MINUTES THE STATE BOARD OF LAND COMMISSIONERS December 8, 2011

Transcription

1 MINUTES THE STATE BOARD OF LAND COMMISSIONERS December 8, 2011 Opening: The regular meeting of the State Board of Land Commissioners (SBLC) was called to order by Chairman Matthew H. Mead at 8:12 a.m. on December 8, 2011, at the Herschler Building, Room B63. Board Members Present: Matthew Mead, Chairman/Governor Max Maxfield, Secretary of State Cynthia Cloud, State Auditor Joe Meyer, State Treasurer Cynthia Hill, Superintendent of Public Instruction Office of State Lands and Investments (OSLI) Staff Members Present: Ryan Lance, Director Susan Child Lorraine Fresquez Bill Crapser Harold Kemp Martin Matsen Debra Dickson Sam Shumway Attorney General s Office Casey Parker Attorney General s Office A. MINUTES 1. October 6, 2011, Regular State Board of Land Commissioners Meeting Max Maxfield moved to approve the minutes of the Regular Board Meeting held October 6, Joe Meyer seconded the motion. The motion carried. B. REPORTS Director Lance addressed standard reports to the Board. Director Lance reported to the Board that Board Matters C-1 through C-2; D-2 through D-10; D-12; E-1 through E-8; E-10; F-1 through F-2; G-1 through G-2, H-2 through H-3; and I-1 through I-3, represented standard board matters, all relevant information had been presented to the Board, in advance, for review. Joe Meyer moved to approve Board Matters C-1 through C-2; D-2 through D-10; D-12; E-1 through E- 8; E-10; F-1 through F-2; G-1 through G-2, H-2 through H-3; and I-1 through I-3. Max Maxfield seconded the motion. C. POLICY MATTERS 1. Approve Final Adoption of Rules Chapter 4 (Grazing and Agricultural Leasing) and Modifications to the State s Grazing Lease 2. Memorandum of Understanding between the Wyoming State Engineer s Office and Wyoming Office of State Lands and Investments-Information Only Board Action: No Action. Information Only D. SURFACE LEASE MATTERS 1. Consider the Recommended Findings of Fact, Conclusions of Law and Order Granting Office of State Lands and Investments Motion for Summary Judgment In the Matter of Conflicting Lease Application by Eric Rule Trust Through First Interstate Bank as Trustee, State Lease No , OAH Docket No Director Lance reported to the Board that the Office of Administrative Hearings (OAH) recommended that the Board grant summary judgment in favor of the Office of State Lands and Investments pursuant to the Recommended Findings of Fact, Conclusions of Law and Order Granting Office of State Lands and Investments Motion for Summary Judgment dated October 12, Page 1 of 5

2 Andrew Kuhlmann, Assistant Attorney General, reported to the Board that this board matter was being returned to the Wyoming State Board of Land Commissioners for entry of a final decision to the Motion for Summary Judgment, dated October 12, The Summary Judgment Motion had been granted to the State of Wyoming, Office of State Lands and Investments. The Wyoming State Board of Land Commissioners may uphold the Director's Decision dated April 20, 2011, awarding State Lease No to the Clifford J. Smith Revocable Trust. Max Maxfield moved to approve the Director s recommendation on Board Matter D-1. Cynthia Cloud seconded the motion. The motion carried. 2. Approve Grazing & Special Use Lease Assignments 3. Approve Subleases 4. Approve Special Use Lease Application for Renewal, Lease No. SU-409, Devon Energy Production Company, LP, Fremont County, Wyoming 5. Approve Special Use Lease Application for Renewal, Lease No. SU- 473, Basin Electric Power Cooperative, Campbell County, Wyoming 6. Approve Special Use Lease Application, Lease No. SU-714, Marathon Oil Company, 7. Approve Special Use Lease Application, Lease No. SU-715, Marathon Oil Company, 8. Approve Special Use Lease Application, Lease No. SU-716, Marathon Oil Company, 9. Approve Special Use Lease Application, Lease No. SU-717, Rowdy Pipeline, LLC, Campbell County, Wyoming 10. Approve Special Use Lease Application, Lease No. SU-718, Rowdy Pipeline, LLC, Campbell County, Wyoming 11. Approve Special Use Lease Application, Lease No. SU-721, Laramie County School District Number One, Laramie County, Wyoming Deputy Director Susan Child recommended that the Board approve the above-described special use lease application for a twenty-five (25) year term at a rental of $2, per year or $ per acre and that a survey be required to determine the actual acreage used prior to final determination of rental. Deputy Director Child further recommended that should the Board approve the application, it would not be considered as an approval of the applicant s estimated value of improvements. Chairman Mead invited the public to comment on Board Matter D-11. Public comment: Dr. Mark Stock, Superintendent of Laramie County School District No. 1 (LCSD1), thanked the Board for its consideration. Supt. Stock explained to the Board that LCSD1 applied for a special use lease to construct an elementary school on this parcel of State land. The estimated completion date of the construction is the year David Bartlett, Assistant Superintendent of LCSD1, explained to the Board that the new building would take approximately 70,000 square feet to serve about 450 students due to need of two access points and to meet the Wyoming Department of Transportation s requirements. The project would have an access drive, on-site parking for staff and parents, site lighting, a wind turbine, telephone, electrical, and gas utility connections, and a bus drop-off and pick up lane. The school would also have a playground and Page 2 of 5

3 activity field with six (6) foot high chain link and barbed-wire fence, a deceleration lane and turning lane on Yellowstone Road. Joe Meyer moved to approve the Director s recommendation of granting the special use lease of twenty-three (23) acres, provided that the special use lease would not impair the grazing lease. Cindy Hill seconded the motion. The motion carried. 12. Consent to the Petition for Change in Point of Diversion, Change in Place of Use, Change in means of Conveyance Page 3 of 5

4 E. OIL AND GAS MATTERS 1. Approve Request for Suspension of Production Operations for the Attached List of Coal Bed Methane and Non-Coal Bed Methane Leases 2. Approve Request for Suspension of Production Operations for the attached list of Coal Bed Methane and Non-Coal Bed Methane Leases Beyond Fifth Suspension 3. Consider Requests for One (1) Year Non-Hydrocarbon Producing Well Shut-in (Suspension of Operations) for State Oil and Gas Lease No Consider Requests for One (1) Year Non-Hydrocarbon Producing Well Shut-ins (Suspension of Operations) for State Oil and Gas Lease Nos , , and Approve Request from BW Oil, LLC. For a Lease Term Extension for State Oil & Gas Lease No , Niobrara County 6. Approve Request from Comet Energy Services For a Lease Term Extension for State Oil & Gas Lease Nos and , Sheridan County 7. Approve Request from Prospect Energy, LLC. For a Lease Term Extension for State Oil & Gas Lease No , Laramie County 8. Approve Request from Western American Resources For a Lease Term Extension for State Oil & Gas Lease No , Converse County 9. Approve Request from Abraxas Petroleum Corporation for Royalty-Free Disposition of State s Interest Gas for State Oil and Gas Lease No , Converse County, Wyoming Director Lance recommended the Board approve the royalty-free disposition of the State s interest gas for one (1) year and that the lessee be required to re-petition and show cause for further continuance after December 1, Joe Meyer moved to approve the Director s recommendation. Max Maxfield seconded the motion. The motion carried. 10. Approve the November 2, 2011 State Oil and Gas Lease Auction Bids F. MISCELLANEOUS MINERAL MATTERS 1. Approve Sand and Gravel Lease Applications 2. Approve All Metallic and Non-Metallic Lease Applications G. EASEMENTS AND TEMPORARY USE PERMITS 1. Approve Easement Applications 2. Approve Applications for Temporary Use Permits H. MISCELLANEOUS LAND MATTERS 1. Approve Closure of State Land to Public Motorized Vehicular Use Located in Section 16, Township 16 North, Range 67 West, north of Cheyenne and one mile west of I-25 on County Road 224, Laramie County, Wyoming Director Lance recommended that the Board close the above-referenced parcel to Public Motorized Vehicular Use and to authorize the Office s staff to sign the parcel and lock any vehicular gates accordingly. Chairman Mead invited the public to comment on Board Matter H-1. Page 4 of 5

5 Public comment: Shirley Holmes, trustee for the State lease, thanked the Board for its consideration and explained that she has documented the damages done to the State property for a two-year period. She also noted her work with the Laramie County Sheriff s Office and the Wyoming Game and Fish Department during this time. She reported that much of the abuse appears to have been done by servicemen from F.E. Warren Air Force Base (WAFB). Ms. Holmes recommended to the Board that a letter to WAFB be submitted and that state statutes should be revised. Cindy Hill moved to approve the Director s recommendation. Joe Meyer seconded the motion. The motion carried. 2. Approve Trust Land Preservation and Enhancement Account Project and Road Closures 3. Approve Revised Duncan Ranch Coordinated-Resource Management Plan 4. Disposal of Working Interest held by the Wyoming Department of Family Services Director Lance recommended that the Board authorize the sale of the working interest provided in the Decree to Legacy Reserves. Joe Meyer moved to approve the Director s recommendation in Board Matter H-4. Cindy Hill seconded the motion. The motion carried. I. FORESTRY MATTERS 1. Permit Sales Information Only Board Action: No Action; Information Only 2. Approve Forestry Division Trust Land Preservation and Enhancement Account Project 3. Approve Approval of Billy Creek 2 Forest Product Auction, Section 12, T. 48 N., R. 84 W.; Johnson County, Wyoming Walk In Matters 1. Approve Quit Claim Deed to Bearcat Energy, LLC, For Production Related Equipment Abandoned by the Former State Lessee on Leaseholds Purchased After Default by that Former, Original Lessor Director Lance recommended the Board approve the quitclaim deed and assignment in favor of Bearcat Energy, LLC. Cindy Hill moved to approve the Director s recommendation in Walk In Board Matter #1. Adjournment: Joe Meyer moved to adjourn the State Board of Land Commissioners meeting. Cynthia Cloud seconded the motion. The State Board of Land Commissioners meeting was adjourned at 9:05 a.m. on December 8, The next State Board of Land Commissioners meeting will be February 2, 2012, 8:00 a.m. in the Herschler Building, Room B63. Minutes submitted by: Lorraine S. Fresquez, Executive Assistant Approved by: Ryan M. Lance Secretary of the State Loan and Investment Board Page 5 of 5