER BASIN COAL COMPANY, L.L.C. Campbell St. Louis, MO 165 $846.45 2-5406 SUNNY I. TAYLOR AND ROBIN L. TAYLOR Johnson Kaycee, WY 197 $1,010.61 2-5408 RECORD TJ RANCH LIMITED PARTNERSHIP Campbell Rapid City, SD 191 $979.83 2-5409 DONALD L. SIMMONS Weston Newcastle, WY 197 $1,010.61 2-5410 TRACY LEE HUNT AND DONNA JEAN BALDWIN HUNT, HUSBAND AND WIFE Weston Newcastle, WY 266 $1,364.58 2-5411 PAUL D. ROURKE, LIVING TRUST Campbell Gillette, WY 348 $1,785.24 2-5413 TALKING WATERS CATTLE COMPANY, A WYOMING CORPORATION Johnson Buffalo, WY 135 $692.55 Page 8 of 11 2-5414 SCHURICHT LAND AND REAL ESTATE LIMITED PARTNERSHIP, A WYOMING LIMITED PARTNERSHIP Crook Moorcroft, WY 2-5416 TIPPERARY LAND, LLC Johnson Buffalo, WY 2-5417 WHITE RANCH LLC Sheridan Ranchester, WY 2-5418 JOHN SNYDER AND BRENDA SNYDER, HUSBAND AND WIFE Campbell 2-5420 THOMAS L. & RENEE E. DAVIS 2-5421 50 $256.50 143 $733.59 29 $148.77 Weston, WY 356 $1,826.28 Campbell Gillette, WY 343 $1,759.59 ROBINSON CANYON RANCH, LLC, A WYOMING LIMITED LIABILITY COMPANY Johnson The Villages, FL 132 $677.16 2-5422 MAY CHABOT Johnson Kaycee, WY 31 $159.03 2-5423 ROBERT J. AND LESLIE S. VIREN Sheridan Sheridan, WY 113 $579.69 2-5425 THE HANFT RANCH, A WYOMING LIMITED PARTNERSHIP Sheridan Dayton, WY 147 $754.11 2-5428 PETERS GRAZING ASSOCIATION, INC. Sheridan Sheridan, WY 212 $1,087.56 2-5430 MARK A. SEMLEK AND SHEILA R. SEMLEK, HUSBAND AND WIFE Crook Moorcroft, WY 16 $82.08 2-5431 JENSEN RANCH, LLC Crook Belle Fourche, DC 318 $1,631.34 2-5432 CHRISTENSEN RANCH Weston Newcastle, WY 223 $1,143.99 2-5433 ZEZAS RANCH, INCORPORATED, A WYOMING CORPORATION Johnson Buffalo, WY 227 $1,164.51 2-5434 T CROSS T RANCH, LLC Johnson Casper, WY 155 $795.15 2-5435 JOHN R. STY AND MARY ANN STY Crook Devils Tower, WY 5 $25.65 2-5440 JAMES URRUTY Johnson Buffalo, WY 127 $651.51 Page 9 of 11 2-5458 STRATA ENERGY, INC. Crook Gillette, WY 13 $66.69 2-5459 RUSSELL S. JONES Johnson Buffalo, WY 202 $1,036.26 2-5461 CROSS C LIVESTOCK CO., INC. Johnson Buffalo, WY 80 $410.40 2-5462 ESPONDA RANCH LIMITED PARTNERSHIP, GLADYS M. ESPONDA, GENERAL PARTNER Johnson Buffalo, WY 149 $764.37 2-5471 CHRISTENSEN RANCH Weston Newcastle, WY 168 $861.84 2-5472 LONETREE LAND AND LIVESTOCK LLC Weston Newcastle, WY 346 $1,774.98 2-5473 JOHNSON COUNTY WOOLGROWERS ASSOCIATION Johnson Buffalo, WY 66 $338.58 2-5493 WILLIAM DON AND CAROL MARIE HILTON Johnson Buffalo, WY 83 $425.79 2-5516 DRY BEAVER INC. Weston Newcastle, WY 149 $764.37 2-5536 BRIDLE BIT RANCH COMPANY, A WYOMING CORPORATION Campbell Gillette, WY 194 $995.22 2-5571 J & P LIMITED LIABILITY COMPANY Johnson Casper, WY 167 $856.71 2-5586 RECULUSA RANCH, LLC Johnson Kaycee, WY 71 $364.23 2-5590 BERNICE KOBIELUSZ Sheridan Sheridan, WY 69 $353.97 2-5592 JAMES E. MARTENS AND KATHLEEN M. MARTENS, AS JOINT TENANTS WITH RIGHT OF SURVIVORSHIP Weston Upton, WY 35 $179.55 2-5595 BRUCE D. PHEASANT Johnson Kaycee, WY 148 $759.24 2-5600 BRUCE RANCH, INC. Weston Newcastle, WY 84 $430.92 2-5612 DAVE REED & KIM REED Crook Hulett, WY 51 $261.63 2-5629 WILLIAM D. RAMSBOTTOM Johnson Buffalo, WY 60 $307.80 2-5637 CARR TIDYMAN LLC Weston Newcastle, WY 87 $446.31 Page 10 of 11 2-5645 WALTER L. ELM Johnson Kaycee, WY 141 $723.33 2-5653 D & W LIVESTOCK COMPANY Weston Newcastle, WY 162 $831.06 2-5661 JAMES R. PURDY Johnson Buffalo, WY 4 $20.52 2-5670 WILLIAM LONG Johnson Elko, NV 139 $713.07 2-5693 CHARLES H. JARRARD, JR. AND LINDA SUE JARRARD Johnson Kaycee, WY 0 $5.00 2-5694 ESTATE OF DUANE E. MCCLURE Campbell Sheridan, WY 202 $1,036.26 2-5703 VERLIN DANNAR AND KAREN J. DANNAR Sheridan Sheridan, WY 38 $194.94 2-5707 BELUS LAND CORPORATION Johnson Buffalo, WY 475 $2,436.75 2-5709 STEVEN R. AND BILLIE JO YOUNG Campbell Gillette, WY 130 $666.90 2-5719 DOUG GUSTAFSON Crook Woodside, CA 11 $56.43 DIRECTOR'S RECOMMENDATION: The Director recommends approval of these lease applications at the annual rental shown. The annual rental is based on $5.13/AUM for 2014. The leases are to be issued for a ten (10) year term. BOARD ACTION: _____________________________________________________________________________________________ Page 11 of 11 February 6, 2014 BOARD MATTER D - 3 ACTION: Consideration of Grazing & Special Use Lease Assignments AUTHORITY: W.S. 36-5-105(d); Board of Land Commissioners’ Rules and Regulations, Chapter 4, Section 8 Lease 1-6955 Lessee Wood’s Lore LLC Assignee Neil Forgey and Clarice A. Forgey 1024 Esterbrook Road Douglas, WY 82633 County Niobrara Acres/AUM 640.00/141 1-7179 Gary W. Spiegelberg and JoAnn K. Spiegelberg Garth E. Churches and Leah L. Churches, husband and wife 445 Brubaker Lane Laramie, WY 82070 Albany 640.00/159 1-7603 Eugene Russell Eugene Russell Living Trust, a Trust dated November 29, 1999 1064 Gilchrist Street Wheatland, WY 82201 Platte 2,800.00/763 1-7603 Eugene Russell Living Trust, a Trust dated November 29, 1999 Wickam Ranches, LLC 1385 South Horseshoe Creek Road Glendo, WY 82213 Platte 2,800.00/763 1-7839 Lee Moore Land Trust Lee Moore Land LLC P.O. Box 12 Douglas, WY 82633 Converse 3,235.97/821 1-8196 Kinchen Place, LLC J.P. Werner & Sons Inc. 217 N. Lance Creek Road Lance Creek, WY 82222 Niobrara 640.00/194 Page 1 of 7 Lease 1-8242 Lessee John Owen Peterson Estate Assignee Bonander Ranches LLC, a Wyoming Limited Liability Company 2462 West Balben Road Casper, WY 82601 County Albany Acres/AUM 1,040.67/124 1-8274 Patricia L. Isenberger Litton Isenberger Land LLC 5925 Highway 59 Gillette, WY 82718 Campbell Converse 1,480.27/359 1-8332 Richard E. and Claudetta M. Tollman Claudetta M. Tollman 737 Indian Creek Road Lusk, WY 82225 Niobrara 640.00/149 1-8332 Claudetta M. Tollman Tollman Ranch LLC 737 Indian Creek Road Lusk , WY 82225 Niobrara 640.00/149 1-8492 Norman E. Kinsey and Joan L. Kinsey, husband and wife WyoHerz, LLC 11980 East Ida Place Englewood, CO 80111 Albany 601.47/141 1-8512 Kent I. Hunter Kylie A. Hunter 2700 Road 32 Yoder, WY 82244 Goshen 40.00/13 1-8747 Bernard McGuire, Jr. and Andrea McGuire, husband and wife Rietsch Enterprises, Inc., a Wyoming Corporation 1920 Plateau Street Laramie, WY 82070 Platte 11.50/3 2-3704 Mitchel M. Maycock and Joseph C. Maycock Mitchel M. Maycock and/or Joseph C. Maycock with Right of Survivorship P.O. Box 1795 Gillette, WY 82717 Campbell 640.00/139 Page 2 of 7 Lease Lessee Assignee County Acres/AUM 2-3896 Michael S. Renkert and Elizabeth Renkert, Trustee or Successors in Trust, under the Michael S. Renkert Living Trust, dated 1-24-2000, and Elizabeth Renkert and Michael S. Renkert, Trustee, or Successors in Trust, under the Elizabeth Renkert Living Trust, dated 1-24-2000 Renkert Middle Fork Ranch LLC P.O. Box 227 Kaycee, WY 82639 Johnson 640.00/158 2-3947 Donald J. and Dorothy R. Elsom, Trustees of the D & D Elsom Trust dated July 18, 1997 Dorothy R. Elsom, Trustee of the D & D Elsom Trust dated July 18, 1997 29310 Old Highway 87 Buffalo, WY 82834 Johnson 160.00/39 2-3958 Marilyn R. and Dudley P. Mackey Harold’s Place, LLC 8466 Hwy 14-16 Gillette, WY 82716 Campbell 640.00/135 2-3963 Ralph T. Godley, Shirley S. Godley and Gary M. Godley, Cheryl A. Godley Hap Godley Trust, Gary M. Godley and Cheryl A. Godley P.O. Box 304 Kaycee, WY 82639 Johnson 720.00/196 2-3976 Delbert L. Eitel & Marna D. Eitel Delbert L. Eitel P.O. Box 338 Kaycee, WY 82639 Crook 36.30/32 2-3976 Delbert L. Eitel Delbert L. Eitel and Keith Eitel P.O. Box 338 Kaycee, WY 82639 Crook 36.30/32 Page 3 of 7 Lease Lessee Assignee County Acres/AUM 2-3987 Josephine A. Fulton and William G. Fulton Josephine A. Fulton and Bonnie Jo (Fulton) Whitney P.O. Box 13 Upton, WY 82730 Weston 640.00/153 2-4004 First National Bank of Buffalo as Successor Trustee of the Alfred J. and Pegge A. Cooksley Trust dated October 24, 2006 First Northern Bank of Wyoming, Successor Trustee of the Alfred J. & Pegge A. Cooksley Trust, dtd 10-24-06 P.O. Box 400 Buffalo, WY 82834 Sheridan 640.00/189 2-4012 Jack R. Wilson and Hazel M. Wilson, his wife, as joint tenants with right of survivorship Jack R. Wilson P.O. Box 627 Lodge Grass, MT 59050 Sheridan 120.00/32 2-4024 Neil DeLapp and wife Norma Faye DeLapp Neil DeLapp 2020 Mayoworth Road Kaycee, WY 82639 Sheridan 640.00/195 2-4025 Marie McCollum Charles A. Morken 100 Madison Avenue Mankato, MN 56001 Crook 80.00/26 2-4044 Alan John Kobielusz, Kathleen Johnson, Carole Morgan, Concetta Kobielusz, and Frank Martin Kobielusz Alan John Kobielusz and Nancy Kobielusz, Husband and Wife 818 US Highway 14 Sheridan, WY 82801 Sheridan 360.00/155 2-4050 Helen Hape Helen V. Hape Trust dated February 11, 2000 377 Lower Prairie Dog Road Sheridan, WY 82801 Sheridan 428.22/220 Page 4 of 7 Lease Lessee Assignee County Acres/AUM 2-4057 Jerry P. Ista and Judy A. Ista, Trustees of the Ista Family Trust, dated April 4, 1997and as restated March 14, 2005 Jerry Ista, Judy Ista, Alan Ista 461 New Haven Road Hulett, WY 82720 Crook 160.00/52 2-4081 Michael S. Renkert and Elizabeth Renkert, Trustee or Successors in Trust, under the Michael S. Renkert Living Trust, dated 1-24-2000, and Elizabeth Renkert and Michael S. Renkert, Trustee, or Successors in Trust, under the Elizabeth Renkert Living Trust, dated 1-24-2000 Renkert Middle Fork Ranch LLC P.O. Box 227 Kaycee, WY 82639 Johnson 640.00/182 2-5102 Larry R. Fitzcharles and Lee H. Fitzcharles, Husband and Wife Lee H. Fitzcharles 230 Little Crazy Woman Road Buffalo, WY 82834 Johnson 440.00/107 2-5136 Michael S. Renkert and Elizabeth Renkert, Trustee or Successors in Trust, under the Michael S. Renkert Living Trust, dated 1-24-2000, and Elizabeth Renkert and Michael S. Renkert, Trustee, or Successors in Trust, under the Elizabeth Renkert Living Trust, dated 1-24-2000 Renkert Middle Fork Ranch LLC P.O. Box 227 Kaycee, WY 82639 Johnson 516.41/87 Page 5 of 7 Lease Lessee Assignee County Acres/AUM 2-5218 James A. Wolff and Joan Wolff Joan Wolff 148 Recluse Road, HCR 77 Gillette, WY 82716 Campbell 640.00/595 2-5218 Joan Wolff Joan Wolff and James H. Wolff 148 Recluse Road, HCR 77 Gillette, WY 82716 Campbell 640.00/595 2-5417 Nancy H. White and William P. White, as joint tenants with full rights of survivorship William P. White P.O. Box 5 Ranchester, WY 82839 Sheridan 80.00/29 2-5417 William P. White White Ranch LLC P.O. Box 5 Ranchester, WY 82839 Sheridan 80.00/29 2-5558 Neil DeLapp an undivided ½ interest and Norma Faye DeLapp an undivided ½ interest Neil DeLapp 2020 Mayoworth Road Kaycee, WY 82639 Johnson 2,657.07/542 2-5569 Dean H. Cosner Revocable Trust dated 15th of January , 1997 Hay Creek Surface, LLC 1213 Hilltop Court Gillette, WY 82718 Campbell 640.00/167 3-6732 Jerry C. Aimone and Christine Gillins Aimone Christine Gillins Aimone P.O. Box 65 Ft. Bridger, WY 82933 Uinta 280.00/21 3-6732 Christine Gillins Aimone Clifford D. Martin P.O. Box 427 Mountain View, WY 82939 Uinta 280.00/21 Page 6 of 7 Lease Lessee Assignee County Acres/AUM 3-6891 Theodore L. Knapp and Thomas E. Knapp Knapp Brothers, LLC 66 Turnberry Road Sheridan, WY 82801 Fremont 120.00/16 3-6913 Wagner Cattle Company, LLC Tom Hutcheson 182 Mockingbird Lane Gurley, AL 35748 Park 2,359.44/947 3-7291 Schmitt Family Living Trust Cecilia Cuin 419 6th Street Rawlins, WY 82301 Carbon 1,880.00/278 3-7291 Cecilia Cuin Don & Cecilia Cuin, Husband and Wife 419 6th Street Rawlins, WY 82301 Carbon 1,880.00/278 3-7713 Wagner Cattle Company, LLC Tom Hutcheson 182 Mockingbird Lane Gurley, AL 35748 Park 800.00/560 3-8451 Cecil Ray Weber and Kathleen Weber, husband and wife as tenants by the entireties with right of survivorship Weber Ranch Co., a Wyoming Corporation P.O. Box 70 Baggs, WY 82321 Carbon 640.00/97 3-8748 Iron Creek Ranch, Inc. Five Bar T Ranch, Inc. 6505 Iron Creek/Rasmus Lee Road Casper, WY 82604 Carbon 2,460.09/705 Total Assignments 46 DIRECTOR'S RECOMMENDATION: The Director recommends approval of the above assignments. BOARD ACTION: ______________________________________________________________________ Page 7 of 7 February 6, 2014 BOARD MATTER D -4 ACTION: CONSIDERATION OF SUBLEASES AUTHORITY: W.S. 36-5-105(d); Board of Land Commissioners’ Rules and Regulations, Chapter 4, Section 9 Lease No. County Lessee Sublessee Term Annual Rental Excess Rental Acres Type of Aums Agreement 1-6930 Niobrara EDMOND A. COOK Bryan Brost, Seth Brost & Chris Canaday 05/15/2013 to 12/31/2014 220.80 246.60 120.000 46 Pasture 1-6955 Niobrara NEIL FORGEY AND CLARICE A. FORGEY Benchmark Ranch, LLC 01/05/2012 to 12/31/2013 676.80 549.90 640.000 141 Sublease 1-7139 Goshen THE RALPH SCHUPPAN REVOCABLE TRUST Ross & Dede Buckhaults 05/01/2013 to 10/31/2013 1,363.20 390.40 640.000 284 Pasture 1-7142 Laramie DYNO NOBEL INC. Duck Creek Grazing Association 08/01/2013 to 09/30/2013 1,123.20 629.62 638.720 234 Pasture 1-7210 Converse LEBAR RANCH LLC George Etchemendy 06/01/2013 to 07/01/2013 82.56 113.52 640.000 172 Pasture 1-7339 1-7350 1-8566 Albany HARRIS RANCH LLC, A WYOMING LLC Dennis Miller 06/01/2013 to 09/30/2013 199.68 175.56 2,915.280 416 Pasture 1-7485 Platte LEWIS ARCHIE Jack Eller 10/15/2013 to 10/15/2014 662.40 173.19 480.000 138 Sublease 1-7488 Albany ROBBINS RANCHES, INC. Doug Dunlap 06/01/2013 to 09/30/2013 96.00 141.20 120.000 20 Pasture 1-7595 Niobrara RUTH KILMER TRUST Joel D. Wasserburger 05/15/2013 to 12/31/2013 1,233.60 1,514.40 640.000 257 Sublease 1-7644 Niobrara ANNIE M. PARMELY Rod A. Nelson 06/14/2013 to 09/25/2013 235.20 290.82 160.000 49 Pasture 1-8065 Niobrara DANIEL J. GAUKEL AND CHERYL A. GAUKEL, HUSBAND AND WIFE, AS TENANTS IN COMMON Andrew Gaukel 01/01/2013 to 12/31/2013 1,084.80 56.50 640.000 226 Sublease 1-8187 Natrona CAPP A. CARLSON Flying A Ranch, Inc. 01/01/2014 to 12/31/2016 338.58 97.91 320.000 66 Sublease 1-8203 Albany ROBBINS RANCH INC. Martha Page 06/01/2013 to 10/01/2013 72.00 124.13 80.000 15 Pasture 1-8214 Niobrara MARK STEVEN LOHR, TRUSTEE OF THE MARK STEVEN LOHR TRUST OF JUNE 18, 1998 Cody Thompson 05/22/2013 to 09/19/2013 1,344.00 1,465.80 640.000 280 Pasture Page 1 of 3 1-8239 Goshen UNITED SURFACE & MINERALS, LLC Levi Kosmicki 01/01/2014 to 12/31/2014 1,210.68 0.00 562.120 236 Sublease 1-8251 Niobrara ROBERT J. GASKILL, TRUSTEE OF ROBERT J. GASKILL REVOCABLE LIVING TRUST U/A DECEMBER 17, 1999 Tomas Martinez and Jeff Boner 02/28/2013 to 09/30/2013 676.80 269.60 640.000 141 Pasture 1-8265 Natrona LORRAINE BEBOUT Loreen Anderson 05/13/2013 to 10/01/2013 816.00 332.17 640.000 170 Pasture 1-8667 Platte EDITH COOK Dan Artery 01/01/2010 to 12/31/2013 4,838.42 0.00 751.000 49 Crop 1-8728 Laramie JEFFREY AND LYNNE CARLTON Todd Christensen 01/01/2014 to 12/31/2014 246.24 0.00 480.000 48 Sublease 1-8778 Laramie MKP WYOMING PROPERTY LLC Darel Brown 06/04/2013 to 10/03/2013 240.00 195.00 160.000 50 Pasture 1-8792 Laramie GEOFFREY THOMPSON AND SHAUNA MCKUSKER, HUSBAND AND WIFE Guy Landers 01/01/2014 to 12/31/2014 205.20 32.40 120.000 40 Sublease 1-8858 Laramie JEFFREY CHARLES CARLTON AND LYNNE FLOWERS CARLTON Mark E. Child 2013 Grazing Season 229.82 390.71 640.000 228 Pasture 2-3592 2-4018 Sheridan LEANDRO RIZZUTO James Ankney 07/15/2013 to 09/01/2013 499.20 450.40 320.000 104 Pasture 2-3855 Crook MARY A. WOLFF Tim and Linda Burch 09/09/2013 to 10/31/2013 667.20 674.40 640.000 139 Pasture 2-3968 Johnson CARL KENARD KNUDSON Karlon Knudson 01/01/2014 to 01/01/2016 636.12 0.00 480.000 124 Sublease 2-3983 Weston RICHARD D. HAGLUND & PATRICIA ANN HAGLUND Lee Elliott 06/18/2013 to 08/31/2013 921.60 787.20 640.000 192 Pasture 2-4025 Crook CHARLES A. MORKEN Henry Lambright 05/15/2012 to 10/30/2012 117.52 68.44 80.000 26 Pasture 2-4026 2-5487 Johnson SASOL SYNFUELS INTERNATIONAL PTY LTD Merlin Ranch, Inc. 03/01/2013 to 02/29/2016 7,711.40 0.00 2,122.120 2-5051 Crook STUART RANCH LIMITED PARTNERSHIP Mark Thompson 06/01/2013 to 08/31/2013 307.20 378.56 160.000 64 Pasture 2-5102 Johnson LEE H. FITZCHARLES Tom Rule, et al 06/12/2013 to 08/12/2013 513.60 5.00 440.000 107 Pasture 2-5413 Johnson TALKING WATERS CATTLE COMPANY, A WYOMING CORPORATION AHT Cattle Co. 05/04/2013 to 09/15/2013 648.00 793.80 640.000 135 Pasture 2-5495 Crook NEIMAN TIMBER COMPANY, LC Graham Livestock, Inc. 03/01/2013 to 03/01/2014 148.80 465.60 200.000 532 Sublease 31 Sublease Page 2 of 3 2-5526 Campbell SUNBURST RANCH, INC. Durham Ranches, Inc. 05/01/2013 to 10/31/2013 835.20 590.40 640.000 174 Pasture 2-5570 Crook LARRY C. MILLS, TOMMY M. MILLS, GARY W. MILLS 62 Timber and Livestock, LLC 09/01/2006 to 09/01/2016 927.32 0.00 640.000 194 Sublease 2-5618 Johnson HIP INVESTMENTS, LLC Soldier Creek Acquisitions, LLC 01/01/2013 to 12/31/2013 585.60 164.70 640.000 122 Sublease 3-6901 3-7156 3-7698 3-8732 Hot Springs RUSSELL RANCH, LLC Jerry Johnson 02/01/2013 to 02/28/2016 1,171.20 451.40 960.000 244 Sublease 3-7258 Carbon ANDERSON FARMS INCORPORATED Bartlett Cattle and Jon Suttee 05/08/2013 to 10/31/2013 3,718.40 0.00 640.000 Pasture 3-7667 3-7931 Hot Springs HENTHORNE LIMITED PARTNERSHIP TD Farms, Inc. 05/15/2013 to 10/31/2013 878.40 960.75 952.310 183 Pasture 3-7775 Carbon L. DEAN PETERSON & WILMA REIMAN PETERSON Silver Spur Operating Company, LLC 05/01/2013 to 04/30/2016 585.60 278.16 640.000 122 Sublease 3-8194 Sublette OLSON 3-H RANCH, LLC Jim Jensen 01/01/2010 to 12/31/2015 518.95 0.00 558.780 107 Sublease 3-8311 Park SWITCHBACK RANCH, LLC. Tom George & Mark Schneider 2013 Grazing Season 326.40 0.00 640.000 68 Pasture 3-8461 Park CRESCENT MOON RANCH, LLC Joshua V. Friesen 04/15/2010 to 11/15/2015 819.65 0.00 640.000 169 Sublease 3-8553 Fremont NORTH FORK LAND & CATTLE, LLLP Ted Seely/Sand Mesa, Inc. 05/15/2012 to 11/01/2012 325.44 111.96 313.120 72 Pasture 3-8614 Park WAPITI LIMITED PARTNERSHIP Kim Wagler 09/30/2013 to 09/29/2014 139.20 14.35 119.070 29 Sublease 40,197.98 13,384.55 25,772.520 TOTALS 6,244 Annual Rental is based on $4.78, $4.85, $4.52, $4.80, and $5.13 per AUM DIRECTOR'S RECOMMENDATION: The Director recommends approval of the above agreements for the term specified, with the excess rental assessed as required by law. The Board is not responsible for the arrangement of the parties as to the period of the sublease which extends beyond the expiration date of any lease. BOARD ACTION: _____________________________________________________________________________________________ Page 3 of 3 February 6, 2014 BOARD MATTER D - 5 ACTION: CONSIDER APPLICATIONS FOR CONSTRUCTION OF IMPROVEMENTS AUTHORITY: W.S. 36-5-110, Board of Land Commissioners’ Rules and Regulations, Chapter 4, Section 11 Lease No Applicant Description County Class of Improvements 1-6916 Burnett Land & Livestock, LTD., LLLP Sec. 16, Twp. 12.0N, Rng. 61.0W Laramie Stock Tank/Pipeline 1-8327 Bard Ranch Company, A Wy. Corp. Sec. 15, Twp. 23.0N, Rng. 67.0W Sec. 16, Twp. 23.0N, Rng. 67.0W Platte Estimated Value $ 9,688.00 Total Value $ Cost Share $ 9,688.00 9,688.00 $ 24,565.38 24,565.37 Pipelines Pipelines Total Value Cost Share 1-8338 Tetrad Corporation Sec. 16, Twp. 38.0N, Rng. 62.0W Niobrara Stockwater Wells Stockwater Tanks 49,130.75 39,304.50 $ Total Value 1-8840 2-4032 Wyoming Military Department Brinkerhoff Inc. Sec. 16, Twp. 26.0N, Rng. 66.0W Sec. 22, Twp. 57.0N, Rng. 83.0W Sec. 23, Twp. 57.0N, Rng. 83.0W Platte Sheridan Stockwater Wells 13,500.00 $ 24,131.25 Total Value $ Cost Share $ 24,131.25 13,305.00 $ 2,000.00 6,000.00 Reservoirs Reservoirs Total Value 2-5172 2-5613 Adami Ranch, LLC SR Cattle Company Sec. 36, Twp. 53.0N, Rng. 80.0W Sec. 19, Twp. 57.0N, Rng. 81.0W Sec. 12, Twp. 57.0N, Rng. 82.0W Sec. 13, Twp. 57.0N, Rng. 82.0W Sec. 24, Twp. 57.0N, Rng. 82.0W Johnson Sheridan Miscellaneous Outbuildings 8,000.00 $ 70,000.00 Total Value $ 70,000.00 $ 2,000.00 2,000.00 2,000.00 2,000.00 Roadways Roadways Roadways Roadways Total Value 3-7291 Don Cuin Sec. 16, Twp. 28.0N, Rng. 78.0W Carbon Stock Tank/Pipeline 12,000.00 1,500.00 8,000.00 $ 7,500.00 Total Value $ Cost Share $ 7,500.00 7,500.00 Page 1 of 2 3-8025 Prospect Land and Cattle LLC Sec. 35, Twp. 45.0N, Rng. 99.0W Hot Springs Stock Tank/Pipeline $ 8,000.00 Total Value $ 8,000.00 DIRECTOR'S RECOMMENDATION: The Director recommends that the Board approve the above applications for construction of improvements. However, the approval of the above applications is not to be considered Board approval of the estimated value of the improvements submitted by the applicants. BOARD ACTION: _____________________________________________________________________________________________ Page 2 of 2 February 6, 2014 BOARD MATTER D - 6 ACTION: Consider Director’s Request for Cancellation of Lease; Special Use Lease No. SU-512, POC-I, a Nevada Limited Liability Company - Lessee AUTHORITY: W.S. 36-5-114(d), Special Use Lease No. SU-512, Section 6(a)(2) ANALYSIS: On November 21, 2013 the Director issued the attached Request for Cancellation of Lease. The lessee did not request a hearing within the twenty (20) day period as provided by law. Therefore, the Director is requesting that the above special use lease be canceled for the reasons stated in the request for cancellation. DIRECTOR’S RECOMMENDATION: The Director recommends that the Board cancel Special Use Lease No. SU-512 for the reasons stated in the Director’s Request for Cancellation of Lease dated November 21, 2013. BOARD ACTION: _____________________________________________________ DIRECTOR’S REQUEST FOR CANCELLATION OF LEASE OFFICE OF STATE LANDS AND INVESTMENTS LEASE NO. SU-512 LESSEE: POC-I, a Nevada Limited Liability Company LEGAL DESCRIPTION: All that portion of the SESE of Section 36 Township 51 North, Range 72 West, of the 6th P.M., Campbell County, Wyoming, being more particularly described as follows: Beginning at a point in SESE of said Section from which a point on the south boundary of section bears south a distance of 690 feet, more or less, from which the southeast corner of said section bears east a distance of 915 feet, more or less; Said point ofbeginning being the NW corner ofthe description, thence S.90°00’E. a distance of285 feet; thence S. 00°00’E., a distance of 60 feet; thence N.90°00’W., a distance of285 feet; thence N.00°00’E., a distance of 60 feet, more or less to the point of beginning. The above described parcel of land contains 0.39 acres, more or less. RELEVANT BACKGROUND: The Wyoming Board of Land Commissioners (the Board) in regular session on June 5, 2005, approved Special Use Lease No. SU-5 12 to Fancher Oil, LLC for a twenty-five (25) year term, (copy attached). The purpose of the lease was to install and operate a water disposal well, to dispose of water produced from the Reb Fee #31-11 oil well, located in Section 31, Township 51 North, Range 72 West, 6th P.M. Rental for the special use lease was based on the amount of water disposed in the well, at $.05 per barrel. Following the special use lease approval, the Board approved lease assignments from Fancher Oil to Winter Ridge Energy, LLC on December 14, 2006, and then from Winter Ridge Energy to the current lessee, POC-I, LLC, on February 2, 2012. Related to POC-I’s water-well lease operations is another lease the Board approved, to a different company, but which covers the same lands covered by POC-I’s lease—Coal Lease No. 0-26652 to Western Fuels-Wyoming, Inc. (WFW), covering all of Section 36, Township 51 North, Range 72 West, 6”~ P.M. (copy attached). WFW operates the Dry Fork Mine in Campbell County and mining operations have continued to advance towards POC-I’s injection well site. In a letter from WFW dated September 30, 2013 (copy attached), WFW requested that the Office of State Lands and Investments seek cancellation of POC-I’s special use lease to allow WFW to continue mining the lands on its lease, including the land occupied by POC-I’s well site. In a meeting with Office of State Lands staff on September 30, 2013, the attorney for WFW, Rex Johnson, advised that WFW had discussed the situation with POC-I, that POC-I is not opposed to re locating in another area, and that to advance WFW’s interest in ending POC-I’s well operations, WFW had canceled its road and pipeline agreements with POC-I which had allowed POC-I access to the disposal well through lands owned by WFW. LEGAL BASIS FOR CANCELLATION: Section (6)(a)(2) ofthe special use lease states that the Lessor, the Board, reserves “[he right to lease and dispose of all coal, oil, gas and other minerals, and all deposits of clay, stone, gravel and sand valuable for building, mining, or commercial purposes, and all timber, together with the right to mine and remove such minerals and other deposits and timber with the right of ingress and egress thereto, and to cancel this lease as to any portion of the premises when required for these purposes.” DIRECTOR’S DECISION: Finding that it is appropriate to cancel the lease under its term, the Director is requesting cancellation of Special Use Lease SU-512 in accordance with Section (6)(a)(2) of the lease agreement. The lessee, POC-I, has twenty (20) days from receipt of this notice by certified mail to request a hearing on this matter. The request for hearing must be made in writing and filed with the Office of State Lands and Investments. If a hearing is not properly requested within the allowed time, the lessee shall be deemed to have waived he opportunity for a hearing and the Board shall proceed to consider the request for cancellation. DATED AT CHEYEM’JE, WYOMING this 2/’~dayof AJ.LI€ - •& ~/4 Br dget Hill, Li irector Office of State Lands and Investments ,2013. LEASE NO. SU-512 (Bd. Appvd. 9-3-1 998) STATE OF WYOMING BOARD OF LAND COMMISSIONERS SPECIAL USE LEASE (1) PARTIES The parties of this lease are: - FANCHER OIL, LLC whose address is 1801 BROADWAY, SUITE 720, DENVER, CO 80202, (Lessee), and the Wyoming Board of Land Commissioners, (Lessor), whose address is Office of State Lands and Investments, 122 West 25th Street, 3rd FloorWest, Cheyenne, Wyoming 82002-0600. In the event that the addresses listed above change, the party whose address has changed shall immediately notify the other party to the lease in writing. (2) PURPOSE OF LEASE The Lessor hereby leases to Lessee, for the purpose of WATER DISPOSAL WELL & ACCESS ROAD only, the following described lands, subject to all terms, conditions, regulations, and restrictions contained in this lease, the Statutes of the State of Wyoming, and the Rules and Regulations of the Board of Land Commissioners. Any other use by Lessee is a violation of the terms and conditions of the lease. - DESCRIPTION: All that portion of the SESE of Section 36 Township 51 North, Range 72 West, of the Wyoming, being more particularly described as follows: 6th P.M., Campbell County, Beginning at a point in SESE of said Section from which a point on the south boundary of section bears south a distance of 690 feet, more or less, from which the southeast corner of said section bears east a distance of 915 feet, more or less; Said point of beginning being the NW corner of the description, thence S.90°00’E. a distance of 285 feet; Thence S. 00°00’E., a distance of 60 feet; Thence N.90°00’W., a distance of 285 feet; Thence N.00°00’E., a distance of 60 feet, more or less to the point of beginning. The above described parcel of land contains 0.39 acres, more or less (3) TERM OF LEASE The term of this lease shall begin at 5:00 P.M. on the 1st day of APRIL, 2005, and terminate at 5:00 P.M. on the 1” day of APRIL, 2030. - (4) RENTAL PAYMENT The lessee shall pay to the Lessor at the Office of State Lands and Investments, Hersohler Building, Cheyenne, Wyoming, a rental for the use of the premises in the amount and manner as follows: - $05 PER BARREL FOR WATER DISPOSED IN THE WELL SUBJECT TO FIVE YEAR RENTAL REVIEW Annual rentals are due and payable on or before the anniversary date of this lease. If the annual rental is not paid on or before the anniversary date a 10% late fee will be assessed. (5) (6) LESSEE’S RESPONSIBILITIES Lessee Agrees: (a) Not to take or disturb any fur bearing animals on the premises except where a permit to do so has been secured from the Wyoming Game and Fish Commission and consent thereto has also been obtained from the Office of State Lands and Investments. (b) To observe state and federal laws and regulations for the protection of fish and wildlife. (c) Not to cut, destroy or remove, or permit to be cut, destroyed or removed, any timber that may be upon the premises. The Lessee shall promptly report to the Lessor the cuffing or removal of timber by other persons. (d) To maintain all improvements located on the premises in a good state of repair at the Lessee’s expense. (e) Noxious weeds and pests will be controlled by lessee. Lessee may work in conjunction with County Weed and Pest Control Districts to develop projects to be submitted to the Office of State Lands and Investments for reimbursement of certain costs of eradication of weeds and pests on state lands. Cost estimates must be submitted by County Weed and Pest Districts and approved by the Office to be eligible for reimbursement. Subject to funding availability, the total cost of the project will be reimbursed for leafy spurge infestations, for all other noxious weeds and pests, the cost of materials only. Lessee of state lands shall pay the cost of application or other control measures. (f) To dispose of all waste in a proper manner and not to allow debris, garbage, contaminates or other refuse to accumulate on the leased premises. Any landfill or open dump operated by the Lessee on the leased premises, must be permitted by the Board and must comply with State law and the rules and regulations of the Department of Environmental Quality. Any landfiN, open dump, accumulation of debris, garbage, contaminants or refuse of any kind which the Lessee placed, or allowed to be placed, on the leased premises, and which has not been authorized by the Board, must be removed at the LesseeOs expense. Lessee further agrees that the Lessor shall have the right to remove debris, garbage, contaminants, or other refuse which the Lessee placed on the premises and collect the cost of such removal from the Lessee. The Lessee further agrees to document and report, as soon as possible, to the Office any unauthorized dumping of debris, garbage, contaminants, or other refuse on the leased premises, by parties other than the Lessee, so that appropriate investigation and corrective measures can be taken by the Lessor. (g) Lessee shall restore the leased premises to as near its original condition as possible upon termination of this lease or any renewal thereof. (h) Lessee to maintain a $15,000.00 bond on the well until such time as it is no longer being used and has been plugged and abandoned. - SPECIAL PROVISIONS: (a) RESERVATIONS Lessor Reserves: (1) The right to order the sale of all or any portion of the premises at any time, subject to this lease. (2) The right to lease and dispose of all coal, oil, gas, and other minerals, and all deposits of clay, stone, gravel and sand valuable for building, mining, or commercial purposes, and all timber, together with the right to mine and remove such minerals and other deposits and timber with the right of ingress and egress thereto, and to cancel this lease as to any portion of the premises when required for these purposes. (3) The right to hold, sell, appropriate or otherwise dispose of any fences or other improvements of any character owned by the Lessee upon the premises, to insure the payment of rentals, damages or other expenses accruing to the Lessor by virtue of this lease. - (4) The right to enter in and upon the premises at any time for purposes of inspection or management. (5) The right at any time to grant easements across the premises for ditches, canals, tunnels, telephone and telegraph lines, pipelines, power lines, or other lawful purposes, with right of ingress and egress thereto. (6) The right to use or lease the premises or any part thereof at any time for any purpose other than the rights and privileges granted by this lease. (7) The privilege of any person to use the premises for casual recreational day uses, fishing and hunting pursuant to Chapter 13 of the Rules and Regulations of the Board of Land Commissioners. (8) All rights not expressly granted to Lessee by this lease are reserved to the Lessor. (b) ASSIGNMENTS This lease shall not be assigned without the prior approval of the Lessor. Any assignment of this lease shall be recorded in the Office of State Lands and Investments. (c) SUBLEASES The premises shall not be subleased or made subject to any contract, or other agreement of any kind, without the approval of the Lessor. Such approval may be conditioned upon payment of additional rental to the Lessor. (d) IMPROVEMENTS (1) Lessee shall have the right to construct or make improvements upon state lands in the amount of $2,000.00 per section, without first obtaining permission. (2) Lessee shall request permission to construct or make improvements in excess of $2,000.00 in value per section by submitting a completed application form furnished by the Office. (3) Any improvement regardless of value, which will restrict existing public access or alter existing multiple use of the lands must be approved by the Board of Land Commissioners. (4) Unless permission has been obtained in the manner provided, the owner of the improvements in excess of the $2,000.00 per section shall not be entitled to compensation as provided by W.S. 36-5-ill and 36-9-105, and upon expiration of the lease the improvements shall forfeit to and become the property of the state; except that within 120 days from the date of the expiration of the lease, the owner may remove such improvements in a manner which minimizes injury to the land. (e) ENTRY UPON LEASED PREMISES BY THIRD PARTIES Third parties desiring to enter upon the leased premises shall contact the lessee prior to entry, unless it is a member of the Board of Land Commissioners or its representatives or a member of the public when entering for purposes of hunting and fishing and casual recreational use pursuant to provisions of Chapter 13 of the Rules and Regulations of the Board of Land Commissioners. For all entries by third parties, the lessee may negotiate a payment for damage to the surface of the leased premises, pursuant to Chapter 4, Section 13. Payments must be consistent with payments for damages to adjacent lands. (f) CANCELLATION If it be determined by the Lessor that this lease has been procured by fraud, deceit, or misrepresentation, or if the premises or any part thereof be used for unlawful, unauthorized, or illegal purposes, or if the Lessee fails to perform or violates any of the terms of this lease, the Lessor shall have power and authority to cancel this lease. (g) SURRENDER OF PREMISES UPON TERMINATION OF LEASE The Lessee shall, upon termination of this lease, surrender and deliver unto the Lessor the peaceful and uninterrupted possession of the premises. The Lessee may remove his improvements in accordance with W.S. 36-5-110. (h) TIME AND SPECIFIC PERFORMANCE are each of the essence of this lease, and all agreements and conditions herein contained shall extend to and be binding alike upon the heirs, administrators, successors and assigns of the parties hereto. (i) RELIANCE The Lessor has expressly relied on the representations made by the Lessee in the written application to lease the premises. (j) EXCHANGE The lease is granted upon the express condition that should the Lessor hereafter find it to be in the best interest of the Lessor to exchange the lands embraced in this lease for other lands, as provided by law, then this lease may be terminated upon giving the Lessee one (1) years notice, unless by mutual consent of the Lessor and the Lessee, an earlier date of termination may be fixed. (k) BUY-OUT BY LESSOR The Lessor shall have the right to purchase back from the Lessee all the rights and interests granted to the Lessee by this lease for any portion of the premises at any time by paying to the Lessee the fair market value of those rights and interests for the remaining term of the lease. - - - - - - - - - (7) GENERAL PROVISIONS. (a) NOTICES All notices arising out of, or from, the provisions of this lease shall be in writing and given to the parties at the address provided under this lease, either by regular mail, or delivery in person. (b) EFFECT OF CHANGE IN LAW The rights and responsibilities of the Lessee under this lease which are granted or imposed by the Statutes of the State of Wyoming or rules and regulations of the Board of Land Commissioners, are subject to change during the term of this lease as a result of the adoption, amendment, or repeal of statutes or rules. (c) COMPLIANCE WITH LAWS The Lessee shall keep informed of and comply with all applicable federal, state and local laws and regulations in the performance of this lease. (d) APPLICABLE LAW/VENUE The construction, interpretation and enforcement of this lease shall be governed by the laws of the State of Wyoming. The Courts of the State of Wyoming shall havejurisdiction over this lease and the parties, and the venue shall be the First Judicial District, Laramie County, Wyoming. (e) ENTIRETY OF LEASE This lease contains the entire contract between the parties and supersedes all prior negotiations, representations, leases or other contracts, either written or oral. This lease cannot be changed except by a written instrument subsequently executed by the parties or included in the body of the lease and signed by the parties. (f) INDEMNITY The Lessee shall release, indemnify, and hold harmless the State, the Lessor, and their officers, agents, employees, successors and assignees from any cause of action, or claims or demands arising out of this lease. (g) SOVEREIGN IMMUNITY The State of Wyoming and the Lessor do notwaive sovereign immunity by entering into this lease, and specifically retain immunity and all defenses available to them as sovereigns pursuant to W.S. 1-39-104(a) and all other state law. (h) WAIVERS The failure of Lessor to insist on a strict performance of any of the terms and conditions hereof shall not be deemed a waiver of the rights or remedies that Lessor may have regarding that specifi. term or condition. (i) EXTENUATING CIRCUMSTANCES: In the event circumstances arise for whatever reason which create the impossibility of continuing the lease, it may be canceled by either party upon written notice. Neither party shall be liable forfailure to perform under this lease if the failure is based upon the extenuating circumstances. Lessor reserves the right to determine whether circumstances create an impossibility. A partial refund of the annual payment may be made on a case-by-case basis. - - - - - - - - (8) SIGNATURES IN WITNESS THEREOF, the parties to this lease through their duly authorized representative have executed this lease on the dates set out below, and certify that they have read, understand, and agree to the terms and conditions of this lease. - LESSOR: THE STATE OF WYOMING BOARD OF LAND COMMISSIONERS ~JUN 2 1 2005 BY: S NRP £002 Date: ;tments LESSEE: &‘€pki~Fancher Oil, LLC &~“ c3Zzt41%~~ Date: (~C, — 7 — S Lease No. _0-26652-RENEWAL P.L. *20 Amend January 6, 1998 STATE OF WYOMING COAL MINING LEASE THIS INDENTURE OF LEASE ENTERED INTO THIS 2nd day of _August, 2013, A.D. by and between the STATE OF WYOMING, acting by and through its Board of Land Commissioners, party of the first part, hereinafter called the lessor, and Western Fuels-Wyoming, Inc. party of the second part, hereinafter called the lessee. Section 1. PURPOSES. The lessor, in consideration of the rentals and royalties to be paid and the covenants and agreements hereinafter contained and to be performed by the lessee, does hereby grant and lease to the lessee the exclusive right and privilege to mine, extract and remove all of the coal deposits in or under the following described land, to wit: 640.00 All Section 36, Township 51N, Range 72W 6th p.m. consisting of 640.00 acres, more or less, Camobe].l county, together with he right to construct, and maintain thereon all work, buildings, plants, ~—.c’aterways, roads, telegraph, telephone and power lines, tipples, hoists or other structures necessary to the full enjoyment thereof, including the right to transport coal through the underground workings on the premises above described, subject however, to the conditions hereinafter set forth. Section 2. TERM OF LEASE. This lease, unless terminated at an earlier date as hereinafter provided, shall remain in force and effect for a term of ten (10) years beginning on the 2nd day of August , 20 13 and expiring on the 1st day of August , 20 23 Section 3. IN CONSIDERATION OF THE FOREGOING, THE LESSEE COVENANTS AND AGREES: (a) BOND When the lease becomes an operating lease or actual operations for the mineral are to be commenced, the bond shall be furnished in such a reasonable amount as the Of f ice of State Lands and Investments shall determine to be advisable in the premises. The operating bond shall preferably be a corporate surety bond, executed by the lessee, the surety being authorized to do business in the State of Wyoming. A cash bond may be furnished on the consent of the Office of State Lands and Investments if the lessee is unable to obtain a corporate surety bond. Form of bond will be urnished by the Office of State Lands and Investments. The State will “±~equire two executed copies of the bond; therefore as many additional copies should be made as will be required by the lessee and the bonding company. (b) PAYMENTS To make all payments accruing hereunder to the Office of State Lands and Investments, 122 West 25th Street, Herschler Building, Cheyenne, Wyoming 82002-0600. (c) RENTaS Prior to the discovery of commercial quantities of coal in the lands herein leased, to pay the lessor in advance beginning with the effective date hereof, an annual rental of ONE DOLLAR ($1.00) PER ACRE OR FRACTION THEREOF PER YEAR for the 1st through the 5th year inclusive and TWO DOLLARS ($2.00) PER ACRE OF FRACTION THEREOF PER YEAR for the 6th through 10th years inclusive or renewal thereof; provided, however, that - if the said lands are not on a commercial mining basis and so operated at the end of two (2) years from the date hereof, such rental may be increased at the option of the lessor, to such an amount as the lessor may decide to be fair and equitable. After the discovery of commercial quantities of coal in the lands herein leased to pay to the lessor in advance, beginning with the first day ‘f the lease year succeeding the lease year in which commercial discovery ~as made, an annual rental of TWO DOLLARS ($2.00) PER ACRE OR FRACTION THEREOF PER YEAR unless changed by agreement, such rental so paid for any one year to be credited on the royalty for that year. 1 zmnual rentals on all leases shall be payable in advance for the first year and each year thereafter. No Notice of Rental Due shall be sent to the lessee. If the rental is not received in this office on or before the date -it becomes due, Notice of Default will be sent to the lessee and a penalty ~ 504 per acre or fraction thereof for late payment will be assessed. The lessee is not legally obligated to pay either the rental or the penalty, but if the rental and penalty are not received in this office within thirty (30) days after the Notice of Default has been received by the lessee, the lease will terminate automatically by operation of law. Termination of the lease shall not relieve the lessee of any obligation incurred under the lease other than the obligation to pay rental or penalty. The lessee shall not be entitled to a credit on royalty due for any penalty paid for late payment of rental on an operating lease. (d) ROYALTY To pay a royalty on all coal mined from the land herein leased, either in kind or value as the lessor may elect of l2’h% on coal mined by surface mining operations and 8% on coal mined by underground mining methods. Royalty shall be payable on the gross value at the mine on all coal mined. Gross value for the purpose of royalty calculation means the unit sale or contract price times the number of units sold. In calculating gross value the sales price shall be prima facia evidence of such gross value. No deduction shall be allowed for fees, taxes, assessments or similar levies mposed by the State of Wyoming, its political subdivisions, any other state ..,r the federal government, nor for the expense of mining, processing and loading the coal in merchantable condition at the mine ready for shipment. If the coal is not sold and valued at the nine, transportation from the nine to the point of sale or delivery may be deducted in determining value. In the event there is no sale of the coal or the Board of Land Commissioners determines that the sales price does not truly reflect the value of the coal, it may make its own determination of value and require that royalties be paid on the basis of the value determined by the Board. If the lessor elects to take its royalty in kind, such coal shall be good merchantable coal delivered for shipment at the mine. (e) MONTHLY PAYMENTS A≥JD STATEMENTS Unless a different time schedule is approved by the Board of Land Commissioners, to make payment on or before the twentieth (20th) day of the calendar month succeeding the month of production, for royalties on all coal mined from the land; and to furnish sworn monthly statements therewith showing in tons the amount of all coal mined, accompanied by the mine weights; and such other information as may be called for by the form of report prescribed by the lessor. These statements are to be subject to verification by examination of books and ecords of the lessee. (f) UNDERGROUND WORKINGS That in the underground workings for coal all shafts, inclines and tunnels shall be well timbered (when good mining requires timbering); that all underground timbering placed in the mine shall be kept in good condition and at no time shall such timbering be removed unless all of the coal in the lands have been removed; that at the termination of this lease all underground timberings shall become the property of the lessor without compensation therefore to the lessee; that all parts or workings, where the coal is not exhausted and for good reasons not being worked, will be kept free from water and waste material; and that the underground workings shall be protected against fire and flood and should creeps and squeezes occur they shall be checked without delay; to leave such solid blocks of coal as may be necessary to support the cover and protect the slopes, air-courses, manways, and hauling roads to permit the lessee to mine coal from any lands which he may own or become owner of in adjacent sections of land; and the lessee shall have the use of the slopes, air-courses, manways and hauling roads for the purpose of mining in the adjacent sections provided the lessee shall pay the royalty for the blocks of coal so left for support for protection, if it shall be agreed that the blocks of coal so left shall be more for the benefit of the lessee than to he State of Wyoming, and all coal so paid for may be removed subsequently ‘—during the term of this lease without subjecting the lessee to the payment of an additional royalty therefore. 2 (g) STRIP WORKINGS That all strip workings shall be operated in such a manner so as to remove all coal in the vein or veins worked; that strip mining shall be continuous across the property according to a definite plan and pattern submitted to and receiving the approval of the Office of State ¶nds and Investments; that all overburden removed shall, as mining ~“ptogresses, be returned to original pit and leveled, so that all the expiration or surrender of the lease or termination of mining activities the land will approximate its previous configuration; that all roads and bridges built and necessary to mining operation on the land shall upon the expiration, forfeiture or surrender of said lease become the property of the lessor. (h) WEIGHT WEIGHT RECORD That all coal mined or taken from the premises, upon being hoisted and traxnmed, shall be weighed and the weight thereof together with the proper check number, entered in due form in books kept for such purpose by the lessee; and an accurate record of the weight of all coal mined from the land shall be kept and preserved separate from the records of the coal mined from other lands. - The term “ton” as herein used means a ton of two thousand (2,000) pounds of unscreened coal, unless the lessor elects to compute a ton of coal at twenty-nine cubic feet of coal in the solid, or by the measurements of the space from which the coal is mined, deducting there from all space occupied by slate or other impurities, and in such case the computation shall be final and binding upon the lessee. (i) MAPS AND REPORTS Upon demand, to furnish the Office of State Lands and Investments with copies or Blue-prints of all maps of underground surveys of leased lands made or authorized by the lessee, including engineer’s field notes, certified by the engineer who made such survey; and to make such other reports pertaining to the production and operation by the lessee as may be called for by the lessor. As required by W.S. 36-6-102, copies of all electrical, gamma-ray neutron, resistivity or other types of sub-surface log reports obtained by or for lessee in conducting operations on the leased premises shall be submitted to the State Geologist within three (3) years after the completion of drilling. (j) TAXES AND WAGES FREEDOM OF PURCHASE To pay when due, all taxes lawfully assessed and levied under the laws of the State of Wyoming, upon improvements, coal produced from the land hereunder or other rights, property or assets of the lessee; to accord all workmen and employees complete freedom of purchase and to pay all wages due workmen and employees at least twice each month in the lawful money of the United States. - (k) STATUTORY REQUIREMENTS AND REGULATIONS To comply with all ‘~tate statutory requirements and valid regulations thereunder. (1) ASSIGNMENT OF LEASE MINING AGREEMENTS (1) Not to assign this lease or any interest herein, nor sub-let any portion thereof, except with the consent in writing of the lessor first and obtained. - (2) To submit a signed copy of any mining agreement entered into affecting the possessory title to any of the land hereby leased for approval by the lessor. (3) All overriding royalties to be valid approval of the Board and be recorded with the lease. The the right of disapproval of such overriding royalties when they become excessive and hence are detrimental to the proper the leased lands. must have the Board reserves in its opinion development of (m) DELIVER PREMISES IN CASE OF FORFEITURE To deliver the leased premises with all permanent improvements thereon, in good order and condition in case of forfeiture of this lease; but this shall not be construed to prevent the removal, alteration or renewal of equipment and ‘mprovements in the ordinary course of operations. (n) DILIGENCE IN DEVELOPMENT understanding that prospecting, coal 3 This lease is granted with express mining, and the recovery of the valuable coal content of the above described lands shall be pursued with diligence, and if at any time the lessor has reasonable belief that the operations are not being so conducted it shall so notify lessee in writing, and if compliance is not promptly obtained and the delinquency fully atisfied, it may then, at the end of any lease year, declare this said lease terminated and offer the said lands to the highest and best bidder, and upon such terms as the lessor may prescribe, provided, that the herein designated lessee may have a preferential right to a new lease on the same terms and conditions as offered in the best bid; provided, however, that if the lessee fails or refuses to exercise such right the improvements then on the property shall be disposed of pursuant to Section 6 of this lease. Section 4. GENERAL COVENANTS. (a) The lessee shall have the right to enter upon, occupy and enjoy such surface areas of the described tract as are necessary for the mining of coal, and the construction of all buildings and other surface improvements incidental to the work contemplated by this lease; but the lessee shall fully protect the rights of any agricultural and grazing leases which have heretofore or may hereafter be granted or sale contract holders by erecting cattle guards or gates and keeping closed gates in all fences in which openings are or may be made, and for protection of stock grazing thereon to fence or close all holes, pits or open cuts in which injury might be sustained, and shall not contaminate any living t~ater upbn the land so as to make it injurious to livestock; and, further, should the lessee or any ~erson holding from, by or under the lessee, in any operation on said premises under this lease, destroy or injure any crop, building or other improvements of any tenant, lessee, purchaser, or other person holding under the State, the lessee agrees to fully indemnify all such injured parties in such sum or sums as may be mutually agreed upon by the respective parties, or as may be fixed by appraisers appointed by each party if agreement is impossible; or the Board of Land Commissioners may fix the amount of such indemnity after inspection or hearing. (b) The rights of the lessee hereunder are subject further to the right of any other mineral lessee, his sub lessee, or operator under any other mineral lease or leases as provided by the Rules and Regulations of the Board of Land Commissioners Governing the Leasing of Sub-surface Resources and providing for multiple development of those resources, now in force, or renewals thereof; to enjoy the free use of so much of the surface of the said lands as are necessary and incidental to their operations thereunder; and coal mining operations shall be conducted so as not to unduly interfere with the natural production operations, nor shall coal mining operations be conducted nearer than two hundred (200) feet from any productive oil or gas well without consent of the oil and gas lessee; and the lessee further shall not disturb any existing road or roads now on said .ands nor roads leading to or from any well or well locations without first fully indemnify any such lessee for any injury or damages resulting from his operations hereunder in such amount so fixed as above provided. (c) Such methods of mining shall be used as shall insure the extraction of the greatest amount of the coal bed possible, and all coal mining operations on these premises shall be subject to the supervision of the State Coal Mine Inspector or other officers as by law provided. (d) During the proper hours and at all times during the continuance of this lease the lessor or its representatives shall be authorized to go through any of the shafts, openings or workings on the premises and to examine, inspect and survey the same and to make extracts of all books and weigh sheets which show in any way the coal output from the land. (e) This lease shall include only the right and privilege of coal mining, but if the lessee shall discover any vein, lode, lead or ledge or other mineralized rock in or under said lands he shall immediately report the same to the lessor and shall then have a preferential right for a period ‘f thirty (30) days following the date of discovery to lease said vein, ta-lode, lead or ledge upon such terms, conditions, and royalty as may be fairly fixed by the State Board of Land Commissioners, providing the land had not been leased prior to such time for that specific mineral. 4 Section 5. THE LESSOR EXPRESSLY RESERVES: (a) DISPOSITION OF SURFACE The right to lease, grant right-ofway, sell or otherwise dispose of the surface of the land embraced within ‘ils lease under existing laws or laws hereafter enacted, or in accordance %,‘ith the Rules of the Board of Land commissioners, insofar as the surface is not necessary for the use of the lessee in the extraction and removal of the coal therein, except where such surface rights have been sold or otherwise disposed of by the State of Wyoming. (b) MULTIPLE USE The right to lease the lands for other minerals subject to the Rules and Regulations of the Board of Land Commissioners providing for Leasing of Sub-surface Resources and the Multiple Use thereof. Section 6. APPRAISAL OF IMPROVEMENTS Upon the expiration of this lease, or earlier termination thereof pursuant to surrender or forfeiture, or if such land be leased to another other than the owner of the improvements thereon, the lessee agrees that the improvements shall be disposed of in the manner provided by law. Section 7. FORFEITURE CLAUSE In the event that the lessee shall have procured this lease through fraud, misrepresentation or deceit, then and in that event this agreement, at the option of the lessor, shall cease and terminate and shall become ipso facto null and void, and all improvements upon said land or premises under the terms of this lease shall forfeit to nd become the property of the State of Wyoming. In the event that the ~~iessee shall fail to make payments of rentals and royalties as herein provided, or make default in the performance or observance of any of the terms, covenants and stipulations hereof, or of the general regulations promulgated by the Board of Land Commissioners and in force on the date hereof, the lessor shall serve notice of such failure or default, either by personal service or by registered mail upon the lessee, and if such failure or default continues for a period of thirty (30) days after the service of such notice, then and in that event the lessor may, at its option, declare a forfeiture and cancel this lease, whereupon all rights and privileges obtained by the lessee hereunder shall terminate and cease and the lessor may re-enter and take possession of said premises or any part thereof; but these provisions shall not be construed to prevent the exercise by the lessor of any legal or equitable remedy which the lessor might otherwise have. A waiver of any particular cause of forfeiture shall not prevent the cancellation and forfeiture of this lease for any other cause of forfeiture, or for the same cause occurring at any other time. Section 8. RELINQUISHMENT AND SURRENDER This lease may be relinquished and surrendered to lessor as to all or any legal subdivision of said land as follows. (a) If no operations have be conducted,.ufI~er the lease on the land to be relinquished, the lessee s’al file Lands and Investments a written rel4nqu •the Office of State either witnessed or acknow_edged and ~ ~~~1gned and have been conducted on the lands. Th~ relinquishment so filedoperations shall become effective on the date and hour of we.èeipt theI~eof i~ the office of the Office of State Lands and Investments or at some later date if such be so specified by the lessee therein. If the said relinquish~nent fails to state that no operations have been conducted, the effective date of relinquishment shall be the date the relinquishment is approved by the Board of Land commissioners (b) If operations have been conducted under the lease on land proposed to be relinquished the lessee shall give sixty (60) days notice and shall file with the Office of State Lands and Investments a written relinqujsui~nen~ or surrender duly witnessed or acknowledged and stating therein that operations have been conducted on the land. The relinquishment shall not become effective until the land and the mines thereon shall have been placed in condition acceptable to lessor and shall have been approved by the Board of Land Commissioners (c) All rentals becoming due prior to a surrender or relinquis~e~~ becoming effective shall be payable by lessee unless payment thereof shall be waived by the Board of Land Commissioners A S relinquishment has become effective there shall be no recourse by lessee, and the lease as to the relinquished lands may not be reinstated. Section 9. HEIRS AND SUCCESSORS IN INTEREST. It is further agreed iat each obligation hereunder shall extend to and be binding upon, and every benefit hereof shall inure to the heirs, executors, administrators, successors of or assigns of the respective parties hereto. Section 10. Sovereign Immunity. The State of Wyoming and the lessor do not waive sovereign immunity by entering into this lease, and specifically retain immunity and all defenses available to them as sovereigns pursuant to Wyoming Statute § 1-39-104(a) and all other state laws. IN WITNESS WHEREOF, this lease has been executed effective as of the day and year first above written. LESSOR, STATE OF WYOMING, Acting by and by through lessor its and Board lessee of Commissioners and State Lands and Investment Board S EAL BY: ~ 1~j~4A4_’_L__ Office of State Lan LESSEE: CORPORATE SEAL ____________ PRINT NAME: TITLE: and Investments On, C p .4& £0 c Lards Land LEASE NO.: 0-26652 TYPE OF LEASE: Coal NAME OF LESSEE: ADDRESS: Western Fuels-Wyoming, 12050 N. Pecos Suite 100 Westminster, Co 80234 EXPIRATION DATE OF LEASE: AIIOUNT OF RENTAL: COUNTY: FUND: BOND: Inc. August 1, 2023 $2,560.00 Campbell_ Common School Rex(307) E.Johnson 322-5555 D.N. Sherard (Retired) Stephen N. Sherard (307) 322-5050 [email protected] [email protected] *Brian D. Artery SHERARD, SHERARD, ARTERY & JOHNSO Attorneys & Counselors at Law 602 coIecc~ssjwyoIaw.coni jØthi (307) 322-1535 [email protected] Street, P.O. Box 69, Wheatland, WY 82201 www.ssjzvyolaw.com Main Office Telephone (307) 322-2102 Fax: (307) 3224822 September 30, 2013 Jamie Van Hatten Lands Management Supervisor Surface Division, State of Wyoming Office of State Lands and Investments 122 West 25th Street, Herschler Building 3W Cheyenne, WY 82002-0600 RE: Special Use Lease SU-512 Ms. Van Hatten, I represent Western Fuels Wyoming, Inc. (WFW). I am writing to follow up with our meetings of March 16, 2011 and September 30, 2013 at the Office of State Lands and Investments. I appreciate you taking the time to meet with me and my client regarding Special Use Lease SU-512. Apparently PRE Resources, LLC 1888 Sherman Street, Suite 500 Denver, CO 80203 now operates the injection well (Mill-Gillette 2 API #522915) pursuant to a Special Use Lease at T SiN R 72W, Section 36. At the time of our March 16, 2011 meeting, Winter Ridge Energy operated the injection well. WFW operates the Dry Fork Mine (DFM) in Campbell County, Wyoming pursuant to Wyoming Coal Lease No. 0-26652, covering the same tract. WFW’s coal mining operation has continued to advance towards the injection well site. The PRE Resources injection well will interfere with coal mining operations as WFW personnel perform topsoil stripping, diversion construction and removal of overburden. Accordingly, WFW respectfully requests that SU-512 be Page 2 September 30, 2013 suspended or cancelled within 6 months from the date of this letter to facilitate safe removal of the coal located in T 51N R 72W, Section 36. Continued mining activities will require that the injection well be removed from service and plugged according to specifications and all appurtenances removed from the site. WFW believes that resolution of this conflict at this time is appropriate to facilitate safe removal of the coal, while providing certainty to all parties involved. with you on this matter; pl have any questions. & Johnson February 6, 2014 BOARD MATTER D - 7 ACTION: CONSIDER AMENDMENT OF EXISTING SPECIAL USE LEASE NO. SU-562 AUTHORITY: W.S. 36-5-114; Board of Land Commissioners’ Rules and Regulations, Chapter 5, Section 3 Type of Use: The original lease was approved for a cellular telephone communication site. Edge Wireless, LLC now wishes to expand the size of the site and include a fiber-optic line. Lease No.: SU-562 Applicant: Edge Wireless, LLC County: Teton Acres: Currently the acreage covered by the lease is 0.01 acres. The amendment would increase the acreage in the communication site to 0.02 acres plus a 644.10 foot fiber-optic line. Description: Tract in NE4 Section 6, Township 40 North, Range 116 West, 6 th P.M. Improvements: Existing Improvements approved with the original application: Cellular communication equipment consisting of electronics, electrical facilities, and pole with an applicant estimated value of $230,000.00 Proposed Improvements to be included with the amendment of the existing lease: Installation of an enclosed shelter for telecommunication equipment and conduit for fiber-optic line with an applicant estimated value of $120,000.00 Current Rental: $4,355.53 Recommended Rental: $17,882.00 Recommended Term: February 1, 2007 to February 1, 2032 (25 Years) Discussion: The Board of Land Commissioners in regular session February 8, 2007, approved an application for special use lease filed by Edge Wireless, LLC for a cellular communication site. The lease was approved with an annual adjustment based on the Consumer Price Index to offset inflationary pressure and subject to five (5) year rental review. Edge Wireless, LLC requested the lease amendment to enlarge the communication site area to include an enclosed shelter for the communication equipment and also to put in 644.1 feet of new fiber-optic line. This communication site was built on State Trust Land which is under lease to the Teton County School District No. 1. Teton County School District #1 was contacted regarding the amendment of the additional .01 acres for the expansion of the communication site and the addition of the fiber optic line. They did not have any objections. Page 1 of 2 It has been determined that this special use lease application site is not in a sage grouse habitat core area. DIRECTOR'S RECOMMENDATION: The Director recommends that the Board approve the amendment of an additional .01 acres to the communication site and the addition of 644.10 feet of fiber-optic line and that the annual rental be adjusted to reflect the additions. All other terms and conditions of the existing lease will remain the same. The Director further recommends that Edge Wireless, LLC be required to provide a bond equal to an engineer’s estimate for reclamation of the leased area until such time as the site is no longer being used and full reclamation, remediation, or other appropriate actions consistent with the Board of Land Commissioners’ Rules and Regulations are completed. Approval of the application is not to be considered approval of the applicant's estimated value of improvements. BOARD ACTION: _____________________________________________________ Page 2 of 2 February 6, 2014 BOARD MATTER D - 8 ACTION: CONSIDER SPECIAL USE LEASE APPLICATION AUTHORITY: W.S. 36-5-114; Board of Land Commissioners’ Rules and Regulations, Chapter 5, Section 3 Type of Use: Recreational Off-Road Vehicular Use Lease No.: SU-759 Applicant: Big Horn County County: Big Horn Acres: 440.00 Description: W2:Part of the W2E2 of Section 16, Township 57 North, Range 95 West, 6th P.M. Improvements: There are no improvements being proposed Recommended Rental: $2,354.00, per year adjusted annually by 3.0% to off-set inflationary pressure Recommended Term: February 1, 2014 to February 1, 2019 (5 Years) Discussion: Big Horn County is applying for a special use lease to establish an off-road trail system and open play area on the above described parcel of State Trust Land. The special use lease application filed by Big Horn County identified the entirety of Section 16, which covers 640.00 acres. The application also indicated that management of the area would be the responsibility of the Northwest Wyoming OHV Alliance, Inc. (Northwest OHV) through a Memorandum of Understanding (MOU) with Big Horn County. The Office of State Land and Investments (OSLI) advised Big Horn County that a sublease agreement would need to be developed between the parties and approved by the Board of Land Commissioners (Board). A copy of the letter agreement between Big Horn County and Northwest OHV is attached. The Board has not entered into this type of lease (non-exclusive use of trails and open play areas) and thus an appraisal of like uses or recommendations for proper lease provisions is not readily available. Based on the original application received, OSLI provided Northwest OHV with a preliminary proposal that could be recommended to the Board to provision the lease to existing trails only, no new trails and no open play areas for a term of three (3) to five (5) years. A preliminary estimate of rental for use of existing trails only was three dollars ($3.00) per acre for the 640.00 acres or one thousand nine hundred twenty dollars ($1,920.00) per year. Northwest OHV was advised of this preliminary estimate in letter dated May 7, 2013. Northwest OHV was also advised that the rental would increase by three percent (3%) annually to off-set inflationary pressures based on the ten (10) year weighted average of the Consumer Price Index. Regarding the term of the lease, OSLI has concerns with issuance of a long-term lease based on indications from Big Horn County, through Northwest OHV, wherein it would obtain funding for the annual rental payment solely from donations and not membership dues. Therefore, OSLI feels it’s in the best interest of the State’s Beneficiaries to recommend reducing the term of the lease to five (5) years and allow Big Horn County to apply for a lease renewal upon the end of the term of the lease. Page 1 of 2 After negotiations between OSLI and Northwest OHV, it was agreed that OSLI would recommend to the Board a lease for non-exclusive use of trails and open play areas for a five (5) year term on State Trust Land in the western portion of Section 16. OSLI conducted an appraisal which determined that, based on comparables for similar types of use, five dollars and thirty-five cents ($5.35) per acre represents fair market value for this type of lease. The appraisal recommended that the public would have a non-restrictive use of the W2 and part of the W2E2 comprising approximately 440.00 acres as shown on the attached map. This portion of Section 16 has terrain that not only challenges the rider but is generally void of vegetation which allows the rider to have a better free riding experience. It has been determined that this special use lease application site is not in a sage grouse habitat core area. DIRECTOR'S RECOMMENDATION: The Director recommends that the Board approve the above-described special use lease application for a five (5) year term at a rental of $2,354.00 per year, adjusted annually by 3.0% to off-set inflationary pressures based on the ten (10) year weighted average of the Consumer Price Index. The Director further recommends that the sublease letter agreement between Big Horn County and Northwest OHV be approved. BOARD ACTION: Director Hill recommended the Board approve the special use lease application for a five year term at a rental of $5.35 per acre for an annual rental of $2,354.00 per year adjusted annually by 3.0% to off-set inflationary pressures based of the ten year weighted average of the consumer price index. Dana Sander from Northwest Wyoming off Highway Vehicle Alliance addressed the Board, explained the Alliance’s plan for the lease area, and requested a rental of $3.00 an acre. Superintendent Hill moved to approve the special use lease application for a five (5) year term at a rental of $1,320.00 per year, based on $3.00 per acre, adjusted annually by 3.0% to off-set inflationary pressures based on the ten (10) year weighted average of the Consumer Price Index, and that the sublease letter agreement between Big Horn County and Northwest OHV be approved. Secretary Maxfield seconded the motion. The motion carried. Page 2 of 2 0.1W o4~eêo~ www.nwwyohva.org. Northwest Wyoming OHV Alliance Inc. P0 Box 2953, Cody, WY 82414 TO: Big Horn County Commissioners P0 Box 31 Basin, WY 82410 Phone: 307 568 2357 DATE: August 19, 2013 RE: Darnell Hills Special Use Lease MOU Specific Project Amendment The Northwest Wyoming OHV Alliance Inc (NWWYOHVA) proposes this document as an amendment to the signed MOU with Big Horn County and NWWYOHVA dated April 16,2013 for the specific Darnell Hills State Land OHV Special Use Lease. I. Payment: Initial firnding for the Darnell Hills SUE will be provided through a donation from the NWWYOHVA Inc members and a Yamaha OHV Access Grant. Future finding for the Daniel! Hills SUL will be provided through grants and donations from NWWYOHVA Inc Members. If finding is not provided for the current lease year than the SUE will be terminated with the State of Wyoming. 2. Responsibilities of NW’WYOHVA Inc.: NWWYOHVA, Inc. will be responsible for the management, development and maintenance of the Darnell Hills SUE within Big Horn County, WY. All decisions regarding the Darnell Hills SUL for development of OHV Recreation within Big Horn County will be approved by Big Horn County and State of Wyoming in cooperation with NWWYOHVA, Inc. The NWWYOHVA Inc will maintain a $1 Million Liability Insurance Policy during the Damell Hills SUE term. 3. Responsibilities of Bi2 Horn County: The Big Horn County Commissioners will ensure that NWWYOHvA, Inc. will complete the projects and manage the Darnell Hills OHV Riding Area as defined in the Darnell Hills OHV SUE. 4. Mutual Responsibilities of NWWYOHVA Inc. and Bi2 Horn Counts’: The parties agree to use their best efforts to work in cooperation on the development of the Darnell Hills OHV Recreation Area within Big Horn County in accordance with the State of Wyoming OHV Darnell Hills SUL 5. Signature: The parties hereto have signed this amendment to the Memorandum of Understanding as of the dates shown below. The effective date of this MOU is the date of this signature last affixed to this page. BIG HORN COUNTY, by and through: Date JeIold Ewen, Big Horn County Commissioner No west Wyoming Off Highway Vehicle Alliance Inc., by and through: V Dan O’Keefe, Chairman Board of Directors County Attorney signatuit~~j~~ IcJli~JA Date i~A Date~ cJ1q 13 State of Wyoming, County of Big Horn County This document signed and sworn to (or affirmed) before me on c~ ~ i Date Name(s) or Person(s) Making Statemeiil~ 4Th t~t ‘cod Signature of Notarial Officer ~ Q&~c\ Title (e.g. Nótuyy Public) My commission expires: (I C- - r~-’~~ LOfli SMALLWOO c’~t~ CO U Nfl OF LUJ~S\/~ ~ ATE OF — W~ER 18, 2016 ns~ Attachment: Big Horn County and NWWOHVA Inc Signed MOU Dated April 16, 2013 A Big Horn County Commissioners SU-759 Legend Land West of Natural DraInage SatIon 16 TownshIp 57 Nollh 1~ange 95 West 1 inch equals 024 miles Map 8: Recommended leased area Page 17 of 17 February 6, 2014 BOARD MATTER D - 9 ACTION: CONSIDER SPECIAL USE LEASE APPLICATION AUTHORITY: W.S. 36-5-114; Board of Land Commissioners’ Rules and Regulations, Chapter 5, Section 3 Type of Use: Meter Site Lease No.: SU-775 Applicant: MGTC, Inc., a Wyoming Corporation County: Campbell Acres: .018 Acres Description: Tract in NE4NW4 Section 9, Township 52 North, Range 69 West, 6 th P.M. Improvements: Proposed Improvements: One (1) site with two (2) meters and fence with an applicant estimated value of $1,500.00 Recommended Rental: $1,200.00, per year adjusted annually by 3.0% to off-set inflationary pressure based on the ten (10) year weighted average of the Consumer Price Index and subject to five (5) year rental review Recommended Term: January 1, 2014 to January 1, 2039 (25 Years) Discussion: MGTC, Inc. is applying for a meter site that will have two (2) meters fenced in the same 10’ x 10’ area. Both meters will tie into a True Oil Pipeline. It has been determined that this special use lease application site is not in a sage grouse habitat core area. DIRECTOR'S RECOMMENDATION: The Director recommends that the Board approve the above-described special use lease application for a twenty-five (25) year term at a rental of $1,200.00 per year adjusted annually by 3.0% to off-set inflationary pressure and subject to a rental review every five (5) years. The Director further recommends that MGTC, Inc. be required to provide a bond equal to an engineer’s estimate for reclamation of the leased area until such time as the site is no longer being used and full reclamation, remediation, or other appropriate actions consistent with the Board of Land Commissioners’ Rules and Regulations are completed. Approval of the application is not to be considered approval of the applicant’s estimated value of improvements. BOARD ACTION: _______________________________________________ February 6, 2014 BOARD MATTER D - 10 ACTION: CONSIDER SPECIAL USE LEASE APPLICATION AUTHORITY: W.S. 36-5-114; Board of Land Commissioners’ Rules and Regulations, Chapter 5, Section 3 Type of Use: Tank Battery Lease No.: SU-779 Applicant: Legacy Reserves Operating, L.P. County: Crook Acres: 2.41 Description: Tract in NW4NW4 Section 36, Township 54 North, Range 68 Wes, 6 th P.M. Improvements: Existing Improvements: Nine (9) various sized tanks, three (3) treaters, seven (7) buildings for various uses, two (2) pumps and two (2) wellheads with an applicant estimated value of $81,920.00 Recommended Rental: $2,048.50, per year adjusted annually by 3.0% to off-set inflationary pressure based on the ten (10) year weighted average of the Consumer Price Index and subject to five (5) year rental review Recommended Term: October 1, 2013 to October 1, 2038 (25 Years) Discussion: Legacy Reserves Operating, LP is applying for a special use lease for a centralized tank battery site which will handle both on- and off-lease production as part of the Edsel Unit. Unit agreements are designed to maximize the production of a given area by combining multiple leases into a single lease under a single operator. The Edsel Unit does not allow for the construction of a centralized tank battery within the unit without compensation, so in this case a special use lease is necessary. It has been determined that this special use lease application site is not in a sage grouse habitat core area. DIRECTOR'S RECOMMENDATION: The Director recommends that the Board approve the above-described special use lease application for a twenty-five (25) year term at a rental of $2,048.50 per year adjusted annually by 3.0% to off-set inflationary pressure and subject to a rental review every five (5) years. The Director further recommends that Legacy Reserves Operating, LP be required to provide a bond equal to an engineer’s estimate for reclamation of the leased area until such time as the site is no longer being used and full reclamation, remediation, or other appropriate actions consistent with the Board of Land Commissioners’ Rules and Regulations are completed. Approval of the application is not to be considered approval of the applicant’s estimated value of improvements. BOARD ACTION: _______________________________________________ February 6, 2014 BOARD MATTER D - 11 ACTION: CONSIDER SPECIAL USE LEASE APPLICATION AUTHORITY: W.S. 36-5-114; Board of Land Commissioners’ Rules and Regulations, Chapter 5, Section 3 Type of Use: Water Injection Facility Lease No.: SU-784 Applicant: Yates Petroleum Corporation County: Campbell Acres: 1.00 Description: Tract in the SE4SE4 Section 36, Township 54 North, Range 75 West, 6 th P.M. Improvements: Existing Improvements: Water injection plant and water tanks with an applicant estimated value of $500,000.00 Recommended Rental: $1,000.00, per year adjusted annually by 3.0% to off-set inflationary pressure based on the ten (10) year weighted average of the Consumer Price Index and subject to five (5) year rental review Recommended Term: January 1, 2014 to January 1, 2039 (25 Years) Discussion: Yates Petroleum Corporation is applying for a special use lease for a water injection facility. The Harper Draw CS State #7 injection well on this site is a Class 5 Injector well administered by the Wyoming Department of Environmental Quality (WDEQ). Yates Petroleum Corporation reports the volume of water injected in this well to WDEQ. A special use lease is required as the water being disposed of in this injection well does not enhance the production of state minerals but is a waste byproduct of production. It has been determined that this special use lease application site is not in a sage grouse habitat core area. DIRECTOR'S RECOMMENDATION: The Director recommends that the Board approve the above-described special use lease application for a twenty-five (25) year term at a rental of $1,000.00 per year adjusted annually by 3.0% to off-set inflationary pressure and subject to a rental review every five (5) years. The Director further recommends that Yates Petroleum Corporation be required to provide a bond equal to an engineer’s estimate for reclamation of the leased area until such time as the site is no longer being used and full reclamation, remediation, or other appropriate actions consistent with the Board of Land Commissioners’ Rules and Regulations are completed. Approval of the application is not to be considered approval of the applicant’s estimated value of improvements. BOARD ACTION: _______________________________________________ February 6, 2014 BOARD MATTER D - 12 ACTION: CONSIDER SPECIAL USE LEASE APPLICATION AUTHORITY: W.S. 36-5-114; Board of Land Commissioners’ Rules and Regulations, Chapter 5, Section 3 Type of Use: Off-Set Well Pad and Access Road Lease No.: SU-785 Applicant: Helis Oil & Gas Company, LLC County: Converse Acres: 3.61 Description: Tract in SW4 Section 36, Township 38 North, Range 74 West, 6 th P.M. Improvements: Proposed Improvements: Well head, access road, separator building, recycle pump building, pumping unit, and tank battery with an applicant estimated value of $793,655.00 Recommended Rental: $2,798.30, per year adjusted annually by 3.0% to off-set inflationary pressure based on the ten (10) year weighted average of the Consumer Price Index and subject to five (5) year rental review Recommended Term: January 1, 2014 to January 1, 2039 (25 Years) Discussion: Helis Oil & Gas Company, LLC is applying for a special use lease for an off-set well pad and access road. The surface location for the well is in Section 36, Township 38 North, Range 74 West, 6th P.M. and the bottom hole is in Section 25, Township 38 North, Range 74 West, which is not state mineral. It has been determined that this special use lease application site is not in a sage grouse habitat core area. DIRECTOR'S RECOMMENDATION: The Director recommends that the Board approve the above-described special use lease application for a twenty-five (25) year term at a rental of $2,798.30 per year adjusted annually by 3.0% to off-set inflationary pressure and subject to a rental review every five (5) years. The Director further recommends that Helis Oil & Gas Company, LLC be required to provide a bond equal to an engineer’s estimate for reclamation of the leased area until such time as the site is no longer being used and full reclamation, remediation, or other appropriate actions consistent with the Board of Land Commissioners’ Rules and Regulations are completed. Approval of the application is not to be considered approval of the applicant’s estimated value of improvements. BOARD ACTION: _______________________________________________ February 6, 2014 BOARD MATTER D - 13 ACTION: CONSIDER SPECIAL USE LEASE APPLICATION AUTHORITY: W.S. 36-5-114; Board of Land Commissioners’ Rules and Regulations, Chapter 5, Section 3 Type of Use: Off-Set Well Pad and Access Road Lease No.: SU-786 Applicant: Helis Oil & Gas Company, LLC County: Converse Acres: 3.27 Description: Tract in SW4SW4 Section 8, Township 37 North, Range 74 West, 6th P.M. Improvements: Proposed Improvements: Well head, access road, separator building, recycle pump building, pumping unit, and tank battery with an applicant estimated value of $163,000.00 Recommended Rental: $3,533.50, per year adjusted annually by 3.0% to off-set inflationary pressure based on the ten (10) year weighted average of the Consumer Price Index and subject to five (5) year rental review Recommended Term: January 1, 2014 to January 1, 2039 (25 Years) Discussion: Helis Oil & Gas Company, LLC is applying for a special use lease for an off-set well pad and access road. The surface location for the well is in Section 8, Township 37 North, Range 74 West, 6th P.M. and the bottom hole is in Section 5, Township 37 North, Range 74 West, which is not state mineral. It has been determined that this special use lease application site is not in a sage grouse habitat core area. DIRECTOR'S RECOMMENDATION: The Director recommends that the Board approve the above-described special use lease application for a twenty-five (25) year term at a rental of $3,533.50 per year adjusted annually by 3.0% to off-set inflationary pressure and subject to a rental review every five (5) years. The Director further recommends that Helis Oil & Gas Company, LLC be required to provide a bond equal to an engineer’s estimate for reclamation of the leased area until such time as the site is no longer being used and full reclamation, remediation, or other appropriate actions consistent with the Board of Land Commissioners’ Rules and Regulations are completed. Approval of the application is not to be considered approval of the applicant’s estimated value of improvements. BOARD ACTION: _______________________________________________ February 6, 2014 BOARD MATTER D - 14 ACTION: CONSIDER SPECIAL USE LEASE APPLICATION AUTHORITY: W.S. 36-5-114; Board of Land Commissioners’ Rules and Regulations, Chapter 5, Section 3 Type of Use: Receiver Site Lease No.: SU-788 Applicant: Sinclair Wyoming Refining Company County: Carbon Acres: .38 Description: Tract in NW4NW4 Section 36, Township 21 North, Range 86 West, 6 th P.M. Improvements: Proposed Improvements: Piping, valves and fittings, gravel for site, and chain link fence with an applicant estimated value of $100,000.00 Recommended Rental: $1,300.00, per year adjusted annually by 3.0% to off-set inflationary pressure based on the ten (10) year weighted average of the Consumer Price Index and subject to five (5) year rental review Recommended Term: January 1, 2014 to January 1, 2038 (25 Years) Discussion: Sinclair Wyoming Refining Company has applied for a special use lease for an area that will be used to install above ground piping and valves on an existing pipeline. It has been determined that this special use lease application site is not in a sage grouse habitat core area. DIRECTOR'S RECOMMENDATION: The Director recommends that the Board approve the above-described special use lease application for a twenty-five (25) year term at a rental of $1,300.00 per year adjusted annually by 3.0% to off-set inflationary pressure and subject to a rental review every five (5) years. The Director further recommends that Sinclair Wyoming Refining Company be required to provide a bond equal to an engineer’s estimate for reclamation of the leased area until such time as the site is no longer being used and full reclamation, remediation, or other appropriate actions consistent with the Board of Land Commissioners’ Rules and Regulations are completed. Approval of the application is not to be considered approval of the applicant’s estimated value of improvements. BOARD ACTION: _______________________________________________ February 6, 2014 BOARD MATTER D - 15 ACTION: CONSIDER SPECIAL USE LEASE APPLICATION AUTHORITY: W.S. 36-5-114; Board of Land Commissioners’ Rules and Regulations, Chapter 5, Section 3 Type of Use: Instructional Facility and Parking Lot Lease No.: SU-791 Applicant: Fremont County Community College District dba Central Wyoming College County: Fremont Acres: 3.00 Description: Tract in NE4 Section 17, Township 33 North, Range 99 West, 6 th P.M. (Institutional Land) Improvements: Proposed Improvements: A 7,500’ to 10,000’ building with classrooms, labs, offices, and a parking lot with an applicant estimated value of $2,000,000.00 Recommended Rental: $11,761.20, per year adjusted annually by 3.0% to off-set inflationary pressure based on the ten (10) year weighted average of the Consumer Price Index and subject to five (5) year rental review Recommended Term: January 1, 2014 to January 1, 2064 (50 Years) Discussion: Fremont County Community College District dba Central Wyoming College (CWC) has applied for a special use lease to construct a new facility to provide outreach opportunities to the Lander, WY community. The proposed instructional facility will be located on the campus of the Wyoming Life Resource Center (WLRC). CWC’s current Lander Center Facility lacks adequate classroom space, academic support space, and parking for the number of students attending classes. CWC has obtained a letter of consent from the Wyoming Department of Health and the WLRC. The new building will provide updated facilities for meetings and trainings that will be accessible to the Department of Health and the WLRC. Capital Construction funding was provided to CWC by the State of Wyoming in 2012 for this project. It has been determined that this special use lease application site is not in a sage grouse habitat core area. DIRECTOR'S RECOMMENDATION: The Director recommends that the Board approve the above-described special use lease application for a fifty (50) year term at a rental of $11,761.20 per year adjusted annually by 3.0% to off-set inflationary pressure and subject to a rental review every five (5) years. Approval of the application is not to be considered approval of the applicant’s estimated value of improvements. BOARD ACTION: _______________________________________________ BOARD MATTER E – 1 February 6, 2014 ACTION: Consider Requests from Lessees/Operators for Suspension of Production Operations for the Listed Wyoming Oil and Gas Leases, Fifth or Less Suspension Request AUTHORITY: Oil and Gas Lease Section 1(k) which states, in part, "The lessee may apply for and the lessor may grant permission for the suspension of production operations until such time as a satisfactory market for the product from said well can be developed." Section 1(c) provides for an annual rental after discovery of $2/acre, unless changed by agreement. ALTERNATIVES: Approve Request for Suspension Reject Request for Suspension Approve Request for Suspension with Conditions or Limitations ANALYSIS: The leases listed on the addendum are not producing for various reasons, including lack of required infrastructure, lack of a viable water management plan, unavailable CBM production/sales markets, mechanical problems and engineering reviews of well production capability. As such, the companies holding these leases have applied for suspension of production operations under the terms of their leases. Some leases/wells may be within the core sage grouse protective area and if so it would be appropriate to add Core Area and other stipulations should the Board decide to allow a suspension of production operations. Additionally, it would be appropriate to increase rental rates. All required supporting documents have been submitted and are on file and available for review upon request. DIRECTOR'S RECOMMENDATIONS: The Director recommends that the leases shown on the corresponding addendum to this Board Matter E - 1, February 6, 2014, be granted a suspension of operations for one (1) year from the date of this matter, with the following conditions: 1) The lease(s) shall expire concurrently with the suspension if they are not then held by production. 2) (a) Operating rentals, which may exceed the amount noted on the lease document, must be submitted in accordance with the guidelines included in the attached “RENTAL PAYMENT SCHEDULE”. (b) Bond on a per well basis as authorized by the Board’s Rules on Oil and Gas Leasing, Chapter 18, Section 13 (b) & (e), in an amount of $10/ft of open well bore for all wells on each lease, or, at the discretion of the Office, an amount acceptable to the Office based on a current plugging contractor bid per foot of open well bore, must be posted within ninety (90) business days of receipt of Board approval. 3) The granted suspension for the leases will expire with the establishment of any adverse drainage. 4) Monthly production and royalty reports (MR10, MR20, MR40, & MR50) must be submitted during the period of suspension of operations whether the leases are producing or not. Page 1 of 3 BOARD MATTER E – 1 February 6, 2014 5) All leases must currently have a well drilled thereon to the anticipated production zone depth(s) in preparation of de-watering (for CBM) at a minimum, to meet the requirements of Section 1(k) of the Board’s oil and gas lease. 6) For the leases within the sage grouse core area, lessee/operator shall comply with all terms and conditions as stated in State of Wyoming Executive Department Executive Order 2011-5, Greater Sage-Grouse Core Area Protection, for the remainder of any extension of the lease term and lessee/operator must acknowledge acceptance of this condition in writing. 7) The lessee/operator must be current on any required surface impact payments on the leasehold. 8) The lessee/operator must be current on any surface use leases and permits on the leasehold and, be current on any additional non-well bonding required on the leasehold, to include, but not be limited to water management reservoirs and facilities placement requiring surface leasing status. 9) The lessee/operator must acknowledge acceptance of these conditions in writing within ten (10) business days of receipt of approval. 10) Receipt is deemed complete upon delivery of electronic mailing or U.S. Postal Service return receipt card date as signed. The Director further recommends that any applicant requesting the grant of its fifth (5th) suspension of production operations be notified that no additional suspensions will be granted absent a compelling showing that such action is warranted. Further, any such applicant should be advised that the grant of any additional suspension requests will be conditioned on adequate bonding, supplemental consideration deemed necessary by the Board to justify the significant accommodation made through additional suspensions and any other terms and conditions the Board considers appropriate. BOARD ACTION: ______________________________________________________ Page 2 of 3 BOARD MATTER E – 1 February 6, 2014 ADDENDUM TO Board Matter List of Coal Bed Methane and Non-Coal Bed Methane Leases Within a Sage Grouse Core Area, and subject to terms and conditions as stated in State of Wyoming Executive Department Executive Order 2011-5, Greater Sage-Grouse Core Area Protection, Seeking Suspended Operations Status: None List of Coal Bed Methane and Non-Coal Bed Methane Leases NOT Within a Sage Grouse Area Seeking Suspended Operations Status: Bearcat Energy LLC: Lease 04-00451 04-00452 Legal Description 03-55-82 10-55-82 County Sheridan Sheridan Request 2nd SOO 2nd SOO Wold Oil Properties, Inc: Lease 03-00289 Legal Description 16-25-89 County Carbon Request 1st SOO County Campbell Request 1st SOO Yates Petroleum Corporation: Lease 01-00064 Legal Description 16-41-73 RENTAL PAYMENT SCHEDULE For State Of Wyoming Oil and Gas Leases Under Suspended Operations Status ALL LEASES ISSUED AFTER MARCH 1, 1982 PROVIDE FOR A FIVE (5) YEAR PRIMARY TERM AND ALLOW FOR A SUSPENSION OF OPERATIONS WHERE A WELL CAPABLE OF PRODUCING IN PAYING QUANTITIES EXISTS ON THE LEASE BUT A SATISFACTORY MARKET IS NOT YET DEVELOPED, AS LONG AS LEASE RENTALS ARE PAID YEARLY BY THE LEASE ANNIVERSARY DATE. LEASE TERMS PROVIDE THAT RENTALS FOR ANY YEAR AFTER DISCOVERY IS MADE WILL BE AT $2.00/ACRE UNLESS CHANGED BY AGREEMENT. IN GRANTING THIS SUSPENSION OF OPERATIONS, THE OFFICE OF STATE LANDS AND INVESTMENTS AND THE PETITIONER FOR SAME ARE AGREEING ON THE RENTAL SCHEDULE SHOWN BELOW (CHANGING BY AGREEMENT) AS A CONDITION OF THE GRANT OF SUSPENSION. SUSPENDED DURING PRIMARY TERM $ 2.00 PER ACRE UNDER 1st SUSPENSION OF OPERATIONS $ 3.00 PER ACRE UNDER 2nd & 3rd SUSPENSION OF OPERATIONS $ 5.00 PER ACRE UNDER 4th & 5th SUSPENSION OF OPERATIONS $10.00 PER ACRE UNDER 6th or GREATER SUSPENSION OF OPERATIONS $20.00 PER ACRE Page 3 of 3 February 6, 2014 BOARD MATTER E - 2 ACTION: Consider Requests from Lessees/Operators for Suspension of Production Operations for the Listed Wyoming Oil and Gas Leases Beyond the Fifth Suspension AUTHORITY: Oil and Gas Lease Section 1(k) which states, in part, "The lessee may apply for and the lessor may grant permission for the suspension of production operations until such time as a satisfactory market for the product from said well can be developed." Section 1(c) provides for an annual rental after discovery of $2/acre, unless changed by agreement. ALTERNATIVES: Approve Request for Suspension Reject Request for Suspension Approve Request for Suspension with Conditions or Limitations ANALYSIS: The attached schedule of coal bed methane (CBM) leases has been continued in suspended status for at least five (5) years beyond the primary term by yearly Board actions in anticipation of the establishment of hydrocarbon production during that time. These grants of suspension have required the payment of a yearly rental on each such lease in excess of the lease “operating” rental as a condition of continuance. This action was thought prudent when originally initiated over ten (10) years ago to create fewer issues related to surface access and surface disposal of produced CBM water and to enable the completion of infrastructure to capture and move coal bed natural gas production. However, due to the staged development of hydrocarbon production across the CBM play, the need to assure proper produced water management, governmental environmental and operational mandates, and access issues, production still has not occurred on these leases. For some time now, the increased “discovery” rental has been called for and paid by lessee/operator petitioning for suspensions upon expiration of the primary lease term and this requirement is detailed on the Agency web site, with all such petitioners understanding that the Board’s agreement to an additional suspension comes with an increased rental as scheduled. Lessees requiring suspensions beyond five (5) years of the primary term, (i.e., entering the 11th year of lease life) recognize that the grant of suspensions from the Board is a significant accommodation. Given the uncertainties noted above and the fact that extended suspensions are purely accommodation, this Office has corresponded with the petitioners in these extended status situations indicating that continuing to bring the respective leases to the Board for furtherance of such extended status requires some showing of good faith toward accelerating development. This showing involves, at a minimum, an increased yearly rental to $20/acre and whatever else the Board may require on a yearly renewal basis. Petitioners’ responses to inquiries regarding the showing of cause for these extensions have historically been reviewed in the context of the notion of a development “wave” in the general area of the lease for which suspensions are requested. A well or multiple wells have been completed on the involved leases. Because of changing circumstances and questions regarding any grant of a suspension beyond the fifth (5 th) suspension, the Office of State Lands and Investments met with the Petroleum Association of Wyoming (PAW) and certain operators to ensure any future requests for a suspension beyond the fifth (5 th) suspension are better supported before the Board is asked to grant such a significant accommodation. Letters based on the Director's June 7, 2012 recommendation, and Board approval thereof, setting out the guidelines for consideration of additional suspension requests beyond a fifth (5th) and a form addressing the requirements for additional lease status information have been developed and will be distributed to all petitioners in this Matter and current operators of Page 1 of 4 February 6, 2014 BOARD MATTER E - 2 leases in a fifth (5th) suspension of operations status or beyond subsequent to this Board meeting. Leases/wells that are within the core sage grouse protective area would be appropriate for stipulating with appropriate Core Area and other stipulations should the Board decide to allow a suspension of operations in continuance of the leases. Additionally, the rental rate would be increased and expected to hold the leases. All previously required supporting documents have been submitted and are on file and available for review upon request. DIRECTOR'S RECOMMENDATIONS: The Director recommends that the leases shown on the corresponding addendum to this Board Matter E - 2, February 6, 2014, be granted a suspension of operations for one (1) year from the date of this matter, with the following conditions: 1) The lease(s) shall expire concurrently with the suspension if they are not then held by production, or the operator/lessee has not shown sufficient cause as to why a further suspension and extension of term is justified without production. 2) (a) Operating rentals of $20 / acre must be submitted in accordance with the guidelines included in the attached “RENTAL PAYMENT SCHEDULE”. (b) Bond on a per well basis as authorized by the Board’s Rules on Oil and Gas Leasing, Chapter 18, Section 13 (b) & (e), in an amount of $10/ft of open well bore for all wells on each lease, or, at the discretion of the Office, an amount acceptable to the Office based on a current plugging contractor bid per foot of open well bore, must be posted within ninety (90) business days of receipt of Board approval. 3) The granted suspension for the leases will expire with the establishment of any adverse drainage. 4) Monthly production and royalty reports (MR10, MR20, MR40, & MR50) must be submitted during the period of suspension of operations whether the leases are producing or not. 5) As a condition of approval, all leases must currently have a well drilled thereon to the anticipated production zone depth(s) in preparation of de-watering at a minimum, to meet the requirements of Section 1(k) of the Board’s oil and gas lease. 6) For the leases within the sage grouse core area, lessee/operator shall comply with all terms and conditions as stated in State of Wyoming Executive Department Executive Order 2011-5, Greater Sage-Grouse Core Area Protection, for the remainder of any extension of the lease term and lessee/operator must acknowledge acceptance of this condition in writing. 7) The lessee/operator must be current on any required surface impact payments on the leasehold. 8) The lessee/operator must be current on any surface use leases and permits on the leasehold and, be current on any additional non-well bonding required on the leasehold, to include, but not be limited to water management reservoirs and facilities placement requiring surface leasing status. 9) The lessee/operator must acknowledge acceptance of these conditions in writing within ten (10) business days of receipt of approval. 10) Receipt is deemed complete upon delivery of electronic mailing or U.S. Postal Service return receipt card date as signed. The Director further recommends that any applicant requesting the grant of its sixth (6 th) or more suspension before the Board on or before February 6, 2014, be notified that any such applicant will be asked to justify the request consistent with past practice, with the Board retaining full and proper authority to grant or deny the application. However, the applicant will also be notified that any application for an additional suspension for the described leases beyond the sixth (6th) or more suspension requested on or before February 6, 2015, will not be granted absent a compelling showing that such action is warranted. The full burden will be on the applicant to justify such a request. Further, any such applicant will be advised that the grant of any additional suspension requests Page 2 of 4 February 6, 2014 BOARD MATTER E - 2 will be conditioned on adequate bonding, supplemental consideration deemed necessary by the Board to justify the significant accommodation made through additional suspensions and any other terms and conditions the Board considers appropriate. BOARD ACTION: _______________________________________________________ Page 3 of 4 February 6, 2014 BOARD MATTER E - 2 ADDENDUM TO Board Matter List of Coal Bed Methane and Non-Coal Bed Methane Leases Within a Sage Grouse Core Area, and subject to terms and conditions as stated in State of Wyoming Executive Department Executive Order 2011-5, Greater Sage-Grouse Core Area Protection, Seeking Suspended Operations Status: None List of Coal Bed Methane and Non-Coal Bed Methane Leases NOT Within a Sage Grouse Area Seeking Suspended Operations Status: Anadarko E & P Onshore LLC: Lease 04-00116 Legal Description 13-49-79 County Johnson Request 6th SOO RENTAL PAYMENT SCHEDULE For State Of Wyoming Oil and Gas Leases Under Suspended Operations Status ALL LEASES ISSUED AFTER MARCH 1, 1982 PROVIDE FOR A FIVE (5) YEAR PRIMARY TERM AND ALLOW FOR A SUSPENSION OF OPERATIONS WHERE A WELL CAPABLE OF PRODUCING IN PAYING QUANTITIES EXISTS ON THE LEASE BUT A SATISFACTORY MARKET IS NOT YET DEVELOPED, AS LONG AS LEASE RENTALS ARE PAID YEARLY BY THE LEASE ANNIVERSARY DATE. LEASE TERMS PROVIDE THAT RENTALS FOR ANY YEAR AFTER DISCOVERY IS MADE WILL BE AT $2.00/ACRE UNLESS CHANGED BY AGREEMENT. IN GRANTING THIS SUSPENSION OF OPERATIONS, THE OFFICE OF STATE LANDS AND INVESTMENTS AND THE PETITIONER FOR SAME ARE AGREEING ON THE RENTAL SCHEDULE SHOWN BELOW (CHANGING BY AGREEMENT) AS A CONDITION OF THE GRANT OF SUSPENSION. SUSPENDED DURING PRIMARY TERM $ 2.00 PER ACRE UNDER 1st SUSPENSION OF OPERATIONS $ 3.00 PER ACRE UNDER 2nd & 3rd SUSPENSION OF OPERATIONS $ 5.00 PER ACRE UNDER 4th & 5th SUSPENSION OF OPERATIONS $10.00 PER ACRE UNDER 6th or GREATER SUSPENSION OF OPERATIONS $20.00 PER ACRE Page 4 of 4 February 6, 2014 BOARD MATTER E-4 ACTION: Leases Consider Applications for Over-the-Counter Oil and Gas AUTHORITY: W.S. 36-6-101; Board of Land Commissioners’ Regulations, Chapter 18, Section 5(c) Rules & ALTERNATIVES: Approve Applications Deny Applications ANALYSIS: The following leases were offered at separate public auctions at both 16 2/3% and 12 1/2% royalty rates. Having received no bids, the leases were listed as over-the-counter parcels pursuant to Board of Land Commissioners’ Rules and Regulations, Chapter 18, Section 5(c). The following applications were received thereafter. LEASE NO. APPLICANT DESCRIPTION ACRES 14-00001 Wes State Lands Sec 12 NW T33N R94W 160.00 14-00002 Wes State Lands Sec 36 ALL T33N R95W 640.00 14-00003 Wes State Lands Sec 16 ALL T33N R96W 640.00 14-00004 Wes State Lands Sec 36 ALL T33N R96W 640.00 STIP# 5, 117, 136, 140 5, 117, 136 5, 117, 136, 140 136, 140 The specific language of all Standard Stipulations can be found at https://lands.state.wy.us/index.php/subsurface/oil-a-gas-lease-auctions/standardstipulations. DIRECTOR’S RECOMMENDATION: The Director recommends issuance of State of Wyoming Oil and Gas Leases 14-00001 through 14-00004 to Wes State Lands at a 12 1/2% royalty rate with the above referenced Standard Stipulations applied to each lease, effective February 2, 2014. BOARD ACTION: _______________________________________________________ February 6, 2014 BOARD MATTER E-5 ACTION: Consider Request for State of Wyoming Oil and Gas Lease Term Extension AUTHORITY: W.S. 36-6-101; Board of Land Commissioners’ Rules and Regulations, Chapter 18, Section 8(b), Section 6 ALTERNATIVES: • Approve Wyoming Oil and Gas Lease Term Extension • Deny Wyoming Oil and Gas Lease Term Extension ANALYSIS: GRMR Oil and Gas, LLC (GRMR) has requested a one (1) year lease term extension for one (1) State of Wyoming Oil and Gas Lease (see formal request attached). This is the fifth and final lease term extension request for State of Wyoming Oil and Gas Lease 05-00101, which expires on April 1, 2014. This request will extend the lease until April 1, 2015 should production not occur. GRMR acquired the lease from Coleman Oil and Gas (Coleman) on June 30, 2013. Since acquisition, GRMR has not had sufficient time remaining in the lease for evaluation and production while fully complying with requirements set forth by the Wyoming Governor’s Executive Order 2011-5 (Sage Grouse Core). In accordance with OSLI’s existing coordination process with the Wyoming Game and Fish Department and the Wyoming State Historic Preservation Office, it is recommended that the following Standard Stipulations be applied to this lease: Wyoming Oil and Gas Lease 05-00101 T13N, R89W, Section 16: ALL (640 acres) Wyoming Game and Fish Department #5: Standard Stipulation relating to Big Game crucial winter range. #117: Standard Stipulation relating to development and production within an area of concern for the protection of streams and lakes. #136: Standard Stipulation relating to development and production within an area of concern for the spread of aquatic invasive species. #140: Standard Stipulation relating to Sage Grouse Core Areas Wyoming State Historic Preservation Office No additional stipulations recommended. DIRECTOR’S RECOMMENDATION: The Director recommends approval of a one (1) year lease term extension for State of Wyoming Oil and Gas Lease 05-00101 to expire April 1, 2015, if not then held by production or ongoing drilling operations. Further, it is recommended that the extension be conditioned upon receipt of the required $2.00 per acre operation rental and a $10,000.00 liquidated damages bond as mandated by Chapter 18, Sections 6 & 8 of the Board of Land Commissioners’ Rules and Regulations. BOARD ACTION:_______________________________________________________ February 6, 2014 BOARD MATTER E-6 ACTION: Consider Request for State of Wyoming Oil and Gas Lease Term Extension AUTHORITY: W.S. 36-6-101; Board of Land Commissioners’ Rules and Regulations, Chapter 18, Section 8(b), Section 6 ALTERNATIVES: • Approve Wyoming Oil and Gas Lease Term Extension • Deny Wyoming Oil and Gas Lease Term Extension ANALYSIS: Koch Exploration Company, LLC (KEC) has requested a one (1) year lease term extension for one (1) State of Wyoming Oil and Gas Lease (see formal request attached). This is the first lease term extension request for State of Wyoming Oil and Gas Lease 09-00312, which expires on June 2, 2014. This request will extend the lease until June 2, 2015 should production not occur. KEC acquired the lease from Prima Exploration, Inc effective February 1, 2011. With the acquisition of this lease and surrounding acreage, it is KEC’s intention to form a Federal Exploratory Unit. In accordance with OSLI’s existing coordination process with the Wyoming Game and Fish Department and the Wyoming State Historic Preservation Office, it is recommended that the following Standard Stipulations be applied to this lease: Wyoming Oil and Gas Lease 09-00312 T50N, R95W, Tract 38 Lots 4-7 (formally NW ¼ Section 16) (160 acres) Wyoming Game and Fish Department #136: Standard Stipulation relating to development and production within an area of concern for the spread of aquatic invasive species. Wyoming State Historic Preservation Office No additional stipulations recommended. DIRECTOR’S RECOMMENDATION: The Director recommends approval of a one (1) year lease term extension for State of Wyoming Oil and Gas Lease 09-00312 to expire June 2, 2015, if not then held by production, ongoing drilling operations or an additional extension approval from the Board. Further, it is recommended that the extension be conditioned upon receipt of the required $2.00 per acre operation rental and a $10,000.00 liquidated damages bond as mandated by Chapter 18, Sections 6 & 8 of the Board of Land Commissioners’ Rules and Regulations. BOARD ACTION:_______________________________________________________ February 6, 2014 BOARD MATTER F-1 ACTION: Consider Renewal Applications for Metallic and Non-Metallic Leases AUTHORITY: W.S. 36-6-101; Board of Land Commissioners’ Rules and Regulations, Chapter 24, Section 5 ALTERNATIVES: Approve Renewal Applications Deny Renewal Applications ANALYSIS: The following renewal applications for All Metallic and Non-Metallic lease are submitted for Board of Land Commissioners consideration: LEASE NO. APPLICANT DESCRIPTION ACRES COUNTY STIP# 0-40858 Wyoming Gold Mining Company S2 25-14-70 NE 35-14-70 480.00 Laramie 136 0-40861 Rattlesnake Mining (Wyoming) Company All 16-32-87 640.00 Natrona 140 0-40862 Rattlesnake Mining (Wyoming) Company Lot 4 18-32-87 38.51 Natrona 140 The specific language of all Standard Stipulations can be found at https://lands.state.wy.us/index.php/subsurface/oil-a-gas-lease-auctions/standardstipulations. DIRECTOR’S RECOMMENDATION: The Director recommends that the Board approve the above described All Metallic and Non-Metallic lease renewal applications with the described Standard Stipulations, effective February 2, 2014. BOARD ACTION: _______________________________________________________ February 6, 2014 BOARD MATTER F-2 ACTION: Consider Applications for All Metallic and Non-Metallic Leases AUTHORITY: W.S. 36-6-101; Board of Land Commissioners’ Rules and Regulations, Chapter 24, Section 5 ALTERNATIVES: Approve Applications Deny Applications ANALYSIS: The following applications for an All Metallic and Non-Metallic lease are submitted for Board of Land Commissioners consideration: LEASE NO. APPLICANT DESCRIPTION ACRES COUNTY STIP# 0-43467 Innovation Exploration Ventures, LLC E2NW 26-31-90 80.00 Fremont 136, 140 0-43468 Innovation Exploration Ventures, LLC All 36-31-90 640.00 Fremont 136, 140 The specific language of all Standard Stipulations can be found at https://lands.state.wy.us/index.php/subsurface/oil-a-gas-lease-auctions/standard-stipulations. DIRECTOR’S RECOMMENDATION: The Director recommends that the Board approve the above described All Metallic and NonMetallic lease applications with the described Standard Stipulations, effective February 2, 2014. BOARD ACTION: _______________________________________________________ February 6, 2014 BOARD MATTER F-3 ACTION: Consider Application for Bentonite Lease AUTHORITY: W.S. 36-6-101; Board of Land Commissioners’ Rules and Regulations, Chapter 22, Section 5 ALTERNATIVES: Approve Application Deny Application ANALYSIS: The following application for Bentonite leasing is submitted for Board of Land Commissioners’ consideration. LEASE NO. APPLICANT DESCRIPTION ACRES COUNTY STIP# 0-43464 Wyo-Ben, Inc. Tract 43F (Formally SWNE) Sec. 22-52-92 40.37 Big Horn None The specific language of all Standard Stipulations can be found at https://lands.state.wy.us/index.php/subsurface/oil-a-gas-lease-auctions/standardstipulations. DIRECTOR’S RECOMMENDATION: The Director recommends that the Board approve the above described Bentonite lease application and allow the Director to issue the lease effective February 2, 2014. BOARD ACTION: _______________________________________________________ February 6, 2014 BOARD MATTER F-4 ACTION: Consider Application for Bentonite Lease Renewal AUTHORITY: W.S. 36-6-101; Board of Land Commissioners’ Rules and Regulations, Chapter 22, Section 8 ALTERNATIVES: Approve Renewal Application Deny Renewal Application ANALYSIS: The following application for Bentonite lease renewal is submitted for Board of Land Commissioners’ consideration. LEASE NO. APPLICANT DESCRIPTION ACRES COUNTY STIP# 0-40855 NE:E2NW 36-58-96 240.00 Big Horn None Wyo-Ben, Inc. The specific language of all Standard Stipulations can be found at https://lands.state.wy.us/index.php/subsurface/oil-a-gas-lease-auctions/standard-stipulations. DIRECTOR’S RECOMMENDATION: The Director recommends that the Board approve the above described Bentonite lease renewal application and allow the Director to issue the lease effective December 2, 2013. BOARD ACTION: _______________________________________________________ February 6, 2014 BOARD MATTER F-5 ACTION: Consider Applications for Coal Leases AUTHORITY: W.S. 36-6-101; Board of Land Commissioners’ Rules and Regulations, Chapter 19, Section 5 ALTERNATIVES: Approve Applications Deny Applications ANALYSIS: The following applications for Coal leases are submitted for Board of Land Commissioners consideration. LEASE NO. APPLICANT DESCRIPTION ACRES COUNTY STIP# 0-43333 Noonan Land Services, Inc. All 16-18-97 640.00 Sweetwater 4 0-43334 Noonan Land Services, Inc. All 36-18-97 640.00 Sweetwater 4 0-43335 Noonan Land Services, Inc. N2NE:SWNE: 614.23 Pt. SENE:NW: Pt. NESW:Pt. NWSW: Pt. SWSW:SESW: Pt. NWSE:Pt. NESE: S2SE 16-19-97 Sweetwater 1 0-43336 Noonan Land Services, Inc. Lots 1-4:W2 36-19-97 512.63 Sweetwater None 0-43337 Noonan Land Services, Inc. All 16-20-97 640.00 Sweetwater None 0-43338 Noonan Land Services, Inc. Pt. NENE:W2NE: 640.00 Pt. SENE:W2: Pt. NESE:W2SE: Pt. SESE 36-20-97 Sweetwater 5 0-43339 Noonan Land Services, Inc. All 16-21-97 640.00 Sweetwater 4 0-43340 Noonan Land Services, Inc. All 36-21-97 640.00 Sweetwater 4 0-43341 Noonan Land Services, Inc. All 16-17-98 640.00 Sweetwater None 0-43342 Noonan Land Services, Inc. All 36-17-98 640.00 Sweetwater 140 0-43343 Noonan Land Services, Inc. All 16-18-98 640.00 Sweetwater None 0-43344 Noonan Land Services, Inc. All 36-18-98 640.00 Sweetwater None 0-43345 Noonan Land Services, Inc. All 16-19-98 640.00 Sweetwater None 0-43346 Noonan Land Services, Inc. All 36-19-98 640.00 Sweetwater None 0-43347 Noonan Land Services, Inc. All 16-20-98 640.00 Sweetwater None 0-43348 Noonan Land Services, Inc. All 36-20-98 640.00 Sweetwater 5 0-43349 Noonan Land Services, Inc. All 16-21-98 640.00 Sweetwater 140 LEASE NO. APPLICANT DESCRIPTION ACRES COUNTY STIP# 0-43350 Noonan Land Services, Inc. All 36-21-98 640.00 Sweetwater None 0-43351 Noonan Land Services, Inc. All 16-12-99 640.00 Sweetwater 4,5 0-43352 Noonan Land Services, Inc. All 16-13-99 640.00 Sweetwater 4 0-43353 Noonan Land Services, Inc. All 36-13-99 640.00 Sweetwater 5 0-43354 Noonan Land Services, Inc. All 16-17-99 640.00 Sweetwater None 0-43355 Noonan Land Services, Inc. E2:NW:E2SW 36-17-99 560.00 Sweetwater None 0-43356 Noonan Land Services, Inc. W2SW 36-17-99 80.00 Sweetwater None 0-43357 Noonan Land Services, Inc. All 16-18-99 640.00 Sweetwater None 0-43358 Noonan Land Services, Inc. All 36-18-99 640.00 Sweetwater None 0-43359 Noonan Land Services, Inc. All 16-19-99 640.00 Sweetwater None 0-43360 Noonan Land Services, Inc. N2:N2SW: 625.30 SWSW:W2SE: Pt. SESW:PT. NESE: Pt. SESE 36-19-99 Sweetwater None 0-43361 Noonan Land Services, Inc. All 16-20-99 640.00 Sweetwater 140 0-43362 Noonan Land Services, Inc. All 36-20-99 640.00 Sweetwater 4,5 0-43363 Noonan Land Services, Inc. All 16-21-99 640.00 Sweetwater 5,140 0-43364 Noonan Land Services, Inc. All 36-21-99 640.00 Sweetwater 140 0-43365 Noonan Land Services, Inc. All 16-22-99 640.00 Sweetwater 140 0-43366 Noonan Land Services, Inc. All 16-23-99 640.00 Sweetwater 5 0-43367 Noonan Land Services, Inc. All 36-23-99 640.00 Sweetwater 4,5 0-43368 Noonan Land Services, Inc. Tract 38 (form. All 16)-24-99 640.00 Sweetwater 4 0-43369 Noonan Land Services, Inc. Tract 39 (form. All 36)-24-99 640.00 Sweetwater 4 0-43370 Noonan Land Services, Inc. All 16-12-100 640.00 Sweetwater 5 0-43371 Noonan Land Services, Inc. All 16-13-100 640.00 Sweetwater 57 0-43372 Noonan Land Services, Inc. All 36-13-100 640.00 Sweetwater None 0-43373 Noonan Land Services, Inc. All 16-14-100 640.00 Sweetwater 5 0-43374 Noonan Land Services, Inc. All 36-14-100 640.00 Sweetwater None 0-43375 Noonan Land Services, Inc. All 16-15-100 640.00 Sweetwater 140 0-43376 Noonan Land Services, Inc. All 36-15-100 640.00 Sweetwater 140 0-43377 Noonan Land Services, Inc. All 16-16-100 640.00 Sweetwater 5,140 LEASE NO. APPLICANT DESCRIPTION ACRES COUNTY STIP# 0-43378 Noonan Land Services, Inc. All 36-16-100 640.00 Sweetwater 140 0-43379 Noonan Land Services, Inc. All 16-17-100 640.00 Sweetwater 5 0-43380 Noonan Land Services, Inc. All 36-17-100 640.00 Sweetwater 140 0-43381 Noonan Land Services, Inc. All 36-18-100 640.00 Sweetwater 5 0-43382 Noonan Land Services, Inc. All 16-22-100 640.00 Sweetwater 140 0-43383 Noonan Land Services, Inc. All 16-23-100 640.00 Sweetwater 5 0-43384 Noonan Land Services, Inc. All 36-23-100 640.00 Sweetwater None 0-43385 Noonan Land Services, Inc. Tract 37 (form. All 16)-24-100 640.00 Sweetwater None 0-43386 Noonan Land Services, Inc. Tract 40 (form. All 36)-24-100 640.00 Sweetwater None 0-43387 Noonan Land Services, Inc. All 16-15-101 640.00 Sweetwater 140 0-43388 Noonan Land Services, Inc. All 36-15-101 640.00 Sweetwater 140 0-43389 Noonan Land Services, Inc. All 16-16-101 640.00 Sweetwater None 0-43390 Noonan Land Services, Inc. All 36-16-101 640.00 Sweetwater 5,140 0-43391 Noonan Land Services, Inc. All 16-18-101 640.00 Sweetwater 5 0-43392 Noonan Land Services, Inc. All 36-18-101 640.00 Sweetwater None 0-43393 Noonan Land Services, Inc. All 16-19-101 640.00 Sweetwater None 0-43394 Noonan Land Services, Inc. All 36-19-101 640.00 Sweetwater None 0-43395 Noonan Land Services, Inc. All 36-21-101 640.00 Sweetwater 5 0-43396 Noonan Land Services, Inc. All 16-22-101 640.00 Sweetwater 5,140 0-43397 Noonan Land Services, Inc. All 16-23-101 640.00 Sweetwater 5 0-43398 Noonan Land Services, Inc. All 36-23-101 640.00 Sweetwater 5,140 0-43399 Noonan Land Services, Inc. Tract 39 (form. All 16)-24-101 640.00 Sweetwater 5 0-43400 Noonan Land Services, Inc. Tract 38 (form. All 36)-24-101 640.00 Sweetwater 5 0-43401 Noonan Land Services, Inc. All 16-25-101 640.00 Sweetwater 140 0-43402 Noonan Land Services, Inc. Lots 1-4:W2E2: 645.21 W2 36-25-101 Sweetwater 4 0-43403 Noonan Land Services, Inc. All 16-17-102 640.00 Sweetwater None 0-43404 Noonan Land Services, Inc. All 16-18-102 640.00 Sweetwater None 0-43405 Noonan Land Services, Inc. All 36-18-102 640.00 Sweetwater 5 0-43406 Noonan Land Services, Inc. All 16-19-102 640.00 Sweetwater None LEASE NO. APPLICANT DESCRIPTION ACRES COUNTY 0-43407 Noonan Land Services, Inc. All 36-19-102 0-43408 Noonan Land Services, Inc. E2:E2W2:SW: 629.00 Pt. W2NW: Pt. NWSW 16-20-102 Sweetwater 5 0-43409 Noonan Land Services, Inc. All 36-20-102 640.00 Sweetwater None 0-43410 Noonan Land Services, Inc. All 16-21-102 640.00 Sweetwater 5,140 0-43411 Noonan Land Services, Inc. All 36-21-102 640.00 Sweetwater 5 0-43412 Noonan Land Services, Inc. All 16-22-102 640.00 Sweetwater 5,140 0-43413 Noonan Land Services, Inc. All 36-22-102 640.00 Sweetwater 5,140 0-43414 Noonan Land Services, Inc. All 16-23-102 640.00 Sweetwater 5,140 0-43415 Noonan Land Services, Inc. All 36-23-102 640.00 Sweetwater 5,140 0-43416 Noonan Land Services, Inc. All 16-24-102 640.00 Sweetwater 5,140 0-43417 Noonan Land Services, Inc. Lot 37 (form. All 36)-24-102 611.35 Sweetwater 5 0-43418 Noonan Land Services, Inc. W2NE:E2NW 11-25-102; NE 15-25-102 320.00 Sweetwater 5,140 0-43419 Noonan Land Services, Inc. All 16-25-102 640.00 Sweetwater 5,140 0-43420 Noonan Land Services, Inc. All 36-25-102 640.00 Sweetwater 5,140 0-43421 Noonan Land Services, Inc. All 16-19-103 640.00 Sweetwater None 0-43422 Noonan Land Services, Inc. All 36-19-103 640.00 Sweetwater None 0-43423 Noonan Land Services, Inc. All 16-20-103 640.00 Sweetwater 5 0-43424 Noonan Land Services, Inc. All 36-20-103 640.00 Sweetwater 5 0-43425 Noonan Land Services, Inc. All 16-21-103 640.00 Sweetwater 5 0-43426 Noonan Land Services, Inc. All 36-21-103 640.00 Sweetwater None 0-43427 Noonan Land Services, Inc. All 16-22-103 640.00 Sweetwater 5,57 0-43428 Noonan Land Services, Inc. All 36-22-103 640.00 Sweetwater 5,140 0-43429 Noonan Land Services, Inc. All 16-23-103 640.00 Sweetwater None 0-43430 Noonan Land Services, Inc. All 36-23-103 640.00 Sweetwater 5,140 0-43431 Noonan Land Services, Inc. SESE12-24-103 0-43432 Noonan Land Services, Inc. 0-43433 0-43434 640.00 STIP# Sweetwater None 40.00 Sweetwater 5 All 16-24-103 640.00 Sweetwater 5 Noonan Land Services, Inc. Lot 37 (form. All 36)-24-103 641.70 Sweetwater 5 Noonan Land Services, Inc. E2SE 14-25-103 160.00 E2NE 23-25-103 Sweetwater 5,140 LEASE NO. APPLICANT DESCRIPTION ACRES COUNTY 0-43435 Noonan Land Services, Inc. SWNE 18-25-103 200.00 Sweetwater 5,140 SE 20-25-103 0-43436 Noonan Land Services, Inc. All 16-25-103 640.00 Sweetwater 5,140 0-43437 Noonan Land Services, Inc. S2NW:N2SW 35-25-103 160.00 Sweetwater 5 0-43438 Noonan Land Services, Inc. All 36-25-103 640.00 Sweetwater 5 0-43439 Noonan Land Services, Inc. Lots 1-16 16-19-104 600.58 Sweetwater 5 0-43440 Noonan Land Services, Inc. All 36-19-104 640.00 Sweetwater None 0-43441 Noonan Land Services, Inc. Lots 1-16 16-20-104 599.48 Sweetwater 5 0-43442 Noonan Land Services, Inc. All 36-20-104 640.00 Sweetwater 5 0-43443 Noonan Land Services, Inc. All 16-21-104 640.00 Sweetwater 5 0-43444 Noonan Land Services, Inc. All 36-21-104 640.00 Sweetwater None 0-43445 Noonan Land Services, Inc. All 16-22-104 640.00 Sweetwater 5,140 0-43446 Noonan Land Services, Inc. All 36-22-104 640.00 Sweetwater 5 0-43447 Noonan Land Services, Inc. All 16-24-104 640.00 Sweetwater 5 0-43448 Noonan Land Services, Inc. All 36-24-104 640.00 Sweetwater None 0-43449 Noonan Land Services, Inc. All 16-25-104 640.00 Sweetwater 5,140 0-43450 Noonan Land Services, Inc. All 36-25-104 640.00 Sweetwater 5,140 0-43451 Noonan Land Services, Inc. Lots 1-16 16-19-105 668.27 Sweetwater 5 0-43452 Noonan Land Services, Inc. All 16-20-105 640.00 Sweetwater 5 0-43453 Noonan Land Services, Inc. All 16-21-105 640.00 Sweetwater None 0-43454 Noonan Land Services, Inc. All 36-21-105 640.00 Sweetwater 5 0-43455 Noonan Land Services, Inc. Tract 38 (form. All 16)-22-105 640.00 Sweetwater 140 0-43456 Noonan Land Services, Inc. All 36-22-105 640.00 Sweetwater 5 0-43457 Noonan Land Services, Inc. All 16-23-105 640.00 Sweetwater 5,140 0-43458 Noonan Land Services, Inc. All 36-23-105 640.00 Sweetwater 5,140 0-43459 Noonan Land Services, Inc. All 16-24-105 640.00 Sweetwater 5,140 0-43460 Noonan Land Services, Inc. N2SW 24-24-105 80.00 Sweetwater 5,140 0-43461 Noonan Land Services, Inc. All 36-24-105 Sweetwater 5,140 640.00 STIP# LEASE NO. APPLICANT DESCRIPTION 0-43462 Lot 1 16-58-84 Youngs Creek Mining Company, LLC ACRES COUNTY 18.34 STIP# Sheridan None The specific language of all Standard Stipulations can be found at https://lands.state.wy.us/index.php/subsurface/oil-a-gas-lease-auctions/standard-stipulations. DIRECTOR’S RECOMMENDATION: The Director recommends that the Board approve the above described Coal lease applications with the described Standard Stipulations and allow the Director to issue the leases effective February 2, 2014. BOARD ACTION: _______________________________________________________ February 6, 2014 BOARD MATTER F-6 ACTION: Consider Sand, Gravel, Rock Crushed for Aggregate and Borrow Material Applications AUTHORITY: W.S. 36-6-101; Board of Land Commissioners’ Rules and Regulations, Chapter 25, Section 5 ALTERNATIVES: Approve Applications Deny Applications ANALYSIS: The following applications for Sand, Gravel, Rock Crushed for Aggregate and Borrow Material leases are submitted for Board of Land Commissioners’ consideration. LEASE NO. APPLICANT DESCRIPTION ACRES COUNTY STIP# SG-01910 E.A. Desmarteau Pt. NWNE 16-40-70 15.00 Converse 136,143 SG-01911 Western Sunset, LLC Pt. NE: Pt. N2SE:Pt. SWSE 16-40-70 137.00 Converse 136,143 SG-01912 The Stone Yard, LLC Pt. NWSE: Pt. SW 16-40-70 30.00 Converse 136,143 SG-01913 TS Aggregate Pt. NWSW 36-40-71 20.00 Converse 136,143 The specific language of all Standard Stipulations can be found at https://lands.state.wy.us/index.php/subsurface/oil-a-gas-lease-auctions/standard-stipulations. DIRECTOR’S RECOMMENDATION: The Director recommends that the Board approve the above applications for Sand, Gravel, Rock Crushed for Aggregate and Borrow Material leases with the described Standard Stipulations and allow the Director to issue the lease effective February 2, 2014. BOARD ACTION: _______________________________________________________ February 6, 2014 BOARD MATTER F-7 ACTION: Consider Application for Sand, Gravel, Rock Crushed for Aggregate and Borrow Material Lease Renewal AUTHORITY: W.S. 36-6-101; Board of Land Commissioners’ Rules and Regulations, Chapter 25, Section 8 ALTERNATIVES: Approve Renewal Application Deny Renewal Application ANALYSIS: The following application for a Sand, Gravel, Rock Crushed for Aggregate and Borrow Material lease renewal is submitted for Board of Land Commissioners’ consideration. LEASE NO. APPLICANT DESCRIPTION ACRES COUNTY STIP# SG-01898 Pt. SESE 36-56-81 10.00 Sheridan None Sheridan County Public Works Department The specific language of all Standard Stipulations can be found at https://lands.state.wy.us/index.php/subsurface/oil-a-gas-lease-auctions/standard-stipulations. DIRECTOR’S RECOMMENDATION: The Director recommends that the Board approve the above described Sand, Gravel, Rock Crushed for Aggregate and Borrow Material lease renewal application and allow the Director to issue the lease effective February 2, 2014. BOARD ACTION: _______________________________________________________ February 6, 2014 BOARD MATTER F-8 ACTION: Consider Applications for Uranium Leases AUTHORITY: W.S. 36-6-101; Board of Land Commissioners’ Rules and Regulations, Chapter 21, Section 5 ALTERNATIVES: Approve Application Deny Application ANALYSIS: The following applications for Uranium leases are submitted for Board of Land Commissioners’ consideration. LEASE NO. APPLICANT DESCRIPTION ACRES COUNTY STIP# 0-43463 Americo Resources, LLC All 36-40-93 640.00 Fremont 5 0-43465 Stakeholder Energy, LLC N2NW 16-37-75 80.00 Converse 136,143 0-43466 Stakeholder Energy, LLC All 36-38-76 Converse 136,143 640.00 The specific language of all Standard Stipulations can be found at https://lands.state.wy.us/index/php/subsurface/oil-a-gas-lease-auctions/standard-stipulations. DIRECTOR’S RECOMMENDATION: The Director recommends that the Board approve the above described Uranium lease applications with the described Standard Stipulations, and allow the Director to issue the leases effective February 2, 2014. BOARD ACTION: _______________________________________________________ February 6, 2014 BOARD MATTER F-9 ACTION: Consider Renewal Application for Uranium Lease AUTHORITY: W.S. 36-6-101; Board of Land Commissioners’ Rules and Regulations, Chapter 21, Section 8 ALTERNATIVES: Approve Renewal Application Deny Renewal Application ANALYSIS: The following application for Uranium lease is submitted for Board of Land Commissioners’ consideration. LEASE NO. APPLICANT DESCRIPTION ACRES COUNTY STIP# 0-15536 All 16-28-92 640.00 Fremont 4, 136 Energy Fuels Wyoming, Inc. The specific language of all Standard Stipulations can be found at https://lands.state.wy.us/index/php/subsurface/oil-a-gas-lease-auctions/standard-stipulations. DIRECTOR’S RECOMMENDATION: The Director recommends that the Board approve the above described Uranium lease renewal application with the described Standard Stipulations, and allow the Director to issue the lease effective January 2, 2014. BOARD ACTION: _______________________________________________________ February 6, 2014 ACTION: BOARD MATTER G - 1 Easement Applications for Consideration AUTHORITY: W. S. 36-9-118; W. S. 36-9-120; Board of Land Commissioners’ Rules and Regulations, Chapter 3, Section 7(e) No. Name Purpose Description 8915 * 8916 Sinclair Wyoming Refining Co. Sinclair Wyoming Refining Co. Pipeline Pipeline Sec. 36-21-86 Sec. 36-21-86 * 8918 PacifiCorp, dba Rocky Mtn Power Power line * 8928 WGR Operating, LP * 8929 Consideration Term CB CB $1,212.00 based on $50.00/rod (MV) – 30’ $1,212.00 based on $50.00/rod (MV) – 30’ (The above two are in the same trench) 35 years 35 years 24.24 rods 24.24 rods Sec. 36-30-108 SB $17,720.00 based on $4,000.00/acre (MV) – 40’ 35 years 4.43 acres Pipeline Sec. 13-40-76 CO $632.75 based on $25.00/rod (MV) – 25’ 35 years 25.31 rods RKI Exploration and Production Pipeline Sec. 36-40-72 CO $6,489.00 based on $30.00/rod (MV) – 30’ 35 years 216.30 rods 8930 Thunder Creek Gas Services, LLC Expansion of an old Compressor site Sec. 16-44-73 CL $1,500.00 based on Offer (MV) 22 years** 0.25 acres 8931 Rocky Mountain Power Power line Sec. 11-31-70 CO $250.00 minimum based on BLC Ch. 3 rules – 10’ 35 years 18.97 rods 8932 Powder River Energy Corporation Power line See File JO $17,032.27 based on $10.50/rod (MV) – 30’ 35 years 1,622.12 rods 8933 Stephen and Jill Collen Roadway Sec. 6-51-103 PA $4,428.25 based on $25.00/rod (MV) – 30’ Perpetual 117.13 rods 8936 Pioneer Wind Park I, LLC Transmission Line SEE FILE CO $45,716.67 based on $65/rod (MV) - 150’ 35 years 703.33 rods DCP Douglas, LLC Pipeline Sec. 16-42-72 CL $14,499.45 based on $45/rod (MV) – 30’ 35 years 322.21 rods 8940 Powder River Energy Corporation Power line Sec. 23-43-76 CL $250.00 minimum based on BLC Ch. 3 rules – 30’ 35 years 8.06 rods 8943 PacifiCorp, dba Rocky Mtn Power Power line Sec. 36-44-93 HS $307.65 based on $10.50/rod (MV) – 10’ 35 years 29.30 acres * 8937 County Acres/Rods *Easement application which includes a Temporary Use Permit for construction activities only. ** 8930 – Easement term to coincide with expiration of existing compressor site easement #6657 – December 1, 2036. DIRECTORS RECOMMENDATIONS: The Director recommends that the Board approve the Easements and any related Temporary Use Permits as set forth above. BOARD ACTION: Page 1 of 1 BOARD MATTER G-2 February 6, 2014 ACTION: Consider Temporary Use Permit Applications AUTHORITY: W.S. 36-2-107, Board of Land Commissioners' Rules and Regulations, Chapter 14, Section 7 Permit No. Applicant Use 219 Bill Barrett Corporation 364 Charger Resources, LLC 600 BP America Production Company 655 923 936 Wyoming Department of Transportation PacifCorp National Fuel Corporation 1338 International Petroleum, LLC 1786 Yates Petroleum Corporation 1919 L & J Operating 2092 University of Wyoming 2287 ONEOK Bakken Pipeline, LLC 2358 Bill Barrett Corporation 2365 Richard A. Nelson 2419 Phoenix Production Company Area Legal County Term Consideration Access Road to Multiple 296.8 Rods Locations Access Road to a Single 320.00 Rods Location Sec. 17-40-75 Converse 5 years $1,484.00/year Sec. 16-40-74 Converse 5 years Access Road to Multiple Locations Stockpile/Hot Mix Site Monitoring Site/Vegetation Access Road to a Single Location Access Road to a Single Location Access Road to a Single Location Access Road to a Single Location Straticgraphic Test Well/ Monitoring Wells Access Road to Single Location Access Road to Multiple Locations Encroachment of Building and Appoximately 600 Feet of LandHandling Site Waste 242.42 Rods Sec. 16-19-94 Sweetwater 5 years $1,600.00/1st year; $960.00/year thereafter $1,212.10/year 7.00 Acress 3.00 Acres 445.00 Rods Sublette Converse Hot Springs 2 years 5 years 5 years $600.00/year $100.00/year $1,335.00/year 193.00 Rods Sec, 16-30-107 Sec. 16-37-75 Sec(s) 16, 23-4699 Sec. 36-28-92 Fremont 5 years $579.00/year 162.00 Rods Sec. 36-54-76 Campbell 5 years $486.00/year 124.00 Rods Sec. 16-53-75 Campbell 5 years $372.00/year Sec. 16-20-101 Sweetwater 1 year $350.00/year 452.55 Rods Sec. 16-56-61 Crook 5 years $1,357.65/year 284.60 Rods Sec. 16-43-75 Campbell 5 years $1.423.00/year 0.99 Acres Sec. 17-53-65 Crook 1 year $500.00/year 0.05 Acres Sec. 27-47-101 Park 1 year $1,200.00/year Page 1 of 3 2486 Farrel B. Price 2495 QEP Resources, Inc. 2496 Yates Petroleum Corporation 2497 Shawn Fricke dba: Skyline Outfitters 2498 Yates Petroleum Corporation 2499 Western Sunset, LLC 2500 RKI Exploration & Production, LLC 2501 Thunder Creek Gas Services, LLC 2503 2504 2505 2506 2507 2508 Encroachment of Fixed Cover for Travel Trailer, Deck, Outhouse Access Road to a Single 172.00 Rods Location Sec. 33-28-119 Lincoln 1 year $1,000.00/year Sec. 36-15-92 Carbon 5 years Access Road to Multiple Locations Outfitting/Guiding - Non Exclusive Access Road to Multiple Locations Haul Road for Sand/Gravel Lease Access Road to a Single Location 252.00 Rods Sec. 16-43-73 Campbell 5 years $860.00/1st year; $516.00/year thereafter $1,260.00/year Various 5 years $150.00/year Access Road to Multiple Locations Nate Crookshank Outfitting/Guiding Guided Fishing Bill Barrett Corporation Access Road to Multiple Locations Bill Barrett Corporation Access Road to Multiple Locations Wyoming Department of Transportation Construction/Borrow Material Dustin DeCroo Outfitting/Guiding - Non Exclusive Tallgrass Interstate Gas Transmission, LLC Construction Activity 712.00 Rods Sec. 16-49-79 Johnson 5 years $3,560.00/year 72.73 Rods Sec. 36-40-71 Converse 3 years $363.65/year 227.00 Rods Sec. 36-38-72 Converse 5 years 321.33 Rods Sec. 16-44-75 Campbell 1 year $1,135.00/1st year; $681.00/year thereafter $1,606.65/year Various 5 years $250.00/year 96.80 Rods Sec. 7-49-78 Johnson 5 years $484.00/year 93.90 Rods Sec. 8-41-75 Campbell 5 years $469.50/year 3.75 Acres Sec. 22-25-68 Platte 1 year Various 5 years Goshen 1 year 0.01 Acres Sec. 31-22-62 $100.00/year plus $.25/cubic yard $150.00/year $100.00/year Page 2 of 3 DIRECTOR'S RECOMMENDATION: The Director recommends that the Board approve the above applications for temporary use permits. BOARD ACTION:___________________________________________________________________________ Page 3 of 3 February 6, 2014 BOARD MATTER H - 1 ACTION: CONSIDER A PROPOSED DISPOSAL OF STATE TRUST LAND, 856.43 ACRES, NATRONA COUNTY, WYOMING AUTHORITY: W.S. 36-9-101, Board of Land Commissioners’ Rules and Regulations, Chapter 26, Section 4 OVERVIEW OF PROPOSAL AND PROCESS: The Director of the Office of State Lands and Investments (OSLI) has determined the subject parcels of State Trust Land may be suitable for disposal. The land was nominated by East Elkhorn Ranch, LLC on April 25, 2013. On April 26, 2013, the Director moved the parcels to the Category II Disposal List in accordance with Wyoming Board of Land Commissioners’ Rules and Regulations (Board’s Rules). SUBJECT PROPERTY DESCRIPTIONS: The parcels are located in Natrona County, Wyoming, and are approximately two (2) miles southeast of the City of Casper, and approximately three and one half (3.5) miles south of Interstate 25. Maps are attached. Herein described as Tract 1: Section 36, - Township 33 North, Range 79 West, of the 6th P.M. All (640 acres) Fund: CS- Common School. Herein described as Tract 2: Section 1, Lot 4, - Township 32 North, Range 79 West, of the 6th P.M. (32.56 acres) Fund: CS- Common School Section 2, Lot 1, Lot 2, SW4NE4 - Township 32 North, Range 79 West, of the 6th P.M. (105.67 acres) Fund: CS- Common School Herein described as Tract 3: Section 30, Lot 1, Lot 2 - Township 33 North, Range 78 West, of the 6th P.M. (78.20 acres) Fund: OM- Omnibus Fund This total proposed disposal of State Trust Lands comprises: 856.43 acres± SUBJECT PROPRTY INFORMATION: The subject property encompasses two (2) non-contiguous parcels containing approximately 856.43± acres. Tract 1 is a full section of land (640± acres). Tract 2 includes three (3) lots and an additional quarter-quarter section for a total of 138.23± acres, which are contiguous to the southern boundary of Tract 1. Tract 3 includes two (2) lots totaling 78.20± acres located one half (1/2) mile northeast of Tracts 1 and 2. The major vegetative cover consists of native short grasses, shrubs, and forbs. There are scattered, non-merchantable ponderosa pine trees on the southern most extent of the property. Existing rights held by the State of Wyoming are 100% of the surface estate and 100% of the mineral estate. The proposed transaction will dispose of the surface estate only. The State of Wyoming will retain all interests in the mineral estate. Page 1 of 6 IMPROVEMENTS: There are no structural improvements on the property. Land improvements consist of fencing, a separately owned reservoir on Tract 2, and a stock well on Tract 3. The subject tracts are partially fenced and cross-fenced. However, the fencing does not appear to follow property lines or completely surround the properties. Tract 1: No land improvements. Tract 2: Fencing on Section 2 has an estimated contributory value of $250.00. Tract 3: An existing stock well (P94789.0W) is not approved by the Board of Land Commissioners and may not have ever been drilled as evidence of infrastructure could not be found. GRAZING AND AGRICULTURAL LEASES: Tract 1: The current Grazing and Agricultural Lease is issued to The Estate of Gibson S. Peterson (No. 1-7860) and is set to expire on January 1, 2022. Lease No. 1-7860 consists of 640.00 acres with a rated carrying capacity of one hundred fifty-one (151) Animal Unit Months (AUMs). Based on the AUM fee formula established by the Board of Land Commissioners (Board), the 2013 rental income was $724.80 ($4.80/AUM x 151 AUMs = $724.80). Tract 2: The current Grazing and Agricultural Lease is issued to The Estate of Gibson S. Peterson (No. 1-7230) and is set to expire on January 1, 2018. Lease No. 1-7230 consists of 138.23 acres with a rated carrying capacity of forty-three (43) Animal Unit Months (AUMs). Based on the AUM fee formula established by the Board, the 2013 rental income was $206.40 ($4.80/AUM x 43 AUMs = $206.40). Tract 3: The current Grazing and Agricultural Lease is issued to East Elkhorn Ranch, LLC (No. 1-8870) and is set to expire on February 1, 2022. Lease No. 1-8870 consists of 78.20 acres with a rated carrying capacity of twenty-five (25) Animal Unit Months (AUMs). Based on the AUM fee formula established by the Board, the 2013 rental income was $120.00 ($4.80/AUM x 25 AUMs = $120.00). These tracts will be sold subject to the existing Grazing and Agricultural Leases, and these Leases shall be assigned to the successful bidder after completion of the sale. APPRAISED VALUE: Deborah A. Gillihan of Hilston Appraisals has completed an appraisal of the subject property per instructions from OSLI. The effective date of the appraisal was June 10, 2013 for Tracts 1, 2 and 3. The appraiser was instructed to estimate the current market value of the fee simple interest for the parcels, excluding mineral estate and assuming legal public access. Based on the inspection, available market data and analyses, assumptions, limiting conditions, and the certifications, the appraiser's estimated opinion of market value for the defined property rights with an effective date of June 10, 2013 is: Page 2 of 6 Tracts 1 and 2 778.23 Acres of State Trust Land at $1798 per acre $1,400,000 One Million, Four Hundred Thousand Dollars Tract 3 78.20 Acres of State Trust Land at $3196 per acre $250,000 Two Hundred Fifty Thousand Dollars OSLI has reviewed the appraisal and concurs with the methods used and estimated market values. The appraisal, including the various subdivision development scenarios, comparable sales information, maps, photographs and related information, as well as the appraisal review completed by OSLI, are available upon request. INCOME GENERATING POTENTIAL: Pursuant to Chapter 26 of the Board’s Rules, the Detailed Analysis shall include an estimate of the income generating potential of the subject property: Existing Annual Income by Tract Tract 1 Grazing Lease No. 1-7860; 151 AUMs Tract 2 Grazing Lease No. 1-7230; 43 AUMs Tract 3 Grazing Lease No. 1-8870; 78.20 AUMs Total $724.80 $206.40 $120.00 $1,051.20 Cumulative existing income for the three (3) subject tracts is $1,051.20 annually. Based on information from the State Treasurer’s Office, using an estimated short term three (3) year yield of 3.29%, proceeds from disposal would generate approximately $54,259 annually. Based on a projected long-term ten (10) year yield of 7%, proceeds from disposal would generate approximately $115,448 annually. ANTICIPATED APPRECIATION OF THE PARCELS AS REAL ESTATE ASSETS: The subject property is typical of rural land with development possibility, which generates a medium to high appreciation potential. The appreciation rate for transitional property in the path of future development is largely influenced by the type and quality of development occurring in the proximity of the subject. In the table below, OSLI compared a high and low estimate of appreciation plus earnings to an estimate of investment return upon disposal. Property value appreciation was based on the USDA Agricultural Land Values Summary Reports 1998-2012. Multiple factors can dramatically increase or decrease pasture values in any given year, and these rates have varied from a high of +22.0% (2007) to a low of -26.9% (1999). The appreciation estimates are based on a conservative analysis of trends, which resulted in an annual appreciation rate ranging from a low of 3.20% and a high of 6.30%. Investment earnings were based on the Common School Permanent Land Fund’s projected long-term average total rate of return as reported by the State Treasurer's Page 3 of 6 Office. Ultimately, this comparison is based on highly fluctuating real estate values and should not be viewed as an actual performance estimate. These rates are for relative earning potential only. Appreciated land value is inherently speculative and would only be realized on a future sale. 10 Year Comparison of Appreciation and Income versus Earnings 10 Year Hold (low) Tract 1 Tract 2 Tract 3 Total 10 Year Hold (high) 10 Year Disposal 7% Investment Earnings Appraised Value 3.2% Appreciation + 6.3% Appreciation + Current Income (x10 Current Income (x10 yrs.) yrs.) $1,150,720 $433,292 $976,364 $1,112,920.41 $248,537 $94,083 $211,378 $240,372.90 $250,000 $1,649,257 $93,760 $621,135 $211,746 $1,399,487 $241,787.84 $1,595,081 versus The sum of the current appraised value, estimated appreciation and income, or investment earnings for the subject tracts is outlined in the table below. Total Potential Returns 10 Year Hold (low) Base Appraised Value, all tracts $1,649,257 Appreciation & Income, or Earnings $621,135 Total $2,270,392 10 Year Hold (high) 10 Year Disposal $1,649,257 $1,649,257 $1,399,487 $3,048,744 versus $1,595,081 $3,244,338 POLICY CRITERIA: In 1997, Wyoming Session Laws Chapter 200, section 3(a)(i) the Wyoming Legislature declared that trust land should remain a substantial component of the trust portfolio, managed under a total asset management policy, and with a focus on protecting the corpus for multiple generations. Subsequently, the Board adopted criteria for evaluation of land exchanges, sales, acquisitions, and long-term leases--collectively called Trust Land Management Objectives, on August 10, 2005. A proposal need not meet all objectives, but all objectives are considered by the Board of Land Commissioners which has the sole discretion in determining how to best manage State Trust Lands. Trust Land Management Objectives: 1) To better meet the beneficiaries short and/or long term needs 2) Improve the manageability of land assets 3) Meet a specific school and/or community need A summary of key points considered in this transaction evaluation are outlined below: Better meet the beneficiaries’ short and/or long term objectives: Page 4 of 6 OSLI concurs with the appraiser and believes the estimated opinion of market value is an accurate depiction of possible land values and uses including any development potential that may be present. The appraised value and its attributes should be taken into consideration when comparing the possible scenarios of current disposal and future disposal. An evaluation of growth patterns and long-range planning efforts in the Casper metropolitan area reveal a hypothetical development scenario, which could significantly improve revenue-generating potential of these tracts. However, the likelihood and timing of such an endeavor are subject to multiple risks and uncertainties. Consequently, revenue generation of the subject properties should be viewed solely under current income-generating activities which yield a collective $1,051.20 annually. Additional uses are limited by access issues and availability of alternative land in the area. As depicted in the preceding table, projected investment earnings from disposal of this parcel would outperform appreciation and revenue estimates from current and contemplated uses. Proceeds from a sale, additionally, would be deposited in the Common School Permanent Land Fund and shall be held on deposit until such time as the Board wishes to invest the funds or purchase other lands. Therefore, disposal of the subject parcels would yield investment earnings until such time as a separate proposed acquisition or exchange could prove substantial benefits based on the Trust Land Management Objectives. Improve the manageability of the land asset: OSLI has traditionally relied on the state lessees' stewardship and management practices for sustained yields and proper management of inaccessible State Trust Land in-holdings. However, through land consolidation efforts and interagency cooperative efforts, the State’s Trust Beneficiaries have historically benefitted from the disposal of in-holdings and isolated parcels for future acquisitions of larger, contiguous tracts. Through disposal of the subject tracts, the Board would have an opportunity to improve asset manageability through the consolidation of state and private ownership patterns and the ability to acquire other consolidated lands for the benefit of the State’s Trust Beneficiaries once an opportunity arises. Meet a specific school and/or community need: As outlined in the appraisal, available parcels to address community growth opportunities are ample in southeast Casper. Access limitations, surrounding ownership patterns, and preferred alternative sites minimize the subject property's role in public recreation and use. Currently, The Nature Conservancy (TNC) holds a conservation easement on lands bordering the west side of Tracts 1 and 2. The conservation easement does not provide for general public access nor does it allow for public access to the subject State Trust Lands proposed for disposal. Additionally, should TNC acquire the property it currently holds the conservation easement on, it would be managed by TNC similar to other fee properties it owns in that public access is not implicitly granted but rather monitored and allowed on a case by case basis. CONCLUSION: It is the opinion of OSLI that disposal of the subject property will better meet the short and long term objectives of the State's Trust Beneficiaries through optimized, sustainable revenue generation. Disposal may further offer the opportunity to acquire other land assets, which would improve manageability and/or meet a specific school or community need. Page 5 of 6 The subject property lacks public access, provides limited income, and has speculative appreciation value. It is the opinion of OSLI that disposal of these tracts would provide the opportunity to acquire more manageable, higher revenue producing land. Alternately, proceeds could be invested by the State Treasurer’s Office to generate a higher rate of return than what is currently realized by existing uses. The sale proceeds could be used in accordance with W.S. 9-4-715(k) and the Board’s Rules, Chapter 26, Section 3, to purchase land adjoining other State Trust Land, which would improve manageability. OSLI resources can be more efficiently utilized in managing land with higher marketable amenities, enhanced legal access, and/or multiple compatible uses rather than small isolated parcels with single or limited uses. A Detailed Analysis was prepared pursuant to the Board’s Rules, and has been available on OSLI’s website since December 23, 2013. It has also been available for public viewing in the Natrona County Library and the Natrona County Clerk’s Office. Should this proposed disposal be approved by the Board, OSLI will follow the disposal procedures as required by W.S. 36-9-101 and the Board’s Rules, Chapter 26, Section 4. Notification of sale will be published in a local and statewide newspaper for four (4) consecutive weeks. In addition, OSLI will market the sale of the parcels to the real estate community, on OSLI’s website, and have information available for public viewing at several locations in Natrona County, including the County Library. On January 9, 2014, a public hearing was held at the Natrona County Library, in Casper, Wyoming. During the hearing, no oral comments were received and two (2) written comments were received during the thirty (30) day comment period beginning December 23, 2013 through January 23, 2014. One (1) written comment was submitted on behalf of the Natrona County Commissioners, (attached). The Commissioners expressed their full support for this proposed disposal. One (1) written comment has been received dated January 15, 2014 from Mr. Bruce Russell of Casper, (attached). Mr. Russell expressed his concern with the public hearing notification process, opinions on restricting public access and the seemingly low appraised value per acre. OSLI intends to auction the subject property as three (3) separate tracts which are described in the appraisal. The parcels will be sold subject to the current grazing and agricultural leases, water rights, mineral lease, and easements. All interest in the mineral estate will be retained by the State of Wyoming. It has now been over thirty (30) days since the Detailed Analysis and other required information was made available to the public. Accordingly, the Board must consider, in open session, the proposed sale. If the Board rejects the proposed sale, OSLI shall remove the proposal from the Category II Disposal List. If the Board approves the proposed sale, pursuant to W.S. 36-9-101 and the Board’s Rules, it shall authorize the sale, establish the minimum bid and direct the OSLI to sell the parcels at public auction. DIRECTOR'S RECOMMENDATION: The Director recommends the Board authorize the sale of 856.43 acres in Natrona County, WY described as Tracts 1 (640 acres), Tract 2 (138.23 acres) and Tract 3 (78.20 acres) above. The Director recommends a minimum bid of $1,150,720 for Tract 1, $249,280 for Tract 2, and $250,000 for Tract 3 for a total of $1,650,000 be established for the sale and that the parcels be advertised for sale and sold at public auction. The Director further recommends that the terms of the sale shall be subject to all surface leases for the term of each lease. If the Director’s recommendation is approved, the land will be auctioned in Natrona County, Wyoming. BOARD ACTION: Page 6 of 6 Attachment 1 Subject Parcels NATRONA COUNTY COMMISSIONERS 200 N. CENTER ST., RM. 115 CASPER, Wi’ 82601 PHONE (307) 235-9202 FAX (307) 235-9486 Forrest Chadwick Robert Hendry Mail Keating Bill McDowell Terry Wingerter January 7, 2014 Matthew H. Mead, Governor Bridget Hill, Director Wyoming Board of Land Commissioners 200 West 24th Street Cheyenne, WY 82002 In re: Proposed State Trust land disposal; Natrona County Dear Governor Mead, The Natrona County Board of Commissioners have reviewed the information provided us by the Office of State Lands and Investments on the above referenced item. We heartily support the movement of state lands into private ownership and these 856.43 acres eminently qualify in accomplishing that strategy. Thank you for your consideration. “/411 ~1j~4 oDo elI, Chairman Board of Natrona County Commissioners Forwarded message From: <go’~emor~wyo.go~ Date: Wed, Jan 15, 2014 at 7:35 AM Subject: Contact the Go~emor Email from Website To: go~ernor~wyo.gov T A C L&:.~L~=I cD _____ First Name: Bruce Last Name: Russell City: Casper State: WY Email: brussell2756~gmail.com Subject: proposed sale of 856 acres of land SE of Casper Message: I li~e .5 miles west of the plot of land. Was unaware of hearing in its proposed sale. I read it in paper. Our land it going for $11,000 an acre. the land is accessible though the nature conservancy land next to it. McMurry bought Evans’Alle’s water rights on that land and wants to control the entire area. This sale would put one more area unaccessible to the general public. The nature conse~ancy took possession the land bordering the land in 2013. Please reconsider the sale of this land and hold another meeting letting landowners in the area aware of such meeting. if it is sold at least make permanent public access a condition of the sale. L_ ~ —— E—Mail to and from me, in connection with the transaction of public business, is subject to the Wyoming Public Records Act and may be disclosed to third parties. February 6, 2014 BOARD MATTER H-2 ACTION: Consider a Proposed Amendment to the Agreement for the Transfer of Lands and Interests in Lands by and between the Wyoming Board of Land Commissioners and the United States of America at Grand Teton National Park, Wyoming AUTHORITY: Wyo. Stat. § 36-2-101 BACKGROUND: At the time of statehood, Wyoming was granted school trust lands in what later became Grand Teton National Park. In 2010 the State of Wyoming owned four (4) parcels containing 1366.32 surface and 1405.91 mineral acres within the exterior boundaries of Grand Teton National Park, generally identified as follows: Antelope Flats (surface and minerals) Kelly on Gros Ventre Road (surface and minerals) Snake River (surface and minerals) Jackson Lake (minerals only) 640.00 acres 640.00 acres 86.32 acres 39.59 acres The Wyoming Constitution directs the State (Board of Land Commissioners) to generate a reasonable income from these trust lands to support Wyoming public schools. However, due to these lands being within the exterior boundary of Grand Teton National Park the Board is not able to realize the full potential economic value of these lands. Prior to 2010, the Board, the Office of State Lands and Investments (OSLI) and others had discussed the merits of an equal value exchange of these lands for decades. The Grand Teton National Park Land Exchange Act, Public Law 108-32, was enacted in June, 2003, under the sponsorship and active support of the late Senator Craig Thomas. The Act authorizes federal acquisition of the state lands by 1) donation; 2) purchase with donated or appropriated funds; or 3) exchange of federal lands in Wyoming that are identified for disposal under approved land use plans. A consistent effort by the Board and OSLI to effectuate an exchange had been pursued since the late 1990’s. In 2010, the Board notified Grand Teton National Park that because it had been unable, for too long to resolve this issue in collaboration with the Federal government, the Board was prepared to discharge its fiduciary responsibility and manage the trust lands noted above relative economic value and planned to sell the 640-acre Kelly parcel at public auction unless the Department of Interior and Congress were able to further the exchange effort in the near future; and that absent a commitment to expedite an updated appraisal and report to Congress under terms the Board and present administration could agree on, the Board would direct OSLI to proceed to sell the 640 acre Kelly Parcel at public auction, in accordance with Wyoming law. After considerable efforts to resolve the matter, on December 10, 2010, the State of Wyoming, Board of Land Commissioners and the Department of the Interior (Department) entered into an Agreement (attached) for the Conveyance of Interest in Lands wherein the Department agreed to acquire the state trust lands that lie within the exterior boundary of Grand Teton National Park on a parcel-by-parcel basis, for a specified amount, on or before a specific date as follows: Jackson Lake Parcel Snake River Parcel Antelope Flats Parcel Kelly Parcel $ 2,000.00 $16,000,000.00 $45,000,000.00 $46,000,000.00 On or before January 5, 2012 On or before January 5, 2013 On or before January 5, 2014 On or before January 5, 2015 The Agreement was expressly conditioned upon the Wyoming Legislature granting the Board the authority to directly transfer the state trust land parcels to the Department on Page 1 of 2 the basis set forth in the Agreement. The Legislature granted that authority in the 2011 general session (HEA 22). The Department acquired the Jackson Lake Parcel and the Snake River Parcel on or before the deadlines set out above. However, in 2013 the Department indicated that because it was unlikely to secure funding to allow it to meet the January 5, 2014 deadline to acquire the Antelope Flats Parcel and that it would like to work with the Board to find a solution. Since that time, OSLI has been in discussions with the Department to consider an alternative method of conveyance in the event the Department was unable to meet is purchase obligation under the 2010 agreement. The Department did not meet the January 5, 2014 deadline set out in the 2010 Agreement. ANALYSIS: The provisions of the 2010 agreement do not provide for automatic termination of the agreement if the Department fails to acquire each parcel by its specified deadline. Instead, the agreement is terminable at the discretion of the Board. However, both the agreement and the 2011 legislation contemplated that the parties could consider alternative methods of conveyance and amend the agreement accordingly. After receiving notice that the Department may not be able to meet its purchase obligation, discussions with OSLI have focused on a value-for-value exchange of surface and/or mineral interest. Attached is a draft amendment to the 2010 agreement outlining that the parties agree to work cooperatively to exchange the two (2) remaining parcels in the park for federal land and mineral interests to be identified later. Key provisions include: Reappraisal of the Grand Teton State Trust Land Parcels – if the parcels appraise for less than the amount in the 2010 agreement, the amendment may be terminated by the Board A deadline of January 5, 2016 to complete the exchange with an option to extend the deadline to December 31, 2016 if critical administrative processes are substantially complete. Recognition that the State of Wyoming will generally not be responsible for costs. If the exchange is not complete by the applicable deadline, the Board will place the Grand Teton state trust land parcels on the Category I Disposal List and any federal parcels found suitable for exchange will be considered for other exchanges of interest to the Board. In accordance with the 2011 Wyoming legislation, which required legislative approval of alternative methods of conveyance, and Public Law 108-32 the Amendment is expressly conditioned on receiving approval of the Wyoming Legislature and, if necessary, additional approval from Congress. DIRECTOR’S RECOMMENDATION: The Director Recommends that the Board approve the attached Amendment to the 2010 Agreement providing for the transfer of the state trust land parcels within the exterior boundaries of Grand Teton National Park. BOARD ACTION: Page 2 of 2 Draft dated: 1.30.14 AMENDMENT TO 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 This Amendment to the Agreement for the Conveyance of Lands and Interests in Lands (Amendment) is entered into this ____ day of ____________, 20__ by and between: the State of Wyoming, Board of Land Commissioners (Board), whose address is 122 West 25th Street, Cheyenne, WY 82002, and the United States of America acting by and through the Department of the Interior (Department), whose address is 1849 C Street, NW, Washington DC. 20240 (collectively referred to as Parties). RECITALS Whereas the Parties entered into an Agreement for the Conveyance of Lands and Interests in Lands (Agreement) on December 16, 2010, whereby the Department would acquire 1405.91 acres of state trust lands within the exterior boundaries of Grand Teton National Park (Park or GRTE) and generally identified as follows: Antelope Flats (DOI Reference No. GRTE Tract 05-121): surface and minerals -640.00 acres, more or less Kelly on Gros Ventre Road (DOI Reference No. GRTE Tract 06-102): surface and minerals -- 640.00 acres, more or less Snake River (DOI Reference No. GRTE Tract 02-118): surface and minerals -86.32 acres, more or less Jackson Lake (DOI Reference No. GRTE Tract 08-167): minerals only -- 39.59 acres, more or less; and Amendment to the Agreement between the Wyoming Board of Land Commissioners and the United States Department of the Interior Page 1 of 7 Whereas the Agreement specified that the United States, acting through the Department, could acquire the state trust lands that lie within the Grand Teton National Park through a phased acquisition on a parcel-by-parcel basis, each for a specified amount, and on or before a specific date, as follows: and Jackson Lake Parcel Snake River Parcel Antelope Flats Parcel Kelly on Gros Ventre Road Parcel $ 2,000.00 $16,000,000.00 $45,000,000.00 $46,000,000.00 On or before January 5, 2012 On or before January 5, 2013 On or before January 5, 2014 On or before January 5, 2015; Whereas the United States has acquired the Jackson Lake Parcel and the Snake River Parcel but did not acquire the Antelope Flats Parcel by the specified deadline of January 5, 2014 and the Agreement may now be terminated by the Board; and Whereas the Agreement contemplated that the Parties could consider alternative methods of conveyance and mutually agree to pursue those methods; and Whereas 2011 Wyo. Sess. Laws Ch. 51 specified that the Board could consider alternative methods of conveyance including a land exchange but that such alternative method required legislative approval by the state; and Whereas the Grand Teton National Park Land Exchange Act, P.L. 108-32, provides for the United States to acquire the Antelope Flats Parcel and the Kelly on Gros Ventre Road Parcel by certain specified means, and provides that other alternatives for acquisition of these tracts require prior approval by Congress; and Whereas the Parties wish to pursue alternative methods to facilitate a conveyance of the remaining state parcels from state ownership to the United States; NOW, THEREFORE, in consideration of the mutual promises, agreements and covenants set forth in this Amendment, the parties agree to amend the Agreement as follows: 1. Purpose. Subject to compliance with applicable federal and state law and enactment by the Wyoming Legislature and Congress of any legislation required to approve or implement this alternative method of conveyance, the Parties hereby agree to work cooperatively to exchange the two remaining state parcels described below for federal land and mineral interests (hereinafter “federal land(s)”) located within the state of Wyoming. The Parties will work collaboratively to identify appropriate federal lands to be exchanged and to establish a mutually agreeable process for completing the exchange. In return for conveyance of title to federal lands to be mutually identified by the Parties, Amendment to the Agreement between the Wyoming Board of Land Commissioners and the United States Department of the Interior Page 2 of 7 the United States would acquire clear title to the Antelope Flats, and Kelly on Gros Ventre Road parcels, more particularly described as: Antelope Flats (DOI Reference No. GRTE Tract 05-121): Township 43 North, Range 115 West, 6th P.M., Teton County, WY Section 16 640.00 ± acres Kelly on Gros Ventre Road (DOI Reference No. GRTE Tract 06-102): Township 43 North, Range 115 West, 6th P.M., Teton County, WY Section 36: 640.00 ± acres In return for conveyance of title to the State of Wyoming of federal lands equal in value to the two state parcels described above, the Board will convey title to those state parcels to the United States. All conveyances will be by a form of deed or patent acceptable to both Parties. 2. Valuation Protocol. The Parties agree that a new appraisal report(s) shall be prepared to establish the current value of the two remaining state parcels and the values of the federal lands mutually identified for possible exchange. The appraisals of all lands and interests must be prepared in conformance with applicable requirements of federal and state law, including P.L. 108-32, the Uniform Appraisal Standards for Federal Land Acquisitions and the Uniform Standards of Professional Appraisal Practice, and the appraisals for the state parcels will recognize the right of access to non-federal lands within Grand Teton National Park that is guaranteed by 16 U.S.C. § 406d-2(a). The Department of the Interior, Office of Valuation Services (OVS), will be responsible for contracting for, and the preparation of, all appraisals, including drafting the statements(s) of work, selection of appraiser(s) pursuant to P.L. 108-32, and review of appraisal reports to confirm conformance with the aforementioned appraisal standards, federal law and Departmental policy. The Board shall have the opportunity to review, provide input and approve the appraisal instructions prepared by OVS. After review and approval of the appraisals by OVS, the Board shall have an opportunity to examine, comment on and ask for corrections to, and approve for State use, the appraisal reports. The completed appraisal reports must be approved by both OVS and the Board in order for the land exchange to proceed in accordance with the following paragraphs. Following approval of the appraisals, the appraisal reports shall be used to establish the value of the lands and interests at issue. In the event the state parcels are appraised at values less than the amounts described in the Agreement for those parcels, the Agreement as amended hereby may be terminated by the Board, which will have no further obligation hereunder. Amendment to the Agreement between the Wyoming Board of Land Commissioners and the United States Department of the Interior Page 3 of 7 Based on the values established by the appraisals of the state parcels and federal lands provided for in this Amendment, the Parties shall identify the federal lands to be conveyed in exchange for the two state parcels, with the goal that the lands exchanged by each party shall be approximately equal in value. If they are not approximately equal in value, the appropriate party may elect to make a cash payment as necessary to equalize values with the concurrence of the other party. 3. Deadline. It is the Parties’ intent that the entire exchange be completed by January 5, 2016. In the event the exchange cannot be completed by January 5, 2016, but the milestones discussed below have been achieved in substantial part, the Parties may agree, in writing, to extend the time to complete the exchange until December 31, 2016. If the exchange is not completed by the applicable deadline of January 5 or December 31, 2016, then the Board will place the state parcels on the Board’s Category I Disposal List and take such other action as it deems appropriate with regard to the state parcels, including, but not limited to, termination of the Agreement as hereby amended. The federal lands evaluated and found suitable for exchange in furtherance of this Amendment will then be considered for exchange by the Parties in accordance with the provisions of the Memorandum of Understanding dated November 29, 2012, between the Department of the Interior and the State of Wyoming Board of Land Commissioners. The Parties recognize that Wyoming has identified possible Lander Front and Fortification Creek land exchanges to be of particular interest at this time. Nothing in this Agreement as amended shall preclude the Parties from entering another agreement for the conveyance of the state parcels or federal lands through other means consistent with applicable state and federal law. Milestones: A. Within 60 days of the Parties reaching an agreement identifying the federal lands for a possible exchange, the Department will prepare and submit a report identifying such federal lands to the Senate Committee on Energy and Natural Resources and the House Committee on Resources as necessary. B. Substantial completion of all required federal administrative processes and due diligence as well as all relevant environmental reviews, including but not limited to, reviews carried out under the National Environmental Policy Act (NEPA), the National Historic Preservation Act (NHPA) and the Endangered Species Act (ESA) necessary to complete the exchange under this Amendment and the Agreement, by no later than January 5, 2016. C. Substantial completion of the appraisal of all parcels necessary to carry out the exchange under this Amendment by no later than January 5, 2016. Amendment to the Agreement between the Wyoming Board of Land Commissioners and the United States Department of the Interior Page 4 of 7 4. Costs. The Parties recognize that provisions of applicable state and federal law may be inconsistent in addressing responsibilities for particular costs. The Parties commit to work together in good faith to resolve this in a manner that the State will generally not be responsible for costs. 5. Conditions. The actions provided for under this Amendment are conditioned upon the availability of appropriations, enactment of any necessary legislation by Congress and/or the Wyoming Legislature, and compliance by each Party with the requirements of applicable laws. The Parties hereto intend to use their best efforts to effectuate the exchange, including undertaking such efforts as may be necessary to receive any required legislative authorizations. In the event the respective legislative bodies do not grant the legislative authority necessary for the proposed exchange, the Parties shall have no further obligations under these documents. 6. Recording. The Department is responsible for recording the documents conveying title to the two state parcels with the Register of Deeds of the Teton County Clerk’s Office. The Department is responsible for paying its own recording fees. The Board is responsible for recording the documents conveying title to any federal lands. The Board is responsible for paying its own recording fees. 7. Payment. If the Department secures the funding to purchase either or both of the state parcels before the exchange under this Amendment is completed, it may do so at the updated values established by the new appraisal report. In the event the Department elects to pursue such cash payment, the Department and the Board shall mutually determine the process for such purchase to be completed. General Provisions: 1. Same Terms and Conditions. With the exception of the items explicitly delineated in this Amendment, all terms and conditions of the Agreement, including but not limited to sovereign immunity, shall remain unchanged and in full force and effect. 2. Entirety of Agreement. The Agreement dated December 16, 2010, consisting of ten (10) pages, Attachment A, a map consisting of one (1) page, and this Amendment, consisting of six (6) pages, represent the entire and integrated agreement between the Parties and supersedes all prior negotiations, representations, and agreements, whether written or oral. 3. Use of Donations. Consistent with applicable laws, donations may be used by the Parties hereto in order to meet their respective obligations under this Agreement. Amendment to the Agreement between the Wyoming Board of Land Commissioners and the United States Department of the Interior Page 5 of 7 REMAINDER OF PAGE INTENTIONALLY LEFT BLANK SIGNATURE PAGE TO FOLLOW Amendment to the Agreement between the Wyoming Board of Land Commissioners and the United States Department of the Interior Page 6 of 7 In witness whereof, the parties to this Amendment through their duly authorized representatives have executed this Amendment on the days and dates set out below, and certify that they have read, understood, and agreed to the terms and conditions of this Amendment as set forth herein. This Amendment is deemed to have commenced on the date that the last signature is affixed hereto. Wyoming Board of Land Commissioners 122 West 25th Street Herschler Building 3 Cheyenne, WY 82002-0600 ______________________________ By: Governor Matthew H. Mead Date: _________________________ United States of America ______ of the Interior 1849 C Street, NW Washington, D.C. 20240 ___________________________________ By: Assistant Secretary Date: _______________________________ ATTORNEY GENERAL'S OFFICE APPROVAL AS TO FORM ______________________________________ Justin Daraie, Assistant Attorney General Amendment to the Agreement between the Wyoming Board of Land Commissioners and the United States Department of the Interior Page 7 of 7 BOARD MATTER I – 1 February 6, 2014 REPORT: Permit Sales – Information Only AUTHORITY: Rules of the Board of Land Commissioners, Chapter 8 PURCHASER PARCEL COUNTY SALE TYPE Bruce Quade 5, 8 - 53 - 103 Park Firewood VOLUME PRICE PER UNIT TOTAL VALUE REVENUE PER ACRE 100 Cords $10.00 $1,000.00 $33.33 February 6, 2014 BOARD MATTER I – 2 ACTION: FINAL CONDITIONAL APPROVAL OF FORESTRY DIVISION TRUST LAND PRESERVATION AND ENHANCEMENT ACCOUNT PROJECT AUTHORITY: Senate Enrolled Act No. 37 (Original SF0015), 2005 Session Laws ALTERNATIVES: Approval or denial of the preservation and enhancement projects. ANALYSIS: Pursuant to Chapter 85, 2005 Session Laws, the Wyoming Legislature created a “State Trust Land Preservation and Enhancement Account” (TP&E Account). The legislation provides that the account may be used to fund Board approved projects that preserve and enhance the value of state trust lands. For accounting and performance tracking purposes, subsequent appropriations to the TP&E Account are accounted for separately. The recommended project satisfies one or more of the established criteria and priorities for preservation and enhancement account projects. Additionally, the recommended project was evaluated and ranked using the project evaluation system and questionnaire developed by the Office in accordance with the strategic plan for the preservation and enhancement account. The project score indicates that the projected outcomes would be consistent with objectives of the program as identified within the Strategic Plan and ranked favorably when compared to other potential projects. The scoring sheets are available for review upon request. DISCUSSION: The Office has identified the following forest value enhancement project that it recommends for approval by the Board: Aug-Duck. Section 16, T. 47 N., R. 85 W.; Sections 10 and 15, T. 47 N., R. 84 W.; Johnson County. Timber stand improvement. 19 acres. Total cost: $5,700.00. TP&E cost: $2,850.00. The total maximum approved TP&E cost for the recommended project is $2,850.00. A summary of anticipated benefits of the forest value enhancement project follows: Economic Cost/Benefit: The project is economically feasible and utilizes federal funds for fifty percent (50%) of the cost. Timber stand improvement has been shown to generate a positive financial return. Resource Benefit: The project may increase water quantity by reducing the number of live trees per acre. The project improves vegetative health by increasing spacing between trees and allocating resources to the most desirable trees. The project addresses high priority landscapes identified by the Forest Action Plan. Trust Land Income: The project improves long-term income because without thinning young forest stands will take longer to reach merchantable size and may not reach merchantable size. The project improves the value of state lands because healthy forests add value while unhealthy forests detract from the value of the land. Additionally, since the thinning must be done, it would represent a cost to a new landowner. The project protects the underlying value of state trust Page 1 of 2 lands by maintaining healthy forest stands which contribute to the economic, recreational, ecologic, and scenic values of the land. Habitat Enhancement: The project enhances habitat by increasing forage production in the understory, maintaining healthy forest stands, and by allowing more rapid tree growth, which shortens the time needed to return large trees to a previously harvested area. Management: The project improves the manageability of state lands by helping to maintain healthy forest stands thereby reducing the potential for future forest health problems. The project allows the young forest stands to develop into stands of larger trees than can be managed and harvested in the future. The project improves forage production by reducing overstory density, which allows for higher forage production in the understory. The project will be long term in nature because pre-commercial thinning is typically conducted only once during a 100-year rotation. Intangible Benefits: There is no identified responsible party because the stands in need of thinning are the result of previous timber harvesting. DIRECTOR’S RECOMMENDATION: The Director recommends, subject to funding availability, that the Board of Land Commissioners grant approval to expend $2,850.00 from the Preservation and Enhancement Account for the forest value enhancement project described above. BOARD ACTION:__________________________________________________ Page 2 of 2