Nemont
Well-known member
September 21, 2004
Land Board backs lease rules
Associated Press
HELENA (AP) - New regulations being considered by the state Land Board could mean some holders of crop and grazing leases on state lands will lose their longtime right to keep those rentals just by matching a competitor's high bid.
The board Monday unanimously authorized the Department of Natural Resources and Conservation to proceed with developing new lease renewal rules, in response to a court ruling that such an absolute preference for existing lessees is unconstitutional.
Under the proposal, which will be the subject of public hearings before final board action in November, leaseholders lose their right to even bid on keeping their leases if they have violated land management requirements.
But even those who have complied with those mandates still can lose a lease if they ask for a rate reduction from the high bid they matched. In a hearing on whether the price should be discounted, department officials can decide whether a competitor deserves the lease.
The agency's decisions are subject to review and approval by the Land Board.
Bud Clinch, department director, said the regulations address the flaw District Judge Jeffrey Sherlock found in the existing lease preference law. Sherlock had concluded the Legislature invaded the constitutional authority of the board in dictating that lessees have a built-in renewal preference just by matching a high bid.
The proposed rules leave it up to the board, in reviewing the department's actions, to determine whether a current leaseholder has properly managed the land and therefore can keep the lease, Clinch explained.
That policy still recognizes that maintaining stability in leasing land encourages good management and high productivity, he told the board.
The meeting room was filled with farmers or ranchers supporting the new regulations.
Steve Pilcher, executive vice president of the Montana Stockgrowers' Association, said the rules recognize the importance of having leases go to people with a proven track record of good land management.
But Roy Andes, representing Montanans for The Responsible Use of the School Trust, warned that the proposal could run afoul of the court decision because it maintains a preference for existing lessees who comply with land management requirements.
He said the board would be wise to put those vying for a lease on equal footing by having all - including leaseholders - submit bids to the department.
Senate Minority Leader Jon Tester, D-Big Sandy, urged the board to make sure the new regulations are not based on the law that was declared unconstitutional.
Clinch said the rules must be in place early next year to allow processing of the next round of annual lease renewals.