Oregon Administrative Rules › Chapter 141 - DEPARTMENT OF STATE LANDS › Division 73 - RULES GOVERNING THE RELEASE, SALE OR EXCHANGE OF MINERAL RIGHTS HELD BY AGENCIES OF THE STATE OF OREGON OTHER THAN THE DEPARTMENT OF STATE LANDS AND STATE LAND BOARD › Section 141-073-0119 - Mineral Right Exchange Process

Current through Register Vol. 63, No. 7, July 1, 2024
(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.