141-073-0119 Mineral Right Exchange Process (1) If the subject mineral right proposed for exchange is owned by an agency other than the Department: (a) The Department shall request a mineral resource consultant to conduct a preliminary evaluation of the state-owned mineral right(s) as well as the right(s) being offered for exchange. This preliminary evaluation will be the opinion of the mineral resource consultant regarding the actual or possible presence of mineral resources within the mineral rights, and will be presented in writing to the Department. (b) If the mineral consultant’s preliminary evaluation to the Department indicates that no significant mineral or geothermal resources exist within the mineral rights held by the state or those being offered for exchange, the Department will submit the request to the Land Board for its consideration. If Land Board approval is granted, the Department will release the state-owned mineral rights to the agency/person applying for them in exchange for their mineral rights. (c) If the mineral resource consultant’s preliminary evaluation to the Department indicates that significant mineral and/or geothermal resources may occur within the limits of any of the mineral rights proposed for exchange, the Department may either: (A) Advise the agency proposing the exchange that it will reserve the state-owned mineral right; or (B) Request that the agency retain at its own cost a mineral resource consultant to conduct an in-depth evaluation of each of the mineral rights proposed for exchange. The purpose of this evaluation will be for the mineral resource consultant to develop a relative value for each mineral right. To establish this relative value, the following factors, at a minimum, are to be considered: (i) Types of minerals reserved; (ii) Geologic setting and the likelihood that mineral or geothermal resources could occur in that setting; (iii) The location of the mineral right relative to the infrastructure required to develop it; and (iv) Possible markets for any mineral or geothermal resources. This in-depth evaluation will not be an appraisal of the monetary value of each mineral right, but rather the opinion of the mineral resource consultant regarding the actual or possible presence, extent and grade of, and demand for the mineral resources within each mineral right, and a comparison of one mineral right to another. (d) If the mineral resource consultant’s preliminary or in-depth evaluation indicates that the mineral rights of the parcels to be exchanged are of approximately equivalent relative value, the Department may either advise the agency that it will not exchange the mineral rights, or submit the request to the Land Board for its consideration. If the Land Board approves an exchange, the Department will authorize the exchange to proceed and release the state-owned mineral rights to the agency/person applying for them in exchange for their mineral rights. (e) If the mineral resource consultant’s preliminary or in-depth evaluation to the Department indicates that the value of one mineral right is substantially greater than the other, the Department will advise the agency proposing the exchange of this inequality and the possible need to make adjustments to the trade. (f) The Department will not release state-owned mineral rights having a value that is greater than those being offered in exchange unless it finds that the greatest benefit for the people of this state is obtained through the exchange. (2) As provided in OAR 141-073-0115(4), the Department may, at its discretion, use information provided by the agency requesting the release or sale of mineral rights instead of using/requiring a mineral resource consultant for some or all of the reports and evaluations required. Statutory/Other Authority: ORS 273.045, 273.775 - 273.79 & OR Const., Art. VIII & Sec. 5 Statutes/Other Implemented: ORS 273.775 - 273.79 History: DSL 1-2005, f. 2-11-05, cert. ef. 2-28-05