Wyoming Administrative Rules 060 — Lands and Investments, Office of

198 Forester, State

Chapter 1 Emergency Fire Suppression Account

Wyo. Code R. 060.0001.1.10092025 § 1 Purpose

These rules are to govern the administration of the emergency fire suppression account, hereinafter referred to as the EFSA, created by W.S. 36-1-401 et. seq. to provide funds for the cost of suppression of qualifying emergency wildland fires.

History

• Effective 2025-10-09

Wyo. Code R. 060.0001.1.10092025 § 2 Authority

These Rules and Regulations of the State Forester are adopted pursuant to W.S. 36-1-403(a)(iv).

History

• Effective 2025-10-09

Wyo. Code R. 060.0001.1.10092025 § 3 Definitions

As used in this chapter:

(a) "Authorized Expenditure" means a listing of suppression costs which qualify for expenditures from the EFSA.

(b) "Contract Year" means the same as the State Fiscal Year.

(c) "EFSA" means the Emergency Fire Suppression Account established by W.S. 36-1-401.

(d) "Jurisdictional Fire Entity(s)" means the fire district; municipal, volunteer, county, or combination fire department; state or federal agency in the participating county within whose jurisdiction(s) the fire is burning or threatened.

(e) "Participating County" means a county, including all fire districts; municipal, volunteer or combination fire departments within the boundaries of the county, which has entered into a Memorandum of Understanding with the Wyoming State Forester to participate in the EFSA and has paid assessments provided by W.S. 36-1-404.

(f) "State Forester" means the administrative head of the Wyoming State Forestry Division.

(g) "State Lands" means lands under jurisdiction of the State Board of Land Commissioners.

(h) "Supporting Entity(s)" means any fire district; municipal, volunteer, or combination fire department; county, state or federal agency providing fire suppression, mop-up or other support and resources to the Jurisdictional Fire Entity(s).

(i) "Unit Administrator Group" means a group consisting of two or more individuals assigned administrative responsibilities to make coordination decisions and recommendations within the framework of the Annual Operating Plan.

(j) "Suppression". Suppression includes fire operations, mop-up, and repairing damage to state and private lands caused from fire operations.

(k) "Pre-Positioning" means any fire suppression resources that are being temporarily placed within an area during high fire risk.

History

• Effective 2025-10-09

Wyo. Code R. 060.0001.1.10092025 § 4 EFSA Request

(a) Initial notification shall be provided to the State Forester or designee, as far in advance as practical, of impending emergency conditions or upon determination of the Jurisdictional Fire Entity(s) that fire suppression is beyond their capabilities. Initial notification may be through a phone call, radio or in person.

(b) The County Fire Warden or designee, Deputy County Fire Warden or a member of the participating county's Board of County Commissioners or their designee, shall submit an EFSA assistance request for any fire beyond the Jurisdictional Fire Entity's fire suppression capabilities.

(c) EFSA funding requests must be made for each individual fire. The State Forester or designee may make exceptions.

(d) The Wyoming State Forestry Division shall notify the County of its decision as soon as possible.

History

• Effective 2025-10-09

Wyo. Code R. 060.0001.1.10092025 § 5 Pre-Positioning

(a) The State Forester shall approve the pre-positioning of any fire suppression resources. The State Forester shall retain control of all pre-positioning resources.

(b) The State Forester shall consider the following factors in evaluating requests to pre-positioning fire suppression resources:

(i) The National Fire Danger Rating System (NFDRS) Fire Danger Index;

(ii) The extended weather forecast;

(iii) Initial attack capabilities; and

(iv) Other factors deemed appropriate to the State Forester.

History

• Effective 2025-10-09

Wyo. Code R. 060.0001.1.10092025 § 6 Operational Procedures

(a) Upon State Forester's approval of the county's request for EFSA assistance funding:

(i) The Jurisdictional Fire Entity(s) must maintain a representative for the duration of the fire.

(ii) A Unit Administrator Group will be established between the Jurisdictional Fire Entity(s) and the State Forester or designee as soon as practical or upon EFSA approval.

(iii) On multi-jurisdictional fires the Unit Administrators Group must include representatives from all Jurisdictional Entity(s) including federal agencies.

(iv) On multi-jurisdictional fires, a cost share agreement must be initiated within twenty-four (24) hours of the EFSA approval. All cost shares that include EFSA funding must have State Forester or designee approval prior to final signing by jurisdictional fire entity(s) involved.

(v) EFSA funds may be used on all State lands.

(b) Payments from Participating Counties

(i) The Jurisdictional Fire Entity(s), or by cost share agreement, a county, the State or federal agency(s), shall be responsible for invoices associated with the EFSA.

(ii) The Jurisdictional Fire Entity(s) may negotiate with the State Forester for direct payment of vendor invoices from the EFSA.

(iii) The Jurisdictional Fire Entity(s) shall submit paid expenses from approved EFSA fires to the State Forester within ninety (90) days as practical following the fire being declared controlled.

(iv) If the Jurisdictional Fire Entity(s) receives payment from insurance or other sources for expenses paid by the EFSA, the Jurisdictional Fire Entity(s) will reimburse the EFSA the amount paid, but not to exceed 100% of expenses paid from the EFSA for the approved fire(s).

History

• Effective 2025-10-09

Wyo. Code R. 060.0001.1.10092025 § 7 Authorized Expenditures

The State Forester shall limit EFSA assistance funding to pre-positioning resources and approved fires. All EFSA expenditures will be summarized and supported by paid invoices or appropriate documents.

(a) Payments will be based upon the Cost Share Agreement.

(b) The EFSA shall honor all mutual aid agreements and costs associated within agreed upon mutual aid periods shall not be charged to the EFSA.

(c) Personnel

(i) Jurisdictional Fire Entity(s) salaried and unsalaried employees are limited to EFSA fire related overtime cost. All payments will follow entities' pay policies.

(ii) Support entity(s) salaried and unsalaried employees are limited to regular hourly rate plus fire related overtime on EFSA fires. All payments will follow entities' pay policies.

(iii) All volunteer personnel rates will be calculated from rates published in the current Wyoming Wildland Fire Resources Mobilization Guide.

(iv) Proper documentation must be provided to the Wyoming State Forestry Division to support personnel payments.

(d) Equipment

(i) All firefighting equipment will be reimbursed to rates within the Wyoming Wildland Fire Resources Mobilization Guide or to emergency contracted rates.

(ii) Proper documentation must be provided to the Wyoming State Forestry Division to support all equipment use.

(iii) Flight time or retardant from outside agency aircraft is an authorized EFSA expense.

(e) Supplies.

(i) Expenses of fire related supplies shall be reimbursed as specified within the current Interagency Incident Business Management Handbook.

(f) A post accounting internal review of invoices and documentation may be conducted jointly, by Wyoming State Forestry Division and Jurisdictional Entities. The State Forester, in case of conflict, retains the right of final resolution.

History

• Effective 2025-10-09

Wyo. Code R. 060.0001.1.10092025 § 8 Insufficient Funds

(a) If the State Forester determines funds in the EFSA may be insufficient to make reimbursement for the full cost of suppression of qualifying fires occurring, or which may occur, during the year, the State Forester shall coordinate with the Wyoming governor and legislature to acquire necessary funding to pay for suppression costs.

(b) If sufficient funding is not acquired through legislative appropriations, the State Forester shall administer the EFSA according to W.S. 36-1-401 et seq.

History

• Effective 2025-10-09

Chapter 2 Good Neighbor Authority Revolving Account

Wyo. Code R. 060.0001.2.08242020 § 1 Authority

These rules are adopted pursuant to Wyoming Statute 36-1-503.

History

• Effective 2020-08-24

Wyo. Code R. 060.0001.2.08242020 § 2 Purpose

These rules are to govern the administration of the GNA Account to provide funds and authorizing additional employees for the administration and implementation of Good Neighbor Authority or other federally funded cooperative management projects.

History

• Effective 2020-08-24

Wyo. Code R. 060.0001.2.08242020 § 3 Definitions

As used in this chapter:

(a) "Division" means the Wyoming State Forestry Division of the Office of State Lands and Investments.

(b) "GNA" or "Good Neighbor Authority" means an agreement between the Division and the Bureau of Land Management, the United States Forest Service, or other authorized Federal agencies, to allow the Division to perform authorized watershed restoration and forest management services on National Forest System, Bureau of Land Management, or other authorized Federal lands as specified in project level agreements.

(c) "GNA Account" means the good neighbor authority revolving account created by W.S. 36-1-501 through -503.

(d) "Project Income" means revenue generated by the sale of forest products from GNA projects, minus approved Division expenditures. Project Income may only be utilized as agreed on in specific project agreements, and in accordance with Federal guidelines.

History

• Effective 2020-08-24

Wyo. Code R. 060.0001.2.08242020 § 4 Agreements and Contracts

The State Forester may, on behalf of the Division:

(a) Enter into contracts or agreements with federal agencies for GNA projects or other federally-funded forest management projects.

(b) Partner with counties through contracts, subcontracts, or agreements to fund or implement GNA projects or other federally-funded forest management projects.

(c) Enter into contracts or agreements with other partners, such as public utilities, non-governmental organizations, or other entities to fund GNA projects or other federally-funded forest management projects.

(d) Contract for services to be performed on federal lands under GNA agreements.

History

• Effective 2020-08-24

Wyo. Code R. 060.0001.2.08242020 § 5 Funding

(a) Funding for GNA agreements and projects may be received from:

(i) The United States Forest Service;

(ii) The Bureau of Land Management;

(iii) Other federal agencies;

(iv) Counties, Cities, and towns;

(v) Public utilities and utility companies;

(vi) Non-governmental organizations; or

(vii) Other partners.

(b) Project level funding will be identified in specific project agreements and financial plans.

(c) Project Income will be deposited into the GNA Account for use toward future projects as designated in specific project agreements.

History

• Effective 2020-08-24

Wyo. Code R. 060.0001.2.08242020 § 6 Expenditures

(a) Expenditures from the account will be made as designated in specific project agreements, financial plans, and contracts.

(b) Expenditures may be made prior to receipt of federal reimbursements when allowed in specific project agreements and contracts.

(c) The State Forester shall approve in writing all expenditures.

History

• Effective 2020-08-24

Wyo. Code R. 060.0001.2.08242020 § 7 Employees

(a) As provided in W.S. 36-1-503(b), the State Forester may hire no more than one (1) full-time employee and four (4) at-will employee contract positions to administer and implement GNA projects.

(b) Employees hired under W.S. 36-1-503(b) must be funded by federal funds. Funding will be identified and designated in specific project agreements.

History

• Effective 2020-08-24

Chapter 3 Private Fire Prevention and Qualified Insurance Approved Resources

Wyo. Code R. 060.0001.3.04072026 § 1 Private Fire Prevention and Qualified Insurance Approved Resources

These rules are promulgated under the State Forester's authority in Wyoming Statute § 36-2-108(b)(ix) and (xi).

History

• Effective 2026-04-07

Wyo. Code R. 060.0001.3.04072026 § 2 Definitions

(a) "Private Fire Prevention Resource (PFPR)" means an approved Resource employing personnel, operating equipment, and hired by private persons or entities operating during an active fire incident in compliance with instruction and oversight of the incident management team of the authority having jurisdiction with a mission to mitigate risk to client structures. These private Approved Resources are not employed by or otherwise associated with the agency having jurisdictional authority over the incident response or any other public agency involved in the incident response.

(b) "Qualified Insurance Resource (QIR)" means an approved resource employing personnel, operating equipment, and working for, or contracted by, an insurance company with a mission to mitigate risk to insured structures.

(c) "Approved Resource" means a Private Fire Prevention Resource (PFPR) or Qualified Insurance Resource (QIR) that has been approved by the Wyoming State Forestry Division to carry out their respective missions, as defined herein, on wildfire incidents.

(d) "Wildfire Access Approval" means the approval granted by the Wyoming State Forestry Division to an Approved Resource demonstrating that the Approved Resource has satisfied all requirements as set forth in these regulations to carry out their missions, as defined herein.

(e) "Incident Commander (IC)" means the individual with overall authority and responsibility for managing all aspects of a wildland fire incident.

History

• Effective 2026-04-07

Wyo. Code R. 060.0001.3.04072026 § 3 Approved Resource Access

(a) Approved Resources shall have the right of entry to the incident and related evacuation zones before the Incident Commander (IC) is established to carry out their mission, as defined herein. After the IC is established, the Approved Resource shall follow the Standards of Operation (SO) for check-in:

(i) The Approved Resource must contact the IC, or their authorized designee, and conduct all operations with the acknowledgement of the IC.

(ii) The IC, or their authorized designee, shall not interfere with or prohibit the Approved Resource from performing wildfire loss intervention actions unless the Approved Resource is acting in violation of these regulations and/or IC has directed or ordered that all wildfire loss intervention or fire suppression activities by private or public resources are suspended.

(b) The Approved Resource shall also comply with the following SO:

(i) After IC is established, communicate and receive acknowledgment of the IC that the Approved Resource will be entering and operating in an otherwise restricted area;

(ii) Designate a representative that reports to IC and can always contact the Approved Resource and communicate the Approved Resource's location and movements to IC;

(iii) Acknowledge that the Approved Resource shall comply with any orders, restrictions or commands from the IC, including leaving an evacuation area when ordered to do so and not returning until authorization to reenter the area is received;

(iv) Be so equipped to allow the Approved Resource to monitor IC radio frequencies assigned to a particular incident;

(v) Be equipped with a Global Positioning System (GPS) that is compatible with any state incident management system and situational awareness tracking system in use on the incident; and

(vi) Have all motorized equipment clearly labeled as "nonemergency."

(c) The IC may order that an Approved Resource leave an evacuation or restricted area if the Approved Resource:

(i) Fails or refuses to comply with any orders, restrictions or commands from the IC;

(ii) Sets or causes a backfire to be set, unless given permission to do so by a state or federal forest official or IC;

(iii) Fails to monitor IC radio frequencies assigned to a particular incident;

(iv) Attempts to communicate on IC radio frequencies without prior approval from IC;

(v) Uses red and/or blue emergency lights or uses sirens on their vehicles; and

(vi) Has any labeling on their vehicles that indicates the operators are public fire department personnel or any other public safety personnel.

(d) Upon acknowledging entry of an Approved Resource into any restricted areas, the IC should notify all other incident Resources, including law enforcement, that the Approved Resource is authorized to operate within the area.

History

• Effective 2026-04-07

Wyo. Code R. 060.0001.3.04072026 § 4 Requirements for Approval

In order to receive approval, a wildfire access applicant shall meet the following minimum training and equipment requirements established by applicable National Wildfire Coordinating Group (NWCG) standards.

(a) Training and certification for personnel deployed to fire incidents shall include that all personnel are trained and qualified to the applicable NWCG, PMS 310-1, Standards for Wildland Fire Position Qualifications standard for the position and maintain their currency through required refresher courses.

(b) Equipment shall meet the following standards:

(i) Wildland engines and tenders meet applicable specifications and standards established in NWCG, PMS 200 Standards for Wildland Fire Resource Typing.

(ii) Personal Protective Equipment shall meet the standards set forth in National Fire Protection Association (NFPA) 1977 Standard on Protective Clothing and Equipment for Wildland Fire Fighting.

(iii) All vehicles and equipment shall be inspected and verified by an accredited third-party federal or state reviewer to ensure currency with applicable standards. Documentation will be carried with the Approved Resource at all times.

(c) In addition to the requirements of sections (a) and (b), the applicant shall meet the following minimum administrative and corporate practice standards:

(i) All wildland fire engines, tenders, and support vehicles shall be Department of Transportation registered and be tagged with Wyoming or Apportioned license plates.

(ii) Carry the following minimum insurance:

(A) Auto: $1,000,000.00

(B) General liability: $2,000,000.00

(C) Excess: $10,000,000.00

(iii) Use the Incident Qualification System (IQS) to record and track responder incident training and qualifications.

(d) The QIR certifies that it does not seek or maintain agreements or contracts with individual property owners to provide wildfire protection services of any kind.

(e) All subcontractors shall meet the training and equipment standards set forth in (a) and (b) above.

(f) To be an Approved Resource, applicant shall submit:

(i) A master record of all training, including individual training records and certifications for employees engaging in wildfire loss intervention activities; and

(ii) A certification signed by the Chief Executive Officer or Corporate Secretary, attesting that the applicant meets the requirements and standards set forth in subsections (a), (b), and (c)above.

History

• Effective 2026-04-07

Wyo. Code R. 060.0001.3.04072026 § 5 Approval Process

. Private Fire Prevention and Qualified Insurance Resources shall obtain approved status in the following manner:

(a) Submit a request for designation as an Approved Resource to the Wyoming State Forestry Division (the Division), Attention: Wyoming State Forester. The request shall include:

(i) All submissions listed in these regulations; and

(ii) A checklist listing all documents.

(b) The Division shall respond to the notify the applicant within sixty (60) calendar days either approving the request, denying the request with reasons therefore, or a statement that the request is still under review.

(c) All approvals granted by the Division shall be valid, unless revoked for cause, for a period of two years from the date of issue. Prior to the expiration of an approval, a Private Fire Prevention and Qualified Insurance Resource must reapply to the Division to obtain approval for an additional two-year duration.

(d) All approvals shall include a current copy of the SO for Approved Resources.

(e) The Approved Resource shall ensure that all response vehicles carry a copy of the approval document at all times when working in Wyoming. Failure to produce the approval document is a valid reason to deny entry to the incident.

History

• Effective 2026-04-07

Wyo. Code R. 060.0001.3.04072026 § 6 Incorporation by Reference

.

(a) The State Forester hereby incorporates by reference the following standards:

(i) NFPA 1977 Standard on Protective Clothing and Equipment for Wildland Fire Fighting and Urban Interface Fire Fighting adopted by the National Fire Prevention Association and effective on April 8, 2021;

(ii) NWCG Standards for Wildland Fire Resource Typing, PMS 200 adopted by the National Wildfire Coordinating Group and effective on April 1, 2025; and

(iii) NWCG Standards for Wildland Fire Position Qualifications, PMS 310-1 adopted by the National Wildfire Coordinating Group and effective on September 30, 2025.

(b) For these standards incorporated by reference:

(i) The State Forester has determined that incorporation of the full text in these rules would be cumbersome or inefficient given the length or nature of the rules;

(ii) The incorporation by reference does not include any later amendments or editions of the incorporated matter beyond the applicable date identified in subsections (a)(i) and (a)(ii) of this section; and

(iii) The incorporated rules are maintained at the Wyoming State Forestry Division office at 5500 Bishop Blvd, Cheyenne, WY 82002 and are available for public inspection and copying at the same location.

History

• Effective 2026-04-07

Chapter 4 Forest Health Grant Program

Wyo. Code R. 060.0001.4.08122026 § 1 Authority

These rules are adopted pursuant to W.S. 36-2-108(b)(ix).

History

• Effective 2026-08-12

Wyo. Code R. 060.0001.4.08122026 § 2 Definitions

(a) "Division" means the Wyoming State Forestry Division of the Office of State

Lands and Investments.

(b) "Good Neighbor Authority" means an agreement between the Division and the Bureau of Land Management, the United States Forest Service, or other authorized Federal agencies, to allow the Division to perform authorized watershed restoration and forest management services on National Forest System, Bureau of Land Management, or other authorized Federal lands as specified in project level agreements.

(c) "State Forester" means the administrative head of the Wyoming State Forestry Division.

History

• Effective 2026-08-12

Wyo. Code R. 060.0001.4.08122026 § 3 Agreements and Contracts

The State Forester may, on behalf of the Forest Health Grant Program:

(a) Enter into contracts or agreements with federal agencies for projects on federal lands.

(b) Partner with state agencies through memorandums of understanding and counties and other local governmental entities through contracts, subcontracts, or agreements to fund projects.

(c) Enter into contracts or agreements with nonprofit organizations and non-governmental organizations, to fund projects.

(d) Contract for services to be performed on federal lands under Good Neighbor Authority agreements.

History

• Effective 2026-08-12

Wyo. Code R. 060.0001.4.08122026 § 4 Competitive Grants

(a) Funds shall be disbursed pursuant to a competitive grant process.

History

• Effective 2026-08-12

Wyo. Code R. 060.0001.4.08122026 § 5 Grant Applications

(a) Applications shall be submitted in a form and manner prescribed by the Division.

(b) To be eligible for a grant under this program, forest health projects must satisfy the following requirements:

(i) Be conducted on state, federal, or local government land, or private land;

(ii) Be necessary for the public interest;

(iii) Be designed to accomplish one or more of the following:

(A) Enhancement of water yield or quality;

(B) Reduction of the risk of catastrophic Wildfire damage;

(C) Increased production of forest products;

(D) Improvement of habitat conditions for wildlife and livestock;

(E) Any other project that is beneficial to forest health, that is substantially beneficial to the interest of the state and that has a public purpose;

History

• Effective 2026-08-12

Wyo. Code R. 060.0001.4.08122026 § 6 Payments

(a) Payments shall be made on a reimbursement basis only.

(b) Grantees may request incremental payments no more than once a month.

(c) Payment request must include supporting documentation verifying expenditures.

(d) Expenses incurred prior to the grant award date are ineligible for reimbursement.

(e) Final payment shall be withheld until all accomplishment reporting, documentation, or other deliverables such as photographs and geospatial data are provided.

(f) No funds shall be made available for administrative or overhead expenses including the use of indirect cost rates and/or costs not directly tied to project implementation and outcomes such as facilities costs, and general office costs.

History

• Effective 2026-08-12

Wyo. Code R. 060.0001.4.08122026 § 7 Criteria for Matching Funds or Other In-Kind Contributions

(a) Matching contributions include money and in-kind contributions to a given project and will be required for grant approval. The amount of the matching contribution will be considered in the grant evaluation and prioritization process. Matching funds need not be available for expenditure prior to grant funding approval, but proof of matching funds must be fully documented and submitted prior to final disbursement.

(i) There is a twenty-five percent (25%) match requirement for projects on state or private lands.

(ii) There is a fifty percent (50%) match requirement for project work on federal lands.

History

• Effective 2026-08-12

Wyo. Code R. 060.0001.4.08122026 § 8 Evaluation, Ranking and Prioritization of Grant Proposals

(a) The Division shall review, evaluate, rank and prioritize applications for grants. The evaluation process shall include a pre-application screening of all applications. That screening shall consist of a preliminary review of all grant applications for compliance with the Forest Health Grant Program Act and these rules. The State Forester shall, at their sole discretion, determine which grants should move beyond the pre-application screening.

(b) Applicants that move beyond the pre-application process must allow a site visit by Office of State Lands and Investments Forestry Division staff, or other qualified evaluators as may be designated by the Division.

(c) The State Forester shall rank and approve or reject final grant applications based on the overall purposes of the Act.

(d) In reviewing, evaluating and ranking final applications, the Division shall:

(i) Place an emphasis on those projects that are partnerships involving private and public entities;

(ii) Place an emphasis on those projects that provide multiple benefits;

(iii) Place an emphasis on those projects that connect to or compliment other completed work.

(iv) Consider the socioeconomic impacts of the grant proposal on the affected community; and

(v) Determine whether the forest health project is necessary for the public interest.

History

• Effective 2026-08-12

Wyo. Code R. 060.0001.4.08122026 § 9 Multi-Year Projects

Multi-year projects may be funded by the State Forester for the duration of the project provided that annual evaluations of progress toward project goals are submitted and accepted by the State Forester. No commitment may exceed three (3) years without formal action by the State Forester. Projects may be extended with formal action by the State Forester. Total project duration may not exceed five (5) years.

History

• Effective 2026-08-12

Wyo. Code R. 060.0001.4.08122026 § 10 Review and Monitoring of Grants

. The State Forester shall monitor the progress of funded projects. The grantee shall provide reports to the State Forester summarizing the progress of the project and providing an accounting of funds expended to date. These reports shall be submitted at a time and in a form as specified in the contractual agreement.

History

• Effective 2026-08-12

Wyo. Code R. 060.0001.4.08122026 § 11 Criteria for Acceptance or Rejection of Gifts, Transfers, Bequests and Donations

. The State Forester may accept or reject any gift, grant, transfer, bequest, or donation at their sole discretion.

History

• Effective 2026-08-12

Wyo. Code R. 060.0001.4.08122026 § 12 Transfer of Funds from Private Interests

Any gift, grant, transfer, bequest, royalty or donation shall be subject to the instrument transferring such interest. Any funds transferred to the Forest Health Grant Program shall be placed in segregated sub-accounts and shall be distributed in accordance with the terms of the transferring instrument.

History

• Effective 2026-08-12

199 Land Commissioners, Board of

Chapter 1 Practice & Procedure Before the Board

Wyo. Code R. 060.0002.1.05162017 Practice & Procedure Before the Board

Chapter 1

Rules of Practice and Procedure Before the Board

Section 1. Authority.

These rules are promulgated under the authority granted by Wyoming Statute (W.S.) 36-2-104 and 16-3-103(j)(i) and (ii).

Section 2. Definitions.

(a) As used in all chapters:

(i) "Board" means the Board of Land Commissioners.

(ii) "Board matter" means a document presenting a proposed agency action to the Board.

(iii) "Director" means the Director of the Office of State Lands and Investments.

(iv) "Appellant" means any applicant who is appealing a decision of the Director.

(v) "Office" means the Office of State Lands and Investments.

(vi) "State lands" means all lands, including the surface and subsurface estates, under the jurisdiction of the Board of Land Commissioners.

Section 3. Meetings.

(a) The Board shall meet regularly on the first Thursday of each February, April, June, August, October, and December of each August. A regular meeting may be postponed or cancelled by the Governor.

(b) Special meetings may be called by the Governor upon proper notice to the Director and the other members of the Board and compliance with W.S. 16-4-404.

Section 4. Agenda.

(a) The Director shall prepare the agenda for meetings of the Board, compile all board matters and other information to be presented to the Board, and deliver the agenda, board matters, and other information to each member of the Board at least five (5) days prior to the meeting.

(b) The chairman may modify the sequence of the agenda at the meeting.

Section 5. Board Matters.

(a) The Director shall prepare a board matter, containing sufficient information to aid the Board's decision, for each agency action to be considered by the Board.

(b) Any member of the Board may direct the Director to prepare and present a board matter to the Board for its consideration.

(c) All board matters requesting action by the Board shall contain a recommendation from the Director for Board action.

(d) Any person may request the Director to place an issue on the agenda for consideration by the Board by supplying the Director with all relevant information at least ten (10) days before the meeting. In the event the Director denies placement of an issue on the Board agenda, copy of any written request shall be provided to the Board members at the time of the Director's decision.

(e) All board matters and other information not stamped "confidential" shall be made available for public inspection at the time they are distributed to the Board members.

Section 6. Appearances Before the Board.

(a) Pursuant to W.S. 16-3-107(k), any interested person may appear before the Board on a matter being considered by the Board.

(b) To preserve the orderly conduct of public business, the chairman may limit the time and nature of the appearance.

Section 7. Conflicting Application Appeals.

(a) A contested case, as defined by W.S. 16-3-101(b)(ii), shall be held upon the appeal of a decision of the Director in a case of conflicting applications to purchase, lease, enter, or otherwise acquire title to, interest in, benefits from, or use of the lands under the jurisdiction of the Board, as provided by W.S. 36-3-102(a).

(b) Any applicant affected by the Director's decision in a case of conflicting applications may appeal the Director's decision to the Board by filing, with the Office of State Lands and Investments, a notice of appeal setting forth:

(i) The name and address of the appellant and the name and address of the appellant's attorney, if any,

(ii) The decision of the Director being appealed,

(iii) The name and address of each applicant adversely claiming or affected,

(iv) The legal description of the land involved; and

(v) A statement in ordinary, concise language of the facts on which the appeal is based, including references to any statutes or rules allegedly violated by the Director's decision.

(c) Appeals of the Director's decision must be filed within thirty (30) days after the date of the notice from the Director apprising the applicants of the decision. An applicant who fails to appeal within thirty (30) days shall be deemed to have waived any right to a contested case hearing.

(d) The appellant shall serve a copy of the notice of appeal on all other conflicting applicants at the time the notice of appeal is filed.

Section 8. Lease Cancellation Proceedings.

(a) A contested case, as defined by W.S. 16-3-101(b)(ii), shall be held, if requested by the lessee, before the Board cancels any lease.

(b) A lease cancellation proceeding shall be commenced when the Director files a "request for cancellation" in the record. A request for cancellation shall:

(i) Identify the lease requested to be cancelled; and

(ii) Allege in ordinary, concise language, the facts and the law which form the grounds for the cancellation.

(c) Service. The Director shall serve a copy of the request for cancellation upon the lessee at least thirty (30) days before the Board acts on the request.

(d) Request for Hearing. The lessee shall have twenty (20) days from the date of service of the request for cancellation to request a hearing. The request shall be in writing to the Director. If no hearing is requested within the allowed time, the lessee shall be deemed to have waived the opportunity for a hearing and the Board shall proceed to consider the request for cancellation.

(e) Response.

(i) The lessee shall file a response to the request for cancellation by attaching the response to the request for hearing.

(ii) If the lessee fails to file a response with the request for hearing, the allegations contained in the request for cancellation shall be deemed true.

Section 9. General Procedures for Contested Cases.

The following procedures apply to proceedings under Section 7 and 8 of these rules.

(a) Role of the Director. In any contested case, the Director shall serve as the clerk of the Board, docketing the case and maintaining the record of all notices, motions, transcripts, and orders filed in the case. The Director shall defend his or her decisions in all contested cases.

(b) Disposition by Agreement. Any contested case may be finally disposed of by stipulation, consent order, or default of a party when approved by the Board. Any such disposition shall be made by order of the Board.

(c) The Director may forward any contested case to the Office of Administrative Hearings.

(d) Contested cases shall be conducted pursuant to the Office of Administrative Hearing's uniform rules pertaining to contested case proceedings.

(e) Findings of Fact, Conclusions of Law, Orders. At a regular meeting following service of the recommended decision and any written exceptions, the Board shall make and enter into the record a written order containing findings of fact and conclusions of law based upon the evidence in the record. In addition, all matters that have been officially noticed by the Board and taken into consideration as a basis for its decision will be noted in that decision. Decisions, findings of fact, conclusions of law, and orders issued by the Board will be filed with the Director and constitute the final administrative decision in the contested case. The Director shall send a copy of any order to all parties within five (5) days of receipt.

Section 10. Incorporation by Reference.

(a) The Board hereby incorporates by reference the following uniform rules:

(i) Chapter 2 - Uniform Rules for Contested Case Practice and Procedure adopted by the Office of Administrative Hearings and effective on October 17, 2014, found at: https://rules.wyo.gov.

(ii) Chapter 2 - Uniform Procedures, Fees, Costs, and Charges for Inspecting, Copying, and Producing Public Records adopted by the Department of Administration and Information and effective on September 6, 2016, found at: https://rules.wyo.gov.

(b) For these rules incorporated by reference:

(i) The Board has determined that incorporation of the full text in these rules would be cumbersome or inefficient given the length or nature of the rules;

(ii) The incorporation by reference does not include any later amendments or editions of the incorporated matter beyond the applicable date identified in subsections (a)(i) and (a)(ii) of this section; and

(iii) The incorporated rules are maintained at the Office and are available for public inspection and copying at the same location.

History

• Effective 2017-05-16

Chapter 3 Easements

Wyo. Code R. 060.0002.3.12032025 § 1 Authority

(a) This chapter is promulgated under authority of W.S. 36-2-107, and W.S. 36-9-118.

History

• Effective 2025-12-03

Wyo. Code R. 060.0002.3.12032025 § 2 Definitions

As used in this chapter:

(a) "Board" means the Board of Land Commissioners.

(b) "County Road" means a road that is established pursuant to W.S. 24-3-101 through 24-3-127, identified pursuant to W.S. 24-3-201 through 24-3-206 or a road for which the county is responsible for improvements and maintenance as designated by resolution of a board of county commissioners.

(c) "Director" means the Director of the Office of State Lands and Investments.

(d) "Municipal road" means a road that is established by a city or town and for which the city or town is responsible for improvements and maintenance.

(e) "Office" means the Office of State Lands and Investments.

(f) "State lands" means all lands under the jurisdiction of the Board of Land Commissioners.

(g) "Surface impact payment" means money paid by an easement applicant in compensation for potential negative impacts to the leasehold estate as a result of construction pursuant to an easement ranted under this chapter, including, but not limited to, destruction of forage, disruption of grazing, agricultural, or commercial operations, nuisance, and inconvenience.

(h) "Surface lessee" means a holder of a grazing and agricultural lease or a special use lease issued in accordance with Chapters 4 or 5 of these rules.

(i) "Easement" means an interest in land which entitles the grantee of such interest to a limited use or enjoyment of the land in which the interest exists, but not ownership in the land.

History

• Effective 2025-12-03

Wyo. Code R. 060.0002.3.12032025 § 3 Use on Easements

(a) The Board may grant easements for the following uses of state land:

(i) Ditches;

(ii) Overhead wires;

(iii) Pipelines;

(iv) Railroads;

(v) Reservoirs;

(vi) Public Roads and Highways;

(vii) Roadways to Private Land or Residences;

(viii) Snow fences;

(ix) Underground cables;

(x) Open space; or

(xi) Any other appropriate use.

History

• Effective 2025-12-03

Wyo. Code R. 060.0002.3.12032025 § 4 Easement Characteristics

(a) Width. Easements should be limited to the narrowest possible width. Applicants have the burden of justifying the width requested in the application.

(b) Location. Easement routes that follow section lines or previously established roads, pipelines, or utility corridors are generally preferred. Field reviews and investigations, and communication with the surface lessees, if any, may be conducted by the Office to determine potential alternative locations and access routes that minimize or eliminate impacts to state lands.

(c) Duration. The Board may grant easements in perpetuity or for any term of years. Whenever possible and practical, and consistent with the purpose, easements will be issued for no greater than a thirty-five (35) year term, with an option for the holder of the easement to renew, upon expiration, for specified terms and conditions pursuant to subsection (d) of this section.

(d) Renewal of Easement Grants. Prior to the expiration date of any easement granted for a limited term of years, the Office will, during the last year of the easement, notify the easement holder of the impending expiration and within ninety (90) days of the expiration an application may be submitted for a renewal of the grant. If the renewal involves no change in the location or status of the original easement grant, the applicant may file with the application a certificate under oath setting out this fact, and the Board may thereupon extend the grant for an additional term upon payment of such consideration as the Board determines.

History

• Effective 2025-12-03

Wyo. Code R. 060.0002.3.12032025 § 5 Surface Impact Payments

(a) For all easements:

(i) Surface Impact Payments. Surface Impact Payments shall not be required for county and municipal roads approved pursuant W.S. 36-9-121 (b). For all other easements, prior to commencing construction, the applicant shall remit directly to the surface lessee of the state land, if any, a surface impact payment in accordance with a schedule maintained and updated by the Office which reflects impact to the leasehold interest. The schedule of surface impact payments will be reviewed and approved by the Board annually.

(ii) Reclamation. Upon completion of construction, all state land disturbed by the applicant shall be restored to a condition and forage density reasonably similar to its original condition and forage density, consistent with the use of the easement. Reclamation shall include leveling, terracing, mulching and other necessary steps to prevent soil erosion and impacts to water quality, the establishment of suitable grasses and forbs, and control of noxious weeds and pests. The reclaimed area shall be restored as nearly as practical to its original condition, and the Director shall not require enhancements to the original condition. Upon termination, cancellation, or relinquishment of an easement, the grantee shall remove or stabilize, in the Director's discretion, any facilities placed on the land and restore all disturbed land.

History

• Effective 2025-12-03

Wyo. Code R. 060.0002.3.12032025 § 6 Consideration for Easements

(a) Market Value. Payment for the grant of an easement shall be on a negotiated basis, but no easement shall be granted for less than its market value. These rules apply to all federal, state, county, municipal or other governmental agencies as well as quasi-governmental bodies or organizations the same as if they were private parties.

(b) Minimum. Notwithstanding subsection (a) of this section, the minimum consideration for any easement shall be two hundred fifty dollars ($250.00).

(c) Notwithstanding subsections (a) and (b) of this section, for roadway easements granted to the Wyoming Department of Transportation or any Wyoming county or municipality, the consideration for any portion of an easement that is congruent with an existing state highway, county road, or municipal street or road that was validly established prior to 1974 shall be ten dollars ($10.00) per acre.

(d) Notwithstanding subsections (a), (b), and (c) of this section, consideration shall not be imposed on any county, city, or user of a municipal road or county road for a perpetual easement granted pursuant W.S. 36-9-121 (b).

(e) Exchange. Notwithstanding the previous subsections of this section, for reasons of improved management and increased value of trust land, the Board may exchange an easement across state land for an easement of equal or greater value over land owned by another party.

History

• Effective 2025-12-03

Wyo. Code R. 060.0002.3.12032025 § 7 Application Procedure

(a) Applications. Persons desiring to acquire an easement on state lands as provided in this chapter shall submit to the Office a completed application, including the surface lessee comment form, along with the filing fee established by the Board pursuant to Chapter 17 of the rules. The filing fee shall be waived for all applications associated with county and municipal roads that qualify for a grant of easement pursuant W.S. 36-9-121 (b).

(b) Consideration Deposit. Within fifteen (15) days of receipt of a completed application, the Office shall provide the applicant with an estimate of the consideration required for the easement in accordance with the provisions of Section 6 of this chapter. The applicant shall remit to the Office a deposit of seventy-five percent (75%) of the estimated consideration. Applicants who are governmental entities shall remit one hundred percent (100%) of the consideration upon Board approval of the application.

(c) Preliminary Approval. The Office shall preliminarily approve or disapprove the application no less than twenty (20) days, nor more than thirty (30) days, after receipt of a completed application. In no case shall the Director preliminarily approve the application unless the consideration deposit required under subsection (b) of this section has been received.

(d) Effect of Preliminary Approval. Upon preliminary approval of the application, the applicant may commence construction or use within the boundaries of the proposed easement. However, the applicant bears the risk that the Board may ultimately disapprove the application.

(e) Final Approval. The Board shall approve or disapprove the application at its next regular meeting following the Director's action under subsection (c) of this section. If the application is disapproved and no construction or use has occurred, the consideration deposit and nay related surface impact payment collected by the lessee shall be returned to the applicant.

(f) Post-construction report. After construction within the easement corridor is complete, the applicant shall promptly submit a completed post-construction report, including an "as-built" survey of the easement and a narrative legal description, to the Office.

(g) Failure to Report Completion. Within one (1) year after Board approval, failure to file the post-construction report form, "as-built" survey plat, narrative legal description, and payment of any remaining consideration due for the easement shall result in cancellation of the easement application and forfeiture of all fees and deposits. The Office shall notify the applicant by certified letter ninety (90) days prior to cancellation. Upon receipt of a written explanation and requires for an extension, the Director may grant additional time to complete the easement. The Director shall prepare an additional board matter pursuant to Chapter 1.

(h) Amendments. Any holder of an existing easement desiring to change the uses, location, or width, of the easement shall follow the application procedure described herein, as though it were a new application.

History

• Effective 2025-12-03

Wyo. Code R. 060.0002.3.12032025 § 8 Encroachment on Existing Easements and Conflicting Use

(a) Applicants shall be responsible for determining whether or not the proposed easement would spatially encroach upon any existing easements or other permitted uses on state lands and for implementing any necessary measures to prevent or mitigate impacts on existing easements or uses.

(b) An easement, granted to a person for a specific purpose, shall not be used for other purposes or by other persons without the approval of the Board. The Board reserves the right to grant easements to additional applicants for use of the established route, provided that such subsequent easements do not adversely affect the existing easement or facility. In such cases the Director may require the subsequent applicant to negotiate a maintenance agreement with the holder of the existing easement prior to the grant of easement.

History

• Effective 2025-12-03

Wyo. Code R. 060.0002.3.12032025 § 9 Standards for Construction of Easements

(a) All construction methods and materials used on state land shall comply with generally accepted industry standards. Construction shall be in a manner which complies with laws and regulations to protect health, safety, and the environment.

(b) Cultural Resources. Steps shall be taken in the construction and use of easements to protect and preserve archeological, paleontological, historical, and any other cultural resources on state land. The applicant, or holder of an easement, shall notify the Director immediately in the event any historic or prehistoric ruin or monument, or any object of historical, archeological, or scientific value is discovered upon the easement, and shall refrain from further disturbance of such area until notice to the Director, and if deemed necessary by the Director, inspection and clearance by the State Historic Preservation Office (SHPO), State Archeologist, State Geologist, or other authorities.

(c) Timber Resources. Timber standing within the easement corridor may be marked by the Wyoming State Forestry Division, and if deemed necessary, the applicant, or holder of the easement, will pay the current stumpage value as determined by the Wyoming State Forester.

History

• Effective 2025-12-03

Wyo. Code R. 060.0002.3.12032025 § 10 Construction Activity Outside Easements

(a) If it is necessary to use state land outside the easement boundary for the purposes of constructing or maintaining a facility on an easement or proposed easement, a temporary use permit shall be secured under the provisions of Chapter 14 of these rules.

History

• Effective 2025-12-03

Wyo. Code R. 060.0002.3.12032025 § 11 Transfers of Easements

(a) Easements are freely transferable, however, no transfer may increase the burden on the servient estate or detract from the value of the state land. Any transfer of a state land easement, or change of name or mailing address of the easement holder, shall be reported to the Office within (30) days of the transfer.

History

• Effective 2025-12-03

Wyo. Code R. 060.0002.3.12032025 § 12 Bonding Provisions

(a) Throughout the construction phase of the easement, the grantee may be required to post a bond with the Board in an amount, to be determined by the Director, sufficient to assure compliance with all terms and conditions of the easement. All bonds posted on easements may be sued for payment of all monies, rentals, and royalties due to the grantor, also for costs of reclamation and for compliance with all other terms and conditions of the easement, and rules pertaining to the easement.

(b) The bond shall be in effect even if the grantee has conveyed all or part of the easement interest to an assignee, or subsequent operator until the grantee fully satisfies the easement obligations, or until the bond is replaced with a new bond posted by the assignee.

(c) Additional bonding to cover risks not anticipated at the time of the original grant may be required, at any time by the Director, provided grantor first gives grantee 30 days written notice stating the reason and amount of the bond. The bond will remain in place until the unanticipated risk is diminished.

(d) Bonds may be accepted in any of the following forms at the discretion of the Director:

(i) Surety bond with a corporate surety registered in Wyoming.

(ii) Certificate of deposit in the name of the "Board of Land Commissioners", with a state or federally insured financial institution in Wyoming. The grantee shall be entitled to all interest payments.

(iii) Other forms of surety as may be acceptable to the Director.

(e) The Director shall prepare an informational board matter pursuant to Chapter 1.

History

• Effective 2025-12-03

Wyo. Code R. 060.0002.3.12032025 § 13 Survey Plats

(a) The Director shall only accept survey plats and legal descriptions which comply with the survey plat instructions incorporated into the easement application and with the requirements of W.S. 33-29-101 through 139.

History

• Effective 2025-12-03

Wyo. Code R. 060.0002.3.12032025 § 14 Termination or Cancellation

(a) Any easement granted by the Board may be terminated in whole or in part for failure to comply with any term or condition of the easement or applicable laws or regulations. Easement holders shall be notified of any default or failure to observe the terms and conditions of the easement and shall have an opportunity to present a proposal to correct the situation before the easement is terminated. Upon determining that an easement holder has violated the terms and conditions of the grant, and proposals are not adequate to correct the situation, the Board shall issue an appropriate instrument terminating the easement.

History

• Effective 2025-12-03

Wyo. Code R. 060.0002.3.12032025 § 15 County and Municipal Roads

(a) Pursuant W.S. 36-9-121 (a) through (h), a perpetual easement for a right‑of‑way over and across any state or school lands is granted for county roads and municipal roads that go over and across any state or school lands and that were established before January 1, 2025. All county and municipal roads constructed or established over and across any state or school lands after January 1, 2025, are not granted an automatic easement. Any easement granted by the Board may be terminated in whole or in part for failure to comply with any term or condition of the easement or applicable laws or regulations.

(b) No fee, charge, assessment or other cost shall be imposed on any county, city or user of a municipal road or county road for the perpetual easement granted under subsection (a) of this section.

(c) Not later than April 1, 2030, each county, city and town that has a county road or municipal road for which an easement has been granted under subsection (a) of this section shall provide complete and proper documentation to the Director and the Board as necessary to secure the easement for the county or municipal road.

(d) Not later than ninety (90) days after receiving all necessary documentation to effectuate an easement under subsection (c) of this section, the Board shall provide proper evidence of the easement granted under this section. The Board shall be responsible for recording or filing with the county clerk all documents necessary to demonstrate the granting of the easement under this section.

History

• Effective 2025-12-03

Chapter 4 Grazing and Agricultural Leasing

Wyo. Code R. 060.0002.4.08052026 § 1 Authority

This chapter is promulgated under the authority of Wyoming Statute 36-2-107.

History

• Effective 2026-08-05

Wyo. Code R. 060.0002.4.08052026 § 2 Definitions

As used in this chapter:

(a) "AUM" means an "animal-unit-month," which is equivalent to the quantity of forage necessary to sustain one cow and one calf for one month.

(b) "Board" means the Board of Land Commissioners.

(c) "Current Market Value" means the replacement value of the lessee's improvement at the time of transition of the lease, after the remaining useful life of the improvement is considered.

(d) "Director" means the Director of the Office of State Lands and Investments.

(e) "Full Management Responsibility" means all duties, obligations and liabilities as if the livestock were owned by the lessee.

(f) "Office" means the Office of State Lands and Investments.

(g) "Parity Ratio" means a measure of price received for agricultural products divided by the parity index. The parity ratio is an indication of the per unit purchasing power of agricultural commodities generally in terms of the goods and services currently bought by agriculturalists, in relation to purchasing power of agricultural products in the 1910 - 1914 base period.

(h) "Partition Fence" means any lawful fence pursuant to W.S. 11-28-102, which is primarily located on the boundary line between two properties.

(i) "Preference" means the elevated position of an applicant to participate in the vacant land bidding process as described in subsection 6(d) of this chapter, above applicants who are not the owners, lessees or lawful occupants of adjoining lands in good standing with the Board.

(j) "Surface impact payment" means money paid by a user of state lands in compensation for potential negative impacts to the fee simple or leasehold estate, including, but not limited to, destruction of forage, disruption of grazing, agricultural, or commercial operations, nuisance, inconvenience, and for incidental use of the land surface.

(k) "Vacant land" means land not currently subject to a grazing and agricultural lease from the Board.

History

• Effective 2026-08-05

Wyo. Code R. 060.0002.4.08052026 § 3 Lease Purposes

The Board may lease suitable state land for the grazing of livestock, production of crops, or other agricultural purposes under the provisions of this chapter.

History

• Effective 2026-08-05

Wyo. Code R. 060.0002.4.08052026 § 4 Term of Leases

Leases for grazing or agricultural purposes shall be for a term of ten years, unless a shorter term is designated in special circumstances by the Board.

History

• Effective 2026-08-05

Wyo. Code R. 060.0002.4.08052026 § 5 Applications

(a) Forms. All applications to lease lands for grazing or agricultural purposes shall be made on forms furnished by the Office. Application forms must be completed in full. Any false or incomplete statement willfully made that materially affects the application will be considered as fraud, deceit, or misrepresentation and shall be cause for the rejection of the application.

(b) Qualifications. No applicant shall be qualified to lease state lands for grazing and agricultural purposes without having actual and necessary use of the land for the production of agricultural commodities.

(c) Signature. If an application is signed by a party other than the lessee, the legal instrument authorizing such signature, e.g., power of attorney, letters of administration, letters testamentary, final decree of distribution, etc., together with the required filing fee must accompany the application.

(d) Filing Periods.

(i) All applications to renew a lease of grazing and agricultural lands under outstanding leases must be filed in the Office not earlier than one hundred twenty (120) days prior to and not later than sixty (60) days prior to the expiration date of the existing lease. All renewal applications are considered filed on the date of the postmark on the envelope or package in which the renewal application is sent.

(ii) The Office shall provide notice by certified mail to all existing lessees of the expiration of their lease(s) not earlier than one hundred twenty (120) days prior to expiration of the lease.

(iii) The Office shall notify the lessee not later than forty (40) days before the expiration of the exiting lease if the lessee fails to file an application or submits a deficient application for lease renewal. The notice shall:

(A) Be made by certified mail unless the lessee can be reached in an equally effective alternative manner. Such alternative manner shall be documented by the Office;

(B) Identify the deficiencies in the application for lease renewal or provide notice that no application for renewal has been filed;

(C) Provide the lessee not less than thirty (30) days from receipt of the notice to file a lease renewal application or to remedy all deficiencies in the lessee's renewal application;

(D) Provide notice that the lessee's failure to submit a renewal application or to remedy all deficiencies in the lessee's renewal application before expiration of the lease may result in the leased lands becoming vacant.

(iv) For good cause shown and at the written request of the current lessee, the Director shall grant a current lessee thirty (30) additional days past the expiration date of their existing lease to submit an application to renew the lease, provided that the written request is filed in the Office within thirty (30) days of the expiration date of the lease.

(v) Any conflicting lease application to lease grazing and agricultural lands under any existing lease shall be filed in the Office not earlier than one hundred twenty (120) days prior to, and not later than ninety (90) days prior to the expiration date of the existing lease. Upon receipt of a conflicting lease application the Office shall notify the current lessee via certified mail that a conflicting lease application has been received and shall provide the current lessee not less than thirty (30) days from receipt of notice to file a lease renewal application together with payment of the first year's rental that meets the highest bid offered by another qualified application as provided in W.S. 36-5-105(c).

(vi) In the event of a conflicting lease application being filed, the Office shall provide notice of a deficient application for lease renewal to the lessee not later than ten (10) days after filing of a lease renewal application by an existing lessee. The notice shall:

(A) Be made by certified mail unless the lessee can be reached in an equally effective alternative manner. Such alternative manner shall be documented by the Office;

(B) Identify the deficiencies in the application for lease renewal;

(C) Provide the lessee not less than twenty (20) days from receipt of notice to remedy all deficiencies in the lessee's renewal application;

(D) Provide notice that the lessee's failure to remedy all deficiencies in the lessee's renewal application may result in rejection of the application.

(vii) If an expiration date falls on a Saturday, Sunday or legal holiday, applications shall be accepted on the following workday.

(viii) Specific filing periods for particular tracts of vacant land will be established pursuant to Section 6 below.

(e) Conflicting applications. If two or more applications to lease the same land for grazing and agricultural purposes are filed within the filing periods established in subsection (c) of this section, they shall be considered to be in conflict and shall be handled under the provisions of W.S. 36-3-102, 36-5-105, and 36-5-108 and Chapter 1 of these rules.

History

• Effective 2026-08-05

Wyo. Code R. 060.0002.4.08052026 § 6 Vacant Land

(a) The Office may offer vacant land for lease, and shall do so recognizing its fiduciary duty to the state land trust beneficiaries and in a manner as shall inure to the greatest benefit of the state land trust beneficiaries.

(b) No applicant shall be qualified to lease vacant lands unless that applicant is qualified under the provisions of W.S. 36-5-101, has actual and necessary use for the land, has or can gain access to the land and offers to pay an annual rental at not less than fair market value, as determined by the economic analysis pursuant to W.S. 36-5-101(b), for the same or similar use of the land for a period of (10) years and who has not been found to have significantly violated any laws or regulations related to state lands.

(c) Conflicting applications. If two (2) or more applications to lease the same vacant land for grazing and agricultural purposes are filed within the filing periods established in subsection (b) of this section, they shall be considered to be in conflict and shall be handled under the provisions of W.S. 36-3-102, 36-5-105, 36-5-108 and Chapter 1 of these rules.

(d) Specific filing periods for particular tracts of vacant land will be established by advertisement. However, before accepting applications to lease vacant land, the Director shall provide notice on the Office's website, and directly to each adjoining private landowner as recorded within the real property records with the County Assessor's office.

(e) Preference shall be given to applicants who are the owners, lessees or lawful occupants of adjoining lands, unless the Board determines that the preference should not be recognized for good cause.

(i) In instances where one (1) applicant is eligible for the preference and a competing bidder is not, the applicant eligible for the preference may elect to meet the highest bid of the applicants not eligible for the preference.

(ii) When two (2) or more applicants are eligible for the preference, in determining to which applicant to award the lease, the Director shall request a final bid from the applicants eligible for the preference in a manner as directed by the Director to determine the successful applicant.

(iii) When two (2) or more applicants are eligible for the preference and one

(1) or more applicants are not eligible for the preference, those applicants who are eligible for the preference may elect to match the highest bid. If two (2) or more applicants who are eligible for the preference elect to meet the highest bid, the lease shall be awarded pursuant to subsection 6(e)(ii) of this chapter.

(f) In the event the Office receives conflicting applications, the Director shall issue a Director's Decision conditionally awarding the lease pursuant to this subsection. Should the Director determine good cause exists not to recognize a preference under subsection (e) of this

section, the Director shall include in the Director's Decision a statement describing the reasons not to recognize the preference.

(g) Any applicant may appeal the Director's Decision. The petition shall be treated as a contested case pursuant to W.S. 16-3-107 et seq. A hearing officer shall preside over the contested case hearing and make a recommended decision. The decision of the Board awarding a grazing and agricultural lease shall constitute final agency action.

History

• Effective 2026-08-05

Wyo. Code R. 060.0002.4.08052026 § 7 Rentals for Non-Conflicted Leases

(a) The annual rental for all non-conflicted leases shall be the amount bid by the applicant, if accepted by the Board. In no event shall the annual rental be less than the minimum rate established in subsection (b) of this section.

(b) The minimum annual rental shall be:

(i) For grazing land, as established by formula as follows:

(A) Private land lease rate on a per AUM basis, averaged for the five years preceding the current year, as estimated by the Wyoming Agricultural Statistics Service; times the five year weighted average "parity ratio" for beef cattle per cwt. as established by the National Agricultural Statistics Service as an adjustment for changing resource conditions, market demand and industry viability; less 20% to reflect contributions made by the lessee.

(ii) For hay and dry cropland, the average production shall be converted to AUM's and assessed at the rate established in paragraph (i) of this subsection.

(iii) Rental for irrigated cropland shall be based on fair market value for the same or similar use of the land, less the value of lessee's interest in the irrigation system and improvements, as determined by an economic analysis.

(c) All leases are subject to change upon reappraisal or reclassification of the land, or a change in the minimum annual rental as provided for in subsection (b) of this section.

(d) Upon notice provided not less than sixty (60) days prior to the anniversary date of a lease, all rentals accruing to the state, except those for the first year, shall become due and payable at the Office on the anniversary date of the lease. All rental payments are considered filed on the date of the postmark on the envelope or package in which the rental payment is sent, or on the date affixed to any electronic payment sent by a lessee or applicant. If the rent is not paid on the anniversary date, the Office shall again notify the lessee or the lessee's authorized agent by certified mail that the lease may be canceled if the rent and a late fee equal to ten percent (10%) of the annual rental is not received within thirty (30) days following the date of the certified notice. If the lease is canceled, the Director shall as soon as possible, thereafter, advertise the lands in the county where located, as vacant and subject to lease.

History

• Effective 2026-08-05

Wyo. Code R. 060.0002.4.08052026 § 8 Rentals for Conflicted Leases

(a) In no event shall the annual rental be less than the minimum rate established in Section 7(b).

(b) The maximum rental that may be accepted shall not be more than 120% of the maximum fair market value as determined by the board based on the previous year's values for the State, District or County, whichever is most localized and available, as determined by the National Agricultural Statistics Service utilizing:

(i) The private land lease rate per AUM for Wyoming grazing leases; or

(ii) The private land irrigated or nonirrigated cropland lease rate, as applicable, for Wyoming cropland leases on irrigated or nonirrigated cropland; and

(iii) A downward adjustment of 20 percent to reasonably reflect lessee contributions typically provided as a part of a private land grazing lease rate or a private cropland lease rate, as applicable.

(c) The maximum rental bid shall constitute the annual rental for the entire term of the lease unless the minimum annual rental exceeds the conflict bid.

(d) All leases are subject to change upon reappraisal or reclassification of the land,

(e) Upon notice provided not less than thirty (30) days prior to the anniversary date of a lease, all rentals accruing to the state, except those for the first year, shall become due and payable at the Office on the anniversary date of the lease. All rental payments are considered filed on the date of the postmark on the envelope or package in which the rental payment is sent, or on the date affixed to any electronic payment sent by a lessee or applicant. If the rent is not paid on the anniversary date, the Director shall notify the lessee or his authorized agent by certified mail that the lease will be canceled if the rent and a late fee equal to ten percent (10%) of the annual rental is not received within thirty (30) days following the date of the notice. If the lease is canceled, the Director shall, thereafter, advertise the lands in the county where located, as vacant and subject to lease.

History

• Effective 2026-08-05

Wyo. Code R. 060.0002.4.08052026 § 9 Assignments

(a) Any grazing or agricultural lease assigned without the approval of the Director is subject to cancellation. Lessees shall request approval of assignments, pursuant to W.S. 36-5- 105(d), on a form provided by the Office.

(b) If a request for approval of an assignment is signed by a party other than the lessee, the legal instrument authorizing such signature must accompany the request.

History

• Effective 2026-08-05

Wyo. Code R. 060.0002.4.08052026 § 10 Subleases and Other Contracts

(a) Any grazing and agricultural lease is subject to cancellation if the lessee subleases the leased premises or enters into any contract or agreement of any kind concerning the leased premises, except "price support and production adjustment" contracts of the Farm Service Agency, without the approval of the Director. Lessees shall request approval of subleases or other contracts, pursuant to W.S. 36-5-105(d), by submitting a copy of the sublease or other agreement to the Office. In no event shall lands be subleased unless one-half (1/2) of the excess rental is paid to the State.

(b) The grazing of livestock that are not owned by the lessee shall not be deemed to be a sublease, contract or agreement concerning the leased premises as defined in subsection (a) provided that:

(i) The ratio of owned to non-owned livestock grazed by the lessee does not exceed one to one (1:1) for more than two (2) years in any ten (10) year period;

(ii) The lessee provides documentation of the lessee's grazing of non-owned livestock to the Office not more than sixty (60) days following the first day non-owned livestock are allowed to graze the leased area on a form provided by the Office; and

(iii) The lessee retains full management responsibility of the livestock that graze on the state lands.

(c) If the annual rental under a sublease agreement is a share of production, the lessee shall report annual production to the Office on a form furnished by the Office. The Office shall calculate the additional rental due.

History

• Effective 2026-08-05

Wyo. Code R. 060.0002.4.08052026 § 11 Security Interests in Leases

Whenever a security interest in a leasehold is created or released, the secured party shall notify the Office on a form provided by the Office.

History

• Effective 2026-08-05

Wyo. Code R. 060.0002.4.08052026 § 12 Improvements

(a) Lessees of state land shall have the right to construct or make improvements upon the land in an amount not to exceed $4,000.00 per section for each separate improvement, without first obtaining permission.

(b) Lessees shall request permission, on a form provided by the Office, prior to construction of any improvement valued in excess of $4,000.00 per section for each separate improvement.

(c) The Director shall have authority to grant permission to construct improvements in excess of $4,000.00 per section for each separate improvement for fencing, water development, livestock handling facilities and range enhancements. However, any improvement, regardless of value, which will restrict existing public access or alter existing authorized use(s) of the lands must be approved by the Board.

(d) Any other improvement in excess of $4,000.00 per section for each separate improvement shall be applied for under a special use lease in accordance with Wyoming Statute 36-5-114 and Chapter 5 of Board rules.

(e) Any applicant applying to lease state lands upon which there are improvements of any kind belonging to another shall, before receiving the lease, pay to the Director for the use and benefit of the owner or maker of any improvements at the time of the execution of the lease, the current market value of improvements unless a different value is agreed to between the owner of the improvements and the applicant. Alternatively, the owner of the improvements shall have the right to remove the improvements in a manner which minimizes injury to the land; provided, that the improvements be removed within a period of one hundred twenty (120) days from the expiration of the lease or final Board decision in a related contested case proceeding. Should the owner of the improvements elect to remove the improvements, the owner must notify the Director in writing within thirty (30) days from the expiration of the lease or final Board decision in a related contested case proceeding. For the purposes of this section "contributory value" means the increased value of the property after the lessee's improvements are considered.

History

• Effective 2026-08-05

Wyo. Code R. 060.0002.4.08052026 § 13 Cancellation

The Office shall investigate any allegation of fraud, deceit, or misrepresentation in the procurement of leases and shall monitor all leases for violations of lease covenants. When grounds for cancellation exist under W.S. 36-5-113 or the terms and provisions of the lease, the Director shall request that the Board cancel leases under the procedure at Chapter 1, Section 9, of these rules.

History

• Effective 2026-08-05

Wyo. Code R. 060.0002.4.08052026 § 14 Weed and Pest Control

Lessee is required to work in cooperation with the Office to make every reasonable effort to control noxious weeds and pests. Lessee may work in conjunction with County Weed and Pest Control Districts to develop projects to be submitted to the Department of Agriculture for reimbursement pursuant to W.S. 36-2-107(a), subject to available funding.

History

• Effective 2026-08-05

Wyo. Code R. 060.0002.4.08052026 § 15 Surface Impact Payments

(a) Anyone desiring to enter upon the leased premises shall contact the lessee prior to entry, unless otherwise provided in subsection (c) of this section.

(b) For all entries, the lessee may negotiate a surface impact payment provided that any payment is consistent with payments for impacts to adjacent lands. By separate checks or money orders, the payor shall remit the lessee's share of the surface impact payment directly to the lessee and the Board's share of the surface impact payment directly to the Office, in accordance with the following schedule:

(i) For the first five thousand dollars ($5,000), the lessee's share shall be forty percent (40%), and the Board's share shall be sixty percent (60%).

(ii) For that portion of a payment exceeding five thousand dollars ($5,000), through ten thousand dollars ($10,000), the lessee's share shall be thirty percent (30%), and the Board's share shall be seventy percent (70%).

(iii) For that portion of a payment exceeding ten thousand dollars ($10,000), the lessee's share shall be twenty percent (20%), and the Board's share shall be eighty percent (80%).

(iv) For annual payments, the lessee's share shall be twenty percent (20%), and the Board's share shall be eighty percent (80%). For purposes of this section, "annual payments" means any portion of a surface impact payment remitted subsequent to the initial remittance on periodic basis, regardless of the length of the period.

(c) The following shall not be subject to the requirements of this section:

(i) The Board and its representatives when entering for purposes of management or administration of state lands.

(ii) Members of the public when entering for purposes of hunting and fishing and casual recreational use pursuant to the provisions of Chapter 13 of these rules.

(iii) Applicants for, or holders of, an easement issued under Chapter 3 of the

Board's rules.

(iv) Applicants for, or holders of, a temporary use permit issued under Chapter 14 of the Board's rules.

(v) Applicants for, or holders of, a well pad special use lease issued under Chapter 5 of the Board's rules.

(d) If the person desiring entry upon state lands is unable to reach an agreement with a lessee regarding a surface impact payment after having negotiated with the lessee in good faith for a period of ninety (90) days, the person desiring entry and/or the lessee may submit evidence to the Office to establish the surface impact payment.

(i) The evidence and any information the Director deems relevant will be analyzed by the Director, whereupon, the Director will enter an order establishing the surface impact payment and recommend the decision to the Board for final approval.

(ii) Either party may appeal the Director's decision. The petition shall be treated as a contested case pursuant to W.S. 16-3-107 et seq. A hearing officer shall preside over the contested case hearing and make a recommended decision. The decision of the Board establishing the surface impact payment shall constitute final agency action.

(iii) The person desiring entry may immediately enter the state lands while negotiations with the lessee are proceeding, upon providing the Office with a deposit for the surface impact payment in an amount determined by the Office. When the Director enters an order establishing the surface impact payment, the Office shall forward the lessee's share of the surface impact payment to the lessee and return any excess money on deposit to the petitioner, without interest.

(iv) The costs of the contested case hearing, including hiring a hearing officer, shall be paid in equal shares by the person desiring entry and the lessee.

History

• Effective 2026-08-05

Wyo. Code R. 060.0002.4.08052026 § 16 Construction and Maintenance of Partition Fences

(a) Private landowners whose property adjoins state lands on which the private landowner does not hold a grazing and agricultural lease may construct a lawful partition fence along state lands pursuant to W.S. 11-28-106. The Office, or if the state lands are currently leased for grazing and agricultural purposes, the grazing and agricultural lessee of the state lands shall pay for one-half (1/2) of the actual cost of the construction of the lawful partition fence. Private landowners and the Office, or the lessee at all times that the state lands are leased, shall contribute to the cost of maintenance of the lawful partition fence in proportion to their respective interests in the fence. All required payments that are the responsibility of the grazing and agricultural lessee shall be submitted to the private landowner not greater than one hundred eighty (180) days following construction or maintenance activities.

(b) The private landowner shall give notice to the Office and the state land lessee not less than one hundred twenty (120) days before beginning construction of the fence. The Office or the state land lessee shall have the right to object to the proposed construction based on the type of fence proposed, the location of access points and any other factors that would negatively impact the permitted use of the state lands for agriculture and grazing purposes. Any matters that cannot be resolved by the parties shall be brought before the Board for resolution.

(c) Any investment by the state land agricultural or grazing lessee in fences constructed under the provisions of the Section shall be deemed to be subject to the provisions of W.S. 36-5-111 regarding payment for existing improvements and W.S. 36-9-105.

History

• Effective 2026-08-05

Chapter 5 Special Use Leasing

Wyo. Code R. 060.0002.5.08052026 § 1 Authority

This chapter is promulgated under the authority of W.S. 36-2-107 and W.S. 36-5-114 through W.S. 36-5-116.

History

• Effective 2026-08-05

Wyo. Code R. 060.0002.5.08052026 § 2 Definitions

As used in this chapter:

(a) "Board" means the Board of Land Commissioners.

(b) "Director" means the Director of the Office of State Lands and Investments.

(c) "Office" means the Office of State Lands and Investments.

(d) "Special use" means any use of state land other than for grazing, agriculture, the extraction of minerals (excluding oil and gas well pads producing off-lease minerals), or uses authorized under easements granted pursuant to Chapter 3 of the Rules and Regulations of the Board, or hunting, fishing and general recreational uses pursuant to Chapter 13 of the Rules and Regulations of the Board. Specifically, "Special use" includes leases for industrial, commercial and recreational (as defined by W.S.36-5-115) purposes.

(e) "Surface impact payment" means money paid by a user of state lands in compensation for potential negative impacts to the fee simple or leasehold estate, including, but not limited to, destruction of forage, disruption of grazing, agricultural, or commercial operations, nuisance, inconvenience, and for incidental use of the land surface.

History

• Effective 2026-08-05

Wyo. Code R. 060.0002.5.08052026 § 3 Lease Purposes

(a) The Board may lease suitable state land for special uses under the provisions of this chapter.

History

• Effective 2026-08-05

Wyo. Code R. 060.0002.5.08052026 § 4 Existing Lease Impairment

(a) The leased premises of a special use lease may coincide with the leased premises of an existing surface lease. Prior to issuing a special use lease, the Board shall determine whether or not the proposed special use lease would result in substantive impairment of an existing surface lease.

(b) Lessee consultation and consent. If the applicant obtains written consent from the existing lessee(s) to the issuance of a special use lease, the special use lease shall be deemed to not result in substantive impairment of the existing lease(s). Such consent shall also specify the division of mutually held lease rights, if any, as to the common surface area of the leases.

(c) Board determination. If the applicant is unable to obtain written consent from the existing lessee(s) to the issuance of the special use lease, the Board shall determine whether the issuance of the proposed special use lease will substantively impair the existing lease(s). The Office shall notify the existing lessee(s) at least 20 days before the proposed special use lease is to be considered by the Board.

(d) Special use leases for oil and gas well pads shall not be subject to the requirements of this section.

History

• Effective 2026-08-05

Wyo. Code R. 060.0002.5.08052026 § 5 Term of Leases

(a) Leases for special uses, including industrial, commercial and recreational purposes may be for any term, up to seventy five years, in the discretion of the Board.

(b) The Board shall determine that the proposed lease does not adversely affect its management goals, as set forth in its policy preamble to these rules and regulations, on the land proposed for lease and on the adjacent state lands during the term of the lease. The Board may instruct the Director to prepare a detailed analysis of the parcel for lease and any adjoining state lands, including:

(i) An appraisal of the market value of the parcels;

(ii) The income-generating potential of the parcel, individually and in combination with any adjoining state parcel;

(iii) The manageability of the parcel, individually and in combination with any adjoining state parcel;

(c) The Board must set the term of the lease for a period that does not exceed the anticipated economic life of the proposed lease use.

(d) The Board may extend the lease term if the Board determines that the economic life of the proposed use has not been reached, provided:

(i) All of the criteria within this section of the rules are still met; and

(ii) The overall term of the lease does not exceed seventy five years

History

• Effective 2026-08-05

Wyo. Code R. 060.0002.5.08052026 § 6 Applications

(a) Forms. All applications to lease lands for special uses shall be made on forms furnished by the Office. Application forms must be completed in full, setting forth the location and estimated value of any and all improvements to be constructed on the leased area. Any false or incomplete statement willfully made that materially affects the application will be considered as fraud, deceit, or misrepresentation and shall be cause for the rejection of the application.

(b) Signature. If an application is signed by a party other than the applicant, the legal instrument authorizing such signature, i.e., power of attorney, letters of administration, letters testamentary, final decree of distribution, etc., together with the required filing fee must accompany the application.

(c) Filing periods.

(i) For land under an expiring lease, applications shall be accepted for a period of 90 days prior to the expiration of the lease. If the expiration date falls on Saturday, Sunday or legal holiday, applications shall be accepted on the following workday. At least 90 days prior to the expiration of a lease, the Office shall mail a lease application form to the lessee or his authorized agent.

(d) Conflicting applications. If two or more applications to lease the same land for incompatible purposes are filed within the filing periods established in subsection (c) of this section, they shall be considered to be in conflict and shall be handled under the provisions of W.S. 36-3-102 and Chapter 2 of these rules.

(e) Legal Description. All applications for special use leases will require a legal description which identifies the property proposed for lease. At the discretion of the office, a legal survey and plat may be required identifying the location of all proposed improvements.

(f) Planning and Zoning Laws.

(i) The applicant shall include evidence with the application that all proposed uses within the proposed lease are in compliance with all applicable land use planning and zoning laws for the jurisdictions where the property is located; or

(ii) The Board may approve a lease application contingent upon the State's ability to acquire the necessary changes to the existing land use planning and zoning laws that will allow the intended uses on the state land within the lease.

(g) Requests For Proposals.

(i) When the Office initiates a request for proposals to lease state lands, the Office shall provide not less than thirty (30) days notice be provided:

(A) On the website of the Office;

(B) In a newspaper of general circulation in the county or counties where the state lands are to be leased; and

(C) To current lessees of the state lands and owners of adjoining lands by certified mail.

(h) Oil and Gas Well Pad Leases.

(i) Upon receipt of an application, the Office shall determine the annual rental and surface impact payment amounts, pursuant to Section 7 of these rules.

(ii) After submitting an application, applicant shall solicit written comment from the existing surface lessee with its application, on a form furnished by the Office.

(iii) The lessee comment form shall include the amount of the annual surface impact payment to be remitted to the existing surface lessee for impacts to the leasehold interest only.

(A) The existing surface lessee shall have thirty (30) days from receipt of the form to provide written comment to the Office. If the Office does not receive the comment form from the existing lessee within twenty (20) days of receipt of the form by the existing surface lessee, the Office shall attempt to contact the surface lessee.

(B) If the existing surface lessee does not provide any comment within the thirty (30) day time frame, the surface impact payment identified in the lessee comment form shall be deemed acceptable.

(C) If the existing surface lessee finds the surface impact payment offer inadequate for the impacts to the leasehold, the existing surface lessee shall provide the Office with reasonable, measurable evidence of the impacts and a proposed surface impact payment amount as part of the lessee comment form.

(I) Applicant shall have the opportunity to provide the Office with reasonable, measurable evidence of impacts in response to the existing surface lessee's response.

(II) Within fifteen (15) days of receipt of Applicant's evidence, the Office shall evaluate all evidence provided and notice both parties of the Director's recommended surface impact payment amount. If the parties do not agree to a surface impact payment, the Director's recommended surface impact payment shall be considered by the Board at its next regularly scheduled meeting.

(iv) Preliminary approval.

(A) The Director shall have the authority to provide preliminary approval of oil and gas well pad lease applications, upon compliance by Applicant with paragraphs (ii) and (iii) of this subsection resulting in a completed application, and at the request of the applicant.

(B) Upon preliminary approval of the application, the applicant may commence activities. The Board shall consider the application at the next available meeting following preliminary approval by the Director. Nothing in this rule shall be construed as limiting the final approval authority of the Board.

(iv) Prior to commencing use of the state land, either with preliminary approval or after obtaining Board approval, the applicant shall remit directly to the existing surface lessee a surface impact payment as described in this subsection.

History

• Effective 2026-08-05

Wyo. Code R. 060.0002.5.08052026 § 7 Rentals

(a) The annual rental for special use leases shall be:

(i) The amount bid by the applicant, if accepted by the Board;

(ii) As set by the Board as part of its decision in a case of conflicting applications. However, in no event shall the rental be less than the minimum rate as established in subsection (b); or

(iii) For oil and gas well pad leases, as determined by the Office pursuant to subsection (b).

(b) The minimum annual rental shall be based on fair market value for the same or similar use of the land and any improvements owned by the State after an economic analysis is made. Existing surface lessees and applicants may provide the Office with copies of executed agreements for the same or similar uses of adjacent private lands, to be considered by the Office in its economic analysis. In cases where annual rental cannot be established based on fair market value for the same or similar use of the land, the minimum rental shall not be less than $250.00 or 51/2% of the appraised land value and any improvements owned by the State.

(c) For oil and gas well pad leases, the surface impact payment payable to the existing surface lessee shall be calculated at ten percent (10%) of the annual special use lease payment amount determined in subsection (b).

(d) All rental rates, and any surface impact payments calculated in subsection (c), are subject to review and adjustment as specified in the special use lease.

(e) Upon notice provided not less than thirty (30) days prior to the anniversary date of a lease, all rentals accruing to the state, except those for the first year, shall become due and payable at the Office on the anniversary date of the lease. If the rent is not paid on the anniversary date, the Director shall notify the lessee or his authorized agent by certified mail that the lease will be cancelled if the rent and late fee equal to ten percent (10%) of the annual rental is not received within thirty days following the date of the notice.

History

• Effective 2026-08-05

Wyo. Code R. 060.0002.5.08052026 § 8 Board Approval of Assignments

(a) A special use lease may not be assigned without prior approval of the Board. Lessees or their assignees shall request Board approval of proposed assignments, pursuant to W.S. 36-5-116, on a form provided by the Office.

(b) If a request for Board approval of an assignment is signed by a party other than the lessee, the legal instrument authorizing such signature must accompany the request.

History

• Effective 2026-08-05

Wyo. Code R. 060.0002.5.08052026 § 9 Subleases

(a) The leased premises under a special use lease may not be subleased in any manner or made subject to any contract or other agreement of any kind, without prior approval of the Director. Such approval may be conditioned upon payment of additional rental. Lessees shall request approval of proposed subleases, by submitting a copy of the proposed sublease agreement to the Office.

History

• Effective 2026-08-05

Wyo. Code R. 060.0002.5.08052026 § 10 Security Interests in Leases

(a) Whenever a security interest in a leasehold is created or released, the secured party shall notify the Office on a form provided by the Office.

History

• Effective 2026-08-05

Wyo. Code R. 060.0002.5.08052026 § 11 Improvements

(a) The lessee shall request permission from the Director to construct or make any improvements not approved concurrently with the granting of the special use lease. The Director shall prepare an informational board matter pursuant to Chapter 1.

(b) Any applicant applying to lease state land shall pay to the Director the contributory value of improvements of any kind authorized under Section (a) of this section or the owner of the improvement may upon giving notice to the Director in writing remove only those improvements, within a 120 day period, which will not cause injury to the land.

History

• Effective 2026-08-05

Wyo. Code R. 060.0002.5.08052026 § 12 Cancellation

(a) The Office shall investigate any allegation of fraud, deceit or misrepresentation in the procurement of leases and shall monitor all leases for violations of lease covenants. When grounds for cancellation exist under W.S. 36-5-113 the terms and provisions of the lease, the Director shall request that the Board cancel leases under the procedure at Chapter 1, Section 8, of these rules.

History

• Effective 2026-08-05

Wyo. Code R. 060.0002.5.08052026 § 13 Surface Impact Payments

(a) Anyone desiring to enter upon the leased premises shall contact the lessee prior to entry, unless otherwise provided in subsection (c) of this section.

(b) For all entries, the lessee may negotiate a surface impact payment, provided that any payment is consistent with payments for impacts to adjacent lands. By separate checks or money orders, the payor shall remit the lessee's share of the surface impact payment directly to the lessee and the Board's share of the surface impact payment directly to the Office, in accordance with the following schedule:

(i) For the first five thousand dollars ($5,000), the lessee's share shall be forty percent (40%), and the Board's share shall be sixty percent (60%).

(ii) For that portion of a payment exceeding five thousand dollars ($5,000), through ten thousand dollars ($10,000), the lessee's share shall be thirty percent (30%), and the Board's share shall be seventy percent (70%).

(iii) For that portion of a payment exceeding ten thousand dollars ($10,000), the lessee's share shall be twenty percent (20%), and the Boards share shall be eighty percent (80%).

(iv) For annual payments, the lessee's share shall be twenty percent (20%), and the Board's share shall be eighty percent (80%). For purposes of this section, "annual payments" means any portion of a surface impact payment remitted subsequent to the initial remittance on periodic basis, regardless of the length of the period.

(c) The following shall not be subject to the requirements of this section:

(i) The Board and its representatives when entering for purposes of management or administrations of state lands.

(ii) Members of the public when entering for purposes of hunting and fishing and casual recreational use pursuant to the privilege extended by the Board under the provisions of Chapter 13 of these rules.

(iii) Applicants for, or holders of, an easement issued under Chapter 3 of the Board's rules.

(iv) Applicants for, or holders of, a temporary use permit issued under Chapter 14 of the Board's rules.

(v) Applicants for, or holders of, special use leases for oil and gas well pads subject to surface impact payments pursuant to Section 7.

(d) If the person desiring entry upon state lands is unable to reach an agreement with a lessee regarding a surface impact payment after having negotiated with the lessee in good faith for a period of ninety (90) days, the person desiring entry or the lessee may submit evidence to the Office to establish the surface impact payment.

(i) The evidence will be analyzed by the Director, whereupon, the Director will enter an order establishing the surface impact payment and recommend the decision to the Board for final approval.

(ii) Either party may appeal the Director's decision. The petition shall be treated as a contested case pursuant to W.S. 16-3-107 et seq. A hearing officer shall preside over the contested case hearing and make a recommended decision. The decision the Board establishing the surface impact payment shall constitute final agency action.

(iii) The person desiring entry may immediately enter the state lands while negotiations with the lessee are proceeding, upon providing the office with a deposit for the surface impact payment in an amount determined by the Office. When the Director enters an order establishing the surface impact payment, the Office shall forward the lessee's share of the surface impact payment to the lessee and return any excess money on deposit to the petitioner, without interest.

(iv) The costs of the contested case hearing, including hiring a hearing officer, shall be paid in equal shares by the person desiring entry and the lessee.

History

• Effective 2026-08-05

Wyo. Code R. 060.0002.5.08052026 § 14 Bonding Provisions

(a) The Board may require a bond as a condition of a special use lease sufficient to assure compliance with all terms and conditions of the lease. All bonds posted on special use leases may be used by the Board for payment for costs of reclamation and for compliance with all other terms and conditions of the lease and rules pertaining to the lease.

(b) The bond shall be in effect even if the board subsequently approves an assignment of the lease pursuant to Chapter 5, Section 8, of these rules.

(c) Additional bonding to cover risks not anticipated at the time of the original lease may be required at any time by the Director, provided the Director first gives the lessee 30 days written notice stating the reason and amount of the bond. The bond will remain in place until the unanticipated risk is diminished.

(d) Bonds may be accepted in any of the following forms at the discretion of

(i) Surety bond with a corporate surety registered in Wyoming.

(ii) Certificate of deposit in the name of the "Board of Land Commissioners", with a state or federally insured financial institution in Wyoming. The lessee shall be entitled to all interest payments.

(iii) Other forms of surety as may be acceptable to the Director.

(e) The Director shall prepare an informational board matter pursuant to Chapter 1 whenever additional bonding has been required under (c) in this section.

History

• Effective 2026-08-05

Chapter 6 Wind Energy Leasing

Wyo. Code R. 060.0002.6.12122023 § 1 Authority

This chapter is promulgated under the authority of W.S. 36-2-107 and W.S. 36-5-114 through W.S. 36-5-116.

History

• Effective 2023-12-12

Wyo. Code R. 060.0002.6.12122023 § 2 Definitions

As used in this chapter:

(a) "Board" means the Board of Land Commissioners.

(b) "Director" means the Director of the Office of State Lands and Investments.

(c) "Existing Lease" means a surface or subsurface lease of state land or state minerals approved by the Board and in effect prior to the wind energy lease.

(d) "Surface Impact Payment" means money paid by a wind energy lessee to an existing surface lessee in compensation for potential negative impacts to the leasehold estate, including, but not limited to, destruction of forage, disruption of grazing, agricultural, or commercial operations, nuisance, inconvenience, and for incidental use of the land surface.

(e) "Wind Energy Leasing" means leasing of state land for the exclusive right to convert wind energy into electrical energy including collecting and transmitting the electrical energy so converted to the substation from which the electricity will be transmitted from the wind energy development to the interconnection of the transmission grid.

History

• Effective 2023-12-12

Wyo. Code R. 060.0002.6.12122023 § 3 Lease Purposes

(a) The Board may lease suitable state land for wind energy development under the provisions of this chapter. The wind (wind resource, wind energy, or wind right) is considered an unseverable interest in the surface estate and the right to use the wind for wind energy development is included in a wind energy lease.

(b) The Board shall determine that the proposed lease does not adversely affect its management goals on the land proposed for lease and on the adjacent state lands during the term of the lease. The Board may instruct the Director to prepare a detailed analysis of the parcel for lease and any adjoining state lands, including:

(i) An appraisal of the market value of the parcels;

(ii) The income-generating potential of the parcel, individually and in combination with any adjoining state parcel; and

(iii) The manageability of the parcel, individually and in combination with any adjoining state parcel.

History

• Effective 2023-12-12

Wyo. Code R. 060.0002.6.12122023 § 4 Existing Lease Impairment

(a) The leased premises of a wind energy lease may coincide with the leased premises of an Existing Lease(s) and is subject to any Existing Lease(s).

(b) Prior to issuing a wind energy lease, the Board shall determine whether or not the proposed wind energy lease would result in substantive impairment of an Existing Lease(s).

(c) Upon application, the wind energy lease applicant shall advise the Office of the planned or contemplated improvements to be placed on state land and the Office shall consult with the existing lessee(s) to determine if the existing uses are anticipated to interfere with the contemplated wind energy development.

(d) The wind energy lease applicant shall notify the existing lessee(s) of the application and such notification shall include a description of the proposed use. If the wind energy lease applicant obtains written consent from the existing lessee(s) to the issuance of a wind energy lease, the wind energy lease shall be deemed to not result in substantive impairment of the Existing Lease(s).

(e) If the wind energy lease applicant is unable to obtain written consent from the existing lessee(s) to the issuance of the wind energy lease, the Board shall determine whether the issuance of the proposed wind energy lease will substantively impair the Existing Lease(s). The Office shall notify the existing lessee(s) at least twenty (20) days before the proposed wind energy lease is to be considered by the Board.

History

• Effective 2023-12-12

Wyo. Code R. 060.0002.6.12122023 § 5 Term of Leases

(a) Wind energy leases may be for any term, up to seventy-five (75) years, at the discretion of the Board.

(b) The Board shall set the term of the lease for a period that does not exceed the anticipated economic life of the lessee improvements for wind energy development.

(c) The Board may extend the lease term if the Board determines that the economic life of the proposed use has not been reached, provided:

(i) All of the criteria within this section of the rules are still met; and

(ii) The overall term of the lease does not exceed seventy-five (75) years.

(d) The Board shall include provisions within the wind energy lease that promote development within a reasonable time including, but not limited to, provisions which provide that the lease may be cancelled in whole or in part if development does not occur within a reasonable time.

History

• Effective 2023-12-12

Wyo. Code R. 060.0002.6.12122023 § 6 Applications

(a) Forms and Fees. All applications to lease lands for wind energy development shall be made on forms furnished by the Office. Application forms must be completed in full, setting forth the proposed location and estimated value of any and all improvements to be constructed on the leased area. Any false or incomplete statement willfully made that materially affects the application will be considered as fraud, deceit, or misrepresentation and shall be cause for the rejection of the application. An application fee as determined by the Office must be submitted as indicated on the application form.

(b) Signature. If an application is signed by a party other than the wind energy lease applicant, the legal instrument authorizing such signature, i.e., power of attorney, letters of administration, letters testamentary, final decree of distribution, etc., together with the required filing fee must accompany the application.

(c) Renewal periods. The wind energy lessee must apply for renewal on forms provided by the Office at least ninety (90) days prior to the expiration of a wind energy lease. In such event, lessee and Office shall negotiate a new wind energy lease agreement evidencing the additional lease term not to exceed seventy-five (75) years from the effective date of the original wind energy lease. Any new wind energy lease agreement shall contain the terms and conditions (including the total rents to be paid under such new lease term) agreed to by Office and lessee, and approved by the Board.

(d) Competitive interest. If two or more applications are filed to lease the same land for wind energy development or if competitive interest exists, the Office shall consider issuing a Request for Proposal (RFP) to solicit competitive wind energy lease offers. Prior to issuing an RFP under this Subsection, the Office shall provide not less than thirty (30) days notice of its intent to issue an RFP:

(i) On the Office of State Lands website;

(ii) In a newspaper of general circulation in the county or counties where the state lands are to be leased;

(iii) To current lessees of the state land and owners of adjoining lands by certified mail.

(e) Legal description. All applications for wind energy leases will require a legal description which identifies the property proposed for lease. At the discretion of the Office, a legal survey and plat may be required identifying the location of all proposed improvements.

(f) Planning, zoning, and other laws applicable to state land. The wind energy lease applicant shall include evidence with the application that all proposed uses within the proposed lease are in compliance with all land use planning, zoning, and other laws applicable to state lands in the jurisdiction(s) where the property is located.

History

• Effective 2023-12-12

Wyo. Code R. 060.0002.6.12122023 § 7 Rentals

(a) The annual rental for wind energy leases shall be the amount determined by the

Board on an individual lease basis.

(b) At a minimum, the annual rental shall be based on fair market value as determined by the Office for the same or similar use of the land and any improvements owned by the state after an economic analysis is made. In cases where annual rental cannot be established based on fair market value for the same or similar use of the land, the minimum annual rental shall be the greater of one thousand dollars ($1000.00) or five and one-half percent (51⁄2%) of the appraised land value and any improvements owned by the state.

(c) All rental rates are subject to review and adjustment if specified in the wind energy lease.

(d) All rental payments are due and payable at the Office on the dates specified within the wind energy lease.

History

• Effective 2023-12-12

Wyo. Code R. 060.0002.6.12122023 § 8 Board Approval of Assignments

(a) A wind energy lease may not be assigned without prior approval of the Board.

(b) Lessees or their assignees shall request Board approval of proposed assignments on a form provided by the Office.

(c) If a request for Board approval of an assignment is signed by a party other than the lessee, the legal instrument authorizing such signature must accompany the request.

History

• Effective 2023-12-12

Wyo. Code R. 060.0002.6.12122023 § 9 Director Approval of Subleases

(a) The leased premises under a wind energy lease may not be subleased in any manner or made subject to any contract or other agreement of any kind, without prior approval of the Director.

(b) Lessees shall request approval of proposed subleases by submitting a copy of the proposed sublease agreement to the Office.

History

• Effective 2023-12-12

Wyo. Code R. 060.0002.6.12122023 § 10 Improvements

(a) Prior to construction, the wind energy lessee shall submit to the Office for approval a detailed description and location of the lessee improvements to be placed on state land.

(b) The Office shall approve the lessee improvements and locations thereof provided:

(i) The wind energy lessee is in compliance with the wind energy lease;

(ii) Substantive impairment to any Existing Lease(s) will not result (unless the existing lessee consents);

(iii) Lessee improvements on state land are necessary for wind energy conversion to electricity on state land; an

(iv) Impacts to state land are minimized.

(c) Once a wind energy lease is approved by the Office, any additional lessee improvements or changes to the approved location of lessee improvements shall require approval of the Office.

(d) Any improvements not approved concurrently with the granting of the wind energy lease may not be constructed without prior approval of the Board.

History

• Effective 2023-12-12

Wyo. Code R. 060.0002.6.12122023 § 11 Cancellation

(a) The Office shall investigate any allegation of fraud, deceit or misrepresentation in the procurement of leases and shall monitor all leases for violations of lease covenants.

(b) When grounds for cancellation exist, the Director shall request that the Board cancel leases under the procedure at Chapter 1, Section 8, of these rules.

History

• Effective 2023-12-12

Wyo. Code R. 060.0002.6.12122023 § 12 Surface Impact Payments and Surface Use Agreements

(a) Any wind energy lease applicant desiring to survey the state lands shall contact the existing surface lessee(s) prior to entry and comply with Chapter 16 of the Rules and Regulations of the Board of Land Commissioners.

(b) For all entries on the state land by the wind energy lessee or contactors thereof that occur during the term of the wind energy lease in which there is to be actual or potential negative impacts as defined in Section 2(e) of these rules to the surface leasehold estate, the wind energy lessee and the existing surface lessee(s) shall negotiate a Surface Impact Payment. The wind energy lessee shall remit directly to the existing surface lessee(s) the Surface Impact Payment and provide evidence of such payment to the Office.

(c) If the wind energy lessee is unable to reach an agreement with an existing surface lessee(s) regarding a Surface Impact Payment and having negotiated with the existing surface lessee(s) in good faith for a period of ninety (90) days after having provided sufficient information to the existing surface lessee(s), the wind energy lessee and/or the existing surface lessee(s) may submit evidence to the Office to establish the Surface Impact Payment.

(i) The evidence and any information the Director deems relevant will be analyzed by the Director, whereupon, the Director will enter an order establishing the Surface Impact Payment and recommend the decision to the Board for final approval.

(ii) Either party may appeal the Director's decision. The petition shall be treated as a contested case pursuant to W.S. 16-3-107 et seq. A hearing officer shall preside over the contested case hearing and make a recommended decision. The decision of the Board establishing the Surface Impact Payment shall constitute final agency action.

(iii) The wind energy lessee may immediately enter the state lands while the Office is establishing and the Board is approving the Surface Impact Payment, upon providing the Office with a deposit for the Surface Impact Payment in an amount determined by the Office. When the Director enters an order establishing the Surface Impact Payment, the Office shall forward the Surface Impact Payment to the existing surface lessee and return any excess money on deposit to the wind energy lessee, without interest.

(iv) The costs of the contested case hearing, including hiring a hearing officer, shall be paid in equal shares by the wind energy lessee and the existing surface lessee(s).

(d) Surface use agreements or any agreement between a wind energy lessee and any existing lessee that defines the rights of the parties as to the use of the leased state land shall be provided to the Office.

(e) The wind energy lease shall provide for an installation/construction fee as compensation to the State for negative impacts to the fee simple interest in the state land.

History

• Effective 2023-12-12

Wyo. Code R. 060.0002.6.12122023 § 13 Financial Assurances

(a) The Board shall require financial assurances as a condition of a wind energy lease sufficient to assure compliance with all terms and conditions of the lease including decommissioning and site reclamation.

(b) Financial assurances shall remain in effect even if the Board subsequently approves an assignment of the wind energy lease pursuant to Chapter 6, Section 8, of these rules unless or until assignee provides adequate and sufficient financial assurances.

(c) Additional financial assurances to cover risks not anticipated at the time of the original wind energy lease may be required at any time by the Director, provided the Director first gives the wind energy lessee sixty (60) days written notice stating the reason for and the amount of the additional financial assurance. The Director shall prepare an informational board matter pursuant to Chapter 1 whenever such additional financial assurances are required. The financial assurance will remain in place until the unanticipated risk is diminished.

(d) Financial assurance may be accepted in any of the following forms at the discretion of the Director with consideration of credit worthiness, financial strength, credit history, credit rating, and debt:

(i) Surety bond with a corporate surety registered in Wyoming.

(ii) Certificate of deposit in the name of the "Board of Land Commissioners", with a state or federally insured financial institution in Wyoming. The wind energy lessee shall be entitled to all interest payments.

(iii) Other forms of assurance such as corporate guarantee, letter of credit, insurance policy, security interest in net salvage value, or other forms as may be acceptable to the Director.

History

• Effective 2023-12-12

Chapter 7 Disposition of State In-Kind Royalty Oil & Gas

Wyo. Code R. 060.0002.7.10032000 Disposition of State In-Kind Royalty Oil & Gas

RULES AND REGULATIONS BOARD OF LAND COMMISSIONERS

Chapter 7

Disposition of State In-Kind Royalty Oil and Gas

Section 1. Authority

This chapter is promulgated under the authority of W.S. 36-2-107.

Section 2. Definitions

As used in this chapter:

(a) "Board" means the Board of Land Commissioners.

(b) "Beneficiaries" means the State Land Trust and any other entity specifically designated as the beneficiary of lands administered under this chapter.

(c) "Director" means the Director of the Office of State Lands and Investments.

(d) "Eligible Products" includes gasoline, kerosene, diesel fuel, and such other refined products as the Board may determine to be in demand within the State of Wyoming forming a part of the total output of an eligible refinery.

(e) "Eligible Refiner" means a refiner whose refining operations are conducted entirely within the State of Wyoming and who is unable to purchase sufficient crude oil to continue to operate its refinery at the rated capacity. Neither the refiner nor any of its related companies may be engaged in exporting crude oil from the State of Wyoming. The refiner must be one which produces eligible products as a part of its total output.

(f) "Lessee" means the person, firm, association, or corporation in whose name an oil lease appears on record in the Office.

(g) "Market Price" means the highest price offered in an open bid/negotiation process by an eligible refiner, qualified marketer, or responsible bidder and accepted by the Board as indicative of the value of the Board's production royalty.

(h) "Office" means the Office of State Lands and Investments.

(j) "Qualified Marketer" means any party engaged in the daily marketing of crude oils or natural gas on a national or regional market basis, who handles at least $20,000,000 in oil or gas sales with non-affiliated entities per year.

(k) "Purchaser" means eligible refiner and/or responsible bidder to whom the Board has awarded an in-kind royalty oil contract.

(m) "Responsible Bidder" means one who routinely buys and sells crude oil or natural gas in the marketplace that can demonstrate financial and performance responsibility related to the volumes of royalty oil bid. The term may include, but is not limited to, resellers and refiners.

(n) "Royalty Oil" means crude oil and lease condensate from gas wells taken in kind when the Board exercises its authority to take its royalty from the lessees of state lands in kind rather than in cash payment.

(o) "Royalty Gas" means natural gas taken in kind when the Board exercises its authority to take its royalty from the lessees of state lands in kind rather than in cash payment.

(p) "State Lands" means all subsurface resource lands under the jurisdiction and control of the Board.

(q) "Volumetric Substantiation" means a refinery slate schedule detailing the refined products to be derived from in-kind royalty oil, and a notation of the sales disposition within the state for each product.

Section 3. General Policy

(a) The Board shall dispose of royalty oil and gas in a manner as shall, in the judgment of the Board, inure to the greatest benefit of the state land trust beneficiaries.

(b) The Board may dispose of royalty oil and gas, pursuant to this chapter, to eligible refiners, responsible bidders, and qualified marketers at no less than the market price.

(c) Royalty oil sales to eligible refiners is intended as a temporary measure to allow crude stock-deficient Wyoming refiners to continue to operate within the state, where no other sources of crude stocks are available to them at market prices.

Section 4. Sale of Royalty Oil to Eligible Refiners

(a) Any eligible refiner who is interested in purchasing royalty oil may file with the Office request to be notified of any royalty sales. After the Board has decided to sell its royalty oil, the Office shall notify all eligible refiners who have made this request of the proposed sale.

(b) An eligible refiner may file an application to purchase royalty oil within thirty (30) days after the Director has, upon the direction of the Board, determined that royalty oil should be sold to eligible refiners within the state. An application, which shall be filed at the Office, shall include the following information:

(i) The full name and address of the applicant; the location of the refinery to be supplied; and a complete disclosure of applicant's affiliation or association with any other refinery.

(ii) A certified statement that the applicant is an eligible refiner.

(iii) A certified statement, including volumetric substantiation, that the applicant will make diligent efforts to market the products of the royalty oil within the state.

(iv) The capacity of the refinery to be supplied, the amount of royalty oil requested by the applicant, the kinds of refined products the applicant presently produces, and where refined products are being or will be marketed.

(v) The amount of additional crude oil needed to meet either existing refining capacity or the amount needed to meet the additional capacity which is projected to come on stream during the period of the royalty oil sale contract.

(c) The Director shall examine each application filed by an eligible refiner pursuant to this chapter and, where he finds that the showing submitted is inadequate or unsatisfactory, may request additional showing as he deems necessary.

(d) The Director shall allow or disallow, subject to the approval of the Board, each application for royalty oil submitted by an eligible refiner and shall report his decision to the Board for its approval at its next regular meeting or special meeting held for consideration of the sale of royalty oil to an eligible refiner.

(e) If applications are filed by two or more eligible refiners for the same oil, the Director will determine how the oil is to be allocated. In making his determination, the Director will consider, among other things, how much crude oil each applicant needs in order to operate its refinery at capacity, the size of the refinery, whether the refinery is able to produce the types of refined products needed in the state, and how much of the refinery's product is presently sold in the state. The Director may solicit information from the eligible refiners to facilitate prorata allocations when required.

(f) Except in the circumstances defined in Subsection (g) of this section and Section 7(b) of this chapter, all royalty oil purchased by an eligible refiner must be refined in that refiner's facility within the state and may not be resold in kind.

(g) Eligible refiners purchasing royalty oil may enter into agreements for the processing of the royalty oil only if justified by reason of operational interruption or to minimize transportation, distribution, and handling costs. Processing agreements shall not result in a reduction in the amount of refined products for existing available markets within the state or the market value of the oil delivered. Processing agreements will not be effective until approved by the Director.

(h) The Director shall specify or approve the form of the contract to be used in such sale of royalty oil to an eligible refiner. The Director shall execute the contract, or contracts, of sale of royalty oil on behalf of the Board upon approval of the Board.

(j) Contracts for the sale of royalty oil to eligible refiners within the state shall be for a maximum term of two (2) years.

(k) Eligible refiners must provide a performance and payment bond in a sum sufficient to cover the estimated monthly production for three (3) months of all of the Board's crude oil royalty in- kind volume contracted. Bond may be raised at the discretion of the Board.

Section 5. Sale of Royalty Oil and Gas to Responsible Bidders

(a) For royalty oil and gas bid sales to responsible bidders, the Office will solicit bids under the terms and conditions, and for the royalty production only, as set out in its bid package. When offering in-kind royalty oil or gas for bid, the Board reserves the right to reject any or all bids, and to waive any informality or technical defect regarding any bid. The Board will award bid contracts to the most responsive and responsible bidders. No bidder will be allowed to withdraw its bid for a period of the earlier of forty-five (45) days having expired or until the successful bidder has entered into a contract with the Board.

(b) The Office may make such investigation as it deems necessary to determine the ability of a bidder to make payment and the bidder shall promptly furnish to the Office all such information and data for this purpose as the Office may request. If the bidder does not supply information requested by the Office in a timely manner, the Office may determine the bidder is unresponsive and may disqualify the bidder.

(c) Submission of a bid will indicate acceptance by the bidder of the provisions and terms contained in the applicable royalty sales contract contained in the bid package. The successful bidder will be required to enter into a formal contract with the Board.

(d) The Director shall examine all bids filed by responsible bidders to a royalty volume sale, and shall award upon Board approval, royalty oil or gas to the bidder(s) offering the highest price for the oil or gas available for the period available, relying on market indices and comparable value experiences for like production in quality and general location.

(e) The successful responsible bidder shall purchase the Board's entire monthly crude oil/ condensate or natural gas in-kind royalty available from the leases or wells contracted during the term of the contract.

(f) The purchase term for oil and gas sales to responsible bidders shall be for no greater than six months from the contract effective date, and monthly thereafter by agreement of both parties, in writing, subject to Board approval.

(g) Unless waived by the Board, the successful responsible bidder must furnish performance and payment bonds guaranteeing the faithful performance of the contract and the payment thereunder. Bonds are to be in a sum sufficient to cover the estimated monthly production for two (2) months of all of the Board's crude oil/condensate and three (3) months for all of the Board's gas royalties taken in-kind as bid and remain in force for a period of two (2) months after delivery cessation for oil and three (3) months for gas.

Section 6. Use of Qualified Marketers

The Office is authorized to negotiate, for Board approval, any terms for contracting its oil or gas royalty in-kind with any qualified oil or gas marketer. Marketers shall take possession of all of the Board's royalty in-kind made available at the wellhead and negotiate all the terms for lease transfer, volume transportation, delivery scheduling, and sale value.

Section 7. Exchanges

(a) The Office is authorized to exchange crude oil and natural gas on an equal value basis with any of its lessees or operators, responsible bidders, or eligible refiners in order to obtain a ultimate sales price that is greater than that which would have been received for the same collective volume of oil or gas on a cash royalty basis.

(b) Royalty oil and gas purchased by eligible refiners or responsible bidders or marketed by qualified marketers may be exchanged for other crude oil or gas only if the exchange operates to minimize transportation, distribution, and handling costs and does not serve to reduce the amount of refined products for existing available markets within the state or the market value of the oil or gas delivered. Exchange agreements will not be effective until approved by the Director.

Section 8. Notice to Lessees or Operators

At least forty-five (45) days in advance, the Office shall notify each lessee or operator under the Board's oil and gas leases involved that the lessee or operator shall deliver the Board's royalty oil or gas in kind and in what manner the delivery of that production in kind will take place. This notice shall specify the time period for delivery and to whom delivery is to be made.

Section 9. Responsibilities of Lessees and/or Operators

(a) Sales reporting and payment responsibilities for RIK deliveries reside with the Board's "purchaser." Operator/lessees are responsible for reporting produced volume delivered to the Board's "purchaser."

(b) The Board's lessees and operators shall not be responsible for crude oil or natural gas beyond the points of delivery and shall not be responsible for costs or penalties imposed by a transporter against the Board's RIK purchased volumes. Purchasers shall not be liable for underpayments resulting from under-deliveries by the Board's lessees/operators if such lessees/operators under-deliver RIK production. Lessees/operators will be responsible for under-delivered volumes in excess of ten percent (10%) at the price bid by the Board's "purchaser " for those volumes. Variances that are less than ten percent (10%) shall be made up in the next month after identification thereof. Variances resulting in under-deliveries of greater than ten percent (10%) shall be settled by a cash call on the Board's mineral lessee/operator at the amount noted above.

(c) Lessees/operators shall not be interrupted or unduly delayed as a result of the Board's taking royalty production RIK insofar as disposition of non-RIK production remaining.

History

• Effective 2000-10-03

Chapter 8 Sale of Forest Products from State Lands

Wyo. Code R. 060.0002.8.05121998 Sale of Forest Products from State Lands

RULES AND REGULATIONS BOARD OF LAND COMMISSIONERS

Chapter 8

Sale of Forest Products from State Lands

Section 1. Authority

(a) These rules and regulations are promulgated under the authority granted by W.S. 36-1-112, 36-2-107.

Section 2. Definitions

As used in this chapter:

(a) “Applicant” means any person or persons, firm, association, or corporation who files an “Application for Forest Products Sale” from state lands.

(b) “Board” means the Board of Land Commissioners.

(c) “Director” means the Director of the Office of State Lands and Investments.

(d) “Office” means the Office of State Lands and Investments.

(e) “Forest Products” means any portion of woody vegetation which includes but is not limited to logs, pulpwood, poles, posts, rails, railroad ties, props, Christmas trees, firewood, boughs, cones, and transplants.

(f) “State lands” means all lands under the jurisdiction of the Board of Land Commissioners.

(g) “Surface lessee” means the person or persons, firm, association, or corporation whose name appears on record in the Office as surface lessee of state land.

(h) “Appraisal” means the method of determining the value for forest products to be sold. Appraised value results from considering in part; the value of past sales, quantity and quality of forest products, distance to markets, road and other work requirements.

(i) “Bid Sale” means:

(i) A forest products sale with a total anticipated value greater than five thousand dol- lars ($5,000.00).

(ii) A forest products sale with a value less than five thousand dollars ($5,000.00) where two or more bidders have expressed interest in purchasing the sale.

(j) “Competitive Bidding” means sealed bid, oral auction or combination thereof.

(k) “Forest Management Sale” means a sale of forest products resulting from the salvage of material from thinning, insect and disease infestation, blow down, or fire damage where time is of the essence.

(l) “Personal Use Sale” means a forest products sale with a total value of two hundred fifty dollars ($250.00) or less.

(m) “Permit Sale” means a forest products sale having a total anticipated value greater than two hundred fifty dollars ($250.00) but less than five thousand dollars ($5,000.00).

Section 3. Forest Products Sales

(a) Forest products sales from state lands will be in accordance with sound forest management practices. The State Forester will prepare and submit to the Director an annual work plan that will outline anticipated forest products bid sales to be initiated during the next year.

Section 4. Application for Forest Products Sale

(a) An application is required for permit and bid sales not initiated by the Director.

(b) A complete application form will be submitted with the required application fee. Applica- tion fees are not refundable.

(c) If forest products are located on noncontiguous sections or parcels of state land, separate applications may be required.

(d) State land for which a forest products application has been made will be inspected to deter- mine if harvest of forest products is appropriate. If appropriate, the requested sale will be prepared and sold in accordance with the provisions of these rules.

Section 5. Preparation for Sale

(a) Forest products will be offered for sale in accordance with legal survey descriptions of the land and sold according to legal subdivisions as established by the United States Public Survey, or by metes and bounds description.

(b) A forest products sale may be prepared on an entire section or in individual cutting units or blocks.

(c) Forest products will be marked, or designated for harvest.

(d) Access to treatment area will be determined. Access to state lands is not guaranteed by the Board.

(e) The State Forester shall recommend the time period during which forest products may be harvested and removed.

(f) The minimum acceptable price for designated forest products will be determined by ap- praisal.

(g) The surface lessee will be notified prior to commencing proposed sales or management activity. The surface lessee will be given fifteen (15) days to submit written comments to operations occurring on the land.

Section 6. Purchase Price

(a) The purchase price of forest products is independent of administrative fees.

(b) The purchase price of forest products shall be as follows:

(i) Personal Use Sales will be fair market value.

(ii) Permit Sales will be based on the most recent competitive bidding for comparable products in the same proximity. Forest Management Sales may be sold as a Permit Sale. The Director shall prepare an informational board matter pursuant to Chapter 1.

(iii) Bid Sales will be based on the minimum bid as determined by appraisal, with sale awarded to high bidder in accordance with Section 8 of these rules.

Section 7. Advertising Bid Sales

(a) Subject to the requirements of subsection (b), the State Forester may give notice of a forest products sale using any means deemed appropriate.

(b) The Forest Products Sales’ notices shall state the time, place, forest products description, sale terms, and shall be advertised a minimum of fifteen (15) days prior to the sale date. All parties known by the State Forester to be interested in purchasing the forest products, shall be informed by mail or elec- tronically.

(c) The cost of newspaper advertising must be paid by the ultimate purchaser of the timber.

Section 8. Competitive Bidding

(a) Competitive bidding for forest products from state land shall be conducted by the Director or his agent.

(b) No sale, made by competitive bidding shall be final until approved.

(c) The Board reserves the right to reject any and all bids.

Section 9. Bid Guarantee

(a) A Bid guarantee shall be required for Bid Sales. The bid guarantee shall be by a certified check, cashier’s check, or bank money order payable to the Office of State Lands and Investments. The bid guarantee shall be a minimum of five hundred dollars ($500.00). When the forest products contract is executed and required payments, bonds, and deposits are submitted, the bid guarantee will be applied to the payment.

(b) If the successful bidder does not sign the offered forest products contract and furnish the required payments within ninety (90) days of Board approval, the offered contract will be withdrawn. The successful bidder’s bid guarantee is non-refundable. An extension of time to sign the contract and make the required payments may be granted if a written request outlining circumstances is submitted and ap- proved during the ninety (90) day period.

Section 10. Performance Bonds

(a) A performance bond may be required for sales where the purchaser has performance obli- gations as terms of the forest products contract. Bond amounts shall be the amount necessary to cover the expense of contractual obligations but not less than ten percent (10%) of the total sale value, or five hun- dred dollars ($500.00), whichever is greater. Cash bond, performance bond or an approved, irrevocable letter of credit are acceptable.

Section 11. Permits and Contracts

(a) A purchaser of any sale shall execute a written contract detailing terms and conditions of harvesting, removal and payment.

(b) The forest products contract may be extended if the Director is notified by the purchaser in writing, at least thirty (30) days prior to expiration date and the purchaser provides valid reasons why an extension is required.

(c) A forest products contract may be assigned by the Director or transferred when submitted, executed, and recorded.

Section 12. Payments

(a) Payment shall be paid in full, or as specified by the contract, before operations can begin. Contracts may provide for payment in installments but payment shall always precede harvesting of the proportional amount of volume.

(i) All payments shall be made payable to the Office of State Lands and Investments.

(ii) Payment for bid guarantee, cash bonds and deposits shall be by certified check, cashier’s check or bank money order.

(iii) Payment for sales may be by personal or company check, certified funds or cash.

Section 13. Slash Disposal Deposits

(a) Slash disposal deposits shall be required for all sales except where heavy slash accumula- tion is not anticipated. The slash disposal deposit will be used for slash disposal or refunded based upon the amount of work completed by the purchaser. Partialrefunds may be made.

Section 14. Forestry Fees

(a) The fee for application of forest products sales shall be in accordance with Chapter 17 of these rules.

History

• Effective 1998-05-12

Chapter 9 Governing Fire Danger Closures

Wyo. Code R. 060.0002.9.05182021 § 1 Authority

This chapter is promulgated under the authority of Wyoming. Statute. 35-9-303.

History

• Effective 2021-05-18

Wyo. Code R. 060.0002.9.05182021 § 2 Definitions

As used in this chapter:

(a) "Closure" means the imposition of restrictions on, or prohibition of, designated activities within a defined area under the authority of W.S. 35-9-301.

(b) "Unimproved areas'' means the fire restriction area shall include all county and private lands within the restricting County except lands within the incorporated cities and towns.

(c) "Campfire" means a fire, not within a building, mobile home or living accommodation, mounted on a vehicle or contained in a permanent fixture (incinerator, outdoor fireplace or BBQ grill). A campfire is any fire kindled for warmth, cooking, light, branding, religious or ceremonial purposes.

(d) "Campsite" means any specific area within organized campgrounds or other recreation areas that could be used for overnight stays by an individual, a single camping family, group, or other similar entity.

(e) "Fire Ring" means a construction or device used to contain campfires and prevent them from spreading and turning into wildfires. A fire ring is designed to contain a fire that is built directly upon the ground, such as a ring made of forged metal, stones, concrete, etc.

(f) "Restriction" means a limitation on an activity or use.

(g) "Fireworks" means any item covered by W.S. 35-10-201

History

• Effective 2021-05-18

Wyo. Code R. 060.0002.9.05182021 § 3 Closure Orders

A board of county commissioners shall not order a closure of an area due to fire danger only upon proper showing by the county fire warden of evidence supporting the need for a closure. Closures shall be by written order which shall designate the exact area subject to the order, the activities restricted or prohibited, and the date the closure is to be implemented.

History

• Effective 2021-05-18

Wyo. Code R. 060.0002.9.05182021 § 4 Notification of State Forester

Whenever a board of county commissioners orders a Stage 1 restriction, Stage 2 restriction or the closure of an area due to fire danger, the county fire warden shall immediately send a copy of the order to the State Forester.

History

• Effective 2021-05-18

Wyo. Code R. 060.0002.9.05182021 § 5 Implementation of Closure Orders

A restriction or closure, as provided in Section 8 shall be implemented immediately or as defined in the order upon execution and notification shall be made to the State Forester.

History

• Effective 2021-05-18

Wyo. Code R. 060.0002.9.05182021 § 6 Public Notification

The State Forester shall provide an avenue to be used to notify the public of Stage 1 restrictions and Stage 2 restrictions and full closures under this chapter. The State Forester shall cooperate with all relevant local, state, and federal agencies to ensure that the public is notified of the restriction or closure.

History

• Effective 2021-05-18

Wyo. Code R. 060.0002.9.05182021 § 7 Enforcement of Closure Orders

The State Forester shall cooperate with all relevant local, state, and federal agencies to enforce Stage 1 and Stage 2 restrictions, and closure orders in the identified area.

History

• Effective 2021-05-18

Wyo. Code R. 060.0002.9.05182021 § 8 Restricted, Prohibited and Allowable Activities

Descriptions of restricted, prohibited, and allowable activities under Stage 1 restrictions, Stage 2 restrictions, and Closures are provided below:

(a) Stage 1 Restrictions

(i) Discharge of fireworks and all outdoor fires are prohibited in unimproved areas.

(ii) Only campfires at residences or campsites, within a fire ring centered within a minimum of a 15ft. cleared radius of burnable materials.

(iii) Trash or refuse fires between the hours of 6:00 p.m. and 8:00 a.m., inside containers provided with spark arresters and located within a cleared radius of a minimum of 15ft. of burnable materials.

(iv) Charcoal fires within enclosed grills are permitted.

(v) Use of acetylene cutting torches, electric arc welders, or metal grinding in a cleared radius of 15ft. burnable materials are permitted.

(vi) The use of portable stoves, lanterns using gas, jellied petroleum, pressurized liquid fuel or fully enclosed (sheepherder type) stove and open fire branding activities in a cleared radius of 15ft of burnable materials is permitted.

(b) Stage 2 Restrictions

(i) All activities provided in Stage 1 restrictions are prohibited.

(ii) All campfires are prohibited.

(iii) Devices using pressurized liquid or gas (stoves, grills or lanterns) that include shut-off valves are permitted when used in an area at least three feet or more from flammable material such as grasses or pine needles.

(c) Closure

(i) All activities provided in Section 8(a) and 8(b) are prohibited.

(ii) Access to the identified area shall be managed by the appropriate jurisdictional agency.

(iii) All outdoor fires, including, but not limited to, trash fires, charcoal fires, portable stoves, lanterns using gas, jellied petroleum, pressurized liquid fuel or fully enclosed (sheepherder type) stove and open fire branding activities are prohibited.

(iv) Smoking shall be restricted to inside vehicles or buildings.

(v) Fires within fireplaces and wood stoves without chimney or flue screens are prohibited.

(vi) All motorized travel shall be restricted to developed roads.

History

• Effective 2021-05-18

Wyo. Code R. 060.0002.9.05182021 § 9 Termination of Restrictions and Closure Orders

A board of county commissioners may terminate the restriction or closure order by rescinding the closure order upon a proper showing of evidence by the county fire warden that the fire danger no longer warrants the closure order. The county fire warden shall immediately notify the State Forester if a restriction or closure order is terminated.

History

• Effective 2021-05-18

Wyo. Code R. 060.0002.9.05182021 § 10 Exemption from closure orders

The following persons are exempt from the restrictions, and closure orders:

(a) Any federal, state, or local officers engaged in fire, emergency, and law enforcement activities.

(b) Any member of rescue or firefighting force engaged in performance of an official duty.

(c) Exceptions to these restrictions and closures can be made in writing by the appropriate jurisdictional entity.

History

• Effective 2021-05-18

Chapter 11 Fossil Permits

Wyo. Code R. 060.0002.11.10301998 Fossil Permits

RULES AND REGULATIONS BOARD OF LAND COMMISSIONERS

Chapter 11

State Lands Exclusive Commercial And Non-Exclusive Scientific Fossil Removal Permits

Section 1. Authority

(a) The authority for these rules is based on W.S. 36-2-107. The Board is solely responsible for interpretation of these rules.

Section 2. Ownership of Fossils

(a) All fossils and paleontological deposits on state lands are the property of the State of Wyo- ming and removal of specimens from these lands shall not be allowed unless authorized by the Board of Land Commissioners.

Section 3. Definitions

(a) “Board” means the Board of Land Commissioners.

(b) “Casual or Recreational Fossil Collecting” means the non-commercial collection of invertebrate fossils, which is limited to when they occur as surface litter and do not require any excavation for removal. Such collecting does not require a permit, and is subject to Chapter 13 of these rules.

(c) “Director” means the Director of the Office of State Lands and Investments.

(d) “Exclusive Commercial Fossil Removal Permit” means a permit issued by the Board to an applicant pursuant to collection of specimens for sale to others.

(e) “Fossil” for the purpose of these rules means any remains, trace or imprint of a plant or animal that has been preserved in rock or in unconsolidated sediments, excluding fossil fuels and lime- stones or other calcareous rocks comprised of invertebrate fossils.

(f) “Non-Exclusive Scientific Fossil Removal Permit” means a permit issued by the Board to an applicant pursuant to collection of specimens for the purposes of scientific display, research and educa- tion, and not for resale.

(g) “Office” means the Office of State Lands and Investments.

(h) “State Lands” means all subsurface resource lands under the jurisdiction of the Board of Land Commissioners.

Section 4. General

(a) Exclusive Commercial and Non-exclusive Scientific Fossil Removal Permits may be is- sued on state lands with the approval of the Board. The terms of these permits shall cover the conditioned removal of all fossil forms with the exclusion of dinosaur and all other vertebrate fossils not specifically named in these rules and the Board’s permit form, for which no commercial permit is obtainable. Permits shall be of five (5) years duration. Permits may be renewed upon application, for successive five (5) year periods, on the permit form then in effect. Exclusive Commercial Fossil Removal Permits may not exceed ten (10) acres in size, but the calculation of this acreage shall not include access roads into a permit. Approval of renewals of ongoing Exclusive Commercial Fossil Removal Permits will not be withheld so long as the permits are in good standing.

Section 5. Fossil Permit Application Fee and Annual Minimum Royalty for Exclusive Commer- cial Removal Permits.

(a) Applications for Exclusive Commercial and Non-Exclusive Scientific Fossil Removal Per- mits must be accompanied by a non-refundable application fee pursuant to Chapter 17 of these rules and for commercial permits, the first year’s minimum annual royalty of Ten Thousand Dollars ($10,000.00). Thereafter, for the remaining term of any commercial permit, a minimum annual royalty of Ten Thousand Dollars ($10,000.00) is due on or before the permit anniversary date (issue date) of each year, and until the expiration or cancellation of the permit. No minimum annual royalty is required under a Non-Exclusive Scientific Fossil Removal Permit.

Section 6. Ownership and Sale of Specimens Recovered Under Permit

(a) For the purposes of an Exclusive Commercial Fossil Removal Permit, specimens of the following fish genera are deemed common and approved for sale without review or royalty by the Office or its agent: Knightia, Diplomystus, Priscacara, Phareodus, Mioplosus, Notogoneus and Amphiplaga. Addi- tionally, common specimens of gastropods, bivalves, coprolites and plant fossils, as illustrated in the Geo- logical Survey of Wyoming’s Bulletin 63 (1984 Edition) are approved for sale without review or royalty. Specimens of gars, rays, bowfins and paddlefish are approved for sale without review, however, these specimens are subject to Section 7 - Commercial Fossil Permit Royalties.

(b) All specimens not specifically listed in this Section above, are deemed rare and unusual and must be reported to the Office within thirty (30) days of discovery. Such specimens may be sold only upon approval of the Office and only after consultation with the Wyoming Geological Survey pursuant to estab- lishing the rarity or scarcity of the specimens. If approved for sale, such specimens bear the royalty set out in Section 7 of these rules. Any specimens not approved for sale are the property of the State of Wyoming, and must be turned over to the State as directed by the Office. Such specimens shall be delivered on site to the Office or its agent or to the Wyoming Geological Survey, at the option of the Board. Such specimens shall be receipted by the State’s representative when turned over by the permittee. Upon termination of any Commercial Fossil Permit, any and all rare and unusual specimens in a permittee’s possession either on site or at any other location used by a permittee or permittee’s agents for preparation or sale shall be acknowledged and turned over to the Office within thirty (30) days of permit termination.

(c) No fossil collected under a Non-Exclusive Scientific Fossil Removal Permit may be re- moved from the State without the written consent of the Board. Such consent may be requested by a permit applicant/permittee at the time of permit application. As a condition of approval for the removal of paleon- tological specimens collected under such a permit, permittees must acknowledge, in writing, that such specimens shall forever remain the property, and under the ownership, of the State of Wyoming; and, that such specimens shall be treated as on loan to the permittee, and providing in writing, the permittee’s waiver and the waiver of the institution or association represented by the permittee, of any form of lien against the ownership and possession rights of the State of Wyoming, its Board of Land Commissioners, and the Office of State Lands and Investments unless at the discretion of the Board, such specimen(s) are traded to the permittee and relinquished by the Board, in writing, in exchange for specimens of equal value. Relin- quishment of specimens on loan, and exchange for equal value specimens, will be acted upon based upon the written request of either the permittee or the Wyoming Geological Survey.

(d) All commercial and scientific fossil inventories recovered from State fossil permit areas, must be maintained separately from other inventories permittees maintain, or individually tagged or marked by Wyoming permit number.

Section 7. Commercial Fossil Permit Royalties

(a) A royalty of ten percent (10%) of the gross sales price without deduction of any costs including but not limited to: quarrying, preparation, and marketing, for fossils identified as royalty bearing in section 6(a) and (b) shall be paid no less than quarterly.

(b) In addition, upon termination of any commercial fossil permit for whatever cause, all fos- sils subject to a royalty removed and in the possession of the permittee either at the site or any other location used by permittee for preparation and/or sales, will be inventoried by the Office and valued at the then current market price as established based upon specimen status, sales receipts and outstanding orders and quotes unless otherwise agreed by the Board. Permittee will be required to pay the prescribed royalty rate based on the value established herein. No fossils other than the common and approved fish genera and specimens listed in Section 6(a) and (b) hereof may be retained without Board approval.

Section 8. Right of Audit

(a) Permittees shall maintain at all times during the effective term of any fossil removal permit, and for a minimum of two years thereafter, a record of all fossil sales from State permit discoveries. The Board, and its agents or representatives, shall have the right under any fossil removal permit, to inspect all the books and records of permittees pertaining to quarrying, preparing, cataloguing, placing and selling fossils, and federal tax returns and supporting documents pertaining thereto, such audits to be conducted during normal business hours.

Section 9. Permission to Quarry

(a) Applications for Exclusive Commercial and Non-Exclusive Scientific Fossil Removal Per- mits may be submitted by an individual, institution or company not otherwise restricted by rule or statute, from leasing Wyoming State resources, and, shall be accompanied by a request to begin quarrying contain- ing the following information:

(i) The name, address, telephone number and principal contact of the permittee as named, and whether the permittee leases, owns, or is a permittee on any other fossil quarry(ies), and if so, the locations of such quarry(ies);

(ii) The location of the desired area for the operation by legal subdivision, section, town- ship and range. If there is no location survey, provide a metes and bounds description within the township;

(iii) The proposed commencement and completion dates, if known, for the desired quar- rying operation: that is, whether such quarrying operations will be performed on a continuing calendar month basis, or will be seasonal only. If seasonal, what months will work be performed;

(iv) A U.S. Geological survey topographical quadrangle map showing:

(A) The legal boundaries of the requested fossil removal site with the portions of the site to be quarried identified. This information may also be provided in an enlarged reproduction of the map section containing the quarry site;

(B) If any previous quarrying has taken place, or is currently taking place, within or adjacent to the proposed quarry site, show the location boundaries and identity of such operation as an existing or abandoned quarrying operation; and

(C) Show any existing or proposed access or haul roads into and away from the proposed quarrying operation. Annotate the roads normally providing access to the quarry; and

(v) The permittee shall provide a description of the proposed quarrying operation. This description shall include:

(A) An estimate of topsoil thickness on the quarry site;

(B) An estimate of the position and thickness of any nonfossiliferous overbur- den anticipated in the quarry as well as description of the nonfossiliferous rock (rock type, color, etc);

(C) An estimate of the maximum depth planned for the quarry;

(D) A complete description of the proposed quarrying/excavating procedures to be used and equipment for (1) removal and storage of topsoil, (2) removal of nonfossiliferous overburden, if present, (3) removal of fossil-bearing rock, and (4) recovery of fossils from the fossil-bearing rock, and plans for site restoration after abandonment; and

(E) The pre-quarrying and proposed post-quarrying land use;

(vi) All permittees shall provide a listing of all bonafide agents or persons to work in the quarry, including relatives of the permittee. This list shall be kept current during the term of the permit and shall include an address of record for each person on the listing. When a person no longer works for a permittee, he or she should be deleted from this listing. A list shall also be provided, and kept current, of all vehicle descriptions and license plates of authorized vehicles regularly entering and leaving the quarry/ excavation site, and whether any persons authorized to work in the quarry will be temporarily domiciled during the quarrying season at the quarry site. Permittees shall also indicate whether quarrying operations will be carried on during the hours of darkness. All information provided subject to this paragraph may be shared with any authorized law enforcement agency. A copy of all required lists shall be located at a permittee’s quarry and available for review by the Office and its representatives. Permittees shall provide the location(s) to be used for storage and preparation of all specimens recovered; and

(vii) A sworn statement that all information contained in the quarrying request is true and correct to the best knowledge of the permittee.

(b) The following are additional conditions for Non-Exclusive Scientific Fossil Removal Per- mits:

(i) The Board will consider granting Non-Exclusive Scientific Fossil Removal Permits only to persons or institutions which they may deem properly qualified to conduct such examination, excavations, or gatherings, subject to the provisions prescribed in its permit and provided that the examina- tion, excavations, and gatherings are undertaken for the benefit of reputable museums, universities, col- leges, or other recognized scientific or educational institutions, with a view of increasing the knowledge of such objects; and provided that the gatherings or collections shall be returned to the Wyoming Geological Survey upon completion of research or shall be made available for permanent preservation at bonafide public museums or at institutions where gatherings and collections are forever available to all qualified scientific researchers;

(ii) Applications for Non-Exclusive Scientific Fossil Removal Permits will be referred to the State Geologist of Wyoming for his recommendations;

(iii) No Non-Exclusive Scientific Fossil Removal Permit shall be granted for a larger area than the applicant can reasonably be expected to explore fully and systematically within the time limit in the permit;

(iv) Because other Non-Exclusive Scientific Fossil Removal permittees may be engaged in the investigation of the same area, all conflicts between permittees should be resolved by the parties concerned. When this is not possible, the problem will be resolved by the Office; and

(v) Each application for a Non-Exclusive Scientific Fossil Removal permit must be accompanied by a definite outline of the proposed work, indicating the name of the person or institution making the request, the date proposed for beginning the field work, the length of time proposed to be devoted to it, and the person who will have immediate charge of the work. The application must also contain an exact statement of the character of the work, whether examination, excavation, or gathering, and the public museum or institution in which the collections made under the permit are to be preserved.

Section 10. Quarrying/Excavating Permit Requirements and Prohibited Practices

(a) Prior to quarrying or excavation of fossils from an Exclusive Commercial Fossil Removal Permit area, permittees shall have a land survey performed by a licensed Wyoming surveyor for the pur- pose of placing relatively permanent, locatable, corner stakes or markers that define the boundaries of the intended quarry or excavation. If warranted, the Office may also require a land survey for a quarry or excavation on a Non-Exclusive Fossil Removal Permit.

(b) Topsoil shall be stripped and segregated from permitted sites and stockpiled in such a man- ner as to minimize wind and water erosion. Topsoil stockpiles should be seeded within thirty (30) days of removal.

(c) Fossil removal sites shall be kept free of petroleum wastes, other toxic materials, and trash in general.

(d) To prevent unwarranted destruction of rare and unusual specimens, the use of heavy exca- vation equipment is prohibited on permitted fossil removal sites, except for the purposes of stripping top- soil and nonfossiliferous overburden, redistribution of waste rock, pit contouring during reclamation, the replacement of topsoil, and seeding of the disturbed area.

(e) Unless special permission is granted, all excavation sites shall be restored, as nearly as possible, to their original condition, to include backfilling of the site, replacement of topsoil, and reseed- ing.

(f) All camp sites used under Non-Exclusive Scientific Removal Permits during the course of any field investigations or excavations must be left clean, all refuse must be carried out, and adequate sanitation facilities must be maintained.

(g) State and County law enforcement agencies are authorized hereby to inspect all State land fossil quarry sites.

(h) Without prior written approval of the Board or the Office, no materials shall be pushed or dumped outside the surveyed boundaries of the quarry area, either during quarrying or during reclamation.

(i) The use of explosives on permitted fossil removal sites is prohibited.

Section 11. Bond

(a) Prior to the removal of any fossil specimens from a permitted Exclusive Commercial Fossil Removal site, the permittee shall have an approved bond on file with the Office in an amount equal to no less than six hundred dollars ($600.00) per acre or part thereof in the permit. The Board may increase the bonding requirements on the anniversary date of succeeding years of the permit if the existing bond is not deemed adequate to assure the required reclamation of the site.

(b) At the discretion of the Office, a Non-Exclusive Scientific Fossil Removal permittee may be required to post an approved bond with the Office to assure reclamation of a planned excavation site. This bond will be in an amount adequate to assure the required reclamation of a site.

Section 12. Reclamation

(a) Unless granted a variance, reclamation and restoration of a site shall commence within thirty (30) days after abandonment of the quarry operation. This requirement is not intended to prevent the permittee from conducting reclamation before abandonment of the quarrying operation. Concurrent recla- mation and quarrying are encouraged.

(i) The operation will be considered abandoned if any of the following occur:

(A) The permittee notifies the Office that the quarrying operation is abandoned;

(B) An Exclusive Commercial Fossil Removal permittee fails to submit the mini- mal annual royalty on or before the anniversary of each year during the original term of the permit;

(C) The permittee fails to file for renewal of the Fossil Removal Permit on or before its expiration date; or

(D) No more commercially or scientifically valuable fossils remain in the quarry.

(b) The reclamation of the affected lands shall be in accordance with the following:

(i) Reclamation shall be consistent as practicable with the prequarrying land use;

(ii) Minimally, reclamation requires all pits or quarried areas to be filled with waste rock (spoils) from the quarrying operation and regraded to blend in with the surrounding terrain. Topsoil must be redistributed evenly over the entire affected land. Seeding of topsoiled areas will be completed after October 1 or prior to May 15, depending upon local soil conditions, with an approved seed mixture, unless another period is approved by the Director;

(iii) Without prior written approval of the Board or Office no materials shall be pushed or dumped outside the surveyed boundaries of the quarry area;

(iv) Petroleum wastes, other toxic materials, and trash in general shall be disposed of by methods which insure that topsoil, vegetation, surface water, and ground water are not contaminated;

(v) Final slopes shall be gentle enough to present no greater hazards to humans or ani- mals than the premining topography and to minimize the risks of erosion; and

(vi) All reclamation requirements shall be approved by a representative of the Office.

Section 13. Release of Bonds and Forfeiture of Bonds

(a) A partial bond release may be recommended by the Director upon completion of final con- touring, topsoil application, and seeding. Upon final reclamation, acceptable to a representative of the Office, the remaining bond will be released. Operators failing to satisfactorily reclaim land will forfeit bonds.

Section 14. Annual Quarrying Reports/Excavation Reports

(a) Exclusive Commercial Fossil Removal permittees shall file an annual report on quarrying activities for the previous calendar year on or before May 31 of each year and the last year, of the permit. At a minimum, this annual quarrying report shall include:

(i) A narrative description of quarrying activities completed during the year;

(ii) Annotation of a topographic quadrangle map to reflect any increases in quarry size since the original quarrying request was approved;

(iii) A description of new quarrying methods or new pieces of equipment that were not described in the original quarrying request; and

(iv) Proposed plans for the following year’s activities.

(b) On or before May 31 of each year and the last year of the permit, Non-Exclusive Scientific Fossil Removal permittees shall prepare a written annual quarrying report on the previous season’s activi- ties to include survey/excavation progress; a catalogue of specimens collected, including the nature of each specimen, a tentative identification, and specimen numbers; and, the plans for the following field season, if appropriate. This report shall be submitted in duplicate to the Office. The Office should be provided a copy of any publication resulting from the activities conducted under the authority of the permittee’s Fossil Removal Permit.

(c) All recipients of Fossil Removal Permits are required to submit to the Office a complete removal statement which inventories all specimens collected during the year. Such statements shall be notarized and must be submitted with the annual quarrying report of each year of the permit.

(d) The Office shall annually provide the Board with copies of the reporting required under this section.

Section 15. Inspection of Premises

(a) The Office or its representatives, authorized State or County law enforcement officers, and the Wyoming Geological Survey have the right to examine collected materials located on the premises of the fossil removal site, permittee’s storage, preparatory and sales sites at any time.

Section 16. Forfeiture

(a) In the event that any permittee shall have procured a fossil permit through fraud or misrep- resentation then and in that event, the permit may be canceled by the Board after giving thirty (30) days notice. If any permittee fails to correct or show effort to correct any non-compliance with any of the terms of any fossil removal permit for sixty (60) days after having received such notice by certified mail, then and in that event, the permit will be canceled. If any permittee is convicted of illegal taking of paleontological, archaeological or prehistoric resources from any land, their permit shall be automatically forfeited.

History

• Effective 1998-10-30

Chapter 12 Management of Centennial Acres

Wyo. Code R. 060.0002.12.04281993 Management of Centennial Acres

RULES AND REGULATIONS BOARD OF LAND COMMISSIONERS

Chapter 12

Management of Centennial Acres

Section 1. Authority. This chapter is promulgated under the authority granted in W. S. 9-2-1609(c).

Section 2. Definitions. As used in this chapter:

(a) “Board” means the Board of Land Commissioners.

(b) “Centennial acre” means a parcel of land designated by the Board pursuant to W. S. 9-2-1608.

Section 3. Management of centennial acres. Centennial acres shall be managed by the Department of Commerce in accordance with a memorandum of understanding, dated October 6, 1988, and executed by the Board and the Wyoming Recreation Commission.

History

• Effective 1993-04-28

Chapter 13 Public Hunting & Fishing & General Recreational Use

Wyo. Code R. 060.0002.13.04281993 Public Hunting & Fishing & General Recreational Use

RULES AND REGULATIONS BOARD OF LAND COMMISSIONERS

Chapter 13

Public Hunting, Fishing and General Recreational Use

Section 1. Authority. This chapter is promulgated under the authority of W.S. 36-2-107.

Section 2. Definitions. As used in this chapter:

(a) “Board” means Board of Land Commissioners.

(b) “Casual recreational uses” means uses such as horseback riding, photography, wildlife and bird observation, hiking, rock hunting and other recreational day uses. Casual recreational use shall not include camping, except in camping areas established by the Board, joy riding or other uses which would result in damage to the state land or the roads and improvements thereon.

(c) “Established roads” means any roads or trails which have been graded or constructed to carry vehicular traffic, or on which repeated vehicular traffic has created well defined tracks.

(d) “Legally accessible state lands” means state lands that can be accessed via public road, right- of-way, or easement, via public waters, via adjacent state, local, or federal land if such land is open to public use, or via adjacent private land if permission to cross such land has been secured from the landowner.

(e) “State land” means land under the jurisdiction of the Board of Land Commissioners.

(f) “Surface lessee” means a holder of a grazing and agricultural lease or special use lease issued in accordance with Chapters IV or V of these rules.

(g) “Director” means the Director of the State Land and Farm Loan Office.

Section 3. Public Hunting and Fishing Privileges. The Board hereby extends to the public the privilege of hunting and fishing on legally accessible state lands, unless otherwise closed by direction of the Board, on its own motion or upon request of the surface lessee. This privilege does not extend to lands classified and used as cultivated cropland. This privilege is to fish in any streams, lakes or ponds and to hunt, pursue and kill game animals, game birds and migratory birds on said lands under applicable state and federal hunting and fishing laws and regulations. This privilege shall only be allowed when it will not result in damage to the state land or the roads and improvements thereon.

Section 4. General Recreational Use. The Board hereby extends to the public the privilege of using legally accessible state lands for casual recreational day uses, unless otherwise closed by direction of the Board, on its own motion or upon request of the surface lessee. This privilege shall only be allowed when it will not result in damage to the state land or the roads and improvements thereon. Organized, developed, or commercial recreational use of state lands is prohibited unless it occurs under the provisions of a special use lease issued under Chapter V of these rules.

Section 5. Motor Vehicle Use. The use of motor vehicles on state land for hunting, fishing, and general recreational purposes shall be confined to established roads, unless such roads are otherwise closed by the Board, on its own motion or upon request of the surface lessee.

(a) Criteria for road closures. The Board shall apply the following criteria when considering whether to close established roads or access to defined state lands:

(i) Motor vehicle use has caused or is causing unacceptable damage to the roadbed, excessive soil erosion, or significant impacts to vegetation, watershed or other state land natural resource attributes.

(ii) Motor vehicle use has caused or is causing considerable adverse effects to other Board authorized uses of, or improvements on, state land.

(iii) Motor vehicle use creates a threat to public health or safety.

(iv) Circumstances exist which create a situation requiring immediate action to protect state lands or the public health and safety.

(b) Emergency road closure procedure. The Board hereby delegates to the Director the authority to approve road closures on an emergency basis when the Director determines, using the criteria set forth in subsection (b) of this section, that closure of an established road is necessary and, under the circumstances, should not be delayed until the next meeting of the Board, subject to the following:

(i) The Director shall approve the emergency road closure in writing, setting forth the reasons for approving the road closure, the specific road or road segment to which the closure applies, and how and where the road closure will be posted. This written approval shall be provided to the surface lessee, the County Sheriff in the County where the road closure is located, members of the Board, and other interested parties.

(ii) Emergency road closures approved by the Director shall only be effective until the next meeting of the Board, at which time the closure shall either be continued or rescinded by action of the Board under the provisions of this section.

Section 6. Fees and Charges Prohibited. No person shall charge for or receive payment from persons engaged in hunting, fishing or any other recreational use of state lands, unless such payment is collected pursuant to the terms of a special use lease issued under the provisions of Chapter V of these rules or the terms of a temporary use permit issued under the provisions of Chapter XIV of these rules.

Section 7. Open Fires Prohibited. No person shall build, maintain, attend or use an open fire, campfire, or charcoal grill on state land while engaged in activities under the provisions of this chapter, except in camping areas established by the Board.

Section 8. Overnight Camping Prohibited. No person shall camp overnight on state land while engaged in activities under the provisions of this chapter, except in camping areas established by the Board.

Section 9. Waiver of Liability. As a condition to exercising the privileges granted by this chapter, persons entering on state lands for such purposes waive any claims against the State of Wyoming and any lessee of the Board arising from natural and artificial conditions on state lands or from activities of a lessee of the Board which are authorized or contemplated under the lease. Persons so entering shall be deemed to assume the risk of injury occurring on state lands unless caused by the willful and malicious acts of the State of Wyoming or a lessee of the Board.

History

• Effective 1993-04-28

Chapter 14 Temporary Use Permits

Wyo. Code R. 060.0002.14.11012001 Temporary Use Permits

RULES AND REGULATIONS BOARD OF LAND COMMISSIONERS

Chapter 14

Temporary Use Permits

Section 1. Authority

This chapter is promulgated under authority of W.S. 36-2-107.

Section 2. Definitions

As used in this chapter:

(a) "Board" means the Board of Land Commissioners.

(b) "Director" means the Director of the Office of State Lands and Investments.

(c) "Office" means the Office of State Lands and Investments.

(d) "Outfitting/guiding activities" means outfitting and guiding for the purpose of hunting big game and trophy game animals as defined in W.S. 23-1-101.

(e) "State lands" means lands under the jurisdiction of the Board of Land Commissioners.

(f) "Surface impact payment" means money paid by a permit applicant in compensation for potential negative impacts to the leasehold estate resulting from use pursuant to a temporary use permit granted under this chapter, including, but not limited to, destruction of forage, disruption of grazing, agricultural, or commercial operations, nuisance, and inconvenience.

(g) "Surface lessee" means a holder of a grazing and agricultural lease or special use lease issued in accordance with Chapters 4 or 5 of these rules.

(h) "Temporary use permit" means a license which authorizes the permittee to use specific state land for a particular use for a limited term.

Section 3. Temporary Uses

The Board may issue permits for the following temporary uses of state land, however uses which are more appropriately authorized under other Board authorizations shall not be authorized un- der this chapter:

(a) Construction activities

(b) Hot mix facilities

(c) Organized recreation activities

(d) Roadways

(e) Sign boards

(f) Stockpile sites

(g) Water Wells

(h) Disposal and/or Injection Wells

(i) Outfitting/guiding activities

(j) Non-commercial removal of decorative rock/stone.

(k) Other appropriate facilities and activities of temporary duration.

Section 4. Term

The term of temporary use permits shall be limited to that listed below:

(a) Construction activities - 1 year

(b) Hot mix facilities - 2 years

(c) Organized recreation activities - 30 days

(d) Roadways - 5 years

(e) Sign boards - 5 years

(f) Stockpile sites - 2 years

(g) Water Wells - 5 years

(h) Disposal and/or Injection Wells - 5 years

(i) Outfitting/guiding activities - 5 years

(j) Non-Commercial removal of decorative rock/stone -15 days

Section 5. Surface Impacts

For all temporary use permits:

(a) Surface impact payments. Prior to commencing use of the state land, the permitee shall remit directly to the surface lessee of the state land, if any, a surface impact payment in accordance with schedule maintained and updated by the Office which reflects impact to the leasehold interest. The schedule of surface impact payments will be reviewed and approved by the Board annually.

(b) Reclamation. Upon completion of the permitted use, all state land disturbed by the permittee shall be restored to a condition and forage density reasonably similar to its original condition and forage density.

Section 6. Consideration

(a) Consideration for temporary use permits shall be negotiated on a case by case basis, provided that the following minimum consideration shall apply:

(i) Construction activities - $10/acre affected or $100, whichever is greater

(ii) Hot mix facilities - $500/year

(iii) Organized recreation activities - $25/day

(iv) Roadways - $1/linear rod/year or $100/year whichever is greater.

(v) Sign boards - $1/square foot of sign/year or $100/year, whichever is greater.

(vi) Stockpile sites - $100/year

(vii) Water Wells - $10/acre-foot of water removed from state land or $100/year which- ever is greater.

(viii) Disposal or Injection Wells - Market Value per barrel or $100.00/year whichever is greater.

(ix) Outfitting/guiding activities - For exclusive (to outfitters) permits 15¢/acre/year or $150/year, whichever is greater. For nonexclusive permits $150/year.

(x) Non-Commercial removal of decorative rock/stone - $50/ton.

(b) The consideration for temporary use permits issued to landowners for roadways across state lands may be the reciprocal rights granted to use roadways across the lands owned by the land- owners.

Section 7. Application Procedure

(a) Applications. Persons desiring permission to use state land for a temporary purpose as provided in this chapter shall submit to the Director a completed application, including the lessee comment form and the fee as established in Chapter 17.

(b) Preliminary Approval. With the exception of applications for exclusive outfitting/guid- ing permits filed pursuant to Section 8 of this chapter the Director shall preliminarily approve or disap- prove the application no less than 20 days, nor more than 30 days, after receipt of a completed applica- tion. In no case shall the Director preliminarily approve the application unless the consideration re- quired under Section 6 of this chapter has been received.

(c) Effect of Preliminary Approval. Upon preliminary approval of the application, the ap- plicant may commence the permitted use. However, the applicant bears the risk that the Board may ultimately disapprove the application.

(d) Final Approval. The Board shall approve or disapprove the application at its next regu- lar meeting following the Director's action under subsection (b) of this section. If the application is disapproved and no permitted use has occurred, the consideration collected under Section 6 of this chapter and any related surface impact payment collected by the lessee shall be returned to the appli- cant.

Section 8. Outfitting/Guiding Activities

(a) Applicability. The provisions of this section shall apply only to temporary use permits for outfitting/guiding activities.

(b) Permit Types and Limitations. Temporary use permits for outfitting/guiding activities may be issued on either an exclusive (to outfitters) or nonexclusive basis. Exclusive permits shall be effective only on those state land parcels specified in the permit. The Board shall not issue more than one exclusive permit for outfitting/guiding activities on the same parcel of state land. Campsites for outfitting/guiding activities and improvements that are not removed at the end of each hunting season shall only be authorized under an exclusive permit. Nonexclusive permits shall be effective on all state lands within a permittee's hunt area authorizations except for those state lands incorporated in an ex- clusive outfitting/guiding permit area. Nonexclusive permits shall authorize day uses only with no overnight camping permitted. With the exception of activities at Board approved campsites associated with exclusive outfitting/guiding permits, the provisions of Chapter 13 of these rules prohibiting off- road vehicle use, open fires, overnight camping and hunting on cultivated cropland apply to all outfit- ters, guides, and clients while on state land.

(c) Application Filing Period. Applications for exclusive temporary use permits for outfit- ting/guiding activities shall be accepted by the Office between April 1 and May 31 of each year. Appli- cations for nonexclusive temporary use permits for outfitting/guiding activities shall be accepted by the Office anytime during the year.

(d) Lessee Notification. Applications for exclusive outfitting/guiding permits shall include the lessee comment form but this requirement shall not apply to applications for nonexclusive outfit- ting/guiding permits. Holders of nonexclusive outfitting/guiding permits shall, prior to their entry on state lands, use their best efforts and any available means to notify the surface lessee(s) of their intent to conduct outfitting/guiding activities on the state lands.

(e) Conflicting Exclusive Permit Applications. If two or more completed applications for exclusive temporary use permits to conduct outfitting/guiding activities on the same land are filed within the filing period established in subsection (c) of this section, they shall be considered to be in conflict. Once the filing period ends, the Office shall notify the respective applicants that conflicting applications have been received. The applicants shall have 15 days from date of notice to submit their final permit consideration bid and any necessary additional consideration payment. The exclusive permit, if approved by the Board, shall be issued to the high bidder.

(f) Permit Anniversary Date. Exclusive and nonexclusive temporary use permits for outfit- ting/guiding activities shall be issued to become effective on August 1, unless unique circumstances require a different effective date.

(g) Cross-compliance Provisions. Only persons holding a current license from the Wyo- ming State Board of Outfitters and Professional Guides shall be qualified to hold a permit under this section. In the event a permittee's license is suspended, revoked, or not renewed for any reason, the temporary use permit shall terminate automatically without further proceedings. Permittees shall com- ply with the hunt areas and species authorizations contained in their respective license from the Wyo- ming State Board of Outfitters and Professional Guides while on state land.

Section 9. Permit Cancellation

The Board may cancel permits issued under this chapter for violation of any of the terms and conditions of the permit or of the applicable rules and regulations of the Board. The Board may cancel or modify permits on their anniversary date in order to facilitate the sale or exchange of lands within the permit area.

Section 10. Permit Transferability

Permits issued under this chapter are not transferable.

History

• Effective 2001-11-01

Chapter 16 Surface and Subsurface Survey Activities

Wyo. Code R. 060.0002.16.06212011 Surface and Subsurface Survey Activities

RULES AND REGULATIONS BOARD OF LAND COMMISSIONERS

Chapter 16

Surface and Subsurface Survey Activities

Section 1. Authority

This chapter is promulgated under authority of W.S. 36-2-107.

Section 2. Definitions

As used in this chapter:

(a) "Board" means the Board of Land Commissioners.

(b) "Director" means the Director of the Office of State Lands and Investments.

(c) “Geophysical/Seismic Survey” means an activity relating to the search for evidence of oil and gas which requires the physical presence upon the lands.

(d) "Office" means the Office of State Lands and Investments.

(e) "State lands" means all lands under the jurisdiction of the Board of Land Commissioners.

(f) "Subsurface lessee" means a holder of a subsurface resource lease issued in accordance with Chapters 18-25 of the Board’s rules.

(g) “Surface impact payment” means money paid by a user of state lands in compensation for potential negative impacts to the fee simple or leasehold estate, including, but not limited to, destruction of forage, disruption of grazing, agricultural, or commercial operations, nuisance, inconvenience, and for incidental use of the land surface.

(h) "Surface lessee" means a holder of a grazing and agricultural lease, or special use lease, or wind energy lease issued in accordance with Chapters 4, 5, or 6 of the Board’s rules.

(i) "Surveyor" means a person conducting a surface or subsurface survey on state land.

Section 3. Authorization to Survey

The Board hereby grants authorization to persons to conduct limited duration, non-invasive land, mineral, geophysical, cultural, historical, biological, environmental, and mapping surveys on state land upon compliance with this chapter. Surveys of an extensive duration and/or invasive in nature, as determined by the Office, may require that the applicant file a temporary use permit application in accordance with Chapter 14 of the Board of Land Commissioners Rules and Regulations. Determination of whether or not a Temporary Use Permit is required will be made on a case by case basis by the Office subsequent to a review of the application.

Section 4. Procedure

(a) Persons desiring to enter upon state lands for the purpose of surveying shall, prior to entry, complete an application outlining the surveying activity and use their best efforts and any available means to notify the surface lessee of their intent to conduct a survey and, where necessary, negotiate a surface impact payment.

(b) In addition to complying with subsection (a) of this section, persons desiring to enter upon state lands for the purpose of geophysical/seismic surveys of any kind shall, prior to entry, negotiate an impact payment with the surface lessee.

Section 5. Suspension of Survey Authorization

(a) Delegation. The Director shall have the power to suspend the authorization to survey granted in Section 3 of this chapter for any survey.

(b) Procedure. If the Director has substantive evidence or information to indicate that the survey will result in irreparable harm to the state land, the Director shall suspend the authorization to survey by notifying the surveyor using any available means.

(c) Duration. The suspension shall continue until the next regular meeting of the Board following the suspension, unless terminated sooner by the Director. The Board may extend the suspension for a definite or indefinite term.

Section 6. Surface Impact Payments

If the proposed survey will have potential negative impacts to the fee simple or leasehold estate, a surface impact payment shall be negotiated prior to surveyor entry on the state land. If there is a surface lessee of the state land, 2 negotiations and payment shall be pursuant to Chapter 4, Section 14, Chapter 5, Section 13 or Chapter 6, Section 12 of the Board’s rules. If there is not a surface lessee, negotiations shall be directly with the Office.

Section 7. Monumentation

If a surveyor sets a monumented corner on state land, the Board may supply the surveyor with a brass cap monument and may record the corner file, if provided by the surveyor, with the appropriate county clerk at the Board's expense.

Section 8. Disclaimer

Nothing in this chapter shall be construed to authorize surveyors to trespass upon the leasehold rights held by a subsurface lessee.

History

• Effective 2011-06-21

Chapter 17 Fees for Administrative Services and Interest Rates

Wyo. Code R. 060.0002.17.05162017 § 1 Authority

This chapter is promulgated under the authority of Wyoming Statute (W.S.) 36-2-107, 36-3-110 and 16-4-204(d).

History

• Effective 2017-05-16

Wyo. Code R. 060.0002.17.05162017 § 2 Fees

(a) The Board will collect fees for administrative services occurring from activities conducted on State Lands in accordance with the following Board Rules:

(i) Insufficient Funds Check Return Fee - $25.00

(ii) Name Change - $25.00

(iii) Notice of Security Interest - $25.00

(iv) Easements:

(A) Application Fee - $100.00

(v) Grazing and Agricultural Leasing:

(A) Application Fee - $50.00

(B) Assignment Fee - $40.00

(vi) Special Use Leasing:

(A) Application Fee - $250.00

(B) Assignment Fee - $40.00

(vii) Leasing of Subsurface Resources:

(A) Application Fee - $50.00

(B) Assignment Fee - $40.00

(C) Unitization Agreement Fee - $50.00

(D) Communitization Agreement Fee - $50.00

(viii) Sale of Forest Products:

(A) Application Fee - $50.00 (For all sales not initiated by the State Forester).

(ix) Fossil Permits:

(A) Application Fee - $50.00 (No Assignments Allowed)

(x) Temporary Use Permits:

(A) Application Fee - $50.00 (No Assignments Allowed)

(xi) Surface Estate Sale Nomination:

(A) Application Fee - $1000.00. If an application does not progress to Category II status, the applicant is eligible for a 75% refund. Upon Category II status, the full Application fee will be retained by the agency. This fee is applicable to land exchanges.

History

• Effective 2017-05-16

Wyo. Code R. 060.0002.17.05162017 § 3 Interest Rates

(a) The Board will charge interest rates on all loans in accordance with the following Board Rules:

(i) Chapter 2 - Sale of lands:

(A) 8% per annum for loans up to 75% of value.

History

• Effective 2017-05-16

Chapter 18 Leasing of Oil and Gas

Wyo. Code R. 060.0002.18.11082024 § 1 Authority

This chapter is adopted pursuant to the authority granted in W.S. 36-6-101(b).

History

• Effective 2024-11-08

Wyo. Code R. 060.0002.18.11082024 § 2 Definitions

(a) "Beneficiaries" means the common schools and those state institutions designated by Congress as beneficiaries of lands granted to the State of Wyoming.

(b) "Board" means the Board of Land Commissioners.

(c) "Director" means The Director of the Office of State Lands and Investments.

(d) "Office" means the Office of State Lands and Investments.

(e) "Oil and Gas" means oil and gas, coalbed gas, other kindred hydrocarbons present in the earth and extracted in a gaseous or liquid state, and non-hydrocarbon gases and any by-products recovered from such gases. It does not mean coal, lignite, oil shale, or similar solid hydrocarbons.

(f) "Qualified Bidder" means a person, entity, or agent thereof, engaged in any phase of exploration for, or production of Oil and Gas as a primary component of their business activity.

(g) "State Lands" means all lands under the jurisdiction of the Board of Land Commissioners in which the Board owns some or all of the mineral estate.

History

• Effective 2024-11-08

Wyo. Code R. 060.0002.18.11082024 § 3 General Provisions

(a) The Board may, without prior notice, withdraw specific lands from leasing for oil and gas when it appears reasonably necessary to protect the economic or environmental interests of the beneficiaries. Any party desiring to lease lands for oil and gas which have been withdrawn may request that a withdrawal be rescinded in whole or in part.

(b) The Board may condition the issuance of any oil and gas lease upon specific stipulations for the protection of the public, the environment, the waters of the state, historical, archeological or paleontological materials, the wildlife resources, or any of the subsurface or surface resources of the state.

(c) The Board may deny an oil and gas lease to any person or legal entity which has failed to comply with any rules of the Board or any terms and conditions of any lease or other agreement with the Board.

(d) The Board may refuse to issue an oil and gas lease or approve an assignment of an interest in an existing oil and gas lease if issuing the lease or approving the assignment will diminish the interest of the beneficiaries.

(e) On lands in which the state owns less than the entire interest in the oil and gas estate, a lease will be issued by the Board covering the state's interest independent of the other co-owners.

(f) Oil and gas covered by an existing lease is not available for lease (top leasing) until the existing lease terminates, and the oil and gas is made available for leasing under Section 5 of this chapter.

(g) An application may be filed for a lease on lands not shown by the records of the Office to be owned by the state. The applicant must submit evidence through the Office to the Wyoming Attorney General showing that it is probable that the lands applied for, or any interest therein, have escheated to the State of Wyoming. Such applicant shall coordinate with and pay for all costs for the Office and the Attorney General pursuant to the filing of a petition under W.S. 9-5-203 seeking title for the state. After receiving a court order vesting title in the state, the applicant shall have the right to lease the escheated lands under the Board's current form of lease without bidding thereon at auction. If the lands are not found to have escheated to the state, applicant will not be entitled to any lease or cost reimbursement.

(h) Discovery of historical, archaeological, or paleontological deposits on state lands during the course of development shall be reported to the Office by the lessee prior to further disturbance, and operations may only re-commence as authorized by the Director. The Director shall notify the lessee regarding mitigation within five (5) working days after receiving the report.

History

• Effective 2024-11-08

Wyo. Code R. 060.0002.18.11082024 § 4 Qualified Lessee

To be qualified to receive or hold any interest in a state lease, corporations, limited partnerships and limited liability companies must be authorized to transact business in the State of Wyoming by the Secretary of State, and general partnerships shall provide the Office with a copy of their partnership papers.

History

• Effective 2024-11-08

Wyo. Code R. 060.0002.18.11082024 § 5 Leasing Procedures

(a) All oil and gas leases on state lands will be first offered by competitive bidding. The Office shall set a time and place for the auction sale, describing each tract to be offered, noting the terms of the leases to be issued, noting the terms and conditions of sale, detailing the procedure to be followed in conducting the sale, and any other necessary information. Notice of the sale shall be given in such form and manner as the Board shall direct but shall at a minimum be published in a Wyoming newspaper of statewide distribution and provided individually to entities and persons having registered with the Office to receive auction listings.

(b) The Director, shall review the highest bid offered by an applicant to determine if the applicant is a Qualified Bidder.

(i) If the highest bidder is a Qualified Bidder, the Director may recommend awarding the lease to the highest bidder.

(ii) If the highest bidder is not a Qualified Bidder, as determined by the Director, the applicant shall be disqualified. The Director shall then determine if the second highest bidder is a Qualified Bidder.

(iii) If the Director determines the second highest bidder to be a Qualified Bidder, the Director may recommend issuing the lease to the second highest bidder at the lower of the following:

(A) the highest amount bid before the disqualified applicant entered the lease auction; or

(B) the amount bid by the second highest bidder.

(c) Any applicant whose bid is rejected because the applicant is not a Qualified Bidder shall be subject to a civil penalty in the amount of the applicant's highest bid.

(d) Leases which are not purchased at the initial auction sale may be offered at a subsequent auction at a lower royalty rate.

(e) After leases have been offered competitively under subsections (a) and (b) of this section, the Office shall place them on a list of leases available for lease to the first qualified applicant filing an application. The Office may remove leases from the list at any time. Applications may be filed with the Office during regular hours of any business day. The Office shall note the date of filing on all applications. Applications filed on the same day, whether presented by personal delivery or received through any mail service, shall be considered as filed simultaneously.

(f) Each application must be accompanied by the required filing fee as established by the Board in Chapter 17 of the Board's rules. The filing fee will not be refunded on any application. An application under this section must also be accompanied by a remittance for the advance rental for the first year at the rental per acre specified in Section 6 of this chapter.

(g) If two or more applications for the same interests in oil and gas are filed simultaneously, the applications are in conflict.

(i) An application which is in conflict as to only a part of the lands applied for, will be processed as to the lands not in conflict in the same manner as a separate application for such lands.

(ii) The priority of applications which are in conflict as to all or any part of the lands applied for shall, as to the lands in conflict, be determined by sealed bid between the applicants in conflict.

(h) When an application is rejected in its entirety, advance rentals paid by the applicant will be refunded. When rejected in part, the unused portion of the advance rental payment will be refunded.

(i) An application for an oil and gas lease may be withdrawn, in whole or in part, at any time prior to issuance of the lease. The advance rental and all fees transmitted with the application applicable to the portion of the application withdrawn, will be forfeited for failure to fulfill the obligations of the lease offer. However, if a withdrawal was for the purpose of removing a conflict, rentals applicable to the portion withdrawn will be refunded if a lease for the portion withdrawn is issued to another applicant.

History

• Effective 2024-11-08

Wyo. Code R. 060.0002.18.11082024 § 6 Rentals

(a) The annual rental payments on all non-producing oil and gas leases shall be one dollar ($1)/acre per year for the five (5) year term, and for producing leases, two dollars ($2)/acre per year for the remaining term of the lease.

(b) Failure to pay rentals on or before the lease anniversary date shall result in termination of the lease. Termination of a lease shall not relieve the lessee of any obligation incurred under the lease other than the obligation to pay rental or penalty.

(c) After initial submission of the increased annual rental required by the lease upon the discovery of oil and gas in paying quantities, lessees are exempt from submission of subsequent annual creditable lease annual rentals for so long as annual royalties paid meet or exceed the required annual rental amount. The annual rental shall be held for a credit on annual royalty in any year the annual royalty does not equal the required annual rental (minimum royalty) amount. Any credit amount used in making up the difference in royalty paid and the minimum lease royalty due must be paid within thirty (30) days following the next lease anniversary date to continue the lease. The Office shall notify lessees of any minimum royalty amount due after the lease anniversary for which a shortfall occurs.

History

• Effective 2024-11-08

Wyo. Code R. 060.0002.18.11082024 § 7 Royalties

(a) Royalties for oil and gas and other kindred hydrocarbons, natural gasoline, sulfur, and non-hydrocarbon gases and any by-products recovered from such gases shall be based on the terms of the particular lease agreement, subject to all state royalty statutes and rules, and shall be based on the total consideration received for state production. The following royalty rates shall apply, unless a different rate is specifically authorized by the Board:

(i) Sixteen and two-thirds percent (16 2/3%), except that in cases where competitive bidding results in no offer to lease, a tract may be re-offered at the discretion of the Director at a subsequent competitive sale at a twelve and one-half percent (12½%) royalty rate;

(ii) Further, from a list established by the Director containing leases unleased after offerings at both sixteen and two-thirds percent (16 2/3%) and twelve and one-half percent (12½%) royalty rates, and located further than one mile from existing production, tracts may be leased non-competitively at a royalty of twelve and one-half percent (12½%) by applications personally delivered to the Office under the procedures described in Section 5 of this chapter;

(iii) At the Board's discretion, when deemed favorable in stimulating exploration on non-producing, primary term oil and gas leases, a specified "drilling window" of no greater than two (2) years may be requested and set for specific leases, allowing a lease royalty rate of ten percent (10%) where production in paying quantities is established during a "window" from a wildcat well as defined by the Rules of the Wyoming Oil and Gas Conservation Commission. Announcement of a "drilling window" will be made no less than thirty (30) days prior to commencement. Leases establishing paying quantity production within a "drilling window" shall receive the royalty rate reduction to ten percent (10%) for so long as paying quantity production exists for any well on the lease thereafter, except that in the event the producer receives an average price equal to or above twenty dollars ($20) per barrel of oil from a well classified as an oil well or one dollar and fifty cents ($1.50) per mmbtu of gas from a well classified as a gas well for six (6) consecutive months from lease production, the ten percent (10%) royalty rate shall cease, and the original lease royalty rate shall be effective for the remaining term of the lease;

(iv) After an oil and gas lease becomes an operating lease, the Board may reduce the royalty payable to the state, as to all or any of the lands or formations covered by the lease, if it determines that such a reduction is necessary to allow the lessee to undertake additional operations or to continue to operate with a reasonable expectation that the operations will be profitable. Royalty rate reduction to the statutory minimum of five percent (5%) may be granted for a limited time, specific to new well production, to allow for the recovery of drilling costs for deep zone exploration completions in excess of twelve thousand feet (12,000'). Royalty rate reductions may also be granted when lease basis income statements reflect that reasonable actual operations costs, when combined with the royalty rate, create a loss situation under arms-length sales. Such a reduction in the royalty payable to the state shall in all cases be conditioned upon the cancellation of all cost-free interests in excess of five percent (5%) and the reduction of all other cost-free interests in the same proportion as the state's royalty is reduced. The Board may also impose other conditions to the reduction in royalty.

History

• Effective 2024-11-08

Wyo. Code R. 060.0002.18.11082024 § 8 Lease Term

.

(a) Oil and gas leases shall be for a primary term of five (5) years and as long thereafter as oil or gas may be produced in paying quantities.

(b) The Board may extend the term of an existing undeveloped and non-unitized oil and gas lease for a period not to exceed five (5) years, in one-year increments, if it determines that the lessee has been prevented from drilling because of governmental action or regulation, safety issues to include but not limited to proximity to mining operations, permitted surface activities or habitation, drilling target zone conditions, or other causes beyond the lessee's reasonable control. Rig availability, financing, geological or geophysical reviews, weather conditions, and product pricing shall not be considered as causes beyond the lessee's reasonable control but ordinary to the business. A single extension request may be considered based on weather where the attempt to prudently drill prior to the expiration of the lease primary term was negated by unseasonable weather conditions.

(i) Extensions shall be on the express condition that the lessee commence drilling operations on the leased lands within the extended term and drill the well diligently to completion as a dry hole, producing well, or after commencement of drilling operations loses the hole due to uncontrollable downhole conditions.

(ii) Unless specifically waived by the Board, lessees must agree to pay liquidated damages if the well is not commenced and completed or unavoidably lost in accordance with the terms of the lease extension. The lessee shall furnish a ten thousand dollar ($10,000) cash bond in the form of a certified or cashier's check made payable to the Office or a ten thousand dollar ($10,000) certificate of deposit in the name of the Office of State Lands and Investments as an amount approved by the Board to secure the payment of such liquidated damages, refundable upon lessee's fulfillment of lease drilling requirements or usable as necessary to meet the performance bond obligations of the lease and Section 13 of this chapter.

(iii) Notwithstanding subsection (b) above, the Board may extend the term of an existing undeveloped oil and gas lease for a period not to exceed five (5) years in one-year increments, for rig unavailability. These extensions shall only be granted where the lessee has filed with the Office of State Lands and Investments written correspondence dated within the year of the extension with all known financially, environmentally and operationally suitable drilling contractors operating in the Rocky Mountain Region showing the unavailability of drilling rigs through those contractors. Such correspondence must be filed on an annual basis along with an application for an extension of the lease term.

(c) The Director may approve oil and gas lease suspensions of operations, where suspensions are authorized by lease terms, appear to be in the best interest of orderly development of the leases, and can serve to prevent premature lease abandonment.

History

• Effective 2024-11-08

Wyo. Code R. 060.0002.18.11082024 § 9 Unit or Cooperative Plans and Agreements

(a) All leases are issued subject to the right of the Director to require a cooperative plan or unit agreement if the Director determines that participation is necessary to protect the state's interest.

(b) Any person may request that state lands be included in a cooperative or unit plan for exploration, development, operation, and production of oil and gas through the following procedure:

(i) The proponent of the plan or agreement shall submit to the Office two (2) copies of a plat showing the area to be unitized, together with such geological and other information as may exist and be available, in support of the delineation of the area sought for unitization or cooperative development. The Office shall hold the information submitted confidential until released by the proponent.

(ii) The proponent shall submit to the Office:

(A) Two (2) copies of the preliminary draft of the agreement for

approval as to form;

(B) A copy of the schedule of interest ownership by tract and, upon request, any operating agreement, accounting agreement, or other pertinent documents affecting the plan or agreement;

(C) The fee established by the Board in Chapter 17 of the

Board's rules.

(iii) If the form is acceptable to the Office, the unit or cooperative plan meets the requirements of W.S. 36-6-101 (d) and (k), and all leases sought for commitment are in good standing, the Director will approve the agreement. If approved, it will be duly executed using the Board's "Approval-Certification-Determination" form.

(iv) If the Director approves the agreement, the proponent of the agreement shall submit for execution as many counterpart joinder copies as are required for all parties in interest, including one copy to be delivered when fully executed to the Office and any final form of agreement if different from the draft submitted.

(c) When only part of the land under a non-producing lease is committed to a unit, the portion not committed shall be segregated.

(d) The Board shall use its "Approval-Certification-Determination" form to join unit or cooperative plans.

(e) Board joinder in a unit or cooperative plan shall not alter the rental or royalty clauses of any state lease involved.

(f) Unless the Director specifically requires a lessee to participate, joinder by the Board shall not become effective until the lessee has also joined the unit.

History

• Effective 2024-11-08

Wyo. Code R. 060.0002.18.11082024 § 10 General Assignment Requirements

(a) Pursuant to W.S. 36-6-101(c), the Director shall approve or disapprove any assignment or transfer of a lease or an interest therein. Assignments shall be submitted for approval in duplicate on the form provided by the Office. If an assignment transfers an interest in more than one lease, an extra duly executed copy of the assignment or a photostatic copy of the original assignment shall be furnished for each lease in which an interest is transferred. The required filing fee must be paid for each separate lease in which an interest is assigned.

(b) The Director shall approve an assignment which has been properly executed and appears to comply with the law and this chapter, unless he determines that:

(i) Approval would interfere with the development of the oil or gas;

(ii) The assignable lease is delinquent in rental or royalty payment

status;

(iii) Existing bonding is insufficient to cover lease premises activities;

(iv) Conditions exist that would otherwise be detrimental to the interests of the beneficiaries;

(v) The assignee is not a qualified lessee as provided in Section 4 of this

chapter; or

(vi) The number of persons holding undivided interest in a lease exceed two (2) in number, unless a designation of agent or a power of attorney executed by all lessees is filed with the Office which designates one of the lessees as agent or attorney to receive all notices, pay all rentals, and is authorized to represent the lessees with the same effect as though the agent or attorney was the sole lessee. For the purposes of this paragraph, owners of overriding royalties, production payments or other cost-free interests are not considered lessees, but owners of carried working interest, net profit owners, and other persons who may be required to bear a share of the cost out of their share of the production are considered lessees.

(c) If the Director disapproves an assignment, he shall advise the assignee by letter of his decision, the reason for disapproval, and when possible, advise what action is necessary to secure approval.

(d) An assignment or transfer of a lease or any interest therein, including overriding royalties and other cost-free interests created out of the leasehold estate, must be in writing and executed and acknowledged in accordance with the requirements of the law applicable to conveyances of interest in real estate. The instrument must clearly set forth the serial number of the lease, accurately describe the lands affected, the interest being conveyed as a percentage of total leasehold, and be free of any ambiguity.

History

• Effective 2024-11-08

Wyo. Code R. 060.0002.18.11082024 § 11 Partial Assignments

(a) Subject to the requirements of this chapter, a lessee may assign or transfer all or part of his interest in the released acreage as to either a divided or undivided interest therein, including cost-free interest such as overriding royalties and production payments.

(b) The Director shall approve assignments or reservations of an overriding royalty subject to the condition that the overriding royalty or a portion thereof may be cancelled or suspended by the Board if it finds that it creates a burden upon the lease which prevents or unreasonably interferes with development.

(c) Assignment of a divided interest, i.e., an assignment of the full leasehold or working interest in a lease as to all interest in all deposits, formations, or depths below a separate tract of the lands subject to the lease or as to one or more separate deposits, formations, or depths below all or a part of the land subject to the lease, segregates the assigned interest from the retained interest and creates new lease obligations as to the lands and the deposits, formations, or depths assigned.

(i) The rights and obligations of the lessees under the retained portion and the assigned portion of the original lease are separate and distinct as though two (2) separate leases, one (1) covering only the retained interest and the other the assigned interest, had originally been issued on the effective date of the original lease.

(ii) The Director may disapprove any assignment which has the effect of creating separate lease obligations covering the retained and the assigned interest even though it purports to assign less than all of the leasehold or working interest, unless both assignor and assignee agree to accept the separate obligations.

(d) Upon assignment as to only a part of the lease acreage, including assignment as to separate deposits, formations, or depths, the Office may issue a reissue lease with a new serial number covering the assigned lands for the unexpired primary term. In lieu of issuing a reissue lease, the Office may note the assignment upon its records with all lands covered by the original lease maintained under the original serial number, and with each separate tract or interest resulting from an assignment designated by a letter suffix to the original serial number. Each assignee holding a lease on a separate tract or interest may be required to furnish a bond under Section 13 of this chapter.

History

• Effective 2024-11-08

Wyo. Code R. 060.0002.18.11082024 § 12 Surface Integrity and Minimum Reclamation

(a) Lessees shall use care and proper safeguards to prevent pollution of the soil or any water, including underground aquifers, by virtue of lessee's or lessee's designee's operation on state lands and shall capture and dispose of any operation's pollutants not permitted under Wyoming Department of Environmental Quality regulation, resulting from lessee's or lessee's designee's operations, and shall be responsible for any and all damages caused thereby related to lessee's operations.

(b) When any oil, gas, or disposal well on state lands becomes dormant as defined by Wyoming Oil and Gas Conservation Commission Rules at Chapter 3, Section 4, the lessee shall either properly plug and abandon it within one hundred eighty (180) days after first reaching that status or post an additional bond with the Office in the amount of two dollars ($2.00) per foot of well depth. All wells must be properly plugged and abandoned, unless otherwise authorized by the Director, within one hundred eighty (180) days of the loss of lease. Lessee's bond will not be released until satisfactory abandonment, as approved by the Wyoming Oil and Gas Conservation Commission and the Office, has been completed.

(c) Upon completion of operations on state lands, all related disturbances on state lands must be reclaimed to leave the land in as near as practicable to the original condition of the land prior to operations. All topsoil must be salvaged before an area is disturbed by roads, buildings or other related activities. The salvaged topsoil must be stockpiled in such a way to protect it from wind and water erosion. If no topsoil exists for use in reclamation, with the Director's written approval, a cover soil that has been amended to sustain vegetation may be applied. If lessees can demonstrate that stripping and stockpiling of topsoil as precursor to their activities will be more detrimental to the topsoil as relates to reclamation, the Director may waive this requirement.

(d) New roads shall cross all drainages at right angles with culverts installed in a manner to avoid constricting the flow of surface water. All drainage or creek crossings must be constructed of erosion resistant material and constructed in a manner to prevent degradation of waters of the state from eroded sediment. No pits or impoundments shall remain after operations and reclamation activities, unless they have developed into viable wetlands as that term is defined by current federal regulation or if the pits or impoundments could potentially be of use to the state or to the surface lessee. All reclaimed areas must have slopes as approved by the Director and in conformance with existing State of Wyoming laws, rules, and regulations governing reclamation.

(e) All reclaimed areas must be reseeded, where possible, with an approved seed mixture.

History

• Effective 2024-11-08

Wyo. Code R. 060.0002.18.11082024 § 13 Bonds

(a) A lessee is not required to post a bond until actual operations, including exploration activities, are to be commenced on the leased lands. Before commencing actual operations, the lessee shall submit a copy of Oil and Gas Conservation Commission Form 1, Application for Permit to Drill to the Office. Operations shall not commence until an adequate bond has been furnished and approved.

(b) The bond shall be in an amount found by the Director sufficient to protect and indemnify the State of Wyoming and shall be in the form approved by the Wyoming Attorney General. Two (2) executed copies of the bond must be submitted to the Office. The bond shall bind the principal and its surety for:

(i) The payment of all moneys, rents, and royalties accruing to the

Board;

(ii) Full compliance with all applicable statutes and terms and conditions of the Board's leases and rules and regulations;

(iii) The proper plugging and abandonment of all inactive, non-producible wells on the leases;

(iv) Reclamation of the surface; and

(v) For the payment of all disturbances to the surface and improvements

thereon.

(c) The bond shall be one of the following:

(i) A corporate surety bond executed by the lessee and by a surety authorized to do business in the state;

(ii) A cash bond;

(iii) A certified cashier's check made payable to the Office of State Lands and Investments;

(iv) A certificate of deposit in the name of the Office of State Lands and

Investments;

(v) Non-revocable letters of credit; or

(vi) AAA-rated debentures of sufficient market value to meet bonding minimums with a signed stock power made out to the Office of State Lands and Investments.

(d) In lieu of individual lease bonds, the lessee may request and the Director may allow the lessee to file a corporate surety bond in the sum of not less than one hundred thousand dollars ($100,000) covering all of the lessee's state leases.

(e) The lessee shall promptly advise the Office of any change in operations. The Office may at any time reduce or increase the amount of the bond as conditions may require. The Director may require a per well bond instead of allowing bonding per lease.

History

• Effective 2024-11-08

Wyo. Code R. 060.0002.18.11082024 § 14 Relinquishment

(a) An oil and gas lease or any divided interest therein may be relinquished by the record title holder to the Board in the following manner:

(i) If no operations have been conducted under the lease and no surface disturbance or damage has occurred on the land to be relinquished, the lessee shall file with the Office a written statement on a form provided by the Office that he wishes to relinquish the lease or interest. The relinquishment shall become effective on the date and hour of receipt by the Office or at some later date if specified.

(ii) If operations have been conducted under the lease or surface disturbance or damage has occurred on land proposed to be relinquished, the lessee shall file with the Office a statement on a form provided by the Office that he wishes to relinquish the lease or interest. Relinquishment shall not become effective until the land and the wells thereon shall have been placed in acceptable condition and an inspection report has been completed by the State Oil & Gas Supervisor.

(iii) Once a relinquishment on state lands becomes effective, the lease may not be reinstated. The lands shall be made available for lease as provided in Section 5 of this chapter.

History

• Effective 2024-11-08

Wyo. Code R. 060.0002.18.11082024 § 15 Royalty Reporting

.

(a) All lessees shall submit to the Office a completed monthly royalty reporting statement on a form provided by the Office for each lease (Forms M-1 and/or M-2). The lessee shall submit each lease statement within thirty (30) days of the last day of the month of sales for oil and condensate and sixty (60) days of the last day of the month of sales for gas and gas plant products. The lessee shall attach to the M-1 statement copies of original arms-length sales transaction documents showing the quantity, quality, and value of products sold, including all lease volume sales through affiliate companies.

(b) For participating leases within a unit, a participating area, or a cooperative plan, the unit operator, the participating area operator, or the cooperative plan (communitization) operator shall submit to the Office a completed monthly royalty reporting statement on a form provided by the Office for each unit, unit participating area, and cooperative plan embracing state leases (Form M-4). The respective operator shall attach to the M-4 statement copies of original arms-length sales transaction documents showing the quantity, quality, and value of products sold.

History

• Effective 2024-11-08

Wyo. Code R. 060.0002.18.11082024 § 16 Field Audits

(a) The Wyoming Department of Audit, the Director, or the duly authorized representative of either shall have the right at reasonable times and intervals to audit the books and records of any oil and gas lessee or operator on state lands and to inspect the leased premises and conduct field audits for the purpose of determining compliance with this chapter or the terms of the lease.

(b) Any and all parties producing and selling state lands royalty interests shall retain their records for six (6) years from the date of sale reporting as due under this chapter for any production from or allocated to state lands for all periods ending after January 1, 2000.

(c) Absent state lessee or operator production sales reporting as required in this subsection, the state's oil and gas lessee shall only sell or deliver any leased substance to any person who agrees:

(i) To file reports with the Office stating the price, quantity, origin, and disposition of all production purchased from a state lease; and

(ii) To allow an audit as provided for in this section.

History

• Effective 2024-11-08

Wyo. Code R. 060.0002.18.11082024 § 17 Cancellation for Default

(a) If any oil and gas lessee defaults in the performance or observance of any of this chapter or any of the terms, covenants, or conditions of the lease under which it is operating, the Board may serve notice of such failure or default either by personal service or by certified or registered mail upon the lessee. If the failure or default continues for a period of thirty (30) days after service of the notice, the Board may declare a forfeiture and cancel the lease, whereupon all rights and privileges obtained by the lessee under the lease shall terminate, and the Board may re-enter and take possession of the premises and surface and down hole equipment if there are outstanding obligations owed the State.

(b) This section shall not be construed to prevent the exercise by the Director or the Board of any other legal or equitable remedy which the state might otherwise have nor to relieve the lessee from any accrued obligation under the lease. Failure of the lessor to give notice of default in any particular case or waiver of a particular cause of forfeiture shall not prevent the cancellation and forfeiture of the lease for any other cause of forfeiture or for the same default or cause if it continues or occurs at any other time.

History

• Effective 2024-11-08

Wyo. Code R. 060.0002.18.11082024 § 18 Multiple Use

(a) The Board may issue separate leases for different minerals on the same tract of land. If all mineral leases under a tract of land are non-producing leases, each lessee has an equal right to conduct exploratory operations on the land, and each shall conduct such operations in a manner which does not prevent or unduly interfere with the operations of the other.

(b) The first lessee to commence actual production operations so that his lease becomes an operating lease shall have the right to continue operations without substantial interference from any other mineral lessee so long as the lease remains in effect. The lessee may not be deprived of this right in whole or in part without compensation equal to the value of the rights lost as per Subsection (d)(iii) of this section.

(c) If a lessee desires to commence operations on the same tract upon which one or more lessees are already conducting operations, and the lessees can agree that the operations can be conducted at the same time without materially reducing the amount or value of the resources which will be produced under each lease, and without unduly interfering with or raising the cost of operations of the prior lessee(s), unless he is adequately compensated therefor, the lessees may agree upon a plan of operations and assessment of costs under which the operations may be carried out concurrently. Any such agreement shall be submitted to and be subject to the approval of the Board.

(d) If, under the circumstances set out in Subsection (c) of this section, the lessees either agree that the operations cannot be carried out concurrently or cannot agree upon a plan of operations and assessment of costs, the Director may resolve the conflict.

(i) If the Director determines that the operations can be carried out concurrently without materially reducing the quantity or value of the oil and gas which will be produced, and either that the costs of operation of any prior lessee(s) will not be increased significantly, or that if they are, such costs are capable of determination and if paid by the subsequent lessee will not constitute an unreasonable burden on the operation, he shall enter his decision approving a plan of operation and assessment of cost under which operations may be carried out concurrently.

(ii) If the Director determines that the proposed operations cannot be carried out concurrently and that the value which will be realized by the beneficiaries from the existing operation is such that the proposed operation should be deferred, he shall enter his decision deferring the development obligations under the lease of the proposing lessee. The lease will be placed in operating status and remain in effect subject to the requirement that annual rentals will be paid and to the condition that if development is deferred more than five (5) years, the lease may be amended to conform to the lease form in effect upon commencement of production operations for the class of subsurface resource to be produced.

(iii) If the Director determines that the proposed operations cannot be carried out concurrently and that the benefit which would be realized by the beneficiaries from initiating the proposed operation so far exceeds that which would be realized from the existing operation that it is clearly more beneficial to the beneficiaries that the existing operation be terminated or deferred and the proposed operation commenced, he shall enter his decision terminating the existing operation and allowing the commencement of the proposed operation, conditioned upon the payment by the lessee proposing the operation to the lessee whose operations are terminated of an amount equal to the value of the rights lost by that lessee determined in the same manner as if the right were being condemned in eminent domain proceedings.

(iv) A lease upon which operations are terminated as above provided shall, upon payment to the lessee of the value of the right lost, be assigned to the lessee making the payment, who shall be entitled to hold it subject to the same terms and conditions applicable to a lease upon which operations were deferred under Paragraph (ii) of this section.

(v) If the proposing lessee disagrees with the Director's or the Board's determination, he may refuse to commence the proposed operation. His refusal to do so shall not constitute a violation of the covenants for lease development, unless the amounts he would be required to pay to the prior lessee constitute such an insubstantial addition to the cost of operation that a reasonable, prudent lessee would assume them.

History

• Effective 2024-11-08

Chapter 19 Leasing of Coal

Wyo. Code R. 060.0002.19.01032000 Leasing of Coal

RULES AND REGULATIONS BOARD OF LAND COMMISSIONERS

Chapter 19

Leasing of Coal

Section 1. Authority.

This chapter is adopted pursuant to the authority granted in W.S. 36-6-101(b).

Section 2. Definitions.

(a) "Beneficiaries" means the common schools and those state institutions designated by Congress as beneficiaries of lands granted to the State of Wyoming.

(b) "Board" means the Board of Land Commissioners.

(c) "Director" means The Director of the Office of State Lands and Investments.

(d) "Office" means the Office of State Lands and Investments.

(e) "Mineral" means coal, trona/sodium, uranium and associated minerals, clays, stones of various sorts, salts, and any and all substances formed by nature in or as rocks of the earth and recog- nized in law, geology, or by the courts as minerals.

(f) "State Lands" means all lands under the jurisdiction of the Board of Land Commission- ers in which the Board owns some or all of the mineral estate.

Section 3. General Provisions.

(a) The Board may, without prior notice, withdraw specific lands from leasing for coal when it appears reasonably necessary to protect the economic or environmental interests of the benefi- ciaries. Any party desiring to lease lands for coal which have been withdrawn may request that a withdrawal be rescinded in whole or in part.

(b) The Board may condition the issuance of any coal lease upon specific stipulations for the protection of the public, the environment, the waters of the state, historical, archeological or pale- ontological materials, the wildlife resources, or any of the subsurface or surface resources of the state.

(c) The Board may deny a coal lease to any person or legal entity which has failed to com- ply with any rules of the Board or any terms and conditions of any lease or other agreement with the Board.

(d) The Board may refuse to issue a coal lease or approve an assignment of an interest in an existing coal lease if issuing the lease or approving the assignment will diminish the interest of the beneficiaries.

(e) On lands in which the state owns less than the entire interest in the coal estate, a lease will be issued by the Board covering the state's interest independent of the other co-owners.

(f) Coal covered by an existing lease is not available for lease (top leasing) until the exist- ing lease terminates, and the coal is made available for leasing under Section 5 of this chapter.

(g) An application may be filed for a lease on lands not shown by the records of the Office to be owned by the state. The applicant must submit evidence through the Office to the Wyoming Attorney General showing that it is probable that the lands applied for, or any interest therein, have escheated to the State of Wyoming. Such applicant shall coordinate with and pay for all costs for the Office and the Attorney General pursuant to the filing of a petition under W.S. 9-5-203 seeking title for the state. After receiving a court order vesting title in the state, the applicant shall have the right to lease the escheated lands under the Board's current form of lease without bidding thereon at auction. If the lands are not found to have escheated to the state, applicant will not be entitled to any lease or cost reimbursement.

(h) Discovery of historical, archaeological, or paleontological deposits on state lands dur- ing the course of development shall be reported to the Office by the lessee prior to further disturbance, and operations may only re-commence as authorized by the Director. The Director shall notify the lessee regarding mitigation within five (5) working days after receiving the report.

Section 4. Qualified Lessee.

To be qualified to receive or hold any interest in a state lease, corporations, limited partnerships, and limited liability companies must be authorized to transact business in the State of Wyoming by the Secretary of State, and general partnerships shall provide the Office with a copy of their partnership papers.

Section 5. Leasing Procedures.

(a) Coal shall be available for lease to the first qualified applicant filing an application. Applications may be filed with the Office during the regular hours of any business day. The Office shall note the date of filing on all applications. Applications filed on the same day, whether presented by personal delivery or received through any mail service, shall be considered as filed simultaneously.

(b) Each application must be accompanied by the required filing fee as established by the Board in Chapter 17 of the Board's rules. The filing fee will not be refunded on any application. An application under this section must also be accompanied by a remittance for the advance rental for the first year, at the rental per acre specified in Section 6 of this chapter.

(c) If two or more applications for the same interests in coal are filed simultaneously, the applications are in conflict.

(i) An application which is in conflict as to only a part of the lands applied for, shall be processed as to the lands not in conflict in the same manner as a separate application for such lands.

(ii) The priority of applications which are in conflict as to all or any part of the lands applied for shall, as to the lands in conflict, be determined by sealed bid between the applicants in conflict.

(d) When an application is rejected in its entirety, advance rentals paid by the applicant will be refunded. When rejected in part, the unused portion of the advance rental payment will be refunded.

(e) An application for a coal lease may be withdrawn, in whole or in part, at any time prior to issuance of lease. The advance rental and all fees transmitted with the application applicable to the portion of the application withdrawn, will be forfeited for failure to fulfill the obligations of the lease offer. However, if a withdrawal was for the purpose of removing a conflict, rentals applicable to the portion withdrawn will be refunded if a lease for the portion withdrawn is issued to another applicant.

(f) If the Board determines that any state coal lands should be offered for lease by competi- tive bidding, it shall enter an order setting a time and place for the sale, describing each tract to be offered, setting the terms of the leases to be issued, the terms and conditions of sale, the procedure to be followed in conducting the sale, and any other necessary information. Notice of sale shall be given in such form and manner as the Board shall direct.

Section 6. Rentals.

(a) The annual rental payments on all coal leases shall be:

(i) One dollar ($1) per acre for the first through the fifth years;

(ii) Two dollars ($2) per acre for the sixth through tenth years of the primary lease term and for any renewal year within a second ten (10) year term.

(iii) Three dollars ($3) per acre for each year for renewals for a third ten (10) year term; and

(iv) Four dollars ($4) per acre for each year for renewals for a fourth ten (10) year term.

(b) Failure to pay rentals on or before the lease anniversary date shall result in termination of the lease. Termination of a lease shall not relieve the lessee of any obligation incurred under the lease other than the obligation to pay rental or penalty.

(c) After initial submission of the increased annual rental required by the lease upon the discovery of coal in paying quantities, lessees are exempt from submission of subsequent annual cred- itable lease annual rentals for so long as annual royalties paid meet or exceed the required annual rental amount. The annual rental shall be held for a credit on annual royalty in any year the annual royalty does not equal the required annual rental (minimum royalty) amount. Any credit amount used in making up the difference in royalty paid and the minimum lease royalty due must be paid within thirty (30) days following the next lease anniversary date to continue the lease. The Office shall notify lessees of any minimum royalty amount due after the lease anniversary for which a shortfall occurs.

Section 7. Royalties.

(a) Royalties for coal shall be based on the terms of the particular lease agreement, subject to all state royalty statutes and rules, and shall be based on the total consideration received for state production. The following royalty rates shall apply, unless a different rate is specifically authorized by the Board:

(i) On surface-mined coal, at twelve and one-half percent (12½%) of gross mine realization; and

(ii) On underground-mined coal, at eight percent (8%) of gross mine realization.

(b) After a coal lease becomes an operating lease, the Board may reduce the royalty payable to the state, as to all or any of the lands or formations covered by the lease, if it determines that such a reduction is necessary to allow the lessee to undertake additional operations or to continue to operate with a reasonable expectation that the operations will be profitable. Such a reduction in the royalty payable to the state shall in all cases be conditioned upon the cancellation of all cost-free interests. The Board may also impose other conditions to the reduction in royalty.

Section 8. Lease Term.

(a) Coal leases shall be for a primary term of ten (10) years.

(b) The term of a coal lease may be extended beyond its primary term only as provided by law, by these rules, or by a specific lease provision.

Section 9. Cooperative Plans and Agreements.

(a) All leases are issued subject to the right of the Director to require a cooperative plan for exploration, development, operation, and production of coal.

(b) Any person may request that state lands be included in a cooperative plan by submitting two (2) copies of the preliminary draft agreement to the Director for approval.

Section 10. General Assignment Requirements.

(a) Pursuant to W.S. 36-6-101(c), the Director shall approve or disapprove any assignment or transfer of a lease or an interest therein. Assignments shall be submitted for approval in duplicate on the form provided by the Office. If an assignment transfers an interest in more than one lease, an extra duly executed copy of the assignment or a photostatic copy of the original assignment shall be fur- nished for each lease in which an interest is transferred. The required filing fee must be paid for each separate lease in which an interest is assigned.

(b) The Director shall approve an assignment which has been properly executed and ap- pears to comply with the law and this chapter, unless he determines that: Approval would interfere with the development of the coal;

(ii) The assignable lease is delinquent in rental or royalty payment status;

(iii) Existing bonding is insufficient to cover lease premises activities;

(iv) Conditions exist that would otherwise be detrimental to the interests of the ben- eficiaries;

(v) The assignee is not a qualified lessee as provided in Section 4 of this chapter; or

(vi) The number of persons holding undivided interest in a lease exceed two (2) in number, unless a designation of agent or a power of attorney executed by all lessees is filed with the Office which designates one of the lessees as agent or attorney to receive all notices, pay all rentals, and is authorized to represent the lessees with the same effect as though the agent or attorney was the sole lessee. For the purposes of this paragraph, owners of overriding royalties, production payments or other cost-free interests are not considered lessees, but owners of carried working interest, net profit owners, and other persons who may be required to bear a share of the cost out of their share of the production are considered lessees.

(c) If the Director disapproves an assignment, he shall advise the assignee by letter of his decision, the reason for disapproval, and when possible, advise what action is necessary to secure approval.

(d) An assignment or transfer of a lease or any interest therein, including overriding royal- ties and other cost-free interests created out of the leasehold estate, must be in writing and executed and acknowledged in accordance with the requirements of the law applicable to conveyances of interest in real estate. The instrument must clearly set forth the serial number of the lease, accurately describe the lands affected, the interest being conveyed as a percentage of total leasehold, and be free of any ambi- guity.

Section 11. Partial Assignments.

(a) Subject to the requirements of this chapter, a lessee may assign or transfer all or part of his interest in the released acreage as to either a divided or undivided interest therein, including cost- free interest such as overriding royalties and production payments.

(b) The Director shall approve assignments or reservations of an overriding royalty subject to the condition that the overriding royalty or a portion thereof may be cancelled or suspended by the Board if it finds that it creates a burden upon the lease which prevents or unreasonably interferes with development.

(c) Assignment of a divided interest, i.e., an assignment of the full leasehold or working interest in a lease as to all interest in all deposits, formations, or depths below a separate tract of the lands subject to the lease or as to one or more separate deposits, formations, or depths below all or a part of the land subject to the lease, segregates the assigned interest from the retained interest and creates new lease obligations as to the lands and the deposits, formations, or depths assigned.

(i) The rights and obligations of the lessees under the retained portion and the as- signed portion of the original lease are separate and distinct as though two (2) separate leases, one (1) covering only the retained interest and the other the assigned interest, had originally been issued on the effective date of the original lease.

(ii) The Director may disapprove any assignment which has the effect of creating separate lease obligations covering the retained and the assigned interest even though it purports to assign less than all of the leasehold or working interest, unless both assignor and assignee agree to accept the separate obligations.

(d) Upon assignment as to only a part of the lease acreage, including assignment as to separate deposits, formations, or depths, the Office may issue a reissue lease with a new serial number covering the assigned lands for the unexpired primary term. In lieu of issuing a reissue lease, the Office may note the assignment upon its records with all lands covered by the original lease maintained under the original serial number, and with each separate tract or interest resulting from an assignment desig- nated by a letter suffix to the original serial number. Each assignee holding a lease on a separate tract or interest may be required to furnish a bond under Section 13 of this chapter.

Section 12. Surface Integrity and Minimum Reclamation.

(a) Lessees shall use care and proper safeguards to prevent pollution of the soil or any water, including underground aquifers, by virtue of lessee's or lessee's designee's operation on state lands and shall capture and dispose of any operation's pollutants not permitted under Wyoming Depart- ment of Environmental Quality regulation, resulting from lessee's or lessee's designee's operations, and shall be responsible for any and all damages caused thereby related to lessee's operations.

(b) Upon completion of operations on state lands, all related disturbances on state lands must be reclaimed to leave the land in as near as practicable to the original condition of the land prior to operations. All topsoil must be salvaged before an area is disturbed by roads, buildings or other related activities. The salvaged topsoil must be stockpiled in such a way to protect it from wind and water erosion. If no topsoil exists for use in reclamation, with the Director's written approval, a cover soil that has been amended to sustain vegetation may be applied. If lessees can demonstrate that strip- ping and stockpiling of topsoil as precursor to their activities will be more detrimental to the topsoil as relates to reclamation, the Director may waive this requirement.

(c) New roads shall cross all drainages at right angles with culverts installed in a manner to avoid constricting the flow of surface water. All drainage or creek crossings must be constructed of erosion resistant material and constructed in a manner to prevent degradation of waters of the state from eroded sediment. No pits or impoundments shall remain after operations and reclamation activi- ties, unless they have developed into viable wetlands as that term is defined by current federal regula- tion or if the pits or impoundments could potentially be of use to the state or to the surface lessee. All reclaimed areas must have slopes as approved by the Director and in conformance with existing State of Wyoming laws, rules, and regulations governing reclamation.

(d) All reclaimed areas must be reseeded, where possible, with an approved seed mixture.

Section 13. Bonds.

(a) A lessee is not required to post a bond until actual operations, including exploration activities, are to be commenced on the leased lands. Before commencing actual operations, the lessee shall advise the Office and outline in detail the nature of the operations proposed. Operations shall not commence until an adequate bond has been furnished and approved.

(b) The bond shall be in an amount found by the Director sufficient to protect and indem- nify the State of Wyoming and shall be in the form approved by the Wyoming Attorney General. Two (2) executed copies of the bond must be submitted to the Office. The bond shall bind the principal and its surety for:

(i) The payment of all moneys, rents, and royalties accruing to the Board;

(ii) Full compliance with all applicable statutes and terms and conditions of the Board's leases and rules and regulations;

(iii) Reclamation of the surface; and

(iv) For the payment of all disturbances to the surface and improvements thereon.

(c) The bond shall be one of the following:

(i) A corporate surety bond executed by the lessee and by a surety authorized to do business in the state;

(ii) A cash bond;

(iii) A certified cashier's check made payable to the Office of State Lands and In- vestments;

(iv) A certificate of deposit in the name of the Office of State Lands and Invest- ments;

(v) Non-revocable letters of credit; or

(vi) AAA-rated debentures of sufficient market value to meet bonding minimums with a signed stock power made out to the Office of State Lands and Investments.

(d) In lieu of individual lease bonds, the lessee may request and the Director may allow the lessee to file a corporate surety bond in the sum of not less than one hundred thousand dollars ($100,000) covering all of the lessee's state leases.

(e) The furnishing of a bond as required by the Wyoming Department of Environmental Quality or some other agency having jurisdiction over the proposed operation shall not relieve the lessee of the duty to furnish bond as required by this section, but such fact shall be taken into account by the Director in determining a waiver of the bonding requirement or the amount of the bond to be required.

(f) The lessee shall promptly advise the Office of any change in operations. The Office may at any time reduce or increase the amount of the bond as conditions may require.

Section 14. Relinquishment.

(a) A coal lease or any divided interest therein may be relinquished by the record title holder to the Board in the following manner:

(i) If no operations have been conducted under the lease and no surface disturbance or damage has occurred on the land to be relinquished, the lessee shall file with the Office a written statement on a form provided by the Office that he wishes to relinquish the lease or interest. The relinquishment shall become effective on the date and hour of receipt by the Office or at some later date if specified.

(ii) If operations have been conducted under the lease or surface disturbance or dam- age has occurred on land proposed to be relinquished, the lessee shall file with the Office a statement on form provided by the Office that he wishes to relinquish the lease or interest. Relinquishment shall not become effective until the land shall have been placed in acceptable condition and the Department of Environmental Quality or such other agency as may have jurisdiction has certified that the lands have been adequately reclaimed or restored before the relinquishment is effective.

(iii) Once a relinquishment on state lands becomes effective, the lease may not be reinstated. The lands shall be made available for lease as provided in Section 5 of this chapter.

Section 15. Royalty Reporting.

All lessees shall submit to the Office a completed monthly reporting statement on a form pro- vided by the Office for each lease (Form M-3c). The lessee shall submit each lease statement within thirty (30) days of the last day of the month of sales for coal. The lessee shall attach to the M-3c statement copies of original arms-length sales transaction documents showing the quantity, quality, and value of products sold, including all lease volume sales through affiliate companies.

Section 16. Field Audits.

(a) The Wyoming Department of Audit, the Director, or the duly authorized representative of either shall have the right at reasonable times and intervals to audit the books and records of any coal lessee or operator on state lands and to inspect the leased premises and conduct field audits for the purpose of determining compliance with this chapter or the terms of the lease.

(b) Any and all parties producing, selling, transporting, and purchasing state lands royalty interest shall retain their records for six (6) years from the date of sale reporting as due under this chapter for any production from or allocated to state lands for all periods ending after January 1, 2000.

(c) Absent state lessee or operator production sales reporting as required in this subsection, the state's coal lessee shall only sell or deliver any leased substance to any person who agrees:

(i) To file reports with the Office stating the price, quantity, origin, and disposition of all production purchased from a state lease; and

(ii) To allow an audit as provided for in this section.

Section 17. Cancellation for Default.

(a) If any coal lessee defaults in the performance or observance of any of this chapter or any of the terms, covenants, or conditions of the lease under which it is operating, the Board may serve notice of such failure or default either by personal service or by certified or registered mail upon the lessee. If the failure or default continues for a period of thirty (30) days after service of the notice, the Board may declare a forfeiture and cancel the lease, whereupon all rights and privileges obtained by the lessee under the lease shall terminate and the Board may re-enter and take possession of the premises.

(b) This section shall not be construed to prevent the exercise by the Director or the Board of any other legal or equitable remedy which the state might otherwise have nor to relieve the lessee from any accrued obligation under the lease. Failure of the lessor to give notice of default in any particular case or waiver of a particular cause of forfeiture shall not prevent the cancellation and forfei- ture of the lease for any other cause of forfeiture or for the same default or cause if it continues or occurs at any other time.

Section 18. Multiple Use.

(a) The Board may issue separate leases for different minerals on the same tract of land. If all mineral leases under a tract of land are non-producing leases, each lessee has an equal right to conduct exploratory operations on the land, and each shall conduct such operations in a manner which does not prevent or unduly interfere with the operations of the other.

(b) The first lessee to commence actual production operations so that his lease becomes an operating lease shall have the right to continue operations without substantial interference from any other mineral lessee so long as the lease remains in effect. The lessee may not be deprived of this right in whole or in part without compensation equal to the value of the rights los as per Subsection (d)(iii) of this section.

(c) If a lessee desires to commence operations on the same tract upon which one or more lessees are already conducting operations, and the lessees can agree that the operations can be con- ducted at the same time without materially reducing the amount or value of the resources which will be produced under each lease, and without unduly interfering with or raising the cost of operations of the prior lessee(s), unless he is adequately compensated therefor, the lessees may agree upon a plan of operations and assessment of costs under which the operations may be carried out concurrently. Any such agreement shall be submitted to and be subject to the approval of the Board.

(d) If, under the circumstances set out in Subsection (c) of this section, the lessees either agree that the operations cannot be carried out concurrently or cannot agree upon a plan of operations and assessment of costs, the Director may resolve the conflict.

(i) If the Director determines that the operations can be carried out concurrently without materially reducing the quantity or value of the coal which will be produced, and either that the costs of operation of any prior lessee(s) will not be increased significantly, or that if they are, such costs are capable of determination and if paid by the subsequent lessee will not constitute an unreasonable burden on the operation, he shall enter his decision approving a plan of operation and assessment of cost under which operations may be carried out concurrently.

(ii) If the Director determines that the proposed operations cannot be carried out concurrently and that the value which will be realized by the beneficiaries from the existing operation is such that the proposed operation should be deferred, he shall enter his decision deferring the devel- opment obligations under the lease of the proposing lessee. The lease will be placed in operating status and remain in effect subject to the requirement that annual rentals will be paid and to the condition that if development is deferred more than five (5) years, the lease may be amended to conform to the lease form in effect upon commencement of production operations for the class of subsurface resource to be produced.

(iii) If the Director determines that the proposed operations cannot be carried out concurrently and that the benefit which would be realized by the beneficiaries from initiating the pro- posed operation so far exceeds that which would be realized from the existing operation that it is clearly more beneficial to the beneficiaries that the existing operation be terminated or deferred and the proposed operation commenced, he shall enter his decision terminating the existing operation and allowing the commencement of the proposed operation, conditioned upon the payment by the lessee proposing the operation to the lessee whose operations are terminated of an amount equal to the value of the rights lost by that lessee determined in the same manner as if the right were being condemned in eminent domain proceedings.

(iv) A lease upon which operations are terminated as above provided shall, upon payment to the lessee of the value of the right lost, be assigned to the lessee making the payment, who shall be entitled to hold it subject to the same terms and conditions applicable to a lease upon which operations were deferred under Paragraph (ii) of this section.

(v) If the proposing lessee disagrees with the Director's or the Board's determina- tion, he may refuse to commence the proposed operation. His refusal to do so shall not constitute a violation of the covenants for lease development, unless the amounts he would be required to pay to the prior lessee constitute such an insubstantial addition to the cost of operation that a reasonable, prudent lessee would assume them.

History

• Effective 2000-01-03

Chapter 20 Leasing of Trona/Sodium

Wyo. Code R. 060.0002.20.01032000 Leasing of Trona/Sodium

RULES AND REGULATIONS BOARD OF LAND COMMISSIONERS

Chapter 20

Leasing of Trona/sodium

Section 1. Authority.

This chapter is adopted pursuant to the authority granted in W.S. 36-6-101(b).

Section 2. Definitions.

(a) "Beneficiaries" means the common schools and those state institutions designated by Congress as beneficiaries of lands granted to the State of Wyoming.

(b) "Board" means the Board of Land Commissioners.

(c) "Director" means The Director of the Office of State Lands and Investments.

(d) "Office" means the Office of State Lands and Investments.

(e) "Mineral" means coal, trona/sodium, zeolite and associated minerals, clays, stones of various sorts, salts, and any and all substances formed by nature in or as rocks of the earth and recog- nized in law, geology, or by the courts as minerals.

(f) "State Lands" means all lands under the jurisdiction of the Board of Land Commission- ers in which the Board owns some or all of the mineral estate.

Section 3. General Provisions.

(a) The Board may, without prior notice, withdraw specific lands from leasing for trona/ sodium when it appears reasonably necessary to protect the economic or environmental interests of the beneficiaries. Any party desiring to lease lands for trona/sodium which have been withdrawn may request that a withdrawal be rescinded in whole or in part.

(b) The Board may condition the issuance of any trona/sodium lease upon specific stipula- tions for the protection of the public, the environment, the waters of the state, historical, archeological or paleontological materials, the wildlife resources, or any of the subsurface or surface resources of the state.

(c) The Board may deny a trona/sodium lease to any person or legal entity which has failed to comply with any rules of the Board or any terms and conditions of any lease or other agreement with the Board.

(d) The Board may refuse to issue a trona/sodium lease or approve an assignment of an interest in an existing trona/sodium lease if issuing the lease or approving the assignment will diminish the interest of the beneficiaries.

(e) On lands in which the state owns less than the entire interest in the trona/sodium estate, lease will be issued by the Board covering the state's interest independent of the other co-owners.

(f) An application may be filed for a lease on lands not shown by the records of the Office to be owned by the state. The applicant must submit evidence through the Office to the Wyoming Attorney General showing that it is probable that the lands applied for, or any interest therein, have escheated to the State of Wyoming. Such applicant shall coordinate with and pay for all costs for the Office and the Attorney General pursuant to the filing of a petition under W.S. 9-5-203 seeking title for the state. After receiving a court order vesting title in the state, the applicant shall have the right to lease the escheated lands under the Board's current form of lease without bidding thereon at auction. If the lands are not found to have escheated to the state, applicant will not be entitled to any lease or cost reimbursement.

(g) Discovery of historical, archaeological, or paleontological deposits on state lands dur- ing the course of development shall be reported to the Office by the lessee prior to further disturbance, and operations may only re-commence as authorized by the Director. The Director shall notify the lessee regarding mitigation within five (5) working days after receiving the report.

Section 4. Qualified Lessee.

To be qualified to receive or hold any interest in a state lease, corporations, limited partnerships, and limited liability companies must be authorized to transact business in the State of Wyoming by the Secretary of State, and general partnerships shall provide the Office with a copy of their partnership papers.

Section 5. Leasing Procedures.

(a) Trona/sodium shall be available for lease to the first qualified applicant filing an appli- cation. Applications may be filed with the Office during the regular hours of any business day. The Office shall note the date of filing on all applications. Applications filed on the same day, whether presented by personal delivery or received through any mail service, shall be considered as filed simul- taneously.

(b) Each application must be accompanied by the required filing fee as established by the Board in Chapter 17 of the Board's rules. The filing fee will not be refunded on any application. An application under this section must also be accompanied by a remittance for the advance rental for the first year, at the rental per acre specified in Section 6 of this chapter.

(c) If two or more applications for the same interests in trona/sodium are filed simulta- neously, the applications are in conflict.

(i) An application which is in conflict as to only a part of the lands applied for, shall be processed as to the lands not in conflict in the same manner as a separate application for such lands.

(ii) The priority of applications which are in conflict as to all or any part of the lands applied for shall, as to the lands in conflict, be determined by sealed bid between the applicants in conflict.

(d) When an application is rejected in its entirety, advance rentals paid by the applicant will be refunded. When rejected in part, the unused portion of the advance rental payment will be refunded.

(e) An application for a trona/sodium lease may be withdrawn, in whole or in part, at any time prior to issuance of lease. The advance rental and all fees transmitted with the application appli- cable to the portion of the application withdrawn, will be forfeited for failure to fulfill the obligations of the lease offer. However, if a withdrawal was for the purpose of removing a conflict, rentals applicable to the portion withdrawn will be refunded if a lease for the portion withdrawn is issued to another applicant.

(f) If the Board determines that any state trona/sodium lands should be offered for lease by competitive bidding, it shall enter an order setting a time and place for the sale, describing each tract to be offered, setting the terms of the leases to be issued, the terms and conditions of sale, the procedure to be followed in conducting the sale, and any other necessary information. Notice of sale shall be given in such form and manner as the Board shall direct.

Section 6. Rentals.

(a) The annual rental payments on all trona/sodium leases shall be:

(i) One dollar ($1) per acre for the first through the fifth years;

(ii) Two dollars ($2) per acre for the sixth through tenth years of the primary lease term and for any renewal year within a second ten (10) year term.

(iii) Three dollars ($3) per acre for each year for renewals for a third ten (10) year term; and

(iv) Four dollars ($4) per acre for each year for renewals for a fourth ten (10) year term.

(b) Failure to pay rentals on or before the lease anniversary date shall result in termination of the lease. Termination of a lease shall not relieve the lessee of any obligation incurred under the lease other than the obligation to pay rental or penalty.

(c) After initial submission of the increased annual rental required by the lease upon the discovery of trona/sodium in paying quantities, lessees are exempt from submission of subsequent annual creditable lease annual rentals for so long as annual royalties paid meet or exceed the required annual rental amount. The annual rental shall be held for a credit on annual royalty in any year the annual royalty does not equal the required annual rental (minimum royalty) amount. Any credit amount used in making up the difference in royalty paid and the minimum lease royalty due must be paid within thirty (30) days following the next lease anniversary date to continue the lease. The Office shall notify lessees of any minimum royalty amount due after the lease anniversary for which a shortfall occurs.

Section 7. Royalties.

(a) Royalties for trona/sodium shall be based on the terms of the effective leases issued therefor, subject to all state royalty statutes and rules, and shall be required based on the total consider- ation received for state production. Leases for trona/sodium shall provide for payment of the following royalty rate, unless a different rate is specifically authorized by the Board:

(i) At six percent (6%) of the gross sales value of the soda ash and sodium by- products sold.

(b) After a trona/sodium lease becomes an operating lease, the Board may reduce the roy- alty payable to the state, as to all or any of the lands or formations covered by the lease, if it determines that such a reduction is necessary to allow the lessee to undertake operations or to continue to operate with a reasonable expectation that the operations will be profitable. Such a reduction in the royalty payable to the state shall in all cases be conditioned upon the cancellation of all cost-free interests. The Board may also impose other conditions to the reduction in royalty.

Section 8. Lease Term.

(a) Trona/sodium leases shall be for a primary term of ten (10) years.

(b) The term of a trona/sodium lease may be extended beyond its primary term only as provided by law, by these rules, or by a specific lease provision.

Section 9. General Assignment Requirements.

(a) Pursuant to W.S. 36-6-101(c), the Director shall approve or disapprove any assignment or transfer of a lease or an interest therein. Assignments shall be submitted for approval in duplicate on the form provided by the Office. If an assignment transfers an interest in more than one lease, an extra duly executed copy of the assignment or a photostatic copy of the original assignment shall be fur- nished for each lease in which an interest is transferred. The required filing fee must be paid for each separate lease in which an interest is assigned.

(b) The Director shall approve an assignment which has been properly executed and ap- pears to comply with the law and this chapter, unless he determines that: Approval would interfere with the development of the trona/sodium;

(ii) The assignable lease is delinquent in rental or royalty payment status;

(iii) Existing bonding is insufficient to cover lease premises activities;

(iv) Conditions exist that would otherwise be detrimental to the interests of the ben- eficiaries;

(v) The assignee is not a qualified lessee as provided in Section 4 of this chapter; or

(vi) The number of persons holding undivided interest in a lease exceed two (2) in number, unless a designation of agent or a power of attorney executed by all lessees is filed with the Office which designates one of the lessees as agent or attorney to receive all notices, pay all rentals, and is authorized to represent the lessees with the same effect as though the agent or attorney was the sole lessee. For the purposes of this paragraph, owners of overriding royalties, production payments or other cost-free interests are not considered lessees, but owners of carried working interest, net profit owners, and other persons who may be required to bear a share of the cost out of their share of the production are considered lessees.

(c) If the Director disapproves an assignment, he shall advise the assignee by letter of his decision, the reason for disapproval, and when possible, advise what action is necessary to secure approval.

(d) An assignment or transfer of a lease or any interest therein, including overriding royal- ties and other cost-free interests created out of the leasehold estate, must be in writing and executed and acknowledged in accordance with the requirements of the law applicable to conveyances of interest in real estate. The instrument must clearly set forth the serial number of the lease, accurately describe the lands affected, the interest being conveyed as a percentage of total leasehold, and be free of any ambi- guity.

Section 10. Partial Assignments.

(a) Subject to the requirements of this chapter, a lessee may assign or transfer all or part of his interest in the released acreage as to either a divided or undivided interest therein, including cost- free interest such as overriding royalties and production payments.

(b) The Director shall approve assignments or reservations of an overriding royalty subject to the condition that the overriding royalty or a portion thereof may be cancelled or suspended by the Board if it finds that it creates a burden upon the lease which prevents or unreasonably interferes with development.

(c) Assignment of a divided interest, i.e., an assignment of the full leasehold or working interest in a lease as to all interest in all deposits, formations, or depths below a separate tract of the lands subject to the lease or as to one or more separate deposits, formations, or depths below all or a part of the land subject to the lease, segregates the assigned interest from the retained interest and creates new lease obligations as to the lands and the deposits, formations, or depths assigned.

(i) The rights and obligations of the lessees under the retained portion and the as- signed portion of the original lease are separate and distinct as though two (2) separate leases, one (1) covering only the retained interest and the other the assigned interest, had originally been issued on the effective date of the original lease.

(ii) The Director may disapprove any assignment which has the effect of creating separate lease obligations covering the retained and the assigned interest even though it purports to assign less than all of the leasehold or working interest, unless both assignor and assignee agree to accept the separate obligations.

(d) Upon assignment as to only a part of the lease acreage, including assignment as to separate deposits, formations, or depths, the Office may issue a reissue lease with a new serial number covering the assigned lands for the unexpired primary term. In lieu of issuing a reissue lease, the Office may note the assignment upon its records with all lands covered by the original lease maintained under the original serial number, and with each separate tract or interest resulting from an assignment desig- nated by a letter suffix to the original serial number. Each assignee holding a lease on a separate tract or interest may be required to furnish a bond under Section 12 of this chapter.

Section 11. Surface Integrity and Minimum Reclamation.

(a) Lessees shall use care and proper safeguards to prevent pollution of the soil or any water, including underground aquifers, by virtue of lessee's or lessee's designee's operation on state lands and shall capture and dispose of any operation's pollutants not permitted under Wyoming Depart- ment of Environmental Quality regulation, resulting from lessee's or lessee's designee's operations, and shall be responsible for any and all damages caused thereby related to lessee's operations.

(b) Upon completion of operations on state lands, all related disturbances on state lands must be reclaimed to leave the land in as near as practicable to the original condition of the land prior to operations. All topsoil must be salvaged before an area is disturbed by roads, buildings or other related activities. The salvaged topsoil must be stockpiled in such a way to protect it from wind and water erosion. If no topsoil exists for use in reclamation, with the Director's written approval, a cover soil that has been amended to sustain vegetation may be applied. If lessees can demonstrate that strip- ping and stockpiling of topsoil as precursor to their activities will be more detrimental to the topsoil as relates to reclamation, the Director may waive this requirement.

(c) New roads shall cross all drainages at right angles with culverts installed in a manner to avoid constricting the flow of surface water. All drainage or creek crossings must be constructed of erosion resistant material and constructed in a manner to prevent degradation of waters of the state from eroded sediment. No pits or impoundments shall remain after operations and reclamation activities, unless they have developed into viable wetlands as that term is defined by current federal regulation or if the pits or impoundments could potentially be of use to the state or to the surface lessee. All reclaimed areas must have slopes as approved by the Director and in conformance with existing State of Wyoming laws, rules, and regulations governing reclamation.

(d) All reclaimed areas must be reseeded, where possible, with an approved seed mixture.

Section 12. Bonds.

(a) A lessee is not required to post a bond until actual operations, including exploration activities, are to be commenced on the leased lands. Before commencing actual operations, the lessee shall advise the Office and outline in detail the nature of the operations proposed. Operations shall not commence until an adequate bond has been furnished and approved.

(b) The bond shall be in an amount found by the Director sufficient to protect and indem- nify the State of Wyoming and shall be in the form approved by the Wyoming Attorney General. Two (2) executed copies of the bond must be submitted to the Office. The bond shall bind the principal and its surety for:

(i) The payment of all moneys, rents, and royalties accruing to the Board;

(ii) Full compliance with all applicable statutes and terms and conditions of the Board's leases and rules and regulations;

(iii) Reclamation of the surface; and

(iv) For the payment of all disturbances to the surface and improvements thereon.

(c) The bond shall be one of the following:

(i) A corporate surety bond executed by the lessee and by a surety authorized to do business in the state;

(ii) A cash bond;

(iii) A certified cashier's check made payable to the Office of State Lands and In- vestments;

(iv) A certificate of deposit in the name of the Office of State Lands and Invest- ments;

(v) Non-revocable letters of credit; or

(vi) AAA-rated debentures of sufficient market value to meet bonding minimums with a signed stock power made out to the Office of State Lands and Investments.

(d) In lieu of individual lease bonds, the lessee may request and the Director may allow the lessee to file a corporate surety bond in the sum of not less than one hundred thousand dollars ($100,000) covering all of the lessee's state leases.

(e) The furnishing of a bond as required by the Wyoming Department of Environmental Quality or some other agency having jurisdiction over the proposed operation shall not relieve the lessee of the duty to furnish bond as required by this section, but such fact shall be taken into account by the Director in determining a waiver of the bonding requirement or the amount of the bond to be required.

(f) The lessee shall promptly advise the Office of any change in operations. The Office may at any time reduce or increase the amount of the bond as conditions may require.

Section 13. Relinquishment.

(a) A trona/sodium lease or any divided interest therein may be relinquished by the record title holder to the Board in the following manner:

(i) If no operations have been conducted under the lease and no surface distur- bance or damage has occurred on the land to be relinquished, the lessee shall file with the Office a written statement on a form provided by the Office that he wishes to relinquish the lease or interest. The relinquishment shall become effective on the date and hour of receipt by the Office or at some later date if specified.

(ii) If operations have been conducted under the lease or surface disturbance or damage has occurred on land proposed to be relinquished, the lessee shall file with the Office a statement on a form provided by the Office that he wishes to relinquish the lease or interest. Relin- quishment shall not become effective until the land shall have been placed in acceptable condition and the Department of Environmental Quality or such other agency as may have jurisdiction has certified that the lands have been adequately reclaimed or restored before the relinquishment is effective.

(iii) Once a relinquishment on state lands becomes effective, the lease may not be reinstated. The lands shall be made available for lease as provided in Section 5 of this chapter.

Section 14. Royalty Reporting.

All lessees shall submit to the Office a completed monthly reporting statement on a form provided by the Office for each lease (Form M-3c). The lessee shall submit each lease statement within thirty (30) days of the last day of the month of sales for trona/sodium. The lessee shall attach to the M-3c statement copies of original arms-length sales transaction documents showing the quantity, quality, and value of products sold, including all lease volume sales through affiliate com- panies.

Section 15. Field Audits.

(a) The Wyoming Department of Audit, the Director, or the duly authorized representa- tive of either shall have the right at reasonable times and intervals to audit the books and records of any trona/sodium or operator on state lands and to inspect the leased premises and conduct field audits for the purpose of determining compliance with this chapter or the terms of the lease.

(b) Any and all parties producing, selling, transporting, and purchasing state lands royalty interest shall retain their records for six (6) years from the date of sale reporting as due under this chapter for any production from or allocated to state lands for all periods ending after January 1, 2000.

(c) Absent state lessee or operator production sals reporting as required in this subsec- tion, the state's trona/sodium lessee shall only sell or deliver any leased substance to any person who agrees:

(i) To file reports with the Office stating the price, quantity, origin, and disposi- tion of all production purchased from a state lease; and

(ii) To allow an audit as provided for in this section.

Section 16. Cancellation for Default.

(a) If any trona/sodium lessee defaults in the performance or observance of any of this chapter or any of the terms, covenants, or conditions of the lease under which it is operating, the Board may serve notice of such failure or default either by personal service or by certified or regis- tered mail upon the lessee. If the failure or default continues for a period of thirty (30) days after service of the notice, the Board may declare a forfeiture and cancel the lease, whereupon all rights and privileges obtained by the lessee under the lease shall terminate and the Board may re-enter and take possession of the premises.

(b) This section shall not be construed to prevent the exercise by the Director or the Board of any other legal or equitable remedy which the state might otherwise have nor to relieve the lessee from any accrued obligation under the lease. Failure of the lessor to give notice of default in any particular case or waiver of a particular cause of forfeiture shall not prevent the cancellation and forfeiture of the lease for any other cause of forfeiture or for the same default or cause if it continues or occurs at any other time.

Section 17. Multiple Use.

(a) The Board may issue separate leases for different minerals on the same tract of land. If all mineral leases under a tract of land are non-producing leases, each lessee has an equal right to conduct exploratory operations on the land, and each shall conduct such operations in a manner which does not prevent or unduly interfere with the operations of the other.

(b) The first lessee to commence actual production operations so that his lease becomes an operating lease shall have the right to continue operations without substantial interference from any other mineral lessee so long as the lease remains in effect. The lessee may not be deprived of this right in whole or in part without compensation equal to the value of the rights lost as per Subsec- tion (d)(iii) of this section.

(c) If a lessee desires to commence operations on the same tract upon which one or more lessees are already conducting operations, and the lessees can agree that the operations can be con- ducted at the same time without materially reducing the amount or value of the resources which will be produced under each lease, and without unduly interfering with or raising the cost of operations of the prior lessee(s), unless he is adequately compensated therefor, the lessees may agree upon a plan of operations and assessment of costs under which the operations may be carried out concurrently. Any such agreement shall be submitted to and be subject to the approval of the Board.

(d) If, under the circumstances set out in Subsection (c) of this section, the lessees either agree that the operations cannot be carried out concurrently or cannot agree upon a plan of operations and assessment of costs, the Director may resolve the conflict.

(i) If the Director determines that the operations can be carried out concurrently without materially reducing the quantity or value of the trona/sodium which will be produced, and either that the costs of operation of any prior lessee(s) will not be increased significantly, or that if they are, such costs are capable of determination and if paid by the subsequent lessee will not consti- tute an unreasonable burden on the operation, he shall enter his decision approving a plan of opera- tion and assessment of cost under which operations may be carried out concurrently.

(ii) If the Director determines that the proposed operations cannot be carried out concurrently and that the value which will be realized by the beneficiaries from the existing operation is such that the proposed operation should be deferred, he shall enter his decision deferring the development obligations under the lease of the proposing lessee. The lease will be placed in operat- ing status and remain in effect subject to the requirement that annual rentals will be paid and to the condition that if development is deferred more than five (5) years, the lease may be amended to conform to the lease form in effect upon commencement of production operations for the class of subsurface resource to be produced.

(iii) If the Director determines that the proposed operations cannot be carried out concurrently and that the benefit which would be realized by the beneficiaries from initiating the proposed operation so far exceeds that which would be realized from the existing operation that it is clearly more beneficial to the beneficiaries that the existing operation be terminated or deferred and the proposed operation commenced, he shall enter his decision terminating the existing operation and allowing the commencement of the proposed operation, conditioned upon the payment by the lessee proposing the operation to the lessee whose operations are terminated of an amount equal to the value of the rights lost by that lessee determined in the same manner as if the right were being condemned in eminent domain proceedings.

(iv) A lease upon which operations are terminated as above provided shall, upon payment to the lessee of the value of the right lost, be assigned to the lessee making the payment, who shall be entitled to hold it subject to the same terms and conditions applicable to a lease upon which operations were deferred under Paragraph (ii) of this section.

(v) If the proposing lessee disagrees with the Director's or the Board's determination, he may refuse to commence the proposed operation. His refusal to do so shall not constitute a violation of the covenants for lease development, unless the amounts he would be required to pay to the prior lessee constitute such an insubstantial addition to the cost of operation that a reasonable, prudent lessee would assume them.

History

• Effective 2000-01-03

Chapter 21 Leasing of Uranium

Wyo. Code R. 060.0002.21.01032000 Leasing of Uranium

RULES AND REGULATIONS BOARD OF LAND COMMISSIONERS

Chapter 21

Leasing of Uranium

Section 1. Authority.

This chapter is adopted pursuant to the authority granted in W.S. 36-6-101(b).

Section 2. Definitions.

(a) "Beneficiaries" means the common schools and those state institutions designated by Congress as beneficiaries of lands granted to the State of Wyoming.

(b) "Board" means the Board of Land Commissioners.

(c) "Director" means The Director of the Office of State Lands and Investments.

(d) "Office" means the Office of State Lands and Investments.

(e) "Mineral" means coal, trona/sodium, uranium and associated minerals, clays, stones of various sorts, salts, and any and all substances formed by nature in or as rocks of the earth and recognized in law, geology, or by the courts as minerals.

(f) "State Lands" means all lands under the jurisdiction of the Board of Land Commissioners in which the Board owns some or all of the mineral estate.

Section 3. General Provisions.

(a) The Board may, without prior notice, withdraw specific lands from leasing for uranium when it appears reasonably necessary to protect the economic or environmental interests of the beneficiaries. Any party desiring to lease lands for uranium which have been withdrawn may request that a withdrawal be rescinded in whole or in part.

(b) The Board may condition the issuance of any uranium lease upon specific stipulations for the protection of the public, the environment, the waters of the state, historical, archeological or paleontological materials, the wildlife resources, or any of the subsurface or surface resources of the state.

(c) The Board may deny a uranium lease to any person or legal entity which has failed to comply with any rules of the Board or any terms and conditions of any lease or other agreement with the Board.

(d) The Board may refuse to issue a uranium lease or approve an assignment of an interest in an existing uranium lease if issuing the lease or approving the assignment will diminish the interest of the beneficiaries.

(e) On lands in which the state owns less than the entire interest in the uranium estate, a lease will be issued by the Board covering the state's interest independent of the other co-owners.

(f) An application may be filed for a lease on lands not shown by the records of the Office to be owned by the state. The applicant must submit evidence through the Office to the Wyoming Attorney General showing that it is probable that the lands applied for, or any interest therein, have escheated to the State of Wyoming. Such applicant shall coordinate with and pay for all costs for the Office and the Attorney General pursuant to the filing of a petition under W.S. 9-5-203 seeking title for the state. After receiving a court order vesting title in the state, the applicant shall have the right to lease the escheated lands under the Board's current form of lease without bidding thereon at auction. If the lands are not found to have escheated to the state, applicant will not be entitled to any lease or cost reimbursement.

(g) Discovery of historical, archaeological, or paleontological deposits on state lands during the course of development shall be reported to the Office prior to further disturbance, and operations may only re-commence as authorized by the Director. The Director shall notify the lessee regarding mitigation within five (5) working days after receiving the report.

Section 4. Qualified Lessee.

To be qualified to receive or hold any interest in a state lease, corporations, limited partnerships, and limited liability companies must be authorized to transact business in the State of Wyoming by the Secretary of State, and general partnerships shall provide the Office with a copy of their partnership papers.

Section 5. Leasing Procedures.

(a) Uranium shall be available for lease to the first qualified applicant filing an application. Applications may be filed with the Office during the regular hours of any business day. The Office shall note the date of filing on all applications. Applications filed on the same day, whether presented by personal delivery or received through any mail service, shall be considered as filed simultaneously.

(b) Each application must be accompanied by the required filing fee as established by the Board in Chapter 17 of the Board's rules. The filing fee will not be refunded on any application. An application under this section must also be accompanied by a remittance for the advance rental for the first year, at the rental per acre specified in Section 6 of this chapter.

(c) If two or more applications for the same interests in uranium are filed simultaneously, the applications are in conflict.

(i) An application which is in conflict as to only a part of the lands applied for, shall be processed as to the lands not in conflict in the same manner as a separate application for such lands.

(ii) The priority of applications which are in conflict as to all or any part of the lands applied for shall, as to the lands in conflict, be determined by sealed bid between the applicants in conflict.

(d) When an application is rejected in its entirety, advance rentals paid by the applicant will be refunded. When rejected in part, the unused portion of the advance rental payment will be refunded.

(e) An application for a uranium lease may be withdrawn, in whole or in part, at any time prior to issuance of lease. The advance rental and all fees transmitted with the application applicable to the portion of the application withdrawn, will be forfeited for failure to fulfill the obligations of the lease offer. However, if a withdrawal was for the purpose of removing a conflict, rentals applicable to the portion withdrawn will be refunded if a lease for the portion withdrawn is issued to another appli- cant.

(f) If the Board determines that any state uranium lands should be offered for lease by competitive bidding, it shall enter an order setting a time and place for the sale, describing each tract to be offered, setting the terms of the leases to be issued, the terms and conditions of sale, the procedure to be followed in conducting the sale, and any other necessary information. Notice of sale shall be given in such form and manner as the Board shall direct.

Section 6. Rentals.

(a) The annual rental payments on all uranium leases shall be:

(i) One dollar ($1) per acre for the first through the fifth years;

(ii) Two dollars ($2) per acre for the sixth through tenth years of the primary lease term and for any renewal year within a second ten (10) year term.

(iii) Three dollars ($3) per acre for each year for renewals for a third ten (10) year term; and

(iv) Four dollars ($4) per acre for each year for renewals for a fourth ten (10) year term.

(b) Failure to pay rentals on or before the lease anniversary date shall result in termination of the lease. Termination of a lease shall not relieve the lessee of any obligation incurred under the lease other than the obligation to pay rental or penalty.

(c) After initial submission of the increased annual rental required by the lease upon the discovery of uranium in paying quantities, lessees are exempt from submission of subsequent annual creditable lease annual rentals for so long as annual royalties paid meet or exceed the required annual rental amount. The annual rental shall be held for a credit on annual royalty in any year the annual royalty does not equal the required annual rental (minimum royalty) amount. Any credit amount used in making up the difference in royalty paid and the minimum lease royalty due must be paid within thirty (30) days following the next lease anniversary date to continue the lease. The Office shall notify lessees of any minimum royalty amount due after the lease anniversary for which a shortfall occurs.

Section 7. Royalties.

(a) Royalties for uranium shall be based on the terms of the particular lease agreement, subject to all state royalty statutes and rules, and shall be based on the total consideration received for state production. The following royalty rates shall apply, unless a different rate is specifically authorized by the Board:

(i) At two and one-half percent (2½%) where the lessee's weighted average price for yellowcake is less than twenty dollars ($20) per pound based on gross yearly sales realization.

(ii) At two and three-quarters percent (2¾%) where the lessee's weighted average price for yellowcake is twenty dollars ($20) or more, but less than twenty-six dollars ($26.00) per pound based on gross yearly sales realization.

(iii) At three percent (3%) where the lessee's weighted average price for yellowcake is twenty-six dollars ($26) or more per pound based on gross yearly sales realization.

(iv) Royalties are due on a proportionate basis for State lease production in inventory at the percentage of pounds that the State lease production bears to total production in inventory for each sale.

(b) After a uranium lease becomes an operating lease, the Board may reduce the royalty payable to the state, as to all or any of the lands or formations covered by the lease, if it determines that such a reduction is necessary to allow the lessee to undertake additional operations or to continue to operate with a reasonable expectation that the operations will be profitable. Such a reduction in the royalty payable to the state shall in all cases be conditioned upon the cancellation of all cost- free interests. The Board may also impose other conditions to the reduction in royalty.

Section 8. Lease Term.

(a) Uranium leases shall be for a primary term of ten (10) years.

(b) The term of a uranium lease may be extended beyond its primary term only as provided by law, by these rules, or by a specific lease provision.

Section 9. General Assignment Requirements.

(a) Pursuant to W.S. 36-6-101(c), the Director shall approve or disapprove any assignment or transfer of a lease or an interest therein. Assignments shall be submitted for approval in duplicate on the form provided by the Office. If an assignment transfers an interest in more than one lease, an extra duly executed copy of the assignment or a photostatic copy of the original assignment shall be furnished for each lease in which an interest is transferred. The required filing fee must be paid for each separate lease in which an interest is assigned.

(b) The Director shall approve an assignment which has been properly executed and ap- pears to comply with the law and this chapter, unless he determines that: Approval would interfere with the development of the uranium;

(ii) The assignable lease is delinquent in rental or royalty payment status;

(iii) Existing bonding is insufficient to cover lease premises activities;

(iv) Conditions exist that would otherwise be detrimental to the interests of the ben- eficiaries;

(v) The assignee is not a qualified lessee as provided in Section 4 of this chapter; or

(vi) The number of persons holding undivided interest in a lease exceed two (2) in number, unless a designation of agent or a power of attorney executed by all lessees is filed with the Office which designates one of the lessees as agent or attorney to receive all notices, pay all rentals, and is authorized to represent the lessees with the same effect as though the agent or attorney was the sole lessee. For the purposes of this paragraph, owners of overriding royalties, production payments or other cost-free interests are not considered lessees, but owners of carried working interest, net profit owners, and other persons who may be required to bear a share of the cost out of their share of the production are considered lessees.

(c) If the Director disapproves an assignment, he shall advise the assignee by letter of his decision, the reason for disapproval, and when possible, advise what action is necessary to secure approval.

(d) An assignment or transfer of a lease or any interest therein, including overriding royalties and other cost-free interests created out of the leasehold estate, must be in writing and executed and acknowledged in accordance with the requirements of the law applicable to conveyances of interest in real estate. The instrument must clearly set forth the serial number of the lease, accurately describe the lands affected, the interest being conveyed as a percentage of total leasehold, and be free of any ambi- guity.

Section 10. Partial Assignments.

(a) Subject to the requirements of this chapter, a lessee may assign or transfer all or part of his interest in the released acreage as to either a divided or undivided interest therein, including cost- free interest such as overriding royalties and production payments.

(b) The Director shall approve assignments or reservations of an overriding royalty subject to the condition that the overriding royalty or a portion thereof may be cancelled or suspended by the Board if it finds that it creates a burden upon the lease which prevents or unreasonably interferes with development.

(c) Assignment of a divided interest, i.e., an assignment of the full leasehold or working interest in a lease as to all interest in all deposits, formations, or depths below a separate tract of the lands subject to the lease or as to one or more separate deposits, formations, or depths below all or a part of the land subject to the lease, segregates the assigned interest from the retained interest and creates new lease obligations as to the lands and the deposits, formations, or depths assigned.

(i) The rights and obligations of the lessees under the retained portion and the as- signed portion of the original lease are separate and distinct as though two (2) separate leases, one (1) covering only the retained interest and the other the assigned interest, had originally been issued on the effective date of the original lease.

(ii) The Director may disapprove any assignment which has the effect of creating separate lease obligations covering the retained and the assigned interest even though it purports to assign less than all of the leasehold or working interest, unless both assignor and assignee agree to accept the separate obligations.

(d) Upon assignment as to only a part of the lease acreage, including assignment as to separate deposits, formations, or depths, the Office may issue a reissue lease with a new serial number covering the assigned lands for the unexpired primary term. In lieu of issuing a reissue lease, the Office may note the assignment upon its records with all lands covered by the original lease maintained under the original serial number, and with each separate tract or interest resulting from an assignment desig- nated by a letter suffix to the original serial number. Each assignee holding a lease on a separate tract or interest may be required to furnish a bond under Section 12 of this chapter.

Section 11. Surface Integrity and Minimum Reclamation.

(a) Lessees shall use care and proper safeguards to prevent pollution of the soil or any water, including underground aquifers, by virtue of lessee's or lessee's designee's operation on state lands and shall capture and dispose of any operation's pollutants not permitted under Wyoming Depart- ment of Environmental Quality regulation, resulting from lessee's or lessee's designee's operations, and shall be responsible for any and all damages caused thereby related to lessee's operations.

(b) Upon completion of operations on state lands, all related disturbances on state lands must be reclaimed to leave the land in as near as practicable to the original condition of the land prior to operations. All topsoil must be salvaged before an area is disturbed by roads, buildings or other related activities. The salvaged topsoil must be stockpiled in such a way to protect it from wind and water erosion. If no topsoil exists for use in reclamation, with the Director's written approval, a cover soil that has been amended to sustain vegetation may be applied. If lessees can demonstrate that strip- ping and stockpiling of topsoil as precursor to their activities will be more detrimental to the topsoil as relates to reclamation, the Director may waive this requirement.

(c) New roads shall cross all drainages at right angles with culverts installed in a manner to avoid constricting the flow of surface water. All drainage or creek crossings must be constructed of erosion resistant material and constructed in a manner to prevent degradation of waters of the state from eroded sediment. No pits or impoundments shall remain after operations and reclamation activi- ties, unless they have developed into viable wetlands as that term is defined by current federal regula- tion or if the pits or impoundments could potentially be of use to the state or to the surface lessee. All reclaimed areas must have slopes as approved by the Director and in conformance with existing State of Wyoming laws, rules, and regulations governing reclamation.

(d) All reclaimed areas must be reseeded, where possible, with an approved seed mixture.

Section 12. Bonds.

(a) A lessee is not required to post a bond until actual operations, including exploration activities, are to be commenced on the leased lands. Before commencing actual operations, the lessee shall advise the Office and outline in detail the nature of the operations proposed. Operations shall not commence until an adequate bond has been furnished and approved.

(b) The bond shall be in an amount found by the Director sufficient to protect and indem- nify the State of Wyoming and shall be in the form approved by the Wyoming Attorney General. Two (2) executed copies of the bond must be submitted to the Office. The bond shall bind the principal and its surety for:

(i) The payment of all moneys, rents, and royalties accruing to the Board;

(ii) Full compliance with all applicable statutes and terms and conditions of the Board's leases and rules and regulations;

(iii) Reclamation of the surface; and

(iv) For the payment of all disturbances to the surface and improvements thereon.

(c) The bond shall be one of the following:

(i) A corporate surety bond executed by the lessee and by a surety authorized to do business in the state;

(ii) A cash bond;

(iii) A certified cashier's check made payable to the Office of State Lands and In- vestments;

(iv) A certificate of deposit in the name of the Office of State Lands and Invest- ments;

(v) Non-revocable letters of credit; or

(vi) AAA-rated debentures of sufficient market value to meet bonding minimums with a signed stock power made out to the Office of State Lands and Investments.

(d) In lieu of individual lease bonds, the lessee may request and the Director may allow the lessee to file a corporate surety bond in the sum of not less than one hundred thousand dollars ($100,000) covering all of the lessee's state leases.

(e) The furnishing of a bond as required by the Wyoming Department of Environmental Quality or some other agency having jurisdiction over the proposed operation shall not relieve the lessee of the duty to furnish bond as required by this section, but such fact shall be taken into account by the Director in determining a waiver of the bonding requirement or the amount of the bond to be required.

(f) The lessee shall promptly advise the Office of any change in operations. The Office may at any time reduce or increase the amount of the bond as conditions may require.

Section 13. Relinquishment.

(a) A uranium lease or any divided interest therein may be relinquished by the record title holder to the Board in the following manner:

(i) If no operations have been conducted under the lease and no surface disturbance or damage has occurred on the land to be relinquished, the lessee shall file with the Office a written statement on a form provided by the Office that he wishes to relinquish the lease or interest. The relinquishment shall become effective on the date and hour of receipt by the Office or at some later date if specified.

(ii) If operations have been conducted under the lease or surface disturbance or damage has occurred on land proposed to be relinquished, the lessee shall file with the Office a statement on form provided by the Office that he wishes to relinquish the lease or interest. Relinquishment shall not become effective until the land shall have been placed in acceptable condition and the Department of Environmental Quality or such other agency as may have jurisdiction has certified that the lands have been adequately reclaimed or restored before the relinquishment is effective.

(iii) Once a relinquishment on state lands becomes effective, the lease may not be reinstated. The lands shall be made available for lease as provided in Section 5 of this chapter.

Section 14. Royalty Reporting.

All lessees shall submit to the Office a completed monthly reporting statement on a form pro- vided by the Office for each lease (Form M-3c). The lessee shall submit each lease statement within thirty (30) days of the last day of the month of sales for uranium. The lessee shall attach to the M-3c statement copies of original arms-length sales transaction documents showing the quantity, quality, and value of products sold, including all lease volume sales through affiliate companies.

Section 15. Field Audits.

(a) The Wyoming Department of Audit, the Director, or the duly authorized representative of either shall have the right at reasonable times and intervals to audit the books and records of any uranium or operator on state lands and to inspect the leased premises and conduct field audits for the purpose of determining compliance with this chapter or the terms of the lease.

(b) Any and all parties producing, selling, transporting, and purchasing state lands royalty interest shall retain their records for six (6) years from the date of sale reporting as due under this chapter for any production from or allocated to state lands for all periods ending after January 1, 2000.

(c) Absent state lessee or operator production sales reporting as required in this subsection, the state's uranium lessee shall only sell or deliver any leased substance to any person who agrees:

(i) To file reports with the Office stating the price, quantity, origin, and disposition of all production purchased from a state lease; and

(ii) To allow an audit as provided for in this section.

Section 16. Cancellation for Default.

(a) If any uranium lessee defaults in the performance or observance of any of this chapter or any of the terms, covenants, or conditions of the lease under which it is operating, the Board may serve notice of such failure or default either by personal service or by certified or registered mail upon the lessee. If the failure or default continues for a period of thirty (30) days after service of the notice, the Board may declare a forfeiture and cancel the lease, whereupon all rights and privileges obtained by the lessee under the lease shall terminate and the Board may re-enter and take possession of the premises.

(b) This section shall not be construed to prevent the exercise by the Director or the Board of any other legal or equitable remedy which the state might otherwise have nor to relieve the lessee from any accrued obligation under the lease. Failure of the lessor to give notice of default in any particular case or waiver of a particular cause of forfeiture shall not prevent the cancellation and forfei- ture of the lease for any other cause of forfeiture or for the same default or cause if it continues or occurs at any other time.

Section 17. Multiple Use.

(a) The Board may issue separate leases for different minerals on the same tract of land. If all mineral leases under a tract of land are non-producing leases, each lessee has an equal right to conduct exploratory operations on the land, and each shall conduct such operations in a manner which does not prevent or unduly interfere with the operations of the other.

(b) The first lessee to commence actual production operations so that his lease becomes an operating lease shall have the right to continue operations without substantial interference from any other mineral lessee so long as the lease remains in effect. The lessee may not be deprived of this right in whole or in part without compensation equal to the value of the rights lost as per Subsection (d)(iii) of this section.

(c) If a lessee desires to commence operations on the same tract upon which one or more lessees are already conducting operations, and the lessees can agree that the operations can be conducted at the same time without materially reducing the amount or value of the resources which will be produced under each lease, and without unduly interfering with or raising the cost of operations of the prior lessee(s), unless he is adequately compensated therefor, the lessees may agree upon a plan of operations and assessment of costs under which the operations may be carried out concurrently. Any such agreement shall be submitted to and be subject to the approval of the Board.

(d) If, under the circumstances set out in Subsection (c) of this section, the lessees either agree that the operations cannot be carried out concurrently or cannot agree upon a plan of operations and assessment of costs, the Director may resolve the conflict.

(i) If the Director determines that the operations can be carried out concurrently without materially reducing the quantity or value of the uranium which will be produced, and either that the costs of operation of any prior lessee(s) will not be increased significantly, or that if they are, such costs are capable of determination and if paid by the subsequent lessee will not constitute an unreasonable burden on the operation, he shall enter his decision approving a plan of operation and assessment of cost under which operations may be carried out concurrently.

(ii) If the Director determines that the proposed operations cannot be carried out concurrently and that the value which will be realized by the beneficiaries from the existing operation is such that the proposed operation should be deferred, he shall enter his decision deferring the devel- opment obligations under the lease of the proposing lessee. The lease will be placed in operating status and remain in effect subject to the requirement that annual rentals will be paid and to the condition that if development is deferred more than five (5) years, the lease may be amended to conform to the lease form in effect upon commencement of production operations for the class of subsurface resource to be produced.

(iii) If the Director determines that the proposed operations cannot be carried out concurrently and that the benefit which would be realized by the beneficiaries from initiating the proposed operation so far exceeds that which would be realized from the existing operation that it is clearly more beneficial to the beneficiaries that the existing operation be terminated or deferred and the proposed operation commenced, he shall enter his decision terminating the existing operation and allowing the commencement of the proposed operation, conditioned upon the payment by the lessee proposing the operation to the lessee whose operations are terminated of an amount equal to the value of the rights lost by that lessee determined in the same manner as if the right were being condemned in eminent domain proceedings.

(iv) A lease upon which operations are terminated as above provided shall, upon payment to the lessee of the value of the right lost, be assigned to the lessee making the payment, who shall be entitled to hold it subject to the same terms and conditions applicable to a lease upon which operations were deferred under Paragraph (ii) of this section.

(v) If the proposing lessee disagrees with the Director's or the Board's determina- tion, he may refuse to commence the proposed operation. His refusal to do so shall not constitute a violation of the covenants for lease development, unless the amounts he would be required to pay to the prior lessee constitute such an insubstantial addition to the cost of operation that a reasonable, prudent lessee would assume them.

History

• Effective 2000-01-03

Chapter 22 Leasing of Bentonite

Wyo. Code R. 060.0002.22.01032000 Leasing of Bentonite

RULES AND REGULATIONS BOARD OF LAND COMMISSIONERS

Chapter 22

Leasing of Bentonite

Section 1. Authority.

This chapter is adopted pursuant to the authority granted in W.S. 36-6-101(b).

Section 2. Definitions.

(a) "Beneficiaries" means the common schools and those state institutions designated by Congress as beneficiaries of lands granted to the State of Wyoming.

(b) "Board" means the Board of Land Commissioners.

(c) "Director" means The Director of the Office of State Lands and Investments.

(d) "Office" means the Office of State Lands and Investments.

(e) "Mineral" means coal, trona/sodium, bentonite and associated minerals, clays, stones of various sorts, salts, and any and all substances formed by nature in or as rocks of the earth and recognized in law, geology, or by the courts as minerals.

(f) "State Lands" means all lands under the jurisdiction of the Board of Land Commissioners in which the Board owns some or all of the mineral estate.

Section 3. General Provisions.

(a) The Board may, without prior notice, withdraw specific lands from leasing for bento- nite when it appears reasonably necessary to protect the economic or environmental interests of the beneficiaries. Any party desiring to lease lands for bentonite which have been withdrawn may request that a withdrawal be rescinded in whole or in part.

(b) The Board may condition the issuance of any bentonite lease upon specific stipulations for the protection of the public, the environment, the waters of the state, historical, archeological or paleontological materials, the wildlife resources, or any of the subsurface or surface resources of the state.

(c) The Board may deny a bentonite lease to any person or legal entity which has failed to comply with any rules of the Board or any terms and conditions of any lease or other agreement with the Board.

(d) The Board may refuse to issue a bentonite lease or approve an assignment of an interest in an existing bentonite lease if issuing the lease or approving the assignment will diminish the interest of the beneficiaries.

(e) On lands in which the state owns less than the entire interest in the bentonite estate, a lease will be issued by the Board covering the state's interest independent of the other co-owners.

(f) An application may be filed for a lease on lands not shown by the records of the Office to be owned by the state. The applicant must submit evidence through the Office to the Wyoming Attorney General showing that it is probable that the lands applied for, or any interest therein, have escheated to the State of Wyoming. Such applicant shall coordinate with and pay for all costs for the Office and the Attorney General pursuant to the filing of a petition under W.S. 9-5-203 seeking title for the state. After receiving a court order vesting title in the state, the applicant shall have the right to lease the escheated lands under the Board's current form of lease without bidding thereon at auction. If the lands are not found to have escheated to the state, applicant will not be entitled to any lease or cost reimbursement.

(g) Discovery of historical, archaeological, or paleontological deposits on state lands during the course of development shall be reported to the Office by the lessee prior to further disturbance, and operations may only re-commence as authorized by the Director. The Director shall notify the lessee regarding mitigation within five (5) working days after receiving the report.

Section 4. Qualified Lessee.

To be qualified to receive or hold any interest in a state lease, corporations, limited partnerships, and limited liability companies must be authorized to transact business in the State of Wyoming by the Secretary of State, and general partnerships shall provide the Office with a copy of their partnership papers.

Section 5. Leasing Procedures.

(a) Bentonite shall be available for lease to the first qualified applicant filing an application. Applications may be filed with the Office during the regular hours of any business day. The Office shall note the date of filing on all applications. Applications filed on the same day, whether presented by personal delivery or received through any mail service, shall be considered as filed simultaneously.

(b) Each application must be accompanied by the required filing fee as established by the Board in Chapter 17 of the Board's rules. The filing fee will not be refunded on any application. An application under this section must also be accompanied by a remittance for the advance rental for the first year, at the rental per acre specified in Section 6 of this chapter.

(c) If two or more applications for the same interests in bentonite are filed simultaneously, the applications are in conflict.

(i) An application which is in conflict as to only a part of the lands applied for, shall be processed as to the lands not in conflict in the same manner as a separate application for such lands.

(ii) The priority of applications which are in conflict as to all or any part of the lands applied for shall, as to the lands in conflict, be determined by sealed bid between the applicants in conflict.

(d) When an application is rejected in its entirety, advance rentals paid by the applicant will be refunded. When rejected in part, the unused portion of the advance rental payment will be refunded.

(e) An application for a bentonite lease may be withdrawn, in whole or in part, at any time prior to issuance of lease. The advance rental and all fees transmitted with the application applicable to the portion of the application withdrawn, will be forfeited for failure to fulfill the obligations of the lease offer. However, if a withdrawal was for the purpose of removing a conflict, rentals applicable to the portion withdrawn will be refunded if a lease for the portion withdrawn is issued to another appli- cant.

(f) If the Board determines that any state bentonite lands should be offered for lease by competitive bidding, it shall enter an order setting a time and place for the sale, describing each tract to be offered, setting the terms of the leases to be issued, the terms and conditions of sale, the procedure to be followed in conducting the sale, and any other necessary information. Notice of sale shall be given in such form and manner as the Board shall direct.

Section 6. Rentals.

(a) The annual rental payments on all bentonite leases shall be:

(i) One dollar ($1) per acre for the first through the fifth years;

(ii) Two dollars ($2) per acre for the sixth through tenth years of the primary lease term and for any renewal year within a second ten (10) year term.

(iii) Three dollars ($3) per acre for each year for renewals for a third ten (10) year term; and

(iv) Four dollars ($4) per acre for each year for renewals for a fourth ten (10) year term.

(b) Failure to pay rentals on or before the lease anniversary date shall result in termination of the lease. Termination of a lease shall not relieve the lessee of any obligation incurred under the lease other than the obligation to pay rental or penalty.

(c) After initial submission of the increased annual rental required by the lease upon the discovery of bentonite in paying quantities, lessees are exempt from submission of subsequent annual creditable lease annual rentals for so long as annual royalties paid meet or exceed the required annual rental amount. The annual rental shall be held for a credit on annual royalty in any year the annual royalty does not equal the required annual rental (minimum royalty) amount. Any credit amount used in making up the difference in royalty paid and the minimum lease royalty due must be paid within thirty (30) days following the next lease anniversary date to continue the lease. The Office shall notify lessees of any minimum royalty amount due after the lease anniversary for which a shortfall occurs.

Section 7. Royalties.

(a) Royalties for bentonite shall be based on the terms of the particular lease agreement, subject to all state royalty statutes and rules, and shall be based on the total consideration received for state production. The following royalty rates shall apply, unless a different rate is specifically autho- rized by the Board:

(i) Where the average sales price for bulk bentonite products is under twenty dollars and ninety-nine cents ($20.99), at a rate of fifty-five cents ($0.55) per ton.

(ii) Where the average sales price for bulk bentonite products is from twenty-one dollars ($21) to twenty-three dollars and ninety-nine cents ($23.99), at a rate of sixty cents ($0.60) per ton.

(iii) Where the average sales price for bulk bentonite products is twenty-four dollars ($24) and above, at a rate of sixty cents ($0.60) per ton plus five cents ($0.05) per ton for each dollar or fraction thereof above twenty-four dollars ($24).

(iv) Royalties are due on a proportionate basis for State lease production in inventory at the percentage of tons that the State lease production bears to total production in inventory for each sale.

(b) After a bentonite lease becomes an operating lease, the Board may reduce the royalty payable to the state, as to all or any of the lands or formations covered by the lease, if it determines that such a reduction is necessary to allow the lessee to undertake additional operations or to continue to operate with a reasonable expectation that the operations will be profitable. Such a reduction in the royalty payable to the state shall in all cases be conditioned upon the cancellation of all cost-free inter- ests. The Board may also impose other conditions to the reduction in royalty.

Section 8. Lease Term.

(a) Bentonite leases shall be for a primary term of ten (10) years.

(b) The term of a bentonite lease may be extended beyond its primary term only as provided by law, by these rules, or by a specific lease provision.

Section 9. General Assignment Requirements.

(a) Pursuant to W.S. 36-6-101(c), the Director shall approve or disapprove any assignment or transfer of a lease or an interest therein. Assignments shall be submitted for approval in duplicate on the form provided by the Office. If an assignment transfers an interest in more than one lease, an extra duly executed copy of the assignment or a photostatic copy of the original assignment shall be fur- nished for each lease in which an interest is transferred. The required filing fee must be paid for each separate lease in which an interest is assigned.

(b) The Director shall approve an assignment which has been properly executed and ap- pears to comply with the law and this chapter, unless he determines that:

Approval would interfere with the development of the bentonite;

(ii) The assignable lease is delinquent in rental or royalty payment status;

(iii) Existing bonding is insufficient to cover lease premises activities;

(iv) Conditions exist that would otherwise be detrimental to the interests of the ben- eficiaries;

(v) The assignee is not a qualified lessee as provided in Section 4 of this chapter; or

(vi) The number of persons holding undivided interest in a lease exceed two (2) in number, unless a designation of agent or a power of attorney executed by all lessees is filed with the Office which designates one of the lessees as agent or attorney to receive all notices, pay all rentals, and is authorized to represent the lessees with the same effect as though the agent or attorney was the sole lessee. For the purposes of this paragraph, owners of overriding royalties, production payments or other cost-free interests are not considered lessees, but owners of carried working interest, net profit owners, and other persons who may be required to bear a share of the cost out of their share of the production are considered lessees.

(c) If the Director disapproves an assignment, he shall advise the assignee by letter of his decision, the reason for disapproval, and when possible, advise what action is necessary to secure approval.

(d) An assignment or transfer of a lease or any interest therein, including overriding royalties and other cost-free interests created out of the leasehold estate, must be in writing and executed and acknowledged in accordance with the requirements of the law applicable to conveyances of interest in real estate. The instrument must clearly set forth the serial number of the lease, accurately describe the lands affected, the interest being conveyed as a percentage of total leasehold, and be free of any ambi- guity.

Section 10. Partial Assignments.

(a) Subject to the requirements of this chapter, a lessee may assign or transfer all or part of his interest in the released acreage as to either a divided or undivided interest therein, including cost- free interest such as overriding royalties and production payments.

(b) The Director shall approve assignments or reservations of an overriding royalty subject to the condition that the overriding royalty or a portion thereof may be cancelled or suspended by the Board if it finds that it creates a burden upon the lease which prevents or unreasonably interferes with development.

(c) Assignment of a divided interest, i.e., an assignment of the full leasehold or working interest in a lease as to all interest in all deposits, formations, or depths below a separate tract of the lands subject to the lease or as to one or more separate deposits, formations, or depths below all or a part of the land subject to the lease, segregates the assigned interest from the retained interest and creates new lease obligations as to the lands and the deposits, formations, or depths assigned.

(i) The rights and obligations of the lessees under the retained portion and the assigned portion of the original lease are separate and distinct as though two (2) separate leases, one (1) covering only the retained interest and the other the assigned interest, had originally been issued on the effective date of the original lease.

(ii) The Director may disapprove any assignment which has the effect of creating separate lease obligations covering the retained and the assigned interest even though it purports to assign less than all of the leasehold or working interest, unless both assignor and assignee agree to accept the separate obligations.

(d) Upon assignment as to only a part of the lease acreage, including assignment as to separate deposits, formations, or depths, the Office may issue a reissue lease with a new serial number covering the assigned lands for the unexpired primary term. In lieu of issuing a reissue lease, the Office may note the assignment upon its records with all lands covered by the original lease maintained under the original serial number, and with each separate tract or interest resulting from an assignment desig- nated by a letter suffix to the original serial number. Each assignee holding a lease on a separate tract or interest may be required to furnish a bond under Section 12 of this chapter.

Section 11. Surface Integrity and Minimum Reclamation.

(a) Lessees shall use care and proper safeguards to prevent pollution of the soil or any water, including underground aquifers, by virtue of lessee's or lessee's designee's operation on state lands and shall capture and dispose of any operation's pollutants not permitted under Wyoming Department of Environmental Quality regulation, resulting from lessee's or lessee's designee's operations, and shall be responsible for any and all damages caused thereby related to lessee's operations.

(b) Upon completion of operations on state lands, all related disturbances on state lands must be reclaimed to leave the land in as near as practicable to the original condition of the land prior to operations. All topsoil must be salvaged before an area is disturbed by roads, buildings or other related activities. The salvaged topsoil must be stockpiled in such a way to protect it from wind and water erosion. If no topsoil exists for use in reclamation, with the Director's written approval, a cover soil that has been amended to sustain vegetation may be applied. If lessees can demonstrate that stripping and stockpiling of topsoil as precursor to their activities will be more detrimental to the topsoil as relates to reclamation, the Director may waive this requirement.

(c) New roads shall cross all drainages at right angles with culverts installed in a manner to avoid constricting the flow of surface water. All drainage or creek crossings must be constructed of erosion resistant material and constructed in a manner to prevent degradation of waters of the state from eroded sediment. No pits or impoundments shall remain after operations and reclamation activi- ties, unless they have developed into viable wetlands as that term is defined by current federal regula- tion or if the pits or impoundments could potentially be of use to the state or to the surface lessee. All reclaimed areas must have slopes as approved by the Director and in conformance with existing State of Wyoming laws, rules, and regulations governing reclamation.

(d) All reclaimed areas must be reseeded, where possible, with an approved seed mixture.

Section 12. Bonds.

(a) A lessee is not required to post a bond until actual operations, including exploration activities, are to be commenced on the leased lands. Before commencing actual operations, the lessee shall advise the Office and outline in detail the nature of the operations proposed. Operations shall not commence until an adequate bond has been furnished and approved.

(b) The bond shall be in an amount found by the Director sufficient to protect and indem- nify the State of Wyoming and shall be in the form approved by the Wyoming Attorney General. Two (2) executed copies of the bond must be submitted to the Office. The bond shall bind the principal and its surety for:

(i) The payment of all moneys, rents, and royalties accruing to the Board;

(ii) Full compliance with all applicable statutes and terms and conditions of the Board's leases and rules and regulations;

(iii) Reclamation of the surface; and

(iv) For the payment of all disturbances to the surface and improvements thereon.

(c) The bond shall be one of the following:

(i) A corporate surety bond executed by the lessee and by a surety authorized to do business in the state;

(ii) A cash bond;

(iii) A certified cashier's check made payable to the Office of State Lands and In- vestments;

(iv) A certificate of deposit in the name of the Office of State Lands and Invest- ments;

(v) Non-revocable letters of credit; or

(vi) AAA-rated debentures of sufficient market value to meet bonding minimums with a signed stock power made out to the Office of State Lands and Investments.

(d) In lieu of individual lease bonds, the lessee may request and the Director may allow the lessee to file a corporate surety bond in the sum of not less than one hundred thousand dollars ($100,000) covering all of the lessee's state leases.

(e) The furnishing of a bond as required by the Wyoming Department of Environmental Quality or some other agency having jurisdiction over the proposed operation shall not relieve the lessee of the duty to furnish bond as required by this section, but such fact shall be taken into account by the Director in determining a waiver of the bonding requirement or the amount of the bond to be required.

(f) The lessee shall promptly advise the Office of any change in operations. The Office may at any time reduce or increase the amount of the bond as conditions may require.

Section 13. Relinquishment.

(a) A bentonite lease or any divided interest therein may be relinquished by the record title holder to the Board in the following manner:

(i) If no operations have been conducted under the lease and no surface disturbance or damage has occurred on the land to be relinquished, the lessee shall file with the Office a written statement on a form provided by the Office that he wishes to relinquish the lease or interest. The relinquishment shall become effective on the date and hour of receipt by the Office or at some later date if specified.

(ii) If operations have been conducted under the lease or surface disturbance or damage has occurred on land proposed to be relinquished, the lessee shall file with the Office a statement on form provided by the Office that he wishes to relinquish the lease or interest. Relinquishment shall not become effective until the land shall have been placed in acceptable condition and the Department of Environmental Quality or such other agency as may have jurisdiction has certified that the lands have been adequately reclaimed or restored before the relinquishment is effective.

(iii) Once a relinquishment on state lands becomes effective, the lease may not be reinstated. The lands shall be made available for lease as provided in Section 5 of this chapter.

Section 14. Royalty Reporting.

All lessees shall submit to the Office a completed monthly reporting statement on a form pro- vided by the Office for each lease (Form M-3c). The lessee shall submit each lease statement within thirty (30) days of the last day of the month of sales for bentonite. The lessee shall attach to the M-3c statement copies of original arms-length sales transaction documents showing the quantity, quality, and value of products sold, including all lease volume sales through affiliate companies.

Section 15. Field Audits.

(a) The Wyoming Department of Audit, the Director, or the duly authorized representative of either shall have the right at reasonable times and intervals to audit the books and records of any bentonite or operator on state lands and to inspect the leased premises and conduct field audits for the purpose of determining compliance with this chapter or the terms of the lease.

(b) Any and all parties producing, selling, transporting, and purchasing state lands royalty interest shall retain their records for six (6) years from the date of sale reporting as due under this chapter for any production from or allocated to state lands for all periods ending after January 1, 2000.

(c) Absent state lessee or operator production sales reporting as required in this subsection, the state's bentonite lessee shall only sell or deliver any leased substance to any person who agrees:

(i) To file reports with the Office stating the price, quantity, origin, and disposition of all production purchased from a state lease; and

(ii) To allow an audit as provided for in this section.

Section 16. Cancellation for Default.

(a) If any bentonite lessee defaults in the performance or observance of any of this chapter or any of the terms, covenants, or conditions of the lease under which it is operating, the Board may serve notice of such failure or default either by personal service or by certified or registered mail upon the lessee. If the failure or default continues for a period of thirty (30) days after service of the notice, the Board may declare a forfeiture and cancel the lease, whereupon all rights and privileges obtained by the lessee under the lease shall terminate and the Board may re-enter and take possession of the pre- mises.

(b) This section shall not be construed to prevent the exercise by the Director or the Board of any other legal or equitable remedy which the state might otherwise have nor to relieve the lessee from any accrued obligation under the lease. Failure of the lessor to give notice of default in any particular case or waiver of a particular cause of forfeiture shall not prevent the cancellation and forfei- ture of the lease for any other cause of forfeiture or for the same default or cause if it continues or occurs at any other time.

Section 17. Multiple Use.

(a) The Board may issue separate leases for different minerals on the same tract of land. If all mineral leases under a tract of land are non-producing leases, each lessee has an equal right to conduct exploratory operations on the land, and each shall conduct such operations in a manner which does not prevent or unduly interfere with the operations of the other.

(b) The first lessee to commence actual production operations so that his lease becomes an operating lease shall have the right to continue operations without substantial interference from any other mineral lessee so long as the lease remains in effect. The lessee may not be deprived of this right in whole or in part without compensation equal to the value of the rights lost as per Subsection (d)(iii) of this section.

(c) If a lessee desires to commence operations on the same tract upon which one or more lessees are already conducting operations, and the lessees can agree that the operations can be conducted at the same time without materially reducing the amount or value of the resources which will be produced under each lease, and without unduly interfering with or raising the cost of operations of the prior lessee(s), unless he is adequately compensated therefor, the lessees may agree upon a plan of operations and assessment of costs under which the operations may be carried out concurrently. Any such agreement shall be submitted to and be subject to the approval of the Board.

(d) If, under the circumstances set out in Subsection (c) of this section, the lessees either agree that the operations cannot be carried out concurrently or cannot agree upon a plan of operations and assessment of costs, the Director may resolve the conflict.

(i) If the Director determines that the operations can be carried out concurrently without materially reducing the quantity or value of the bentonite which will be produced, and either that the costs of operation of any prior lessee(s) will not be increased significantly, or that if they are, such costs are capable of determination and if paid by the subsequent lessee will not constitute an unreasonable burden on the operation, he shall enter his decision approving a plan of operation and assessment of cost under which operations may be carried out concurrently.

(ii) If the Director determines that the proposed operations cannot be carried out concurrently and that the value which will be realized by the beneficiaries from the existing operation is such that the proposed operation should be deferred, he shall enter his decision deferring the development obligations under the lease of the proposing lessee. The lease will be placed in operating status and remain in effect subject to the requirement that annual rentals will be paid and to the condition that if development is deferred more than five (5) years, the lease may be amended to conform to the lease form in effect upon commencement of production operations for the class of subsurface resource to be produced.

(iii) If the Director determines that the proposed operations cannot be carried out concurrently and that the benefit which would be realized by the beneficiaries from initiating the proposed operation so far exceeds that which would be realized from the existing operation that it is clearly more beneficial to the beneficiaries that the existing operation be terminated or deferred and the proposed operation commenced, he shall enter his decision terminating the existing operation and allowing the commencement of the proposed operation, conditioned upon the payment by the lessee proposing the operation to the lessee whose operations are terminated of an amount equal to the value of the rights lost by that lessee determined in the same manner as if the right were being condemned in eminent domain proceedings.

(iv) A lease upon which operations are terminated as above provided shall, upon payment to the lessee of the value of the right lost, be assigned to the lessee making the payment, who shall be entitled to hold it subject to the same terms and conditions applicable to a lease upon which operations were deferred under Paragraph (ii) of this section.

(v) If the proposing lessee disagrees with the Director's or the Board's determination, he may refuse to commence the proposed operation. His refusal to do so shall not constitute a violation of the covenants for lease development, unless the amounts he would be required to pay to the prior lessee constitute such an insubstantial addition to the cost of operation that a reasonable, prudent lessee would assume them.

History

• Effective 2000-01-03

Chapter 23 Leasing of Zeolite

Wyo. Code R. 060.0002.23.01032000 Leasing of Zeolite

RULES AND REGULATIONS BOARD OF LAND COMMISSIONERS

Chapter 23

Leasing of Zeolite

Section 1. Authority.

This chapter is adopted pursuant to the authority granted in W.S. 36-6-101(b).

Section 2. Definitions.

(a) "Beneficiaries" means the common schools and those state institutions designated by Congress as beneficiaries of lands granted to the State of Wyoming.

(b) "Board" means the Board of Land Commissioners.

(c) "Director" means The Director of the Office of State Lands and Investments.

(d) "Office" means the Office of State Lands and Investments.

(e) "Mineral" means coal, trona/sodium, zeolite and associated minerals, clays, stones of various sorts, salts, and any and all substances formed by nature in or as rocks of the earth and recognized in law, geology, or by the courts as minerals.

(f) "State Lands" means all lands under the jurisdiction of the Board of Land Commissioners in which the Board owns some or all of the mineral estate.

Section 3. General Provisions.

(a) The Board may, without prior notice, withdraw specific lands from leasing for zeolite when it appears reasonably necessary to protect the economic or environmental interests of the beneficiaries. Any party desiring to lease lands for zeolite which have been withdrawn may request that a withdrawal be rescinded in whole or in part.

(b) The Board may condition the issuance of any zeolite lease upon specific stipulations for the protection of the public, the environment, the waters of the state, historical, archeological or paleontological materials, the wildlife resources, or any of the subsurface or surface resources of the state.

(c) The Board may deny a zeolite lease to any person or legal entity which has failed to comply with any rules of the Board or any terms and conditions of any lease or other agreement with the Board.

(d) The Board may refuse to issue a zeolite lease or approve an assignment of an interest in an existing zeolite lease if issuing the lease or approving the assignment will diminish the interest of the beneficiaries.

(e) On lands in which the state owns less than the entire interest in the zeolite estate, a lease will be issued by the Board covering the state's interest independent of the other co-owners.

(f) An application may be filed for a lease on lands not shown by the records of the Office to be owned by the state. The applicant must submit evidence through the Office to the Wyoming Attorney General showing that it is probable that the lands applied for, or any interest therein, have escheated to the State of Wyoming. Such applicant shall coordinate with and pay for all costs for the Office and the Attorney General pursuant to the filing of a petition under W.S. 9-5-203 seeking title for the state. After receiving a court order vesting title in the state, the applicant shall have the right to lease the escheated lands under the Board's current form of lease without bidding thereon at auction. If the lands are not found to have escheated to the state, applicant will not be entitled to any lease or cost reimbursement.

(g) Discovery of historical, archaeological, or paleontological deposits on state lands during the course of development shall be reported to the Office by the lessee prior to further disturbance, and operations may only re-commence as authorized by the Director. The Director shall notify the lessee regarding mitigation within five (5) working days after receiving the report.

Section 4. Qualified Lessee.

To be qualified to receive or hold any interest in a state lease, corporations, limited partnerships, and limited liability companies must be authorized to transact business in the State of Wyoming by the Secretary of State, and general partnerships shall provide the Office with a copy of their partnership papers.

Section 5. Leasing Procedures.

(a) Zeolite shall be available for lease to the first qualified applicant filing an application. Applications may be filed with the Office during the regular hours of any business day. The Office shall note the date of filing on all applications. Applications filed on the same day, whether presented by personal delivery or received through any mail service, shall be considered as filed simultaneously.

(b) Each application must be accompanied by the required filing fee as established by the Board in Chapter 17 of the Board's rules. The filing fee will not be refunded on any application. An application under this section must also be accompanied by a remittance for the advance rental for the first year, at the rental per acre specified in Section 6 of this chapter.

(c) If two or more applications for the same interests in zeolite are filed simultaneously, the applications are in conflict.

(i) An application which is in conflict as to only a part of the lands applied for, shall be processed as to the lands not in conflict in the same manner as a separate application for such lands.

(ii) The priority of applications which are in conflict as to all or any part of the lands applied for shall, as to the lands in conflict, be determined by sealed bid between the applicants in conflict.

(d) When an application is rejected in its entirety, advance rentals paid by the applicant will be refunded. When rejected in part, the unused portion of the advance rental payment will be refunded.

(e) An application for a zeolite lease may be withdrawn, in whole or in part, at any time prior to issuance of lease. The advance rental and all fees transmitted with the application applicable to the portion of the application withdrawn, will be forfeited for failure to fulfill the obligations of the lease offer. However, if a withdrawal was for the purpose of removing a conflict, rentals applicable to the portion withdrawn will be refunded if a lease for the portion withdrawn is issued to another applicant.

(f) If the Board determines that any state zeolite lands should be offered for lease by competitive bidding, it shall enter an order setting a time and place for the sale, describing each tract to be offered, setting the terms of the leases to be issued, the terms and conditions of sale, the procedure to be followed in conducting the sale, and any other necessary information. Notice of sale shall be given in such form and manner as the Board shall direct.

Section 6. Rentals.

(a) The annual rental payments on all zeolite leases shall be:

(i) One dollar ($1) per acre for the first through the fifth years;

(ii) Two dollars ($2) per acre for the sixth through tenth years of the primary lease term and for any renewal year within a second ten (10) year term.

(iii) Three dollars ($3) per acre for each year for renewals for a third ten (10) year term; and

(iv) Four dollars ($4) per acre for each year for renewals for a fourth ten (10) year term.

(b) Failure to pay rentals on or before the lease anniversary date shall result in termination of the lease. Termination of a lease shall not relieve the lessee of any obligation incurred under the lease other than the obligation to pay rental or penalty.

(c) After initial submission of the increased annual rental required by the lease upon the discovery of zeolite in paying quantities, lessees are exempt from submission of subsequent annual creditable lease annual rentals for so long as annual royalties paid meet or exceed the required annual rental amount. The annual rental shall be held for a credit on annual royalty in any year the annual royalty does not equal the required annual rental (minimum royalty) amount. Any credit amount used in making up the difference in royalty paid and the minimum lease royalty due must be paid within thirty (30) days following the next lease anniversary date to continue the lease. The Office shall notify lessees of any minimum royalty amount due after the lease anniversary for which a shortfall occurs.

Section 7. Royalties.

(a) Royalties for zeolite shall be based on the terms of the particular lease agreement, subject to all state royalty statutes and rules, and shall be based on the total consideration received for state production. The following royalty rates shall apply, unless a different rate is specifically authorized by the Board:

(i) Where the average sales price for bulk zeolite products is under twenty-dollars and ninety-nine cents ($20.99), at a rate of fifty-five cents ($0.55) per ton.

(ii) Where the average sales price for bulk zeolite products is from twenty-one dollars ($21) to twenty-three dollars and ninety-nine cents ($23.99), at a rate of sixty cents ($0.60) per ton.

(iii) Where the average sales price for bulk zeolite products is twenty-four dollars ($24) and above, at a rate of sixty cents ($0.60) per ton plus five cents ($0.05) per ton for each dollar or fraction thereof above twenty-four dollars ($24).

(iv) Royalties are due on a proportionate basis for State lease production in inventory at the percentage of pounds that the State lease production bears to total production in inventory for each sale.

(b) After a zeolite lease becomes an operating lease, the Board may reduce the royalty payable to the state, as to all or any of the lands or formations covered by the lease, if it determines that such a reduction is necessary to allow the lessee to undertake additional operations or to continue to operate with a reasonable expectation that the operations will be profitable. Such a reduction in the royalty payable to the state shall in all cases be conditioned upon the cancellation of all cost-free inter- ests. The Board may also impose other conditions to the reduction in royalty.

Section 8. Lease Term.

(a) Zeolite leases shall be for a primary term of ten (10) years.

(b) The term of a zeolite lease may be extended beyond its primary term only as provided by law, by these rules, or by a specific lease provision.

Section 9. General Assignment Requirements.

(a) Pursuant to W.S. 36-6-101(c), the Director shall approve or disapprove any assignment or transfer of a lease or an interest therein. Assignments shall be submitted for approval in duplicate on the form provided by the Office. If an assignment transfers an interest in more than one lease, an extra duly executed copy of the assignment or a photostatic copy of the original assignment shall be fur- nished for each lease in which an interest is transferred. The required filing fee must be paid for each separate lease in which an interest is assigned.

(b) The Director shall approve an assignment which has been properly executed and ap- pears to comply with the law and this chapter, unless he determines that:

Approval would interfere with the development of the zeolite;

(ii) The assignable lease is delinquent in rental or royalty payment status;

(iii) Existing bonding is insufficient to cover lease premises activities;

(iv) Conditions exist that would otherwise be detrimental to the interests of the ben- eficiaries;

(v) The assignee is not a qualified lessee as provided in Section 4 of this chapter; or

(vi) The number of persons holding undivided interest in a lease exceed two (2) in number, unless a designation of agent or a power of attorney executed by all lessees is filed with the Office which designates one of the lessees as agent or attorney to receive all notices, pay all rentals, and is authorized to represent the lessees with the same effect as though the agent or attorney was the sole lessee. For the purposes of this paragraph, owners of overriding royalties, production payments or other cost-free interests are not considered lessees, but owners of carried working interest, net profit owners, and other persons who may be required to bear a share of the cost out of their share of the production are considered lessees.

(c) If the Director disapproves an assignment, he shall advise the assignee by letter of his decision, the reason for disapproval, and when possible, advise what action is necessary to secure approval.

(d) An assignment or transfer of a lease or any interest therein, including overriding royalties and other cost-free interests created out of the leasehold estate, must be in writing and executed and acknowledged in accordance with the requirements of the law applicable to conveyances of interest in real estate. The instrument must clearly set forth the serial number of the lease, accurately describe the lands affected, the interest being conveyed as a percentage of total leasehold, and be free of any ambi- guity.

Section 10. Partial Assignments.

(a) Subject to the requirements of this chapter, a lessee may assign or transfer all or part of his interest in the released acreage as to either a divided or undivided interest therein, including cost- free interest such as overriding royalties and production payments.

(b) The Director shall approve assignments or reservations of an overriding royalty subject to the condition that the overriding royalty or a portion thereof may be cancelled or suspended by the Board if it finds that it creates a burden upon the lease which prevents or unreasonably interferes with development.

(c) Assignment of a divided interest, i.e., an assignment of the full leasehold or working interest in a lease as to all interest in all deposits, formations, or depths below a separate tract of the lands subject to the lease or as to one or more separate deposits, formations, or depths below all or a part of the land subject to the lease, segregates the assigned interest from the retained interest and creates new lease obligations as to the lands and the deposits, formations, or depths assigned.

(i) The rights and obligations of the lessees under the retained portion and the assigned portion of the original lease are separate and distinct as though two (2) separate leases, one (1) covering only the retained interest and the other the assigned interest, had originally been issued on the effective date of the original lease.

(ii) The Director may disapprove any assignment which has the effect of creating separate lease obligations covering the retained and the assigned interest even though it purports to assign less than all of the leasehold or working interest, unless both assignor and assignee agree to accept the separate obligations.

(d) Upon assignment as to only a part of the lease acreage, including assignment as to separate deposits, formations, or depths, the Office may issue a reissue lease with a new serial number covering the assigned lands for the unexpired primary term. In lieu of issuing a reissue lease, the Office may note the assignment upon its records with all lands covered by the original lease maintained under the original serial number, and with each separate tract or interest resulting from an assignment designated by a letter suffix to the original serial number. Each assignee holding a lease on a separate tract or interest may be required to furnish a bond under Section 12 of this chapter.

Section 11. Surface Integrity and Minimum Reclamation.

(a) Lessees shall use care and proper safeguards to prevent pollution of the soil or any water, including underground aquifers, by virtue of lessee's or lessee's designee's operation on state lands and shall capture and dispose of any operation's pollutants not permitted under Wyoming Department of Environmental Quality regulation, resulting from lessee's or lessee's designee's operations, and shall be responsible for any and all damages caused thereby related to lessee's operations.

(b) Upon completion of operations on state lands, all related disturbances on state lands must be reclaimed to leave the land in as near as practicable to the original condition of the land prior to operations. All topsoil must be salvaged before an area is disturbed by roads, buildings or other related activities. The salvaged topsoil must be stockpiled in such a way to protect it from wind and water erosion. If no topsoil exists for use in reclamation, with the Director's written approval, a cover soil that has been amended to sustain vegetation may be applied. If lessees can demonstrate that strip- ping and stockpiling of topsoil as precursor to their activities will be more detrimental to the topsoil as relates to reclamation, the Director may waive this requirement.

(c) New roads shall cross all drainages at right angles with culverts installed in a manner to avoid constricting the flow of surface water. All drainage or creek crossings must be constructed of erosion resistant material and constructed in a manner to prevent degradation of waters of the state from eroded sediment. No pits or impoundments shall remain after operations and reclamation activities, unless they have developed into viable wetlands as that term is defined by current federal regulation or if the pits or impoundments could potentially be of use to the state or to the surface lessee. All reclaimed areas must have slopes as approved by the Director and in conformance with existing State of Wyoming laws, rules, and regulations governing reclamation.

(d) All reclaimed areas must be reseeded, where possible, with an approved seed mixture.

Section 12. Bonds.

(a) A lessee is not required to post a bond until actual operations, including exploration activities, are to be commenced on the leased lands. Before commencing actual operations, the lessee shall advise the Office and outline in detail the nature of the operations proposed. Operations shall not commence until an adequate bond has been furnished and approved.

(b) The bond shall be in an amount found by the Director sufficient to protect and indemnify the State of Wyoming and shall be in the form approved by the Wyoming Attorney General. Two (2) executed copies of the bond must be submitted to the Office. The bond shall bind the principal and its surety for:

(i) The payment of all moneys, rents, and royalties accruing to the Board;

(ii) Full compliance with all applicable statutes and terms and conditions of the Board's leases and rules and regulations;

(iii) Reclamation of the surface; and

(iv) For the payment of all disturbances to the surface and improvements thereon.

(c) The bond shall be one of the following:

(i) A corporate surety bond executed by the lessee and by a surety authorized to do business in the state;

(ii) A cash bond;

(iii) A certified cashier's check made payable to the Office of State Lands and In- vestments;

(iv) A certificate of deposit in the name of the Office of State Lands and Invest- ments;

(v) Non-revocable letters of credit; or

(vi) AAA-rated debentures of sufficient market value to meet bonding minimums with a signed stock power made out to the Office of State Lands and Investments.

(d) In lieu of individual lease bonds, the lessee may request and the Director may allow the lessee to file a corporate surety bond in the sum of not less than one hundred thousand dollars ($100,000) covering all of the lessee's state leases.

(e) The furnishing of a bond as required by the Wyoming Department of Environmental Quality or some other agency having jurisdiction over the proposed operation shall not relieve the lessee of the duty to furnish bond as required by this section, but such fact shall be taken into account by the Director in determining a waiver of the bonding requirement or the amount of the bond to be required.

(f) The lessee shall promptly advise the Office of any change in operations. The Office may at any time reduce or increase the amount of the bond as conditions may require.

Section 13. Relinquishment.

(a) A zeolite lease or any divided interest therein may be relinquished by the record title holder to the Board in the following manner:

(i) If no operations have been conducted under the lease and no surface disturbance or damage has occurred on the land to be relinquished, the lessee shall file with the Office a written statement on a form provided by the Office that he wishes to relinquish the lease or interest. The relinquishment shall become effective on the date and hour of receipt by the Office or at some later date if specified.

(ii) If operations have been conducted under the lease or surface disturbance or dam- age has occurred on land proposed to be relinquished, the lessee shall file with the Office a statement on form provided by the Office that he wishes to relinquish the lease or interest. Relinquishment shall not become effective until the land shall have been placed in acceptable condition and the Department of Environmental Quality or such other agency as may have jurisdiction has certified that the lands have been adequately reclaimed or restored before the relinquishment is effective.

(iii) Once a relinquishment on state lands becomes effective, the lease may not be reinstated. The lands shall be made available for lease as provided in Section 5 of this chapter.

Section 14. Royalty Reporting.

All lessees shall submit to the Office a completed monthly reporting statement on a form pro- vided by the Office for each lease (Form M-3c). The lessee shall submit each lease statement within thirty (30) days of the last day of the month of sales for zeolite. The lessee shall attach to the M-3c statement copies of original arms-length sales transaction documents showing the quantity, quality, and value of products sold, including all lease volume sales through affiliate companies.

Section 15. Field Audits.

(a) The Wyoming Department of Audit, the Director, or the duly authorized representative of either shall have the right at reasonable times and intervals to audit the books and records of any zeolite or operator on state lands and to inspect the leased premises and conduct field audits for the purpose of determining compliance with this chapter or the terms of the lease.

(b) Any and all parties producing, selling, transporting, and purchasing state lands royalty interest shall retain their records for six (6) years from the date of sale reporting as due under this chapter for any production from or allocated to state lands for all periods ending after January 1, 2000.

(c) Absent state lessee or operator production sales reporting as required in this subsection, the state's zeolite lessee shall only sell or deliver any leased substance to any person who agrees:

(i) To file reports with the Office stating the price, quantity, origin, and disposition of all production purchased from a state lease; and

(ii) To allow an audit as provided for in this section.

Section 16. Cancellation for Default.

(a) If any zeolite lessee defaults in the performance or observance of any of this chapter or any of the terms, covenants, or conditions of the lease under which it is operating, the Board may serve notice of such failure or default either by personal service or by certified or registered mail upon the lessee. If the failure or default continues for a period of thirty (30) days after service of the notice, the Board may declare a forfeiture and cancel the lease, whereupon all rights and privileges obtained by the lessee under the lease shall terminate and the Board may re-enter and take possession of the premises.

(b) This section shall not be construed to prevent the exercise by the Director or the Board of any other legal or equitable remedy which the state might otherwise have nor to relieve the lessee from any accrued obligation under the lease. Failure of the lessor to give notice of default in any particular case or waiver of a particular cause of forfeiture shall not prevent the cancellation and forfei- ture of the lease for any other cause of forfeiture or for the same default or cause if it continues or occurs at any other time.

Section 17. Multiple Use.

(a) The Board may issue separate leases for different minerals on the same tract of land. If all mineral leases under a tract of land are non-producing leases, each lessee has an equal right to conduct exploratory operations on the land, and each shall conduct such operations in a manner which does not prevent or unduly interfere with the operations of the other.

(b) The first lessee to commence actual production operations so that his lease becomes an operating lease shall have the right to continue operations without substantial interference from any other mineral lessee so long as the lease remains in effect. The lessee may not be deprived of this right in whole or in part without compensation equal to the value of the rights lost as per Subsection (d)(iii) of this section.

(c) If a lessee desires to commence operations on the same tract upon which one or more lessees are already conducting operations, and the lessees can agree that the operations can be conducted at the same time without materially reducing the amount or value of the resources which will be produced under each lease, and without unduly interfering with or raising the cost of operations of the prior lessee(s), unless he is adequately compensated therefor, the lessees may agree upon a plan of operations and assessment of costs under which the operations may be carried out concurrently. Any such agreement shall be submitted to and be subject to the approval of the Board.

(d) If, under the circumstances set out in Subsection (c) of this section, the lessees either agree that the operations cannot be carried out concurrently or cannot agree upon a plan of operations and assessment of costs, the Director may resolve the conflict.

(i) If the Director determines that the operations can be carried out concurrently without materially reducing the quantity or value of the zeolite which will be produced, and either that the costs of operation of any prior lessee(s) will not be increased significantly, or that if they are, such costs are capable of determination and if paid by the subsequent lessee will not constitute an unreasonable burden on the operation, he shall enter his decision approving a plan of operation and assessment of cost under which operations may be carried out concurrently.

(ii) If the Director determines that the proposed operations cannot be carried out concurrently and that the value which will be realized by the beneficiaries from the existing operation is such that the proposed operation should be deferred, he shall enter his decision deferring the development obligations under the lease of the proposing lessee. The lease will be placed in operating status and remain in effect subject to the requirement that annual rentals will be paid and to the condition that if development is deferred more than five (5) years, the lease may be amended to conform to the lease form in effect upon commencement of production operations for the class of subsurface resource to be produced.

(iii) If the Director determines that the proposed operations cannot be carried out concurrently and that the benefit which would be realized by the beneficiaries from initiating the pro- posed operation so far exceeds that which would be realized from the existing operation that it is clearly more beneficial to the beneficiaries that the existing operation be terminated or deferred and the proposed operation commenced, he shall enter his decision terminating the existing operation and allowing the commencement of the proposed operation, conditioned upon the payment by the lessee proposing the operation to the lessee whose operations are terminated of an amount equal to the value of the rights lost by that lessee determined in the same manner as if the right were being condemned in eminent domain proceedings.

(iv) A lease upon which operations are terminated as above provided shall, upon payment to the lessee of the value of the right lost, be assigned to the lessee making the payment, who shall be entitled to hold it subject to the same terms and conditions applicable to a lease upon which operations were deferred under Paragraph (ii) of this section.

(v) If the proposing lessee disagrees with the Director's or the Board's determination, he may refuse to commence the proposed operation. His refusal to do so shall not constitute a violation of the covenants for lease development, unless the amounts he would be required to pay to the prior lessee constitute such an insubstantial addition to the cost of operation that a reasonable, prudent lessee would assume them.

History

• Effective 2000-01-03

Chapter 24 Leasing of Metallic & Non-metallic Rocks & Minerals

Wyo. Code R. 060.0002.24.01032000 Leasing of Metallic & Non-metallic Rocks & Minerals

RULES AND REGULATIONS RULES AND REGULATIONS BOARD OF LAND COMMISSIONERS

Chapter 24

Leasing of Metallic & Non-metallic Rocks & Minerals

Section 1. Authority.

This chapter is adopted pursuant to the authority granted in W.S. 36-6-101(b).

Section 2. Definitions.

(a) "Beneficiaries" means the common schools and those state institutions designated by Congress as beneficiaries of lands granted to the State of Wyoming.

(b) "Board" means the Board of Land Commissioners.

(c) "Director" means The Director of the Office of State Lands and Investments.

(d) "Office" means the Office of State Lands and Investments.

(e) "Mineral" means coal, trona/sodium, metallic & non-metallic rocks & minerals and associated minerals, clays, stones of various sorts, salts, and any and all substances formed by nature in or as rocks of the earth and recognized in law, geology, or by the courts as minerals.

(f) "State Lands" means all lands under the jurisdiction of the Board of Land Commissioners in which the Board owns some or all of the mineral estate.

Section 3. General Provisions.

(a) The Board may, without prior notice, withdraw specific lands from leasing for metallic non-metallic rocks & minerals when it appears reasonably necessary to protect the economic or environmental interests of the beneficiaries. Any party desiring to lease lands for metallic & non-metallic rocks & minerals which have been withdrawn may request that a withdrawal be rescinded in whole or in part.

(b) The Board may condition the issuance of any metallic & non-metallic rocks & minerals lease upon specific stipulations for the protection of the public, the environment, the waters of the state, historical, archeological or paleontological materials, the wildlife resources, or any of the subsurface or surface resources of the state.

(c) The Board may deny a metallic & non-metallic rocks & minerals lease to any person or legal entity which has failed to comply with any rules of the Board or any terms and conditions of any lease or other agreement with the Board.

(d) The Board may refuse to issue a metallic & non-metallic rocks & minerals lease or approve an assignment of an interest in an existing metallic & non-metallic rocks & minerals lease if issuing the lease or approving the assignment will diminish the interest of the beneficiaries.

(e) On lands in which the state owns less than the entire interest in the metallic & non-metallic rocks & minerals estate, a lease will be issued by the Board covering the state's interest independent of the other co-owners.

(f) An application may be filed for a lease on lands not shown by the records of the Office to be owned by the state. The applicant must submit evidence through the Office to the Wyoming Attorney General showing that it is probable that the lands applied for, or any interest therein, have escheated to the State of Wyoming. Such applicant shall coordinate with and pay for all costs for the Office and the Attorney General pursuant to the filing of a petition under W.S. 9-5-203 seeking title for the state. After receiving a court order vesting title in the state, the applicant shall have the right to lease the escheated lands under the Board's current form of lease without bidding thereon at auction. If the lands are not found to have escheated to the state, applicant will not be entitled to any lease or cost reimbursement.

(g) Discovery of historical, archaeological, or paleontological deposits on state lands dur- ing the course of development shall be reported to the Office by the lessee prior to further disturbance, and operations may only re-commence as authorized by the Director. The Director shall notify the lessee regarding mitigation within five (5) working days after receiving the report.

Section 4. Qualified Lessee.

To be qualified to receive or hold any interest in a state lease, corporations, limited partnerships, and limited liability companies must be authorized to transact business in the State of Wyoming by the Secretary of State, and general partnerships shall provide the Office with a copy of their partnership papers.

Section 5. Leasing Procedures.

(a) Metallic & non-metallic rocks & minerals shall be available for lease to the first qualified applicant filing an application. Applications may be filed with the Office during the regular hours of any business day. The Office shall note the date of filing on all applications. Applications filed on the same day, whether presented by personal delivery or received through any mail service, shall be considered as filed simultaneously.

(b) Each application must be accompanied by the required filing fee as established by the Board in Chapter 17 of the Board's rules. The filing fee will not be refunded on any application. An application under this section must also be accompanied by a remittance for the advance rental for the first year, at the rental per acre specified in Section 6 of this chapter.

(c) If two or more applications for the same interests in metallic & non-metallic rocks & minerals are filed simultaneously, the applications are in conflict.

(i) An application which is in conflict as to only a part of the lands applied for, shall be processed as to the lands not in conflict in the same manner as a separate application for such lands.

(ii) The priority of applications which are in conflict as to all or any part of the lands applied for shall, as to the lands in conflict, be determined by sealed bid between the applicants in conflict.

(d) When an application is rejected in its entirety, advance rentals paid by the applicant will be refunded. When rejected in part, the unused portion of the advance rental payment will be refunded.

(e) An application for a metallic & non-metallic rocks & minerals lease may be withdrawn, in whole or in part, at any time prior to issuance of lease. The advance rental and all fees transmitted with the application applicable to the portion of the application withdrawn, will be forfeited for failure to fulfill the obligations of the lease offer. However, if a withdrawal was for the purpose of removing conflict, rentals applicable to the portion withdrawn will be refunded if a lease for the portion with- drawn is issued to another applicant.

(f) If the Board determines that any state metallic & non-metallic rocks & minerals lands should be offered for lease by competitive bidding, it shall enter an order setting a time and place for the sale, describing each tract to be offered, setting the terms of the leases to be issued, the terms and conditions of sale, the procedure to be followed in conducting the sale, and any other necessary infor- mation. Notice of sale shall be given in such form and manner as the Board shall direct.

Section 6. Rentals.

(a) The annual rental payments on all metallic & non-metallic rocks & minerals leases shall be:

(i) One dollar ($1) per acre for the first through the fifth years;

(ii) Two dollars ($2) per acre for the sixth through tenth years of the primary lease term and for any renewal year within a second ten (10) year term.

(iii) Three dollars ($3) per acre for each year for renewals for a third ten (10) year term; and

(iv) Four dollars ($4) per acre for each year for renewals for a fourth ten (10) year term.

(b) Failure to pay rentals on or before the lease anniversary date shall result in termination of the lease. Termination of a lease shall not relieve the lessee of any obligation incurred under the lease other than the obligation to pay rental or penalty.

(c) After initial submission of the increased annual rental required by the lease upon the discovery of metallic & non-metallic rocks & minerals in paying quantities, lessees are exempt from submission of subsequent annual creditable lease annual rentals for so long as annual royalties paid meet or exceed the required annual rental amount. The annual rental shall be held for a credit on annual royalty in any year the annual royalty does not equal the required annual rental (minimum royalty) amount. Any credit amount used in making up the difference in royalty paid and the minimum lease royalty due must be paid within thirty (30) days following the next lease anniversary date to continue the lease. The Office shall notify lessees of any minimum royalty amount due after the lease anniversary for which a shortfall occurs.

Section 7. Royalties.

(a) Royalties for metallic & non-metallic rocks & minerals shall be based on the terms of the particular lease agreement, subject to all state royalty statutes and rules, and shall be based on the total consideration received for state production. The following royalty rates shall apply, unless a different rate is specifically authorized by the Board:

| Sales Value | Royalty per Ton Percentage | | --- | --- | | $ 00.01 to $ 50.00 | 5% | | $ 50.01 to $100.00 | 7% | | $100.01 to$150.00 | 9% | | $150.01 and up | 10% |

but in no case will royalty be less than fifty cents ($0.50)/ton

(b) After a metallic & non-metallic rocks & minerals lease becomes an operating lease, the Board may reduce the royalty payable to the state, as to all or any of the lands or formations covered by the lease, if it determines that such a reduction is necessary to allow the lessee to undertake additional operations or to continue to operate with a reasonable expectation that the operations will be profitable. Such a reduction in the royalty payable to the state shall in all cases be conditioned upon the cancellation of all cost-free interests. The Board may also impose other conditions to the reduction in royalty.

Section 8. Lease Term.

(a) Metallic & non-metallic rocks & minerals leases shall be for a primary term of ten (10) years.

(b) The term of a metallic & non-metallic rocks & minerals lease may be extended beyond its primary term only as provided by law, by these rules, or by a specific lease provision.

Section 9. General Assignment Requirements.

(a) Pursuant to W.S. 36-6-101(c), the Director shall approve or disapprove any assignment or transfer of a lease or an interest therein. Assignments shall be submitted for approval in duplicate on the form provided by the Office. If an assignment transfers an interest in more than one lease, an extra duly executed copy of the assignment or a photostatic copy of the original assignment shall be fur- nished for each lease in which an interest is transferred. The required filing fee must be paid for each separate lease in which an interest is assigned.

(b) The Director shall approve an assignment which has been properly executed and appears to comply with the law and this chapter, unless he determines that: Approval would interfere with the development of the metallic & non-metallic rocks & minerals;

(ii) The assignable lease is delinquent in rental or royalty payment status;

(iii) Existing bonding is insufficient to cover lease premises activities;

(iv) Conditions exist that would otherwise be detrimental to the interests of the ben- eficiaries;

(v) The assignee is not a qualified lessee as provided in Section 4 of this chapter; or

(vi) The number of persons holding undivided interest in a lease exceed two (2) in number, unless a designation of agent or a power of attorney executed by all lessees is filed with the Office which designates one of the lessees as agent or attorney to receive all notices, pay all rentals, and is authorized to represent the lessees with the same effect as though the agent or attorney was the sole lessee. For the purposes of this paragraph, owners of overriding royalties, production payments or other cost-free interests are not considered lessees, but owners of carried working interest, net profit owners, and other persons who may be required to bear a share of the cost out of their share of the production are considered lessees.

(c) If the Director disapproves an assignment, he shall advise the assignee by letter of his decision, the reason for disapproval, and when possible, advise what action is necessary to secure approval.

(d) An assignment or transfer of a lease or any interest therein, including overriding royal- ties and other cost-free interests created out of the leasehold estate, must be in writing and executed and acknowledged in accordance with the requirements of the law applicable to conveyances of interest in real estate. The instrument must clearly set forth the serial number of the lease, accurately describe the lands affected, the interest being conveyed as a percentage of total leasehold, and be free of any ambi- guity.

Section 10. Partial Assignments.

(a) Subject to the requirements of this chapter, a lessee may assign or transfer all or part of his interest in the released acreage as to either a divided or undivided interest therein, including cost- free interest such as overriding royalties and production payments.

(b) The Director shall approve assignments or reservations of an overriding royalty subject to the condition that the overriding royalty or a portion thereof may be cancelled or suspended by the Board if it finds that it creates a burden upon the lease which prevents or unreasonably interferes with development.

(c) Assignment of a divided interest, i.e., an assignment of the full leasehold or working interest in a lease as to all interest in all deposits, formations, or depths below a separate tract of the lands subject to the lease or as to one or more separate deposits, formations, or depths below all or a part of the land subject to the lease, segregates the assigned interest from the retained interest and creates new lease obligations as to the lands and the deposits, formations, or depths assigned.

(i) The rights and obligations of the lessees under the retained portion and the as- signed portion of the original lease are separate and distinct as though two (2) separate leases, one (1) covering only the retained interest and the other the assigned interest, had originally been issued on the effective date of the original lease.

(ii) The Director may disapprove any assignment which has the effect of creating separate lease obligations covering the retained and the assigned interest even though it purports to assign less than all of the leasehold or working interest, unless both assignor and assignee agree to accept the separate obligations.

(d) Upon assignment as to only a part of the lease acreage, including assignment as to separate deposits, formations, or depths, the Office may issue a reissue lease with a new serial number covering the assigned lands for the unexpired primary term. In lieu of issuing a reissue lease, the Office may note the assignment upon its records with all lands covered by the original lease maintained under the original serial number, and with each separate tract or interest resulting from an assignment desig- nated by a letter suffix to the original serial number. Each assignee holding a lease on a separate tract or interest may be required to furnish a bond under Section 12 of this chapter.

Section 11. Surface Integrity and Minimum Reclamation.

(a) Lessees shall use care and proper safeguards to prevent pollution of the soil or any water, including underground aquifers, by virtue of lessee's or lessee's designee's operation on state lands and shall capture and dispose of any operation's pollutants not permitted under Wyoming Depart- ment of Environmental Quality regulation, resulting from lessee's or lessee's designee's operations, and shall be responsible for any and all damages caused thereby related to lessee's operations.

(b) Upon completion of operations on state lands, all related disturbances on state lands must be reclaimed to leave the land in as near as practicable to the original condition of the land prior to operations. All topsoil must be salvaged before an area is disturbed by roads, buildings or other related activities. The salvaged topsoil must be stockpiled in such a way to protect it from wind and water erosion. If no topsoil exists for use in reclamation, with the Director's written approval, a cover soil that has been amended to sustain vegetation may be applied. If lessees can demonstrate that strip- ping and stockpiling of topsoil as precursor to their activities will be more detrimental to the topsoil as relates to reclamation, the Director may waive this requirement.

(c) New roads shall cross all drainages at right angles with culverts installed in a manner to avoid constricting the flow of surface water. All drainage or creek crossings must be constructed of erosion resistant material and constructed in a manner to prevent degradation of waters of the state from eroded sediment. No pits or impoundments shall remain after operations and reclamation activities, unless they have developed into viable wetlands as that term is defined by current federal regula- tion or if the pits or impoundments could potentially be of use to the state or to the surface lessee. All reclaimed areas must have slopes as approved by the Director and in conformance with existing State of Wyoming laws, rules, and regulations governing reclamation.

(d) All reclaimed areas must be reseeded, where possible, with an approved seed mixture.

Section 12. Bonds.

(a) A lessee is not required to post a bond until actual operations, including exploration activities, are to be commenced on the leased lands. Before commencing actual operations, the lessee shall advise the Office and outline in detail the nature of the operations proposed. Operations shall not commence until an adequate bond has been furnished and approved.

(b) The bond shall be in an amount found by the Director sufficient to protect and indemnify the State of Wyoming and shall be in the form approved by the Wyoming Attorney General. Two (2) executed copies of the bond must be submitted to the Office. The bond shall bind the principal and its surety for:

(i) The payment of all moneys, rents, and royalties accruing to the Board;

(ii) Full compliance with all applicable statutes and terms and conditions of the Board's leases and rules and regulations;

(iii) Reclamation of the surface; and

(iv) For the payment of all disturbances to the surface and improvements thereon.

(c) The bond shall be one of the following:

(i) A corporate surety bond executed by the lessee and by a surety authorized to do business in the state;

(ii) A cash bond;

(iii) A certified cashier's check made payable to the Office of State Lands and In- vestments;

(iv) A certificate of deposit in the name of the Office of State Lands and Invest- ments;

(v) Non-revocable letters of credit; or

(vi) AAA-rated debentures of sufficient market value to meet bonding minimums with a signed stock power made out to the Office of State Lands and Investments.

(d) In lieu of individual lease bonds, the lessee may request and the Director may allow the lessee to file a corporate surety bond in the sum of not less than one hundred thousand dollars ($100,000) covering all of the lessee's state leases.

(e) The furnishing of a bond as required by the Wyoming Department of Environmental Quality or some other agency having jurisdiction over the proposed operation shall not relieve the lessee of the duty to furnish bond as required by this section, but such fact shall be taken into account by the Director in determining a waiver of the bonding requirement or the amount of the bond to be required.

(f) The lessee shall promptly advise the Office of any change in operations. The Office may at any time reduce or increase the amount of the bond as conditions may require.

Section 13. Relinquishment.

(a) A metallic & non-metallic rocks & minerals lease or any divided interest therein may be relinquished by the record title holder to the Board in the following manner:

(i) If no operations have been conducted under the lease and no surface disturbance or damage has occurred on the land to be relinquished, the lessee shall file with the Office a written statement on a form provided by the Office that he wishes to relinquish the lease or interest. The relinquishment shall become effective on the date and hour of receipt by the Office or at some later date if specified.

(ii) If operations have been conducted under the lease or surface disturbance or dam- age has occurred on land proposed to be relinquished, the lessee shall file with the Office a statement on form provided by the Office that he wishes to relinquish the lease or interest. Relinquishment shall not become effective until the land shall have been placed in acceptable condition and the Department of Environmental Quality or such other agency as may have jurisdiction has certified that the lands have been adequately reclaimed or restored before the relinquishment is effective.

(iii) Once a relinquishment on state lands becomes effective, the lease may not be reinstated. The lands shall be made available for lease as provided in Section 5 of this chapter.

Section 14. Royalty Reporting.

All lessees shall submit to the Office a completed monthly reporting statement on a form pro- vided by the Office for each lease (Form M-3c). The lessee shall submit each lease statement within thirty (30) days of the last day of the month of sales for metallic & non-metallic rocks & minerals. The lessee shall attach to the M-3c statement copies of original arms-length sales transaction documents showing the quantity, quality, and value of products sold, including all lease volume sales through affiliate companies.

Section 15. Field Audits.

(a) The Wyoming Department of Audit, the Director, or the duly authorized representative of either shall have the right at reasonable times and intervals to audit the books and records of any metallic & non-metallic rocks & minerals or operator on state lands and to inspect the leased premises and conduct field audits for the purpose of determining compliance with this chapter or the terms of the lease.

(b) Any and all parties producing, selling, transporting, and purchasing state lands royalty interest shall retain their records for six (6) years from the date of sale reporting as due under this chapter for any production from or allocated to state lands for all periods ending after January 1, 2000.

(c) Absent state lessee or operator production sales reporting as required in this subsection, the state's metallic & non-metallic rocks & minerals lessee shall only sell or deliver any leased sub- stance to any person who agrees:

(i) To file reports with the Office stating the price, quantity, origin, and disposition of all production purchased from a state lease; and

(ii) To allow an audit as provided for in this section.

Section 16. Cancellation for Default.

(a) If any metallic & non-metallic rocks & minerals lessee defaults in the performance or observance of any of this chapter or any of the terms, covenants, or conditions of the lease under which it is operating, the Board may serve notice of such failure or default either by personal service or by certified or registered mail upon the lessee, and if such failure or default continues for a period of thirty (30) days after the service of the notice, the Board may declare a forfeiture and cancel the lease, where- upon all rights and privileges obtained by the lessee under the lease shall terminate and the lessor may re-enter and take possession of the premises.

(b) This section shall not be construed to prevent the exercise by the Director or the Board of any other legal or equitable remedy which the state might otherwise have nor to relieve the lessee from any accrued obligation under the lease. Failure of the lessor to give notice of default in any particular case or waiver of a particular cause of forfeiture shall not prevent the cancellation and forfeiture of the lease for any other cause of forfeiture or for the same default or cause if it continues or occurs at any other time.

Section 17. Multiple Use.

(a) The Board may issue separate leases for different minerals on the same tract of land. If all mineral leases under a tract of land are non-producing leases, each lessee has an equal right to conduct exploratory operations on the land, and each shall conduct such operations in a manner which does not prevent or unduly interfere with the operations of the other.

(b) The first lessee to commence actual production operations so that his lease becomes an operating lease shall have the right to continue operations without substantial interference from any other mineral lessee so long as the lease remains in effect. The lessee may not be deprived of this right in whole or in part without compensation equal to the value of the rights lost as per Subsection (d)(iii) of this section.

(c) If a lessee desires to commence operations on the same tract upon which one or more lessees are already conducting operations, and the lessees can agree that the operations can be conducted at the same time without materially reducing the amount or value of the resources which will be produced under each lease, and without unduly interfering with or raising the cost of operations of the prior lessee(s), unless he is adequately compensated therefor, the lessees may agree upon a plan of operations and assessment of costs under which the operations may be carried out concurrently. Any such agreement shall be submitted to and be subject to the approval of the Board.

(d) If, under the circumstances set out in Subsection (c) of this section, the lessees either agree that the operations cannot be carried out concurrently or cannot agree upon a plan of operations and assessment of costs, the Director may resolve the conflict.

(i) If the Director determines that the operations can be carried out concurrently without materially reducing the quantity or value of the metallic & non-metallic rocks & minerals which will be produced, and either that the costs of operation of any prior lessee(s) will not be increased significantly, or that if they are, such costs are capable of determination and if paid by the subsequent lessee will not constitute an unreasonable burden on the operation, he shall enter his decision approv- ing a plan of operation and assessment of cost under which operations may be carried out concurrently.

(ii) If the Director determines that the proposed operations cannot be carried out concurrently and that the value which will be realized by the beneficiaries from the existing operation is such that the proposed operation should be deferred, he shall enter his decision deferring the development obligations under the lease of the proposing lessee. The lease will be placed in operating status and remain in effect subject to the requirement that annual rentals will be paid and to the condition that if development is deferred more than five (5) years, the lease may be amended to conform to the lease form in effect upon commencement of production operations for the class of subsurface resource to be produced.

(iii) If the Director determines that the proposed operations cannot be carried out concurrently and that the benefit which would be realized by the beneficiaries from initiating the proposed operation so far exceeds that which would be realized from the existing operation that it is clearly more beneficial to the beneficiaries that the existing operation be terminated or deferred and the proposed operation commenced, he shall enter his decision terminating the existing operation and allowing the commencement of the proposed operation, conditioned upon the payment by the lessee proposing the operation to the lessee whose operations are terminated of an amount equal to the value of the rights lost by that lessee determined in the same manner as if the right were being condemned in eminent domain proceedings.

(iv) A lease upon which operations are terminated as above provided shall, upon payment to the lessee of the value of the right lost, be assigned to the lessee making the payment, who shall be entitled to hold it subject to the same terms and conditions applicable to a lease upon which operations were deferred under Paragraph (ii) of this section.

(v) If the proposing lessee disagrees with the Director's or the Board's determina- tion, he may refuse to commence the proposed operation. His refusal to do so shall not constitute a violation of the covenants for lease development, unless the amounts he would be required to pay to the prior lessee constitute such an insubstantial addition to the cost of operation that a reasonable, prudent lessee would assume them.

History

• Effective 2000-01-03

Chapter 25 Leasing of Sand & Gravel, Borrow Material, & Rip-Rap Rock

Wyo. Code R. 060.0002.25.01032000 Leasing of Sand & Gravel, Borrow Material, & Rip-Rap Rock

RULES AND REGULATIONS BOARD OF LAND COMMISSIONERS

Chapter 25

Leasing of Sand and Gravel, Borrow Material, and Rip-rap Rock

Section 1. Authority.

This chapter is adopted pursuant to the authority granted in W.S. 36-6-101(b).

Section 2. Definitions.

(a) "Beneficiaries" means the common schools and those state institutions designated by Congress as beneficiaries of lands granted to the State of Wyoming.

(b) "Board" means the Board of Land Commissioners.

(c) "Director" means The Director of the Office of State Lands and Investments.

(d) "Office" means the Office of State Lands and Investments.

(e) "Mineral" means coal, trona/sodium, metallic & non-metallic rocks & minerals and associated minerals, clays, stones of various sorts, salts, and any and all substances formed by nature in or as rocks of the earth and recognized in law, geology, or by the courts as minerals.

(f) "State Lands" means all lands under the jurisdiction of the Board of Land Commission- ers in which the Board owns some or all of the mineral estate.

Section 3. General Provisions.

(a) The Board may, without prior notice, withdraw specific lands from leasing for sand and gravel, borrow material, and rip-rap rock when it appears reasonably necessary to protect the economic or environmental interests of the beneficiaries. Any party desiring to lease lands for sand and gravel, borrow material, and rip-rap rock which have been withdrawn may request that a withdrawal be re- scinded in whole or in part.

(b) The Board may condition the issuance of any sand and gravel, borrow material, and rip- rap rock lease upon specific stipulations for the protection of the public, the environment, the waters of the state, historical, archeological or paleontological materials, the wildlife resources, or any of the subsurface or surface resources of the state.

(c) The Board may deny a sand and gravel, borrow material, and rip-rap rock lease to any person or legal entity which has failed to comply with any rules of the Board or any terms and condi- tions of any lease or other agreement with the Board.

(d) The Board may refuse to issue a sand and gravel, borrow material, and rip-rap rock lease or approve an assignment of an interest in an existing sand and gravel, borrow material, and rip-rap rock lease if issuing the lease or approving the assignment will diminish the interest of the beneficia- ries.

(e) On lands in which the state owns less than the entire interest in the sand and gravel, borrow material, and rip-rap rock estate, a lease will be issued by the Board covering the state's interest independent of the other co-owners.

(f) An application may be filed for a lease on lands not shown by the records of the Office to be owned by the state. The applicant must submit evidence through the Office to the Wyoming Attorney General showing that it is probable that the lands applied for, or any interest therein, have escheated to the State of Wyoming. Such applicant shall coordinate with and pay for all costs for the Office and the Attorney General pursuant to the filing of a petition under W.S. 9-5-203 seeking title for the state. After receiving a court order vesting title in the state, the applicant shall have the right to lease the escheated lands under the Board's current form of lease without bidding thereon at auction. If the lands are not found to have escheated to the state, applicant will not be entitled to any lease or cost reimbursement.

(g) Discovery of historical, archaeological, or paleontological deposits on state lands dur- ing the course of development shall be reported to the Office by the lessee prior to further disturbance, and operations may only re-commence as authorized by the Director. The Director shall notify the lessee regarding mitigation within five (5) working days after receiving the report.

Section 4. Qualified Lessee.

To be qualified to receive or hold any interest in a state lease, corporations, limited partnerships, and limited liability companies must be authorized to transact business in the State of Wyoming by the Secretary of State, and general partnerships shall provide the Office with a copy of their partnership papers.

Section 5. Leasing Procedures.

(a) Sand and gravel, borrow material, and rip-rap rock shall be available for lease to the first qualified applicant filing an application. Applications may be filed with the Office during the regular hours of any business day. The Office shall note the date of filing on all applications. Applications filed on the same day, whether presented by personal delivery or received through any mail ser- vice, shall be considered as filed simultaneously.

(b) Each application must be accompanied by the required filing fee as established by the Board in Chapter 17 of the Board's rules. The filing fee will not be refunded on any application. An application under this section must also be accompanied by a remittance for the advance rental for the first year, at the rental per acre specified in Section 6 of this chapter.

(c) If two or more applications for the same interests in sand and gravel, borrow material, and rip-rap rock are filed simultaneously, the applications are in conflict.

(i) An application which is in conflict as to only a part of the lands applied for, shall be processed as to the lands not in conflict in the same manner as a separate application for such lands.

(ii) The priority of applications which are in conflict as to all or any part of the lands applied for shall, as to the lands in conflict, be determined by sealed bid between the applicants in conflict.

(d) When an application is rejected in its entirety, advance rentals paid by the applicant will be refunded. When rejected in part, the unused portion of the advance rental payment will be refunded.

(e) An application for a sand and gravel, borrow material, and rip-rap rock lease may be withdrawn, in whole or in part, at any time prior to issuance of lease. The advance rental and all fees transmitted with the application applicable to the portion of the application withdrawn, will be forfeited for failure to fulfill the obligations of the lease offer. However, if a withdrawal was for the purpose of removing a conflict, rentals applicable to the portion withdrawn will be refunded if a lease for the portion withdrawn is issued to another applicant.

(f) If the Board determines that any state sand and gravel, borrow material, and rip-rap rock lands should be offered for lease by competitive bidding, it shall enter an order setting a time and place for the sale, describing each tract to be offered, setting the terms of the leases to be issued, the terms and conditions of sale, the procedure to be followed in conducting the sale, and any other necessary infor- mation. Notice of sale shall be given in such form and manner as the Board shall direct.

Section 6. Rentals.

(a) The annual rental payments on all sand and gravel, borrow material, and rip-rap rock leases shall be:

(i) One dollar ($1.00) per acre.

(b) Failure to pay rentals on or before the lease anniversary date shall result in termination of the lease. Termination of a lease shall not relieve the lessee of any obligation incurred under the lease other than the obligation to pay rental or penalty.

(c) After submission of the annual rental required by the lease, the production of sand and gravel, borrow material, and rip-rap rock in paying quantities, exempts lessees from submission of subsequent creditable lease annual rentals for so long as annual royalties paid meet or exceed the required annual rental amount. The annual rental shall be held for a credit on annual royalty in any year the annual royalty does not equal the required annual rental (minimum royalty) amount. Any credit amount used in making up the difference in royalty paid and the minimum lease royalty due must be paid within thirty (30) days following the next lease anniversary date to continue the lease. The Office shall notify lessees of any minimum royalty amount due after the lease anniversary for which a shortfall occurs.

Section 7. Royalties.

(a) Royalties for sand and gravel, borrow material, and rip-rap rock shall be based on the terms of the particular lease agreement, subject to all state royalty statutes and rules, and shall be based on the total consideration received for state production. The following royalty rates shall apply, unless different rate is specifically authorized by the Board:

(i) Sand and gravel $0.60/ton or $0.90/yd3

(ii) Borrow material/common fill dirt $0.25/yd3

(iii) Rip-rap rock $1.50/ton

(b) After a sand and gravel, borrow material, and rip-rap rock lease becomes an operating lease, the Board may reduce the royalty payable to the state, as to all or any of the lands or formations covered by the lease, if it determines that such a reduction is necessary to allow the lessee to undertake additional operations or to continue to operate with a reasonable expectation that the operations will be profitable. Such a reduction in the royalty payable to the state shall in all cases be conditioned upon the cancellation of all cost-free interests. The Board may also impose other conditions to the reduction in royalty.

Section 8. Lease Term.

(a) Sand and gravel, borrow material, and rip-rap rock leases shall be for a primary term of two (2) years.

(b) The term of a sand and gravel, borrow material, and rip-rap rock lease may be extended beyond its primary term only as provided by law, by these rules, or by a specific lease provision.

Section 9. General Assignment Requirements.

(a) Pursuant to W.S. 36-6-101(c), the Director shall approve or disapprove any assignment or transfer of a lease or an interest therein. Assignments shall be submitted for approval in duplicate on the form provided by the Office. If an assignment transfers an interest in more than one lease, an extra duly executed copy of the assignment or a photostatic copy of the original assignment shall be fur- nished for each lease in which an interest is transferred. The required filing fee must be paid for each separate lease in which an interest is assigned.

(b) The Director shall approve an assignment which has been properly executed and appears to comply with the law and this chapter, unless he determines that:

Approval would interfere with the development of the sand and gravel, borrow material, and rip-rap rock;

(ii) The assignable lease is delinquent in rental or royalty payment status;

(iii) Existing bonding is insufficient to cover lease premises activities;

(iv) Conditions exist that would otherwise be detrimental to the interests of the beneficiaries;

(v) The assignee is not a qualified lessee as provided in Section 4 of this chapter; or

(vi) The number of persons holding undivided interest in a lease exceed two (2) in number, unless a designation of agent or a power of attorney executed by all lessees is filed with the Office which designates one of the lessees as agent or attorney to receive all notices, pay all rentals, and is authorized to represent the lessees with the same effect as though the agent or attorney was the sole lessee. For the purposes of this paragraph, owners of overriding royalties, production payments or other cost-free interests are not considered lessees, but owners of carried working interest, net profit owners, and other persons who may be required to bear a share of the cost out of their share of the production are considered lessees.

(c) If the Director disapproves an assignment, he shall advise the assignee by letter of his decision, the reason for disapproval, and when possible, advise what action is necessary to secure approval.

(d) An assignment or transfer of a lease or any interest therein, including overriding royalties and other cost-free interests created out of the leasehold estate, must be in writing and executed and acknowledged in accordance with the requirements of the law applicable to conveyances of interest in real estate. The instrument must clearly set forth the serial number of the lease, accurately describe the lands affected, the interest being conveyed as a percentage of total leasehold, and be free of any ambi- guity.

Section 10. Surface Integrity and Minimum Reclamation.

(a) Lessees shall use care and proper safeguards to prevent pollution of the soil or any water, including underground aquifers, by virtue of lessee's or lessee's designee's operation on state lands and shall capture and dispose of any operation's pollutants not permitted under Wyoming Department of Environmental Quality regulation, resulting from lessee's or lessee's designee's operations, and shall be responsible for any and all damages caused thereby related to lessee's operations.

(b) Upon completion of operations on state lands, all related disturbances on state lands must be reclaimed to leave the land in as near as practicable to the original condition of the land prior to operations. All topsoil must be salvaged before an area is disturbed by roads, buildings or other related activities. The salvaged topsoil must be stockpiled in such a way to protect it from wind and water erosion. If no topsoil exists for use in reclamation, with the Director's written approval, a cover soil that has been amended to sustain vegetation may be applied. If lessees can demonstrate that strip- ping and stockpiling of topsoil as precursor to their activities will be more detrimental to the topsoil as relates to reclamation, the Director may waive this requirement.

(c) New roads shall cross all drainages at right angles with culverts installed in a manner to avoid constricting the flow of surface water. All drainage or creek crossings must be constructed of erosion resistant material and constructed in a manner to prevent degradation of waters of the state from eroded sediment. No pits or impoundments shall remain after operations and reclamation activities, unless they have developed into viable wetlands as that term is defined by current federal regula- tion or if the pits or impoundments could potentially be of use to the state or to the surface lessee. All reclaimed areas must have slopes as approved by the Director and in conformance with existing State of Wyoming laws, rules, and regulations governing reclamation.

(d) All reclaimed areas must be reseeded, where possible, with an approved seed mixture.

Section 11. Bonds.

(a) A lessee is not required to post a bond until actual operations, including exploration activities, are to be commenced on the leased lands. Before commencing actual operations, the lessee shall advise the Office and outline in detail the nature of the operations proposed. Operations shall not commence until an adequate bond has been furnished and approved.

(b) The bond shall be in an amount found by the Director sufficient to protect and indemnify the State of Wyoming and shall be in the form approved by the Wyoming Attorney General. Two (2) executed copies of the bond must be submitted to the Office. The bond shall bind the principal and its surety for:

(i) The payment of all moneys, rents, and royalties accruing to the Board;

(ii) Full compliance with all applicable statutes and terms and conditions of the Board's leases and rules and regulations;

(iii) Reclamation of the surface; and

(iv) For the payment of all disturbances to the surface and improvements thereon.

(c) The bond shall be one of the following:

(i) A corporate surety bond executed by the lessee and by a surety authorized to do business in the state;

(ii) A cash bond;

(iii) A certified cashier's check made payable to the Office of State Lands and In- vestments;

(iv) A certificate of deposit in the name of the Office of State Lands and Invest- ments;

(v) Non-revocable letters of credit; or

(vi) AAA-rated debentures of sufficient market value to meet bonding minimums with a signed stock power made out to the Office of State Lands and Investments.

(d) In lieu of individual lease bonds, the lessee may request and the Director may allow the lessee to file a corporate surety bond in the sum of not less than one hundred thousand dollars ($100,000) covering all of the lessee's state leases.

(e) The furnishing of a bond as required by the Wyoming Department of Environmental Quality or some other agency having jurisdiction over the proposed operation shall not relieve the lessee of the duty to furnish bond as required by this section, but such fact shall be taken into account by the Director in determining a waiver of the bonding requirement or the amount of the bond to be required.

(f) The lessee shall promptly advise the Office of any change in operations. The Office may at any time reduce or increase the amount of the bond as conditions may require.

Section 12. Relinquishment.

(a) A sand and gravel, borrow material, and rip-rap rock lease or any divided interest therein may be relinquished by the record title holder to the Board in the following manner:

(i) If no operations have been conducted under the lease and no surface disturbance or damage has occurred on the land to be relinquished, the lessee shall file with the Office a written statement on a form provided by the Office that he wishes to relinquish the lease or interest. The relinquishment shall become effective on the date and hour of receipt by the Office or at some later date if specified.

(ii) If operations have been conducted under the lease or surface disturbance or dam- age has occurred on land proposed to be relinquished, the lessee shall file with the Office a statement on form provided by the Office that he wishes to relinquish the lease or interest. Relinquishment shall not become effective until the land shall have been placed in acceptable condition and the Department of Environmental Quality or such other agency as may have jurisdiction has certified that the lands have been adequately reclaimed or restored before the relinquishment is effective.

(iii) Once a relinquishment on state lands becomes effective, the lease may not be reinstated. The lands shall be made available for lease as provided in Section 5 of this chapter.

Section 13. Royalty Reporting.

All lessees shall submit to the Office a completed monthly reporting statement on a form pro- vided by the Office for each lease. The lessee shall submit each lease statement within thirty (30) days of the last day of the month of sales for sand and gravel, borrow material, and rip-rap rock. The lessee shall attach to the statement copies of original arms-length sales transaction documents showing the quantity, quality, and value of products sold, including all lease volume sales through affiliate compa- nies.

Section 14. Field Audits.

(a) The Wyoming Department of Audit, the Director, or the duly authorized representative of either shall have the right at reasonable times and intervals to audit the books and records of any sand and gravel, borrow material, and rip-rap rock or operator on state lands and to inspect the leased premises and conduct field audits for the purpose of determining compliance with this chapter or the terms of the lease.

(b) Any and all parties producing, selling, transporting, and purchasing state lands royalty interest shall retain their records for six (6) years from the date of sale reporting as due under this chapter for any production from or allocated to state lands for all periods ending after January 1, 2000.

(c) Absent state lessee or operator production sales reporting as required in this subsection, the state's sand and gravel, borrow material, and rip-rap rock lessee shall only sell or deliver any leased substance to any person who agrees:

(i) To file reports with the Office stating the price, quantity, origin, and disposition of all production purchased from a state lease; and

(ii) To allow an audit as provided for in this section.

Section 15. Cancellation for Default.

(a) If any sand and gravel, borrow material, and rip-rap rock lessee defaults in the perfor- mance or observance of any of this chapter or any of the terms, covenants, or conditions of the lease under which it is operating, the Board may serve notice of such failure or default either by personal service or by certified or registered mail upon the lessee. If the failure or default continues for a period of thirty (30) days after service of the notice, the Board may declare a forfeiture and cancel the lease, whereupon all rights and privileges obtained by the lessee under the lease shall terminate and the Board may re-enter and take possession of the premises.

(b) This section shall not be construed to prevent the exercise by the Director or the Board of any other legal or equitable remedy which the state might otherwise have nor to relieve the lessee from any accrued obligation under the lease. Failure of the lessor to give notice of default in any particular case or waiver of a particular cause of forfeiture shall not prevent the cancellation and forfeiture of the lease for any other cause of forfeiture or for the same default or cause if it continues or occurs at any other time.

Section 16. Multiple Use.

(a) The Board may issue separate leases for different minerals on the same tract of land. If all mineral leases under a tract of land are non-producing leases, each lessee has an equal right to conduct exploratory operations on the land, and each shall conduct such operations in a manner which does not prevent or unduly interfere with the operations of the other.

(b) The first lessee to commence actual production operations so that his lease becomes an operating lease shall have the right to continue operations without substantial interference from any other mineral lessee so long as the lease remains in effect. The lessee may not be deprived of this right in whole or in part without compensation equal to the value of the rights lost as per Subsection (d)(iii) of this section.

(c) If a lessee desires to commence operations on the same tract upon which one or more lessees are already conducting operations, and the lessees can agree that the operations can be con- ducted at the same time without materially reducing the amount or value of the resources which will be produced under each lease, and without unduly interfering with or raising the cost of operations of the prior lessee(s), unless he is adequately compensated therefor, the lessees may agree upon a plan of operations and assessment of costs under which the operations may be carried out concurrently. Any such agreement shall be submitted to and be subject to the approval of the Board.

(d) If, under the circumstances set out in Subsection (c) of this section, the lessees either agree that the operations cannot be carried out concurrently or cannot agree upon a plan of operations and assessment of costs, the Director may resolve the conflict.

(i) If the Director determines that the operations can be carried out concurrently without materially reducing the quantity or value of the sand and gravel, borrow material, and rip-rap rock which will be produced, and either that the costs of operation of any prior lessee(s) will not be increased significantly, or that if they are, such costs are capable of determination and if paid by the subsequent lessee will not constitute an unreasonable burden on the operation, he shall enter his decision approving a plan of operation and assessment of cost under which operations may be carried out concurrently.

(ii) If the Director determines that the proposed operations cannot be carried out concurrently and that the value which will be realized by the beneficiaries from the existing operation is such that the proposed operation should be deferred, he shall enter his decision deferring the development obligations under the lease of the proposing lessee. The lease will be placed in operating status and remain in effect subject to the requirement that annual rentals will be paid and to the condition that if development is deferred more than five (5) years, the lease may be amended to conform to the lease form in effect upon commencement of production operations for the class of subsurface resource to be produced.

(iii) If the Director determines that the proposed operations cannot be carried out concurrently and that the benefit which would be realized by the beneficiaries from initiating the proposed operation so far exceeds that which would be realized from the existing operation that it is clearly more beneficial to the beneficiaries that the existing operation be terminated or deferred and the proposed operation commenced, he shall enter his decision terminating the existing operation and allowing the commencement of the proposed operation, conditioned upon the payment by the lessee proposing the operation to the lessee whose operations are terminated of an amount equal to the value of the rights lost by that lessee determined in the same manner as if the right were being condemned in eminent domain proceedings.

(iv) A lease upon which operations are terminated as above provided shall, upon payment to the lessee of the value of the right lost, be assigned to the lessee making the payment, who shall be entitled to hold it subject to the same terms and conditions applicable to a lease upon which operations were deferred under Paragraph (ii) of this section.

(v) If the proposing lessee disagrees with the Director's or the Board's determination, he may refuse to commence the proposed operation. His refusal to do so shall not constitute a violation of the covenants for lease development, unless the amounts he would be required to pay to the prior lessee constitute such an insubstantial addition to the cost of operation that a reasonable, prudent lessee would assume them.

History

• Effective 2000-01-03

Chapter 26 Land Acquisition and Disposal

Wyo. Code R. 060.0002.26.12062023 § 1 Authority

This chapter is adopted pursuant to Wyoming Statute 36-2-107.

History

• Effective 2023-12-06

Wyo. Code R. 060.0002.26.12062023 § 2 Definitions

(a) As used in this chapter:

(i) "Board" means the Board of Land Commissioners.

(ii) "Director" means the director of the Office of State Lands and Investments.

(iii) "Office" means the Office of State Lands and Investments.

(iv) "Parcel" means a tract of real property, or an interest in real property constituting less than fee simple title.

(v) "Responsible bidder" means a bidder at public auction who tenders, at the auction, funds in accordance with Subsection 7(b) of this chapter.

(vi) "Surface lessee" means a holder of a grazing and agricultural lease, special use lease, or wind energy lease issued in accordance with Chapters 4, 5, or 6 of the Board's rules.

History

• Effective 2023-12-06

Wyo. Code R. 060.0002.26.12062023 § 3 Acquisition Procedure

(a) Any person, including the Director, may identify a parcel for the Board to acquire as state trust land. Parcels identified for possible acquisition shall be placed on the Category I Acquisition List by the Office.

(b) The Office shall review all parcels appearing on the Category I Acquisition List for suitability for acquisition. If the Director determines that a parcel may be suitable for acquisition, the Director shall move the parcel onto the Category II Acquisition List. Any parcel that the Director has not moved onto the Category II Acquisition List within one year, shall be removed from the Category I Acquisition List.

(c) The Category I and Category II Acquisition Lists shall be held in confidence by the Office and the Board.

(d) The Office shall review all parcels appearing on the Category II Acquisition List and prepare a detailed analysis of each parcel. The analysis shall include:

(i) An estimate of the market value of the parcel, individually and in combination with other state trust lands;

(ii) The income-generating potential of the parcel, individually and in combination with other state trust lands; and

(iii) The manageability of the parcel, individually and in combination with other state trust lands.

(e) When review of a parcel on the Category II Acquisition List is complete, the Office may present the detailed analysis to the Board in executive session in accordance with W.S. 16-4- 405(a)(vii). If the Board rejects acquisition of the parcel, the Office shall remove the parcel from the Acquisition List. If the Board determines that the parcel may be desirable for acquisition, it may authorize the Office to continue the acquisition process.

(f) When the Board authorizes the Office to continue the acquisition process for a parcel, the Office shall acquire an option to purchase from the owner of the parcel.

(g) After acquiring the option to purchase, the Office shall:

(i) Obtain an appraisal of the market value of the parcel;

(ii) Notify the Wyoming Department of State Parks and Cultural Resources and the Wyoming Game & Fish Department of the proposed acquisition.

(iii) Make available to the public:

(A) The detailed analysis prepared by the Office;

(B) The appraisal;

(C) The existence and importance of any wildlife habitat and wildlife-oriented recreational opportunities located on the parcel, as determined by the Wyoming Game & Fish Department; and

(D) The existence and importance of any public recreation opportunities or cultural resources located on the parcel, as determined by the Wyoming Department of State Parks & Cultural Resources.

(iv) Initiate a public comment period to accept public comments concerning the proposed acquisition from interested parties;

(v) Provide notice directly to owners of land adjoining the lands proposed for acquisition, and to the board of county commissioners from the affected county or counties; and

(vi) Hold a public hearing in the county in which the parcel is located. Notice of the hearing shall be sent to the appropriate board of county commissioners.

(h) If at any time the Office finds that acquisition of the parcel is not in the best interest of the state's trust beneficiaries, or if a provision of the option to purchase is violated or cannot be complied with on the part of any party, the Office may elect to terminate the option to purchase and cease the acquisition process. If the Office ceases the acquisition process, it shall immediately remove the parcel from the Category II Acquisition List. The Office shall provide an informational Board Matter for the Board's next regularly scheduled public meeting informing the Board that the acquisition process has ceased.

(i) Not less than sixty (60) days after the information listed in subsection (g)(iii) is made available to the public, the Board shall consider in open session the proposed acquisition of the parcel. If the Board rejects acquisition of the parcel, the Office shall remove the parcel from the Acquisition List. If the Board determines that the parcel should be acquired, it shall direct the Office to exercise the option to purchase.

History

• Effective 2023-12-06

Wyo. Code R. 060.0002.26.12062023 § 4 Disposal Procedure

(a) Any person, including the Director, may identify a state trust parcel for disposal by the Board. Parcels identified for possible disposal shall be placed on the Category I Disposal List by the Office.

(b) The Office shall review all parcels appearing on the Category I Disposal List for suit- ability for disposal. If the Director determines that a parcel may be suitable for disposal, the Director shall move the parcel onto the Category II Disposal List. Any parcel that has not been moved onto the Category II Disposal List within one year, shall be removed from the Category I Disposal List.

(c) The Office shall make the Category I and Category II Disposal Lists available to the public.

(d) For each parcel on the Category II Disposal List, the Office shall:

(i) Notify any surface lessees of the parcel, the Wyoming Department of State Parks and Cultural Resources, and the Wyoming Game & Fish Department of the proposed disposal; and

(ii) Prepare a detailed analysis of the parcel, including:

(A) An appraisal of the market value of the parcel;

(B) The income-generating potential of the parcel, individually and in combination with other state trust lands;

(C) The manageability of the parcel, individually and in combination with other state trust lands;

(D) The existence and importance of any wildlife habitat and wildlife-oriented recreational opportunities located on the parcel, as determined by the Wyoming Game & Fish Department; and

(E) The existence and importance of any public recreational opportunities or cultural resources located on the parcel, as determined by the Wyoming Department of State Parks and Cultural Resources;

(e) When the detailed analysis is complete, the Office shall:

(i) Make the detailed analysis available to the public;

(ii) Initiate a public comment period to accept public comments concerning the proposed disposal from interested parties;

(iii) Provide notice directly to leaseholders of the state lands to be disposed of, owners of land adjoining the lands proposed for disposal, and to the board of county commissioners from the affected county or counties; and

(iv) Hold a public hearing in the county in which the parcel is located. Notice of the hearing shall be sent to the appropriate board of county commissioners.

(f) If at any time the Office finds that disposal of the parcel is not in the best interest of the state's trust beneficiaries, the Office may cease the disposal process. If the Office ceases the disposal process, it shall immediately remove the parcel from the Category II Disposal List.

(g) After the public hearing has been held, the Office shall present the detailed analysis to the Board. If the Board rejects disposal of the parcel, the Office shall remove the parcel from the Disposal List. If the Board determines that the parcel should be disposed of, it shall:

(i) Direct the Office to exchange the parcel for a parcel authorized for acquisition; or

(ii) Establish the minimum bid and direct the Office to sell the parcel at public

auction.

History

• Effective 2023-12-06

Wyo. Code R. 060.0002.26.12062023 § 5 Exchanges

Any person, including the Director, may propose a land exchange by placing the parcels to be acquired by the Board in the exchange on the acquisition list in accordance with Section 3 of this chapter, and placing the parcels to be conveyed by the Board in the exchange on the disposal list in accordance with Section 4 of this chapter. If the Board approves both the acquisition, pursuant to the procedure in Section 3, and the disposal, pursuant to the procedure in Section 4, of the parcels comprising the exchange proposal, the Office shall complete the exchange.

History

• Effective 2023-12-06

Wyo. Code R. 060.0002.26.12062023 § 6 Voluntary Land Exchange Program

(a) Definitions. As used in this Section:

(i) "Access" is the means of approaching and entering a parcel via a public right-of- way or other legal easement.

(ii) "Encompassed" means a parcel that is entirely within the real property boundaries of the nominating party.

(iii) "Voluntary" means the willful submission of a nomination by a party who may encompass a parcel.

(iv) "Price Opinion" means the value of a parcel as determined by the Office.

(v) "Isolated Parcel" means a parcel of state trust land comprised of 640 acres or less, without Access.

(b) Only Isolated Parcels that are entirely Encompassed by real property owned by the nominating party, shall qualify for the Voluntary Land Exchange (VLE) program.

(c) The purpose of the VLE program is to provide an opportunity for the Board through the Office to reposition state trust land ownership from isolated parcels to parcels with Access in an expedited and efficient manner.

(d) All transactions proposed within the VLE program shall follow the process outlined within Section 5 of this Chapter except that the transaction shall include the following requirements:

(i) Once an exchange has received preliminary approval from the Board, the nominating party will be issued a non-negotiable Price Opinion developed by the Office;

(ii) By accepting the Price Opinion, the nominating party agrees to waive the formal appraisal process and facilitate the exchange at the values established by the Office;

(iii) Should the nominating party fail to accept the Price Opinion, they may elect to:

(A) Terminate the transaction, or

(B) Secure an appraiser certified under the Uniform Standards of Professional Appraisal Practice (USPAP) and qualified to conduct an appraisal of the parcels to determine the parcel's value. Such appraiser shall be approved and provided with appraisal instructions by the Office. The final appraisal report supplied by the appraiser shall be reviewed by the Office pursuant to USPAP guidelines.

(iv) Once the detailed analysis is published, the Office will notice and solicit public comment from interested parties for thirty (30) calendar days, with direct notice provided to leaseholders of the state lands to be exchanged, owners of adjoining lands, and the board of county commissioners from the affected county or counties.

(v) The Office shall conduct a public hearing in the county in which the land is located only if a hearing is requested by the appropriate board of county commissioners.

History

• Effective 2023-12-06

Wyo. Code R. 060.0002.26.12062023 § 7 Public Auctions

(a) All costs incurred by the Office in advertising the auction shall be reimbursed by the purchaser.

(b) The successful bidder will tender a minimum of twenty-five percent (25%) of the total purchase price for the land plus costs associated with the sale, in the form of a cashier's check, certified check, or personal check with a letter of credit. If the highest bid is not from a responsible bidder, the auctioneer shall accept the next highest bid as the high bid.

(c) On the day of the auction, the successful responsible bidder will pay the balance of the purchase price, or execute a sales contract under the provisions of paragraph (d)(ii) of this section.

(d) Payment Options

(i) Purchasers desiring to pay the purchase price in full at the auction shall provide the auctioneer the necessary information to complete a patent or deed.

(ii) Purchasers desiring to finance up to seventy-five percent (75%) of the purchase price through a sales contract shall provide the auctioneer the necessary information to complete the contract. After a receipt for the purchase of improvements as required by W.S. 36-9-105 has been delivered to the Office, the contract shall be forwarded to the purchaser. The Office shall record the executed contract in the Register of Deeds, in the county clerk's office of the appropriate county.

History

• Effective 2023-12-06

Wyo. Code R. 060.0002.26.12062023 § 8 Instruments of Conveyance

(a) To complete an exchange, or upon full payment under a sales contract, or in the case of a cash purchase upon delivery to the Office of a receipt for the purchase of improvements as required by W.S. 36-9-105, the Office shall prepare and record in the Register of Deeds, in the county clerk's office of the appropriate county, one of the following instruments of conveyance:

(i) A patent, if the land has been in state ownership since statehood.

(ii) A warranty deed, if the land has been acquired by the state via a warranty deed.

(iii) A quit claim deed, if the land has been acquired by the state without a warranty.

(b) No patent or deed shall be issued for any portion of the land subject to a sales contract until full payment has been received for all the land under the contract. All recording fees will be paid by the grantee.

(c) For Board acquisitions, the grantor of any privately-owned parcel being granted to the Board shall purchase a policy of title insurance naming the Board as the insured party.

History

• Effective 2023-12-06

Wyo. Code R. 060.0002.26.12062023 § 9 Assignments of Sales Contracts

(a) The original purchaser of state trust land under a sales contract shall remain obligated to the Board for performance under the contract until the Board approves an assignment of the purchaser's rights under the contract.

(b) Upon receipt of written notice of the name, address, and tax identification number of an assignee of the purchaser's contract rights, the Office shall note this information for purposes of mailing payment notices and reporting interest paid on the contract to the United States Internal Revenue Service.

History

• Effective 2023-12-06

Chapter 27 Prescribed Burns

Wyo. Code R. 060.0002.27.09232004 Prescribed Burns

RULES AND REGULATIONS BOARD OF LAND COMMISSIONERS

Chapter 27

Prescribed Burns

Section 1. Authority

(a) These rules are promulgated under the authority granted by W.S. 36-2-107.

Section 2. Definitions

As used in this chapter:

(a) "Board" means the Wyoming Board of Land Commissioners.

(b) "Director" means the Director of the Office of State Lands and Investments.

(c) "Improvement" for the purposes of Chapters 4, 5 and this Chapter of the Board's rules and as used in Wyoming Statutes, Title 36, Chapter 5, shall not include a Prescribed Burn.

(d) "Office" means the Office of State Lands and Investments.

(e) "Person" means an individual, corporation, business trust, estate, trust, partnership, limited liability company, limited partnership, association, federal or state government, federal or state governmental subdivision, federal or state agency, or any other legal or commercial entity, whether governmental or private.

(f) "Prescribed Burn" means the planned and permitted use of fire to accomplish specific land management objectives, which include, but are not limited to, hazardous fuel reduction; forest, rangeland and grazing enhancements; site preparation for natural regeneration; and wildlife habitat protection and enhancement; provided, however, the term "Prescribed Burn" shall not include ditch burning, standard crop burning practices, or wildland fire use in those areas as identified in the respective plans of federal land management agencies.

(g) "Prescribed Burn Application" means an application whereby a Responsible Party requests permission from the Office to include State Lands in a Prescribed Burn. A Prescribed Burn Application shall include all of the items described in Section 4(d).

(h) "Prescribed Burn Consent Agreement" means an agreement, in the form approved by the Board, executed by (1) the Responsible Party, (2) every lessee, special or temporary use lease/permit holder, and easement holder, within the boundaries of the Prescribed Burn, and (3) the Office (only if all other Prescribed Burn conditions are satisfied).

(i) "Responsible Party" means the Person organizing, developing, implementing, and assuming liability and responsibility for a Prescribed Burn; provided, however, the term "Responsible Party" shall not include the Office or Wyoming Division of Forestry. For the purposes of this Chapter, there shall be only one Responsible Party for a Prescribed Burn, as identified in the Prescribed Burn Consent Agreement.

(j) "State Lands" means all lands under the jurisdiction of the Board.

Section 3. Delegation of Authority

(a) To the extent required to carry out the provisions of this Chapter, the Board delegates discretion to the Director to decide whether to approve or deny a Prescribed Burn Application. For every Prescribed Burn Application approved, the Director shall prepare an informational Board matter pursuant to Chapter 1 of these rules.

Section 4. Process

(a) Improvement Applications. Requests to include State Lands in Prescribed Burns will no longer be processed by the Office pursuant to an application for improvements filed under Chapters and 5 of the Board's Rules.

(b) Prescribed Burn Restriction/Prohibition. A Prescribed Burn shall not include any State Lands until the requirements of this Section are satisfied; provided, however, the Director in her or his sole discretion may waive one or more of the requirements contained in this Section.

(c) Initial Notification. The Office requests that a Responsible Party notify the Office, in writing, once it begins planning a Prescribed Burn that will include State Lands, if approved by the Office. Any such notification should include the legal description of the State Lands that will be included in any such future Prescribed Burn plan. The failure of a Responsible Party to provide an initial notification to the Office will not adversely affect the potential approval of a Prescribed Burn Application by the Office.

(d) Application. Not less than sixty days (60) prior to the scheduled burn date for a Prescribed Burn that will, if approved by the Office, include State Lands, the Responsible Party shall submit Prescribed Burn Application with the Office which shall include each of the following items:

(i) A Prescribed Burn Consent Agreement;

(ii) A Prescribed Burn plan which shall, at a minimum, include each of the following items:

(1)  The name, address and phone number of the Responsible Party;

(2)  For all applicants other than the Federal Government, the name, address and phone number of the burn contractor performing the Prescribed Burn or burn boss, if applicable;

(3)  The legal description of the area to be burned, the objectives of the Prescribed Burn, and the Prescribed Burn prescription/parameters;

(4)  A summary of the methods to be used to start, control and extinguish the Prescribed Burn;

(5)  The legal description of the State Lands that the Responsible Party would like to include in the Prescribed Burn; and

(6)  A map that clearly identifies all of the land included in the Prescribed Burn and identifies the owners of any such lands.

(iii) In the event the Responsible Party is a non-governmental Person, proof of insurance or other financial statements of the Responsible Party, satisfactory to the Office in its sole discretion, which demonstrates the Responsible Party's ability to satisfy any suppression costs, potential damage and indemnification claims that may arise out of the Prescribed Burn. The amount of insurance required by this paragraph will depend on the nature and scope of the Prescribed Burn and the burn plan submitted by the Responsible Party. The insurance policy shall name the Responsible Party as the named insured and the State of Wyoming as the named additional insured; and

(iv) It is the obligation of the Responsible Party to determine exactly what permits, licenses, approvals, consents and notifications are required from federal, state and local officials, and any third parties in order to conduct a specific Prescribed Burn. Therefore, in the Prescribed Burn Consent Agreement the Responsible Party will be required to represent and certify that it has satisfied all notification requirements and obtained all permits, licenses, approvals and consents required to conduct the Prescribed Burn.

Section 5. Office Review of Prescribed Burn Application.

(a) Within twenty (20) days of its receipt of the Prescribed Burn Application, the Office shall, in writing, approve, deny, or request more information from the Responsible Party. The Office's approval of the Prescribed Burn Application shall be evidenced by its execution and delivery of the Prescribed Burn Consent Agreement to the Responsible Party. In the event the Office requests additional information, it shall approve or deny, in writing, the Prescribed Burn Application within fifteen (15) days of its receipt of any such additional information. A Prescribed Burn Application shall not be considered approved, and the Responsible Party may not include State Lands in a Prescribed Burn, unless and until the Responsible Party has received the Prescribed Burn Consent Agreement executed by the Office.

(b) The Office may condition its approval of the Prescribed Burn upon the implementation of a range management plan, including the imposition of a grazing deferral, or any other condition that the Office deems necessary or advisable, in its sole discretion. The Office shall provide to the Responsible Party and every surface lessee of State Lands identified in the Prescribed Burn Application, in writing, a copy of any conditions imposed by the Office pursuant to this paragraph. The Office may adjust the carrying capacity of the lease impacted by a condition imposed hereunder.

(c) In reaching its determination of whether to approve or deny a Prescribed Burn Application, the Office may consider some or all of the following items:

(i) Whether the Prescribed Burn will interfere with an existing, planned, or proposed use of the applicable State Lands;

(ii) Whether the Prescribed Burn will interfere with any mineral development on the applicable State Lands;

(iii) Whether the Prescribed Burn will adversely impact the fair market value of the applicable State Lands;

(iv) Whether the Prescribed Burn will adversely impact the Office's management of the State Land's forest resources;

(v) Whether drought conditions exist that may increase the risk of a Prescribed Burn becoming uncontrolled;

(vi) Whether the Prescribed Burn will adversely impact the health and safety of area residents; and

(vii) Any other information or considerations the Office deems necessary or appropriate.

Section 6. Revocation of Prior Approval.

(a) At any time prior to the start of a Prescribed Burn, the Office may withdraw and revoke its approval of any Prescribed Burn Application by providing oral notice to the Responsible Party and every lessee that has executed the Prescribed Burn Consent Agreement, which shall be confirmed in writing within five days of said oral notification.

Section 7. Notice.

(a) Any notice or other information that is required to be given to the Office under this Chapter shall be delivered to the following: Office of State Lands and Investment c/o Real Estate and Farm Loan Division Herschler Building, 3W 122 W. 25th Street Cheyenne, WY 82002-0600.

History

• Effective 2004-09-23

Chapter 29 Sage Grouse Mitigation Credits

Wyo. Code R. 060.0002.29.09162020 § 1 Authority

This chapter is promulgated pursuant to Wyoming Statute § 9‑19-203(b).

History

• Effective 2020-09-16

Wyo. Code R. 060.0002.29.09162020 § 2 Definitions

(a) "Avoidance" means avoiding an impact completely by not taking a certain action or part of an action. Preferred development plans avoid negative impacts in Core Population Areas and other Executive Order delineated habitat used by Greater sage-grouse through compliance with Executive Order thresholds and stipulations for development.

(b) "Minimization" means minimizing the impact to habitat and populations by limiting the degree of an action and its implementation. When development occurs within Core Population Areas and other Executive Order delineated habitat used by Greater sage-grouse, all reasonable options should be pursued to minimize impacting additional suitable habitat to the greatest extent practicable. This may result in new disturbance within Executive Order delineated habitats, but the disturbance is managed to result in minimal discernable impacts at the population level.

(c) Suitable Habitat. Greater sage-grouse habitat within the delineated range of Greater sage-grouse, and are:

(i) Existing habitats with 5% or greater sagebrush canopy cover as measured by the point intercept method. "Sagebrush" includes all species and sub-species of the genus Artemisia except the mat-forming sub-shrub species: frigida (fringed) and pedatifida (birdfoot); or

(ii) Riparian, wet meadow (native or introduced) or areas of alfalfa or other suitable forbs (brood rearing habitat) within 275 meters of sagebrush habitat with 5% or greater sagebrush canopy cover (for roosting/loafing). Areas further than 275 meters from sagebrush may be considered suitable where pellet counts, documented sightings or other defensible proof of sage-grouse use can be provided; or

(iii) Reclaimed or restored habitat containing 5% or greater sagebrush canopy cover, with site-appropriate desirable grass and forb cover and frequency; or

(iv) Natural and manmade wetlands and historically (pre-2008) irrigated areas, excluding row crops, in stream and river valleys further than 275 meters from sagebrush habitat. These areas are considered "suitable" habitat for Density/Disturbance Calculation Tool (DDCT) purposes. These areas may also be considered suitable habitat for credit calculation purposes where pellet counts, documented sightings, or other defensible proof of sage-grouse use can be provided.

(d) Disturbed Habitat. Land that has been converted from formerly suitable habitat to grasslands, croplands, energy development, mining, or other disturbance resulting in less than 5% sagebrush canopy cover. These areas may provide habitat at some time in the future through succession, reclamation, or restoration. The following items are guidelines for determining disturbed habitat for the DDCT process:

(i) Long-term removal occurs when habitat is physically removed through activities that replace suitable habitat with long-term occupancy of unsuitable habitat such as a road, well pad or active mine.

(ii) Short-term removal occurs when vegetation is removed in small areas, but restored to suitable habitat within 5-10 years, such as a successfully reclaimed pipeline, or successfully reclaimed pit.

(iii) Suitable habitat between three or more short- or long-term disturbances may be considered disturbed due to proximity. Disturbances less than 1.2 miles apart (0.6 miles from each activity) will be consolidated and reflected in the DDCT as industrialized areas. Exceptions may be provided on a site-by-site basis.

(iv) Lands in Northeastern Wyoming are ecologically limited in terms of sagebrush production and the ability to sustain dense stands of sagebrush (canopy cover rarely exceeds 15% as measured by Line Intercept). Lands in northeastern Wyoming where sagebrush was removed prior to 1994 for the purpose of grassland agriculture which still do not have 5% or greater sagebrush cover may be exempt from counting as "disturbed" for DDCT purposes. Lands that were converted after 1994 that still do not have 5% or greater sagebrush canopy cover will be counted as "disturbed" in DDCT. Determinations will be based on orthophoto interpretation.

(e) Transitional Habitat. Land that has been previously disturbed or burned resulting in less than 5% sagebrush cover but is actively managed to provide functional habitat within 10 years. Lands managed to meet or move towards "suitable" definition for reclaimed or restored habitat (5% sagebrush canopy, appropriate grass and forb cover and frequency), including reclamation, may be considered "transitional" when valid, reliable, and repeatable trend data show vegetation is moving towards the definition of "suitable" and a management plan is developed. Trend is established by a minimum of five years of data. On potential "transitional" sites, the Wyoming Game and Fish Department (WGFD) and other relevant partners will be included in management plan development and a technical team may be needed. Habitats that are classified as "transitional" will not count as disturbance in DDCT calculations of Executive Order 5% threshold. However, "transitional" sites that do not meet the definition of "suitable" within 10 years will be considered "disturbed."

(f) Unsuitable Habitat. Land within the historic range of Greater sage-grouse that did not, does not, and will not provide Greater sage-grouse habitat due to natural ecological conditions (e.g., badlands, canyons or forests). This also includes those permanent disturbances such as existing reservoirs and municipal boundaries. This may also be referred to as "non-habitat."

(g) Density Disturbance Calculation Tool (DDCT). A spatially based tool that calculates both the average density of disruptive activities and total surface disturbance within the area affected by the project, also known as the DDCT assessment area.

(h) Modified Density Disturbance (MDD). A spatial analysis used to determine whether an area designated for credits is consistent with the tolerances of Executive Order 2019-3 (for example, surface disturbance less than 5%, one oil and gas or mining activity per 640 acres on average, collector or arterial roads greater than 1.9 miles from the perimeter of a lek, no surface occupancy within 0.6 miles from the perimeter of a lek).

History

• Effective 2020-09-16

Wyo. Code R. 060.0002.29.09162020 § 3 Geographic Area for Providing Mitigation Credits

(a) In order for a land parcel to be considered for conservation credits, the land must meet the following biological requirements:

(i) The lands within a proposed mitigation bank or other mitigation measure shall be considered the geographic area designated for credits. .

(ii) The geographic area designated for credits must include the habitat attributes identified in Section 7 as essential for perpetuation of greater sage-grouse and must have evidence of use by greater sage-grouse.

(iii) The geographic area designated for credits must have active breeding areas (leks) within the landscape. (Generally, the credits should be located within 5.3 miles of an active lek.).

(b) Mitigation credits must reflect science-based criteria including provisions that consider additionality, durability, replacement, direct and indirect effects, habitat assurance, habitat vulnerability, evidence of use, access to seasonal habitat and other landscape and habitat needs for greater sage-grouse.

History

• Effective 2020-09-16

Wyo. Code R. 060.0002.29.09162020 § 4 Compensatory Mitigation Oversight Group

(a) The compensatory mitigation oversight group shall consist of representatives of the department of agriculture, the game and fish department, the Wyoming wildlife and natural resource trust account board, and the Office, which will serve as chair of the group.

(b) The compensatory mitigation group should include representation from federal partners, including the U.S. Fish and Wildlife Service, Bureau of Land Management, U.S. Forest Service and Natural Resource Conservation Service, as appropriate, and should request assistance from any other state, local, and federal agencies, as appropriate, to review credit provider applications and other proposed mitigation measures.

(c) The compensatory mitigation oversight group shall evaluate and provide technical review using the criteria established under Section 7 of this chapter and, where appropriate, recommend certification of any mitigation credit provider seeking approval.

History

• Effective 2020-09-16

Wyo. Code R. 060.0002.29.09162020 § 5 Service Area for Use of Compensatory Mitigation Credits

(a) The service area for the use of compensatory mitigation credits is the state of Wyoming. Credit purchasers should consider proximity to the impact when offering compensatory mitigation.

History

• Effective 2020-09-16

Wyo. Code R. 060.0002.29.09162020 § 6 Length of Credits

(a) The length of credits to be used and sold shall be not less than five years, provided that any term credit shall be adequate to meet the period of the impact and shall remain in place until biological impact to greater sage-grouse habitat is restored and evidence of use by greater sage-grouse can be shown.

(b) If term credits will expire before restoration of the impacted location, the credit holder shall be required to purchase additional credits or negotiate a credit contract extension. Funds for this purpose may be placed in an escrow or reserve account held by the Board and must be deposited at the time of the credit purchase.

History

• Effective 2020-09-16

Wyo. Code R. 060.0002.29.09162020 § 7 Criteria for Use and Sale of Compensatory Mitigation Conservation Credits

(a) Credit Requirements:

Category

Credit Condition

Credit Requirements

Evidence of Use

Mandatory

There is evidence that greater sage-grouse use the area.

Disturbance

Mandatory

Disturbance within the area to be considered for credits must be below 10% and 1 per 640 as measured by a modified Density Disturbance Calculation Tool (DDCT) process.

Disturbance

Potential Credit Adjustment

Disturbance within the area to be considered for credits is below 5% and 1 per 640 as measured by a modified DDCT process.

 If disturbance is between 5.01% and 9.99% as measured by the DDCT Process, the credit will be discounted by 10%.

Durability

Mandatory

The credit exists for the life of the biological impact.

Durability

Potential Credit Adjustment

The credit has permanent protection. For state and federal lands, this would require a conservation credit lease term of not less than fifty (50) years, with a renewal option at the end of the term.

The credit does not have permanent protection = deduction in an amount determined by actuarial analysis that reflects the comparative value of credits for different durations

Financial Assurances/Replacement

Mandatory

Credits include the financial assurances or replacement credits, as appropriate, to guarantee the implementation and effectiveness of compensatory mitigation measures and to cover their administration, durability, monitoring, and reporting.

Habitat Suitability

Mandatory

Habitat suitability must be functional for greater sage-grouse as verified by an ecological site potential assessment and habitat assessment through the Habitat Assessment Framework, or other suitable habitat analysis.

Habitat Suitability

Mandatory

Habitat suitability is greater than 5% sagebrush cover.

Additionality

Mandatory

Credits will not be allowed where habitat conservation is otherwise required by law, regulation, permit, or other condition.

Landscape Support

Potential Credit Adjustment

The area proposed for credit must be within a landscape that provides access to all seasonal habitats where potential threats have been ameliorated or removed. Private lands that meet these criteria would receive a landscape context credit increase not to exceed 15%, Any areas not adequately conserved discounted from the total increase. Any landscape credit adjustment must be approved by the credit-certifying entity and should be figured in a manner that reflects specific habitat values (for example, the number of leks, the lek population, enhanced credit value based on credit location in relation to protecting a lek, quality of habitat, removal of multiple threats).

Risk Reduction

Mandatory

The credit includes the following:

a. The outcomes of compensatory mitigation measures and the performance standards to be met for the duration of the credit life. Credit descriptions should include the types and amounts of resources that will be restored, established, enhanced, and/or preserved, and how these outcomes will address species' conservation needs at the landscape scale.

b. The baseline condition prior to disturbance and future disturbance threats affecting the compensatory mitigation credits (for example, are there 4 seasonal habitats located within 4 miles, what are the existing thresholds, what is the potential for future development?).

c. The durability (for example, offset for life of disturbance) of the compensatory mitigation measures and how the credit sites will be maintained.

d. The monitoring and reporting program that will be used to report credit conditions and trends of resources at all relevant scales, to assess the effectiveness of compensatory mitigation measures, and to identify any need for adaptive management.

e. The triggers for adapting management, if necessary, in order to achieve the outcomes of the compensatory mitigation measures.

f. The implementation plan for the enhancement, restoration or funding of compensatory mitigation measure(s) that includes:

1. Specifications for implementing the compensatory mitigation measures ( for example, timing, method, source materials, specific geographic area).

2. The schedule and plan to maintain compensatory mitigation measures for the duration of the impacts.

g. The accounting process for tracking measures/funds/credits.

(b) Debit Requirements:

(i) The following table identifies how the replacement, indirect effect, habitat assurance and habitat vulnerability debit factors are calculated for activities in Core Population Areas.

Activity in Core Population Areas

Debits

New disturbance in compliance with Executive Order thresholds

0 debits.

New disturbance exceeding the 5% disturbance threshold and occurring more than 0.6 miles from an occupied lek

5 debits per acre

Any new disturbance within 0.6 miles from an occupied lek and new collector or arterial roads within 1.9 miles from an occupied lek.

10 debits per acre

Greater than 1 activity per 640 acres

10 debits total per activity.

Short-term impact

(seasonal stipulation relief)

10 debits per activity, per year

Habitat vulnerability

(discretionary)

Potential 5 debits per acre of vulnerable habitat

(ii) Compensatory Mitigation in Non-core Population Areas.

(A) For surface occupancy within (<) .25 miles from an occupied lek, compensatory mitigation will be calculated on an acre-to-acre basis (based on the footprint of the activity in suitable habitat within the .25 mile buffer) with a factor of 2:1.

(B) The compensatory mitigation requirement for short-term impacts applies to Non-Core Population Areas.

(C) The following table demonstrates how debits are calculated for activity in Non-Core Population Areas:

Activity in Core Population Areas

Debits

New disturbance in compliance with Executive Order 2015-4 thresholds

0 debits.

Within .25 miles from an occupied lek

2 debits per acre of suitable habitat

Short-term impact

(seasonal stipulation relief).

10 debits per activity, per year

(iii) Considerations relative to debits, including durability, additionality, timeliness, and other factors are adequately addressed in the calculation of credits and should not be applied to both debits and credits.

History

• Effective 2020-09-16

Wyo. Code R. 060.0002.29.09162020 § 8 Criteria for Other Forms of Mitigation

(a) Compensatory mitigation may be achieved through actions that maintain, improve or restore existing landscapes, or areas within landscapes, from a condition that does not currently support greater sage-grouse, or does not meet the needs of species reflected through Habitat Assessment Framework assessments, or other defensible habitat assessments, which are consistent with the ecological potential for the site.

(b) Restoration credits would be awarded when the proponent can show that site conditions have been changed to a condition that is stable, functional, and trending toward the normal range of variability for the appropriate ecological site description, or where otherwise verified by acceptable scientific protocols, and where greater sage-grouse occupy the site. Restoration credit providers shall document the changes in ecological conditions as a result of their actions in manner that can be monitored over time.

(c) Credits will be awarded when a disturbed site conforms to the appropriate ecological site description and is maintained in a stable state and trend toward optimal greater sage-grouse habitat for a period of five (5) years.

(d) Restoration credits must adhere to the quality parameters outlined for conservation credits in Section 7(a), but need not meet the requirements in the Habitat Suitability categories. Restoration credits must adhere to the quality parameters outlined for conservation credits.

(e) Improvement will be measured as a functional change in the landscape, and generally will be in the form of credit generation as outlined in Section 7.

(f) Proponents will be required to annually submit data to show that the credit is not regressing.

(g) Any action that is required by law, permitting and reclamation agreements, contracts, or other requirements is not eligible for credits.

History

• Effective 2020-09-16

Wyo. Code R. 060.0002.29.09162020 § 9 Approval by the Board

(a) The compensatory mitigation oversight group shall submit recommendations to the Board for its approval at a public meeting when the compensatory mitigation oversight group determines that the credit provider meets the requirements of statute and rule.

History

• Effective 2020-09-16

Wyo. Code R. 060.0002.29.09162020 § 10 Maintenance Requirements

(a) The Board shall maintain records concerning ecological function and greater sage-grouse habitat losses and credit and debit accounts for each mitigation credit.

History

• Effective 2020-09-16

Wyo. Code R. 060.0002.29.09162020 § 11 Requirements for Long-Term Monitoring, Management, and Maintenance

(a) Compensatory mitigation credits authorized under this credit system shall be subject to long-term monitoring, management, and maintenance. Potential credit providers shall submit a plan that shows a schedule and methods for monitoring, management and maintenance, including adequate endowment funds to meet the obligations outlined in the plan.

(b) Endowment funds to cover the costs of long-term monitoring, maintenance and management shall be provided at the time of any sale of compensatory mitigation credits and shall include the State of Wyoming as a beneficiary of the funds, and may be included in the endowment account authorized under Section 14 of these rules.

(c) Data collected by monitoring should be in a form that can be standardized and analyzed to assess the relationship between sage-grouse population trends and conservation actions undertaken as a part of the credit provider.

History

• Effective 2020-09-16

Wyo. Code R. 060.0002.29.09162020 § 12 Financial and Performance Audits

(a) Periodic financial and performance audits shall be required on each mitigation credit provider authorized to offer credits under the compensatory mitigation credit system. Audits shall be conducted only to ensure that the mitigation credit provider is in compliance with the Wyoming Greater Sage-Grouse Compensatory Mitigation Act and any rules promulgated thereunder.

(b) The cost of performance audits shall be borne by the credit provider.

History

• Effective 2020-09-16

Wyo. Code R. 060.0002.29.09162020 § 13 Eligibility Criteria for Mitigation Credit Providers

(a) A mitigation credit provider shall be a resident of or authorized to conduct business in Wyoming.

(b) Any credit provider authorized under these rules shall meet the requirements found in Section 7 of these rules

(c) A credit provider shall pay an annual registration fee of $250.00 to remain in good standing. If the credit provider operates under section 18 of these rules, the annual fee may be deducted from the account as provided.

History

• Effective 2020-09-16

Wyo. Code R. 060.0002.29.09162020 § 14 Financial Assurances

(a) Each credit provider shall provide financial assurances that are satisfactory to meet the requirements in Section 7 of these rules, and are sufficient to address the following:

(i) Any corrective measures that a mitigation credit provider or their successor in interest is required to take to ameliorate any material injury or adverse impacts to the land or habitat used for compensatory mitigation for which credits are offered that materially impairs the conservation objectives of that land or habitat;

(ii) Natural disasters that occur on or at mitigation sites used to offer credits;

(iii) The bankruptcy or financial failure of a mitigation credit provider authorized to offer credits under the compensatory mitigation credit system; and

(iv) Maintenance, monitoring, and management costs.

History

• Effective 2020-09-16

Wyo. Code R. 060.0002.29.09162020 § 15 Conservation Easement

(a) Every conservation easement or other instrument used to serve as a credit shall bind the parties to an agreement that provides a third-party beneficiary to the easement solely with the contingent right to enter onto the land subject to the easement for inspection and to enforce the terms of the easement or other instrument if the grantee fails to enforce any of the terms of the easement.

(b) The Office shall have the right to access a mitigation credit provider's financial assurances in order to address any of the occurrences in W.S. 9-19-203(b)(xii).

History

• Effective 2020-09-16

Wyo. Code R. 060.0002.29.09162020 § 16 Purchase/Transfer of Mitigation Credit

(a) Upon the purchase of a credit from a mitigation credit provider, the purchaser's obligation for mitigation represented by that credit shall be transferred to the mitigation credit provider for the term of the credit.

History

• Effective 2020-09-16

Wyo. Code R. 060.0002.29.09162020 § 17 Certification of Habitat Conservation Banks

(a) The Board shall certify any habitat conservation bank that has been certified an approved by the United States fish and wildlife service as meeting or exceeding the requirements of this act until the earlier of:

(i) The federally approved habitat conservation bank is approved; or

(ii) July 1, 2023.

History

• Effective 2020-09-16

Wyo. Code R. 060.0002.29.09162020 § 18 Account and Fees

(a) The Board may accept and manage the expenditure of endowment funds deposited as part of the financial assurances required under these rules provided that:

(i) Endowment funds deposited pursuant to this section shall be invested by the state treasurer as authorized under W.S. 9-4-715 (a), (d), and (e).

(ii) The Board shall collect an endowment setup fee of $1,500. The setup fee shall be deposited into an account determined by the Board.

(b) Any endowment fund established pursuant to this section shall be subject to an annual fee of one percent (1%) of the fund's balance for the annual administration, operation, reporting, and accounting of the fund. The Board shall assess and collect the annual fee on the anniversary date of the approved credit provider during each year in which the account is in existence. The Board shall collect the annual fee by deducting it from the balance of the endowment fund.

(c) The Board shall assess and collect an annual registration fee of $250.00 as provided for in Section 13 during each year in which the credit provider is in existence. The Board may deduct the annual fee from the balance of the account.

History

• Effective 2020-09-16

200 Loan and Investment Board

Chapter 1 Rules of Practice & Procedure Before the Board

Wyo. Code R. 060.0003.1.05162017 Rules of Practice & Procedure Before the Board

Chapter 1

Rules of Practice and Procedure Before the Board

Section 1. Authority. These rules are promulgated under the authority granted by Wyoming Statute (W.S.) 11-34-103(a) and 16-3-103(j)(ii).

Section 2. Definitions.

(a) For purposes of all chapters, the following definitions apply:

(i) "Board" means the State Loan and Investment Board.

(ii) "Board matter" means a proposed agency action presented to the Board for its approval, disapproval, or other disposition.

(iii) "Chairman" means the presiding officer of a meeting of the Board.

(iv) "Director" means the Director of the Office of State Lands and Investments.

(v) "Office" means the Office of State Lands and Investments.

Section 3. Meetings.

(a) The Board shall meet regularly on the first Thursday of each February, April, June, August, October, and December and at the call of the President, to consider all matters under its jurisdiction. A regular meeting may be postponed or canceled by the President of the Board.

(b) The Board shall meet regularly on the third Thursday of each January and June to consider applications for Mineral Royalty Grants and Abandoned Mine Land Grants.

(c) Special meetings may be called by the President of the Board upon proper notice to the Director and the other members of the Board in compliance with W.S. 16-4-404 of the Public Meetings Act.

(d) The Governor shall be the President of the Board; or if the Governor is not in attendance, the Secretary of State; or if both the Governor and the Secretary of State are not in attendance, the State Auditor.

(e) Three members of the Board shall constitute a quorum. No board action shall be taken in the absence of a quorum.

Section 4. Agenda.

(a) The Director shall prepare the agenda for meetings of the Board, compile all board matters to be presented to the Board, and deliver the agenda and board matters to each member of the Board at least 5 days prior to the meeting.

(b) The Chairman may modify the sequence of the agenda at the meeting.

Section 5. Board Matters.

(a) The Director shall prepare a board matter, containing sufficient information to aid the Board's decision, for each agency action to be considered by the Board.

(b) Any member of the Board may instruct the Director to prepare and present a board matter to the Board for its consideration.

(c) All board matters shall contain a recommendation from the Director for Board action unless specifically stated for informational purposes or discussion only.

(d) Any person may request the Director to place an issue on the agenda for consideration by the Board by supplying the Director with all relevant information at least 10 days before the meeting. In the event the Director denies placement of an issue on the Board agenda, a copy of any written request shall be provided to the Board members at the time of the Director's decision.

(e) All Board Matters not stamped "confidential" shall be made available for public inspection at the time they are distributed to the Board members.

Section 6. Appearances before the Board.

(a) Any interested person may appear before the Board on a matter being considered by the Board.

(b) To preserve the orderly conduct of public business, the President may limit the time and nature of the appearance.

Section 7. Counsel for the Board.

(a) The Director shall request the Attorney General or his designated assistant to attend all meetings of the Board and act as the Board's legal advisor. The Director shall give a copy of all Board Matters to be considered to the Attorney General or his designated assistant at least five days before the meeting.

Section 8. Confidential Records.

(a) All applications for farm loans and water development loans shall be held confidential by the Board and its staff until the application is considered by the Board for approval or rejection. Upon approval of a loan, the application shall become a public record, as defined in W.S. 16-4-201.

Section 9. Forms.

(a) All forms used by the Office in regard to loans and investments administered by the Office which create a contractual relationship with the Board or an obligation in behalf of the Board and any substantive changes thereof shall be approved by the Board.

Section 10. Director Decisions.

(a) Any decision of the Director issued under authority statutorily granted to the Board, may be reviewed by the Board upon receipt of a written request received by the Office.

Section 11. Incorporation by Reference.

(a) The Board hereby incorporates by reference the following uniform rules:

(i) Chapter 2 - Uniform Procedures, Fees, Costs, and Charges for Inspecting, Copying, and Producing Public Records adopted by the Department of Administration and Information and effective on September 6, 2016, found at: https://rules.wyo.gov.

(b) For these rules incorporated by reference:

(i) The Board has determined that incorporation of the full text in these rules would be cumbersome or inefficient given the length or nature of the rules;

(ii) The incorporation by reference does not include any later amendments or editions of the incorporated matter beyond the applicable date identified in subsection (a)(i) of this section; and

(iii) The incorporated rules are maintained at the Office and are available for public inspection and copying at the same location.

History

• Effective 2017-05-16

Chapter 2 Wyoming Joint Powers Act Loans

Wyo. Code R. 060.0003.2.09252023 § 1 Authority

This Chapter is adopted pursuant to Wyoming Statute (W.S.) 16-1-109. Pursuant to 2023 Wyo. Sess. Laws Chapter 135, § 4(a)(i), the Board shall not authorize, approve, structure, guarantee or finance a Wyoming Joint Powers Act loan on and after April 1, 2023.

History

• Effective 2023-09-25

Wyo. Code R. 060.0003.2.09252023 § 2 Definitions

(a) In addition to the definitions in Chapter 1, as used in this Chapter:

(i) "Administrator" means the Administrator of the Wyoming Department of Transportation (WYDOT) Aeronautics Division.

(ii) "Agencies" means Wyoming counties, municipal corporations, school districts, community college districts, University of Wyoming, special districts and Joint Powers Boards specifically involved in providing facilities or functions enumerated in W.S. 16-1-104(c).

(iii) "Commission" means the Wyoming Aeronautics Commission.

(iv) "Division" means the WYDOT Aeronautics Division.

(v) "Revenue-generating public facilities" means facilities owned by the applicant that generate revenue under this Chapter from user fees or assessments paid by the beneficiaries of the facilities.

History

• Effective 2023-09-25

Wyo. Code R. 060.0003.2.09252023 § 3 General Policy

The Board shall extend loans under the provisions of this Chapter in such a manner and to such applicants as shall, in the judgment of the Board, inure to the greatest benefit of the citizens of the state and represent a prudent use of loan funds.

History

• Effective 2023-09-25

Wyo. Code R. 060.0003.2.09252023 § 4 Loan Eligibility

(a) Applicants. Agencies shall be eligible to apply for loans under this Chapter. Wyoming counties, cities and towns, and Joint Powers Boards specifically involved in providing governing authority over airports and empowered pursuant to W.S. 10-5-101 through W.S. 10-5- 204 shall also be eligible to apply for loans under this Chapter. If the applicant is a special district or joint powers board, it must be legally formed and approved prior to loan application. Applicants must be in compliance with all applicable reporting requirements with the Wyoming Department of Audit and the Wyoming Department of Revenue prior to its application being considered by the Board.

(b) Purposes. Loans may be extended for agency purposes involving the planning, construction, acquisition, improvement, emergency repair, acquisition of land for, refinancing of

existing debt for, and operation of revenue-generating public facilities. Loans may also be extended to public-use airports for construction, development, and improvement of airport facilities generating user fees, except that no loans shall be extended for fuel system or fuel tank removal or for asbestos removal.

(c) The Board may refinance any delinquent Joint Powers Act loan and reamortize the loan over not more than thirty (30) years from the date of the refinancing.

History

• Effective 2023-09-25

Wyo. Code R. 060.0003.2.09252023 § 5 Application Procedure

(a) Applications. Separate applications shall be prepared for each project on a form provided by the Office.

(i) Applicants for a loan not related to an airport shall submit one (1) hard copy and one (1) electronic copy of their completed application to the Office.

(ii) Applicants for a loan related to an airport project shall submit one (1) hard copy and one (1) electronic copy of their completed application to the Division and the Office.

(b) Timing. Applications for loans under this Chapter must be received by the Office at least ninety (90) calendar days prior to any scheduled meeting of the Board. Applicants must cure any defects in their applications no later than forty-five (45) calendar days before any regular or special meeting of the Board.

(i) Applications for airport project loans under this Chapter must be received by the Division at least fifteen (15) working days before the next regular Commission meeting.

(c) Information Required. The following information shall be provided in all application packages:

(i) An application properly executed by the officers of the applicant on a form provided by the Office.

(ii) A full description of the proposed project and detailed cost estimate, including a licensed engineer's statement of feasibility of the project, if applicable.

(iii) A project schedule which includes design, commencement date and completion date for the project.

(iv) The loan amount requested and source of repayment.

(v) A copy of the applicant's financial statements for the last three (3) years. If an independent audit has not been performed, then applicant can submit the last three (3) years of Financial Forms (Survey of Local Government Finances F-32 and F-66WY4 for special districts, Annual City and Town Financial Report F-66WY2 for Cities and Towns).

(vi) A copy of the applicant's annual budget for the preceding and current fiscal years that includes, but is not limited to the following information:

(A) Assessed valuation for the current and two preceding fiscal years;

(B) Total bonded and non-bonded indebtedness, including outstanding principal balance, interest rate, and remaining term;

(C) Total mills levied within the jurisdiction of the applicant for the current and two preceding years; and, a breakdown of the mill levy for the current fiscal year;

(D) Sales and use tax imposed within the jurisdiction of the applicant;

and

(E) A summary of the applicant's total investments and cash balances for the two preceding fiscal years.

(vii) If the application is for a water or sewer project, the applicant's current water and sewer rates, tap fees and an indication if water meters have been installed.

(viii) If the application is for a street and road project, a Completed Street Questionnaire is required.

(ix) If the application is for Fire Apparatus Projects, a Completed Fire Apparatus Questionnaire is required.

(x) Applicant shall provide all other documentation and information the Office, Division or Commission deems reasonable, prudent and necessary.

(xi) A description of other project funding sources, committed or pending, and the portion of the project cost expected to be funded from each source, including any future loan applications under this Chapter. A copy of the funding commitment from the other funding sources must be provided.

(xii) If applicable, a copy of the joint powers agreement approved by the Attorney General and a copy of the certificate of organization filed with the Secretary of State.

(xiii) If the applicant is a special district, the application shall also include documentation of the formation of the special district and certification by the Board of County Commissioners that the special district currently exists.

(xiv) A copy of the "Standard Resolution" form provided by the Office authorizing the filing of the application and providing for a dedicated source of repayment acceptable to the Office.

(d) Preliminary Review. Within ten (10) working days of receiving an application for

a loan, the Office shall notify the applicant, in writing, if the application lacks any of the items required in subsection (c) of this section. The applicant shall have ten (10) working days to submit the required information.

(i) Within ten (10) working days of receiving an application for an airport related loan, the Division shall notify the applicant, in writing, if the application lacks any item required in subsection (c) of this section. The applicant shall have ten (10) working days to submit the required information.

(e) Incomplete Applications. Incomplete applications, those missing one or more of the information items requested and/or failing to meet established deadlines, shall not be presented to the Board for consideration.

History

• Effective 2023-09-25

Wyo. Code R. 060.0003.2.09252023 § 6 Evaluation

(a) The Office shall evaluate applications and the Director will formulate a recommendation to the Board utilizing the following criteria:

(i) Whether the applicant's dedicated source of repayment will be sufficient so that the loan may be considered a reasonable and prudent investment of state permanent funds.

(ii) Whether the applicant is current on all its repayment obligations to the

Board.

(iii) The extent to which the applicant is utilizing, or plans to utilize, available and qualified Wyoming based professional firms and contractors on the project.

(iv) Whether the applicant is ready to proceed with construction or implementation of the project.

(v) Whether the applicant has established an adequate operations and maintenance costs fund for the project for which applicant seeks funding.

(vi) Whether the project is appropriately sized for the population to be served

by the project.

(vii) Recommendations from the Commission or other interagency

consultations.

(b) The Division shall evaluate the applications for airport related projects and the Administrator shall formulate a recommendation to the Commission using the following criteria:

(i) Whether the user fees or assessments generated by the project will be sufficient to justify the loan as a reasonable and prudent investment of state funds.

(ii) Whether the proposed project is in compliance with the current Division accepted Airport Layout Plan and the overall development of the airport.

(iii) Whether the applicant is meeting any and all current and past repayment obligations to the Commission.

(iv) The proposed project's merit in relation to the overall state system planning and its usefulness in achieving state goals.

(c) Interagency Consultation. The Director shall request that pertinent state agencies assist in the review of the applications and provide comments to the Office for Board consideration.

History

• Effective 2023-09-25

Wyo. Code R. 060.0003.2.09252023 § 7 Commission and Board Consideration

(a) The Commission shall consider each loan application for an airport related project, allow for comments from the applicant and the Administrator, recommend the loan amount and comment on the appropriateness and nature of the type of security offered for the loan. The Commission shall then recommend approval or disapproval of the loan request to the Board. The Commission's recommendation shall be written and include the recommended loan amount, loan term in years and document any concerns.

(b) The Board shall consider each application, allow for comments from the applicant and from the Director, and establish the amount of the loan, the term of the loan, and the type of security required to secure the loan pursuant to W.S. 16-1-109(d)(ii).

History

• Effective 2023-09-25

Wyo. Code R. 060.0003.2.09252023 § 8 Loan Interest and Fee

The interest rate for loans under this Chapter shall be pursuant to Chapter 14 of the rules as established by the Board and a 1% origination fee shall be collected on the amount approved.

History

• Effective 2023-09-25

Wyo. Code R. 060.0003.2.09252023 § 9 Security Interest

(a) The Board may require a first-position security interest in the revenue-generating facility, user fees, assessments and any other dedicated source of repayment.

(b) For loans related to airport projects, the Board and Commission reserve the right to withhold the applicant's yearly state grant funding and apply those funds to the unpaid loan balance if the borrower defaults on the loan.

(c) During the life of the loan, the applicant shall:

(i) Collect the dedicated source of repayment for the term of the loan, or until the loan is paid in full.

(ii) If assessments are included as part of the dedicated source of repayment,

applicant shall establish an annual assessment equal to, or greater than, the amount of the annual debt service payment on the loan. This assessment schedule will be filed on or before February 15th of each year for the full term of the loan, a copy of which will be sent to the Office.

(d) If the Board has required a lien on the facilities, the applicant shall for the life of the loan:

(i) Maintain adequate insurance on the facility.

(ii) Pay all applicable taxes and assessments when due.

(iii) Maintain the facility in good condition.

(iv) For airport loans, adhere to and enforce the sponsor's assurances according to the certificate of state airport loan.

(e) If at any time the applicant is found in noncompliance with the above requirements, they will be given thirty (30) days to cure the deficiencies. If after thirty (30) days, the deficiencies are not cured the Board may call the loan.

History

• Effective 2023-09-25

Wyo. Code R. 060.0003.2.09252023 § 10 Defaults on Airport Related Loans

In the event of a default on an airport related loan, the Office will consult with the Commission on the appropriate way to collect the debt in compliance with state and federal laws.

History

• Effective 2023-09-25

Wyo. Code R. 060.0003.2.09252023 § 11 Disbursement of Loan Proceeds

Loan proceeds shall be disbursed solely for the approved loan purposes and in accordance with the loan terms. Borrower shall submit all requests for payment on a form provided by the Office, with supporting documentation, as required by the Director.

History

• Effective 2023-09-25

Wyo. Code R. 060.0003.2.09252023 § 12 Audits and Inspections

(a) The Board or Commission may, at its expense, conduct an independent audit of the loan recipient's records and inspect the construction and operation of the project.

(b) On an annual basis, records of the loan recipient shall be, at a minimum, compiled by an independent accounting firm. Notification of compliance shall be made to the Board in the form of a Compilation, Review or Audited Financial Statement, per W.S. 16-1-109(d)(iv).

History

• Effective 2023-09-25

Chapter 3 Federal Mineral Royalty Capital Construction Account Grants

Wyo. Code R. 060.0003.3.03032021 § 1 Authority

(a) This Chapter is adopted pursuant to Wyoming Statute (W.S.) 9-4-604 and Laws 1979, Chapter 160, Section 6.

History

• Effective 2021-03-03

Wyo. Code R. 060.0003.3.03032021 § 2 Definitions

In addition to the definitions in Chapter 1, as used in this Chapter:

(a) "Special district" means hospital, fire protection, sanitary and improvement, solid waste disposal, improvement and service, and water and sewer districts.

(b) "Emergency vehicles" means new and complete fire trucks, police vehicles, and ambulances owned by the applicant, and under original manufacturer's warranty. Fire trucks must also meet current National Fire Protection Association (NFPA) standards, except for wildland firetrucks. The Board may authorize grants for used fire and police vehicles.

(c) "Eligible project costs" means total project cost, less ineligible project costs.

(d) "Business Days" means Monday through Friday, except for federal or state holidays.

History

• Effective 2021-03-03

Wyo. Code R. 060.0003.3.03032021 § 3 General Policy

(a) The Board shall award grants under the provisions of this Chapter in such a manner and to such applicants as shall, in the judgment of the Board, inure to the greatest benefit of the citizens of the state and represent a prudent use of grant funds.

History

• Effective 2021-03-03

Wyo. Code R. 060.0003.3.03032021 § 4 Loans

The Board may award a loan instead of a grant in certain situations.

(a) Loan Conditions. When the Board approves a loan, the following conditions shall be included in the award and met prior to the closing of the loan:

(i) Pledge of a dedicated source of repayment that is adequate to service the debt without creating a hardship to the community, as determined by the financial analysis performed by the Office;

(ii) The Attorney General shall review the application to certify the legality of the transaction and to determine if an election is required by law; and

(iii) If the loan is to purchase land/building or construct a building, a mortgage will be taken on the said asset. The Board will require a first position lien on the property.

(b) Loan Terms.

(i) Interest rate. The interest rate for each loan shall be set by the Board. The interest rate shall be set between zero percent (0%) and the average rate of return realized on all Permanent Mineral Trust Fund investments as determined by the State Treasurer for the five (5) calendar years immediately preceding the year in which the loan is made; no equity requirement.

(ii) Length. The term of each loan shall be set by the Board with due regard given to repayment ability and the security offered, but in no event shall the term exceed ten (10) years.

(iii) Repayment. Loans shall be amortized to ensure repayment of all principal and accrued interest is repaid during the approved term of the loan. Payments shall begin within one (1) year of substantial completion, initiation of operations or final draw of loan funds whichever occurs first.

History

• Effective 2021-03-03

Wyo. Code R. 060.0003.3.03032021 § 5 Grant Eligibility

(a) Applicants. Incorporated cities and towns, counties, special districts and joint powers boards shall be eligible to apply for grants under this Chapter.

(i) If the applicant is a special district or joint powers board, it must be legally formed and approved prior to submitting an application.

(ii) An applicant must be in compliance with all applicable reporting requirements with the Wyoming Department of Audit and Wyoming Department of Revenue prior to its application being considered by the Board.

(iii) Applicants shall be allowed to submit multiple applications for fifty percent (50%) grants and up to two seventy-five percent (75%) grants for different projects at one grant meeting.

(b) Purposes. Pursuant to W.S. 9-4-604(a), the Board may award grants necessary to alleviate an emergency situation which poses a direct and immediate threat to health, safety or welfare, to comply with a federal or state mandate, or to provide an essential public service as defined in W.S. 9-4-604(p).

(i) The Board interprets the term, "federal or state mandate" as used in W.S. 9-604(a) to mean those federal or state mandates that specifically concern public health and safety.

(c) Maximum Grant Percentage. Pursuant to W.S. 9-4-604(g)(ii) and W.S. 9-4-604(h)(ii) the Board may award grants for over 50% to municipalities if the Board determines that the municipality "...either levied at least seven (7) mills for operating expenses including special district levies chargeable against the general city or town levy during the current fiscal year or is imposing the optional tax permitted byW.S.39-15-204(a)(i) or (iii)at the time of the application and is utilizing all other local revenue sources reasonably and legally available to finance the project..." The Board may make grants in excess of fifty percent (50%) to counties and special districts "...if the board determines that the applicant either levied at least eleven (11) mills for operating expenses during the current fiscal year or is imposing the optional tax permitted by W.S. 39-15-204(a)(i) or (iii) at the time of the application and is utilizing all other local revenue sources reasonably and legally available to finance the project ..." The Board shall use the following criteria to determine if applicants are utilizing all other local revenue sources reasonably and legally available to finance the project:

(i) Municipalities that meet one or both of the following criteria are eligible to receive grant assistance up to seventy-five percent (75%) of the eligible project costs: (1) Have a population of less than 1,300 according to the latest federal census. (2) Located within a county where the three-year average of the local government share of state sales and use tax per capita is less than seventy percent (70%) of the statewide average. The Office will use the three most current annual reports from the Wyoming Department of Revenue to determine the three-year average of the local government share of sales and use tax. The Office will use the current federal census to determine the per capita percentage.

(ii) Counties and special districts located within a county, whose assessed valuation is less than two and one-half percent (2.5%) of the State's total assessed valuation are eligible to receive grant assistance up to seventy-five percent (75%) of the eligible project costs. The Office will use the current annual report from the Wyoming Department of Revenue to determine assessed valuation. The Office will use the current federal census to determine population.

(iii) Application for a seventy-five percent (75%) grant precludes a simultaneous application for a fifty percent (50%) grant for the same project. However, applicants may submit multiple applications for separate projects.

(d) Ineligible Project Costs. The following project costs shall be ineligible for reimbursement from grant funds and shall be ineligible to be counted toward the applicant's match:

(i) Costs for sidewalks that are owned or maintained by a private property owner;

(ii) Costs for tap fees, sewer and water fees, and plant investment fees;

(iii) Engineering fees, including design, inspection and contract administration costs, over twenty percent (20%) of project cost;

(iv) All non-cash costs except land provided by the applicant, and used for project purposes, valued at fair market value;

(v) Costs for preparation or presentation of grant or loan applications for any source of funding;

(vi) Costs for transportation, meals, lodging, and incidentals incurred anywhere away from the site of the project or that exceed the current federal per diem reimbursement rates;

(vii) Costs for furnishings, supplies and tools, including but not limited to, capital equipment not part of the original project scope, hammers, furniture drapes, blinds, file cabinets, file folders, and survey stakes;

(viii) Legal fees;

(ix) Costs related to issuance of bonds;

(x) Costs for real property in excess of current fair market value and/or costs for an amount of real property in excess of that needed for project purposes;

(xi) Costs to establish and form special districts or joint powers boards;

(xii) Costs incurred prior to grant award, except costs for architectural and engineering design or in emergency situations;

(xiii) Costs for a contingency or extra work allowances includes but is not limited to, technology fees and inflation fees in excess of 10% of estimated construction costs.;

(xiv) Cost of elections;

(xv) Costs for change orders not approved by the Office;

(xvi) Costs associated with the applicant's own employees and equipment; and

(xvii) Markups to engineering and/or architects of sub-consultant and other outside charges.

History

• Effective 2021-03-03

Wyo. Code R. 060.0003.3.03032021 § 6 Application Procedure

(a) Applications. Separate applications shall be prepared for each project. Applicants shall submit one (1) original and two (2) copies of their completed application to the Office. Applications shall be properly executed by the officers of the applicant.

(b) Timing. The Board shall meet at least one time annually, either in February or June, as funding levels allow to consider applications for grants under this Chapter. For Mineral Royalty Grant meetings held in February, applications must be received by the third Thursday of the preceding September. For Mineral Royalty Grant meetings held in June, applications must be received by the third Thursday of the preceding February. Applications for emergency consideration must be received at least fifteen (15) Business Days prior to any regular meeting of the Board.

(c) Renewal of Applications. Applications will not be retained by the Office. A new application shall be submitted for each Board meeting.

(d) Information Required for All Applications. The following information shall be provided by all applicants:

(i) A complete application on a form provided by the Office;

(ii) A detailed project budget broken into at least six (6) month intervals delineating all costs of the proposed project and the method by which the project costs were estimated;

(iii) A licensed engineer's statement of the feasibility of the project, except for the purchase of emergency vehicles;

(iv) Copies of funding commitments from all project funding sources, including the applicant, to demonstrate commitment to the project;

(v) If the applicant is a special district, a copy of the resolution that shows formation of the special district and certification from the Board of County Commissioners that the special district currently exists;

(vi) If the applicant is a joint powers board, a copy of the certificate of organization filed with the Secretary of State, and a copy of an executed joint powers agreement approved by the Attorney General;

(vii) A standard resolution authorizing the filing of the application on a form provided by the Office;

(viii) If an applicant submits multiple applications under this Chapter for consideration at one meeting, a priority ranking of the multiple applications as established by the applicant;

(ix) If the project is needed to meet federal or state health and safety requirements, documentation of the specific requirements and an explanation of how the project addresses the requirements;

(x) For applications submitted by a special district, either standing alone or as a member of a joint powers board, the written review as required by W.S. 9-4-604(h); and

(xi) Other applicable information as requested by the Office.

(e) Additional Information Required.

(i) If the grant request is for water facilities,

(A) Whether water meters have been installed or will be installed and if they are being or will be used for billing;

(B) Whether the applicant will require the owners of all new additions of land to the city or town to pay all costs of expanding the water system within and to the boundaries of the addition; and

(C) Whether water rates, tap fees, and plant investment fees are in effect or are to be adopted, and an analysis of whether the water rates will be adequate to finance the operation and maintenance of the system;

(ii) If the grant request is for sewer facilities,

(A) Whether the applicant will require the owners of all new additions of land to the city or town to pay all costs of expanding the sewer system within and to the boundaries of the addition; and

(B) Whether sewer rates, tap fees, and plant investment fees are in effect or are to be adopted, and an analysis of whether the sewer rates will be adequate to finance the operation and maintenance of the system.

(f) Preliminary Review. Within forty-five (45) Business Days of receipt of an application, the Office shall notify the applicant, in writing, if the application lacks any of the items required in subsections (d) and (e) of this section. The applicant shall have ten (10) Business Days to submit the required information.

(g) False or Misleading Statements. Any false or misleading statements made by the applicant in an application shall be grounds for summary rejection of the application. Additionally, if it is determined that requested reimbursements were not legitimate and eligible charges, the applicant shall pay those funds back to the Office.

(h) Incomplete Applications. Incomplete applications, those missing one (1) or more of the information items requested and or failing to meet established deadlines, shall not be presented to the Board for consideration.

History

• Effective 2021-03-03

Wyo. Code R. 060.0003.3.03032021 § 7 Evaluation Criteria

(a) Criteria. The Board shall evaluate applications utilizing the following criteria:

(i) The extent of match committed to the project from all sources;

(ii) Whether the applicant has made a significant commitment of local resources;

(iii) Whether the applicant has approved matching funds for the project from other than state grants;

(iv) Whether the project is appropriately sized in relation to the population to be served by the project;

(v) The relative urgency of the project;

(vi) Whether the applicant is current on all its repayment obligations to the Board;

(vii) The financial need of the applicant, as determined by the Board;

(viii) The percentage of the applicant's population directly served by the project;

(ix) Whether the project is ready to be constructed or still needs to be designed;

(x) Historical level of funding funder this Chapter; and

(xi) Whether the applicant has developed a capital improvement plan or an asset management plan.

History

• Effective 2021-03-03

Wyo. Code R. 060.0003.3.03032021 § 8 Board Consideration

(a) The Board shall consider each application, allow for comments from the applicant and from the Director, and establish the maximum amount of the grant and the percent of eligible project costs that will be paid by the grant.

History

• Effective 2021-03-03

Wyo. Code R. 060.0003.3.03032021 § 9 Grant Disbursement and Administration

(a) Grant Disbursement. Grant funds shall be disbursed to the applicant only as needed to discharge obligations incurred in accordance with the Board approved percentage split of eligible project costs. Requests for disbursements shall be made on a form supplied by the Office and supported by adequate proof that such obligations have been incurred for project purposes and are due and owing.

(b) Fund Reversion.

(i) If the Director determines that the project has not been commenced within one (1) year from the date the grant is approved, the grant will automatically expire. Based upon information supplied by the grantee, the Director may grant an extension of time in which to commence the project.

(ii) If the Director determines that the project has not been completed within a reasonable time, he shall notify the grantee in writing at least thirty (30) Business Days prior to presenting the matter for Board review. The Board, upon review of the project circumstances, may terminate or modify the grant award.

(iii) If the Director determines that the project is complete, but the full amount of the grant has not been expended, the Office shall notify the grantee of this determination. Thirty (30) Business Days following the notification, the unused portion of the grant or loan shall revert to uncommitted status.

History

• Effective 2021-03-03

Wyo. Code R. 060.0003.3.03032021 § 10 Audits and Inspections

(a) The Board may, at its expense, conduct an audit of the records of the applicant and inspect the construction and operation of the project.

History

• Effective 2021-03-03

Wyo. Code R. 060.0003.3.03032021 § 11 Rule Amendments

(a) Amendments to these rules do not apply to applications filed after the effective date for phased construction projects which have already received partial funding under this Chapter.

History

• Effective 2021-03-03

Chapter 7 Farm Loans

Wyo. Code R. 060.0003.7.03032021 § 1 Authority

(a) This Chapter is adopted pursuant to Wyoming Statute (W.S.) 11-34-101 through ‑203.

History

• Effective 2021-03-03

Wyo. Code R. 060.0003.7.03032021 § 2 Definitions

In addition to the definitions in Chapter 1, as used in this Chapter:

(a) "Acquired lands" means lands to which the Board has acquired legal or equitable title through foreclosure or by other means.

(b) "Agricultural products" means typical crops produced from the cultivation and management of the soil.

(c) "Beginning Agricultural Producer" means an individual or entity that has never owned more than 320 acres of cultivated irrigated land, or 640 acres of cultivated dry crop land, or 1,280 acres of grazing land unless such land was acquired within the last two (2) years; has adequate working capital; substantially participates in the operation; and meets all eligibility requirements provided for in this Chapter.

(d) "Legal entity" means corporations, limited partnerships, general partnerships, limited liability companies, trusts and other organizations or business entities recognized by the State of Wyoming.

(e) "Livestock" means horses, cattle, buffalo, sheep, swine and yaks.

(f) "Single agricultural enterprise" means an agricultural operation managed as one business.

History

• Effective 2021-03-03

Wyo. Code R. 060.0003.7.03032021 § 3 General Policy

(a) Farm loans shall be made in such a manner and to such parties as shall, in the judgment of the Board, inure to the greatest benefit of the state and represent a wise investment of state funds. It is not intended to benefit investors or developers.

(b) The Beginning Agriculture Producer loan program is intended to help beginning farmers or ranchers get into a production agriculture business. It is not intended to benefit investors or developers.

(c) All loans are to be fully amortized over the term of the loan.

History

• Effective 2021-03-03

Wyo. Code R. 060.0003.7.03032021 § 4 Eligible Applicants

(a) Individuals, to be eligible applicants, must be able to demonstrate compliance with W.S. 11-34-110(b).

(b) Legal entities, to be eligible applicants, must be able to demonstrate that a majority of the ownership is by individuals who are eligible applicants under subsection (a).

(c) If the applicant for a Beginning Agricultural Producer loan is a legal entity, all owners must be eligible Beginning Agricultural Producers.

History

• Effective 2021-03-03

Wyo. Code R. 060.0003.7.03032021 § 5 Eligible Purposes

(a) Loans may be made only for the following purposes:

(i) To purchase lands used principally for raising agricultural products, livestock, or dairying;

(ii) To purchase livestock, fertilizers, and equipment calculated to maintain or increase the earning capacity of the borrower's agricultural operation;

(iii) To purchase, construct, or install improvements calculated to maintain or increase the earning capacity of the borrower's agricultural operation; or

(iv) To liquidate debts of the borrower incurred in the furtherance of the borrower's agricultural operation;

History

• Effective 2021-03-03

Wyo. Code R. 060.0003.7.03032021 § 6 Application Procedure

(a) Applications.

(i) Each prospective borrower shall submit a written loan application, on the form furnished by the Office and copies of filed tax returns for the preceding three (3) years. The borrower shall also submit an executed purchase agreement, if loan funds will be used to purchase land.

(A) If a prospective borrower is going to rely on borrowing agricultural equipment from a third party in their agricultural operation, a signed affidavit defining the equipment, usage, and term of the equipment use agreement shall be submitted with the application.

(ii) Incomplete applications shall not be submitted to the Board for consideration.

(iii) Any false or misleading statements made by the applicant in an application shall be grounds for summary rejection of the application.

(iv) The applicant shall submit an application fee of $100, as established by W.S. 11-34-121, before the application is considered. The unused portion of the fee shall be returned to the applicant if the loan is not granted, as listed in Section 9(a)(C).

(v) Applications, financial statements, appraisals, and all other information pertaining to an application which has not been submitted to the Board shall be held as confidential information. Upon consideration by the Board, the application and all information with respect thereto in the Office's files are public records available for inspection and reproduction as provided by law.

(vi) Timing. Loan applications must be received by the Director at least one hundred twenty (120) calendar days prior to any regularly scheduled meeting of the Board. Applicants must cure any defects in their application no later than forty-five (45) calendar days before any regularly scheduled meeting of the Board. The application shall be submitted to the Board for consideration at the next regular meeting after the Office's review is completed without undue delay.

(b) Consideration.

(i) The Office shall conduct a preliminary review of all applications received. If the Office identifies problems with the application which would result in a negative recommendation to the Board, the Office shall notify the applicant of the problem and the applicant shall have the opportunity to withdraw the application from further consideration.

(ii) All applications, not withdrawn under paragraph (i) of this subsection, shall be presented to the Board for its consideration.

(iii) The Board shall take the following into account, when considering applications:

(A) The applicant's net worth;

(B) The applicant's ability to repay the loan based on viable, continuous income from any source;

(C) The applicant's credit history; and

(D) The applicant's need.

(iv) The Board shall take action on applications only once. The Board shall not reconsider an application that is substantially the same as an application previously acted upon. Applicants may submit a substantially different application, provided that it complies with all the requirements for filing a new application.

History

• Effective 2021-03-03

Wyo. Code R. 060.0003.7.03032021 § 7 Loan Terms

(a) Amount. Single loans or a combination of loans made to a single agricultural enterprise shall be made pursuant to W.S. 11-34-115.

(b) Interest rate. The interest rate for loans under this Chapter shall be pursuant to Chapter 14 of the rules as established by the Board.

(c) Length. The term of each loan shall be set by the Board with due regard given to repayment ability and the security offered, but in no event shall the term exceed thirty (30) years.

(d) Repayment. All loans shall be fully amortized over the term of the loan.

(e) Loan fees shall be pursuant to Chapter 14 of the rules as established by the Board.

History

• Effective 2021-03-03

Wyo. Code R. 060.0003.7.03032021 § 8 Security

(a) Every loan shall be evidenced by a promissory note for the principal sum of the loan.

(b) Farm loans and Beginning Agricultural Producer loans shall be secured by a first mortgage upon farm or ranch land within Wyoming of sufficient value to secure the loan. Proof of merchantable title must be provided by the borrower in the form of title insurance naming the Board as beneficiary. Farm loans may not exceed 60% of appraised value and Beginning Agricultural Producer loans may not exceed 70% of appraised value.

(c) An appraisal shall be prepared for the Board. Appraisals shall reflect the current agricultural market value of the land to be mortgaged.

(d) The Board shall take a Uniform Commercial Code (UCC) security agreement on all irrigation equipment located on the lands being offered for security.

(e) The Board shall take security interests in secure leaseholds, reservoir company stock, and grazing association stock whenever necessary to protect the value of the lands being offered for security as an agricultural operation.

History

• Effective 2021-03-03

Wyo. Code R. 060.0003.7.03032021 § 9 Costs to Be Paid by the Borrower

(a) The following costs shall be the sole responsibility of the borrower:

(A) Title Insurance in the full amount of the mortgage, issued by a title insurance company authorized to do business in Wyoming;

(B) Fees associated with recording mortgage and other documents associated with the loan;

(C) An application fee of $100.00, as established by W.S. 11-34-121.

(D) An origination fee equal to one percent (1%) of the loan amount, and

(E) For loans being requested to be reamortized, a fee pursuant to Chapter 14 of the rules as established by the Board.

History

• Effective 2021-03-03

Wyo. Code R. 060.0003.7.03032021 § 10 Disbursement

(a) The proceeds of a farm loan shall not be disbursed to the borrower until such time as the borrower can show a mature obligation, the satisfaction or partial satisfaction of which will result from the application of the loan proceeds. The borrower shall use the proceeds of any farm loan exclusively for the purpose or purposes set out in the application, and shall furnish evidence satisfactory to the Board to that effect.

(b) The Office shall inspect and verify any reports and records required by the Board and submitted by the borrower before proceeds shall be released for payment.

(c) Loan proceeds shall be disbursed at a closing when all loan documents shall be executed by the borrower. Documents executed on behalf of a legal entity shall be executed by persons authorized by that entity to borrow money and mortgage property. Officers or majority owners of legal entities shall also be personally liable for repayment of the loan.

History

• Effective 2021-03-03

Wyo. Code R. 060.0003.7.03032021 § 11 Assumptions

(a) When a borrower conveys legal or equitable title to property securing a farm loan, the purchaser may assume the repayment obligation to the Board if qualified under W.S. 11-34-110 and Section 4 of this Chapter. If the loan is not assumed by the purchaser, the loan shall be paid off in full at the time of the conveyance.

(b) Beginning Agricultural Producer loans may not be assumed.

History

• Effective 2021-03-03

Wyo. Code R. 060.0003.7.03032021 § 12 Partial Releases

(a) A borrower may request a partial release of land from the mortgage. Such requests shall be directed to the Office, and may be approved by the Board if the borrower demonstrates a prompt payment history, a sound financial statement, and the release of land would be in the best interest of the Board.

(b) For Beginning Agricultural Producer loans, no partial releases will be granted during the first ten (10) years of the loan term unless all of the sale proceeds or the appraised value of the land to be released is applied to the loan balance.

History

• Effective 2021-03-03

Wyo. Code R. 060.0003.7.03032021 § 13 Reamortizations

(a) A borrower requesting reamortization must provide current financial information and other documentation as requested by the Office and must show that reamortization will significantly improve the financial viability of his agricultural operation. Fees for reamortization shall be pursuant to Chapter 14 of the rules as established by the Board.

History

• Effective 2021-03-03

Wyo. Code R. 060.0003.7.03032021 § 14 Defaults

(a) If an annual payment is not received within thirty (30) calendar days of when due, the Office shall immediately notify the borrower of the default. The borrower shall have ninety (90) calendar days from the notice of the default to submit a repayment plan or a request to reamortize the outstanding loan balance to the Office.

(b) Repayment plans shall include the following:

(i) The amounts and dates of payments that the borrower can make against the loan; and

(ii) Current financial and cash flow statements as well as the prior two (2) years' tax returns.

(c) Requests to reamortize shall include the following:

(i) The amount to be reamortized and new annual payment due date, if different than current due date;

(ii) A written explanation of how the requested reamortization will significantly improve the financial viability of the agricultural operation; and

(iii) Current financial and cash flow statements as well as the prior two (2) years' tax returns.

(d) If the borrower does not submit a repayment plan or request to reamortize to the Office within ninety (90) calendar days from the notice of the default, the Office shall immediately initiate foreclosure on the defaulted loan.

(e) The Director shall review all repayment plans and requests to reamortize and make recommendations to the Board regarding their acceptance or rejection.

(f) If the Board accepts a repayment plan, the Director shall allow the borrower to make payments in accordance with the accepted plan. If the borrower then fails to make the payments called for in the accepted plan, the Office shall immediately initiate foreclosure on the defaulted loan.

(g) If the Board rejects a repayment plan or request to reamortize, the Office shall immediately initiate foreclosure on the defaulted loan.

(h) A borrower shall be limited to two (2) repayment plans and one (1) request to reamortize the outstanding balance during the life of any given loan.

History

• Effective 2021-03-03

Wyo. Code R. 060.0003.7.03032021 § 15 Leasing of Acquired Lands

(a) Leasing procedure. The Board shall receive applications to lease acquired land for a period of twenty (20) calendar days after public notice is given of its intent to lease any property. Persons desiring to lease acquired lands shall submit to the Office a completed application in a sealed envelope, as provided by the Office. Applications offering cash rental shall be accompanied by a cashier's check or money order in the amount of the offer.

(b) Board's decision. The Board shall consider all aspects of the offers received and award the lease to the applicant whose offer would be most advantageous to the Board. The Board may reject any or all applications. Monies tendered by unsuccessful applicants for their rental offer shall be returned.

(c) Term. The term of the lease shall be set by the Board on a case-by-case basis, except that the term of a lease of land which is subject to a right of redemption shall not exceed the expiration of the redemption periods created by W.S. 1-18-103 and W.S. 1-18-104. If the redemption period will expire at an inopportune time during the growing season, the Board may extend the lease term until a more convenient time in the growing season.

(d) Transfers. No lease granted under this section may be assigned or subleased without the approval of the Board.

(e) Reservation prohibited. A lease of acquired lands shall not contain a reservation of public hunting and fishing privileges.

History

• Effective 2021-03-03

Wyo. Code R. 060.0003.7.03032021 § 16 Sale of Acquired Lands

(a) Decision to sell. The Board shall sell acquired lands upon determination that the sale of the property would be the best means of restoring loan funds.

(b) Advertisement. All sales of acquired lands shall be advertised at least once per week, for four consecutive weeks, in both a newspaper in the county in which the property is located and a newspaper of statewide circulation.

(c) Auctions. All sales shall be by public auction, conducted by the Director or his representative. The minimum bid shall be as set by the Board. The Board reserves the right to reject any and all bids. The successful bidder must tender at least thirty percent (30%) of the purchase price, in the form of a cashier's check, or a personal check with a letter of check guarantee, at the auction. Within ten (10) calendar days of the auction, the purchaser shall either pay the balance of the purchase price or if eligible enter into a sales contract pursuant to subsection (e) of this section.

(d) Title Insurance. The Office will order an open title insurance commitment. The purchaser of the property shall pay the cost of the commitment and title insurance.

(e) Sales Contracts.

(i) Amortized Sales Contracts, as described in this section, may be offered at the Board's discretion.

(ii) Eligibility. Any individual or legal entity that was the mortgagor when the land was acquired by the Board shall not be eligible to enter into a sales contract in the purchase of that acquired land.

(iii) Terms. Eligible purchasers may pay the balance of the purchase price pursuant to a sales contract with the following terms:

(A) The length of the contract shall not exceed thirty (30) years; and

(B) The contract interest rate shall be pursuant to Chapter 14 of the rules as established by the Board.

(f) Assignments of Sales Contracts.

(i) Sales contracts may be assigned with approval by the Board. The original purchaser of acquired land under a sales contract shall remain obligated to the Board for performance under the contract regardless of any assignments of the purchaser's rights under the contract.

(ii) Subject to approval by the Board as described under paragraph (i) of this subsection, upon receipt of written notice of the name, address, and tax identification number of an assignee of the purchaser's contract rights, the Office shall note this information for purposes of mailing payment notices and reporting interest paid on the contract to the United States Internal Revenue Service.

History

• Effective 2021-03-03

Wyo. Code R. 060.0003.7.03032021 § 17 Sale of Acquired Personal Property

(a) The Board hereby delegates to the Director the authority to sell, by public auction, sealed bid, or negotiated sale, any personal property acquired through foreclosure, repossession, or surrender. The Director shall report all sales of personal property to the Board at its next regular meeting.

History

• Effective 2021-03-03

Chapter 11 Clean Water State Revolving Fund Loans

Wyo. Code R. 060.0003.11.12032025 § 1 Authority

This Chapter is adopted pursuant to Wyoming Statute 16-1-203(a).

History

• Effective 2025-12-03

Wyo. Code R. 060.0003.11.12032025 § 2 Definitions

In addition to the definitions in Chapter 1, as used in this Chapter:

(a) "Additional Subsidies" means principal forgiveness, grants, and Green Project Reserves loans as authorized by state or federal legislation and as adopted by the Board.

(b) "County" means a political subdivision of the State of Wyoming pursuant to W.S. 18-1-101(a)-(y).

(c) "DEQ" means the Wyoming Department of Environmental Quality.

(d) "Emerging Contaminants" refer to substances and microorganisms, including manufactured or naturally occurring physical, chemical, biological, radiological, or nuclear materials, which are known or anticipated in the environment, that may pose newly identified or re-emerging risks to human health, aquatic life, or the environment. These substances, microorganisms, or materials can include many different types of natural or manufactured chemicals and substances - such as those in some compounds of personal care products, pharmaceuticals, industrial chemicals, pesticides, and microplastics. For Infrastructure Investment and Jobs Act (IIJA) Emerging Contaminants funding, eligible emerging contaminants are identified by the United States Environmental Protection Agency (USEPA).

(e) "Emergency" means an imminent direct threat to the continued operation of a community water system.

(f) "Green Project Reserve" means funds loaned for projects meeting the requirements of the USEPA for such projects to implement a process, material, technique, or technology that addresses water or energy efficiency goals, mitigates stormwater runoff, or encourages sustainable project planning, design, and construction.

(g) "Initiating Operations" means the earliest point in time when a capital infrastructure project is ready for use even if only for system testing purposes.

(h) "Intended Use Plan (IUP)" means the annual plan that priority ranks eligible Wyoming projects for funding consideration by the Board that meet 1987 Clean Water Act amendments, the requirements of W.S. 16-1-203(c)(i), and the IIJA.

(i) "Infrastructure Investment and Jobs Act of 2021" (IIJA) means U.S. Public Law 117-58, signed November 15, 2021; providing supplemental funding for eligible projects and funding to address Emerging Contaminants.

(j) "Joint Powers Board(s)" means legally organized Wyoming entities authorized to engage in joint or cooperative action by the Wyoming Joint Powers Act pursuant to W.S. 16-1-101 et. seq.

(k) "Municipalities" means any incorporated or chartered city or town as established under Wyoming law (W.S. 15-9-103 (a)(x)).

(l) "Principal Forgiveness (PF)" means a portion of the loan's principal is forgiven and need not be repaid.

(m) "Special District" means any legally formed special district in Wyoming that is eligible for program funding.

(n) "Special Program Requirements" means the requirements set forth in state or federal law or directives and as adopted by the Board that may include, but are not limited to, restrictions on the types of project materials that may be used, required funding reserves, qualification-based selection of architectural and engineering services, and minimum wage requirements.

(o) "State Environmental Review Process (SERP)" means the review conducted by DEQ, pursuant to W.S. 16-1-204(a), of potential environmental impacts of projects receiving assistance from the Account.

(p) "Substantial Completion" means that stage in a project when the capital infrastructure constructed is capable of initiating operations or can be used for its intended purpose.

(q) "USEPA" means the United States Environmental Protection Agency.

History

• Effective 2025-12-03

Wyo. Code R. 060.0003.11.12032025 § 3 General Policy

(a) The Board shall approve loans, grants, and Additional Subsidies under the provisions of this Chapter in such a manner and to such applicants as shall, in the judgment of the Board, inure to the greatest benefit of the citizens of the State of Wyoming and represent a prudent use of loan funds.

(b) Supplemental and Emergency Contaminant funding for loans, grants, and additional subsidies under this Chapter is subject to a supplemental congressional appropriation in the IIJA. To facilitate key provision of this Act, the Board will consider funding applications for:

(i) Projects addressing Emerging Contaminants; and,

(ii) Conventional clean water projects.

History

• Effective 2025-12-03

Wyo. Code R. 060.0003.11.12032025 § 4 Additional Subsidies and Special Program Requirements

(a) Notice. The Office of State Lands and Investments (OSLI) and DEQ will assess, at least annually, the impacts of state and federal law on the Clean Water State Revolving Fund loan program administered under this Chapter. OSLI will provide timely notice to eligible applicants of changes in Additional Subsidies and Special Program Requirements. Said notice will be not less than thirty (30) calendar days prior to any application deadline. Methods of notice include, but are not limited to, electronic, telephonic, written, website postings, video conferences or combinations of the same.

History

• Effective 2025-12-03

Wyo. Code R. 060.0003.11.12032025 § 5 Base and Supplemental Loan and Additional Subsidies Eligibility

(a) Applicants. Municipalities, Counties, state agencies, Special districts, and Joint Powers Boards in Wyoming shall be eligible applicants for loans and Additional Subsidies under this Chapter.

(b) Additional Subsidies. Additional Subsidies shall be awarded in the form of Principal Forgiveness and Green Project Reserve loans. The Additional Subsidies will be awarded in accordance with all federal regulations. OSLI will award points based on population trend, income data, unemployment data, enterprise system rate management, and the prior year's property tax and four percent (4%) State sales tax collections to determine the amount of PF an applicant is eligible to receive. The determination of an applicant's PF eligibility status will be performed every year during the development of the IUP. Applicants whose total points are nine (9) or greater are eligible for PF of up to seventy-five percent (75%) of their loan amount. Applicants whose total points are equal to or greater than six (6) but less than nine (9) are eligible for PF of up to fifty percent (50%) of their loan amount. Applicants whose total points are equal to or greater than three (3) but less than six (6) are eligible for PF of up to twenty-five percent (25%) of their loan amount. Applicants whose total points are less than three (3) are not eligible for PF. Depending upon the total amount of PF funding available, the amount of PF actually awarded may be less than the eligible amount.

(i) Population trend points are awarded based on the category that the applicant was in as of the most recently released decennial census (or other available population data acceptable to OSLI if decennial census data is not available). If an applicant can show population trend data demonstrating that it has likely dropped to a smaller category subsequent to the last decennial census, its points may be adjusted up accordingly at the sole discretion of OSLI.

(A) Applicants whose population is five hundred (500) or less will receive three (3) points.

(B) Applicants whose population is between five hundred one (501) and three thousand, three hundred (3,300) will receive two (2) points.

(C) Applicants whose population is between three thousand, three hundred one (3,301) and ten thousand (10,000) will receive one (1) point.

(D) Applicants whose population is ten thousand, one (10,001) or greater will receive zero (0) points.

(ii) Income data points are awarded based on the ratio of the local annual median household income (AMHI) to the State AMHI, using data from the most recently released American Community Survey 5-year estimates. If no data directly corresponding to the applicant is available, the AMHI of the nearest Municipality will be used as the default. The applicant may provide alternate data acceptable to OSLI, such as an income survey, at the applicant's expense and in lieu of American Community Survey 5-year estimates.

(A) Applicants whose AMHI is less than sixty percent (60%) of the State AMHI will receive three (3) points.

(B) Applicants whose AMHI is sixty percent (60%) or greater, but less than seventy percent (70%) of the State AMHI will receive two and one-half (2.5) points.

(C) Applicants whose AMHI is seventy percent (70%) or greater, but less than eighty percent (80%) of the State AMHI will receive two (2) points.

(D) Applicants whose AMHI is eighty percent (80%) or greater, but less than ninety percent (90%) of the State AMHI will receive one and one-half (1.5) points.

(E) Applicants whose AMHI is ninety percent (90%) or greater, but less than one hundred ten percent (110%) of the State AMHI will receive one (1) point.

(F) Applicants whose AMHI is one hundred ten percent (110%) or greater of the State AMHI will receive zero (0) points.

(iii) Unemployment data points are awarded based on the relationship of the local unemployment rate to the State unemployment rate (State rate). Local and State unemployment rates for the most recent information by county as published by the Wyoming Department of Workforce Services will be used.

(A) Applicants whose unemployment rate is equal to or greater than the State rate will receive one (1) point.

(B) Applicants whose unemployment rate is less than the State rate will receive zero (0) points

(iv) Enterprise system rate management points are awarded based on the entity's average annual water rate as a percentage of their AMHI.

(A) Applicants whose average annual water rate is two percent (2%) or greater of their AMHI will receive (1) point.

(B) Applicants whose average annual water rate is less than two percent (2%) of their AMHI will receive zero (0) points.

(v) Prior year's property tax and four percent (4%) State sales tax collection points will be awarded based on the amount of taxes collected by an entity, rounded to the nearest dollar, as reported in the most recently released Wyoming Department of Revenue's Annual Report. If no data directly corresponding to the applicant is available, the tax data for the nearest municipality will be used as the default.

(A) Applicants whose total collections are two hundred fifty thousand dollars ($250,000) or less will receive five (5) points.

(B) Applicants whose total collections are between two hundred fifty thousand one-dollar ($250,001) and five hundred thousand dollars ($500,000) will receive four (4) points.

(C) Applicants whose total collections are between five hundred thousand one-dollar ($500,001) and one million dollars ($1,000,000) will receive three (3) points.

(D) Applicants whose total collections are between one million one dollars ($1,000,001) and two million five hundred thousand dollars ($2,500,000) will receive two (2) points.

(E) Applicants whose total collections are between two million five hundred thousand one dollars ($2,500,001) and five million dollars ($5,000,000) will receive one (1) point.

(F) Applicants whose total collections are greater than five million dollars ($5,000,000) will receive zero (0) points.

(c) Principal Forgiveness Contingency. Receipt of PF is contingent on the applicant completing a first loan draw within eighteen (18) months of the effective date of the loan agreement and continuing to make loan draws at least quarterly until the project is complete. Failure of the applicant to comply with these terms shall result in the awarded PF being forfeited. A request for an extension may be submitted to OSLI for consideration if additional time is necessary

(d) The amount of Green Project Reserve funding will be determined by DEQ based on the project information provided and the requirements of the state and federal regulations.

(e) AMHI data is based on information obtained from the most recent American Community Survey of the U.S. Census Bureau. Median Household Income data for Special Districts will be based on the closest Municipality unless income information via an income survey at district expense or other financial data acceptable to OSLI and the Board. If the applicant is a Special District or a Joint Powers Board, it must be legally formed and approved prior to submitting its loan application. All applicants must be in compliance with all applicable reporting requirements of both the Wyoming Department of Revenue and the Wyoming Department of Audit prior to its application being considered by the Board. For consideration at the October Board meeting, applicants must file their current financial reports with the Department of Audit by September 10th and notify OSLI in writing that the filing was done.

(f) Purposes. Loans and Additional Subsidies may be awarded by the Board pursuant to W.S. 16-1-205(a). The Board may authorize loans to refinance existing debt incurred completing an eligible project. The Board may also award loans and Additional Subsidies consistent with changes in state or federal law. Refinancing existing debt obligations for which debt was incurred during the completion of an eligible project and building began after March 7, 1985.

(g) Project Eligibility. Only projects on the current Clean Water State Revolving Fund Intended Use Plan are eligible for loans and Additional Subsidies under this Chapter. Eligible applicants are responsible for ensuring that their project(s) is(are) listed on the current Clean Water State Revolving Fund Intended Use Plan.

History

• Effective 2025-12-03

Wyo. Code R. 060.0003.11.12032025 § 6 Ineligible Project Costs

The following project costs shall be ineligible for reimbursement:

(a) Costs for any asset that is owned by a private property owner;

(b) Costs for tap fees, sewer and water fees, and plant investment fees;

(c) Engineering fees, including design, inspection and contract administration costs, over twenty percent (20%) of Board approved project costs, excluding design only or construction only Board approved costs;

(d) All non-cash costs except land that is integral to a treatment process and if allowable under federal law but not costs for land in excess of current fair market value and/or costs for an amount of land in excess of that needed for project purposes;

(e) Costs for preparation or presentation of grant or loan applications for any source of funding;

(f) Costs for transportation, meals, lodging, and incidentals incurred anywhere away from the site of the project or that exceed the current federal per diem reimbursement rate;

(g) Costs of tools, supplies, and furnishings for capital projects not included in DEQ approved construction contract documents, including but not limited to, capital equipment, hammers, tools, furniture, drapes, blinds, file cabinets, file folders, and survey stakes;

(h) Legal fees, except as pre-approved by DEQ and OSLI;

(i) Costs related to the issuance of bonds;

(j) Costs of elections;

(k) Costs to establish and form a Special Districts or Joint Powers Boards;

(l) Costs not allowed by the EPA;

(m) Costs incurred prior to loan award, except costs incurred for architectural and engineering design, surveying, state environmental review process (SERP) requirements or in emergency circumstances;

(n) Costs for change orders not approved by DEQ and OSLI;

(o) Lump sum contracts unless approved by DEQ and OSLI;

(p) Any costs - not supported by one or more invoices, receipts, or other documentation approved by DEQ and OSLI;

(q) Costs associated with the applicant's own employees and equipment, unless pre-approved by DEQ;

(r) Costs contrary to standard general State construction policies (for example, costs associated with engineer's and/or contractor's error(s));

(s) Markups by engineers/architects of sub-consultant and other outside charges;

(t) Portions of costs reimbursed or directly paid for by any other State or federal funding program;

(u) Projects undertaken using alternate design and construction delivery methods under W.S. 16-6-701, unless pre-approved by DEQ.

History

• Effective 2025-12-03

Wyo. Code R. 060.0003.11.12032025 § 7 Application Procedure

(a) Applications. Separate applications shall be prepared for each loan. Applicants shall submit a complete application on a form provided by OSLI.

(b) Public Meeting Requirement. All eligible applicants must hold a minimum of one public meeting in advance of submitting an application for Board consideration. Notice of the public meeting is to be published in a local or regional newspaper fifteen (15) days prior to the same. The public meeting must provide the public an overview of the proposed project, financing and sustainability. The overview aspect of the public meeting must, at a minimum, address project scope, milestones and costs. The financing aspect of the public meeting must, at a minimum, address the financial impact of project costs upon the public. The sustainability aspect of the public meeting must, at a minimum, address the revenue streams, adjustments of water and sewer rates or other sources required to sustain the proposed project. Eligible applicants must verify compliance with the public meeting requirement through documentation submitted with their loan applications.

(c) Timing of Board Consideration. Applications must be received by the Director at least one hundred twenty (120) calendar days prior to the Board meeting at which the application will be considered. Applicants must cure any defects in their applications no later than forty-five (45) calendar days before the Board meeting at which the application will be considered.

(d) Incomplete Applications. Incomplete applications, those missing one or more of the information items requested and/or failing to meet established deadlines, shall not be presented to the Board for consideration until it is considered complete by program staff.

History

• Effective 2025-12-03

Wyo. Code R. 060.0003.11.12032025 § 8 Evaluation

(a) Criteria. The Board shall evaluate applications utilizing the following criteria:

(i) Whether the applicant is current on all its repayment obligations to the Board;

(ii) Whether the applicant's dedicated source of revenue is acceptable to the Board and will be sufficient to repay its requested loan;

(iii) Whether the applicant is ready to proceed with construction or implementation of the project;

(iv) Whether the applicant has established an adequate operations and maintenance costs fund for the project for which applicant seeks funding;

(v) Whether the applicant has made a significant commitment of funding resources for the project for which it seeks funding;

(vi) The percentage of the applicant's population directly served by the project;

(vii) The project's priority rank on the current IUP; and

(viii) Whether the project is appropriately sized for the population to be served by the project.

(b) If assessments are included as part of the dedicated source of repayment, applicant shall establish an annual assessment equal to, or greater than, the amount of the annual debt service payment on the loan. This assessment schedule will be filed with the County Assessor's Office on or before February 15th of each year for the full term of the loan, a copy of which will be sent to OSLI annually.

(c) Interagency Consultation. OSLI shall facilitate interagency consultation with DEQ through the review of applications for loans and Additional Subsidies and the opportunity to provide comments to the Director for Board consideration. The Board shall request the DEQ to provide the services required under W.S. 16-1-201 through 207.

History

• Effective 2025-12-03

Wyo. Code R. 060.0003.11.12032025 § 9 Board Consideration

(a) The Board shall consider each complete application, and allow for comments from the applicant, the Director and DEQ. The Board shall also establish loan amounts and terms. Loan terms shall not exceed thirty (30) years, or the useful life of the project, whichever is less.

History

• Effective 2025-12-03

Wyo. Code R. 060.0003.11.12032025 § 10 Interest Rates

(a) The interest rate for all loans made under this Chapter shall be established by the Board pursuant to Chapter 14 of these rules.

History

• Effective 2025-12-03

Wyo. Code R. 060.0003.11.12032025 § 11 Repayment

(a) Annual payments for all loans shall begin one (1) year after Substantial Completion of the project as indicated in the final project contract. Annual payments for loans used to refinance existing debt shall begin no later than one (1) year after loan approval.

History

• Effective 2025-12-03

Wyo. Code R. 060.0003.11.12032025 § 12 Disbursement of Loan Proceeds

(a) Requests for disbursements shall be submitted on a form provided by the Director and include supporting invoices establishing the eligibility of costs submitted for disbursements. Proceeds will only be disbursed for eligible project costs as set forth in this Chapter and within federal guidelines following review by OSLI and DEQ.

(b) Any loan for a project that spans more than one (1) construction season shall submit an updated timeline to OSLI and DEQ for the project not less than annually.

History

• Effective 2025-12-03

Wyo. Code R. 060.0003.11.12032025 § 13 Audits and Inspections

(a) The Board shall ensure compliance with the provisions of the Single Audit Act and Subpart F of Title 2 U.S. Code of Federal Regulations (CFR) Part 200. Uniform Administrative Requirements. Cost Principles, and Audit Requirements for Federal Awards. On an annual basis records of loan recipients shall be, at a minimum, compiled by an independent accounting firm. Notification of compliance shall be made to the Board in the form of a Compilation, Review, or Audited Financial Statement prepared by an independent accounting firm. The Board may, at its expense, conduct an independent audit of the loan recipient's records and inspect the construction and operation of the project. Loan recipients shall maintain project accounts in accordance with the Governmental Accounting Standards Board (GASB).

(b) The Board may, at its expense, conduct an independent audit of the loan recipient's records and inspect the construction and operation of the project. Loan recipients shall maintain project accounts in accordance the Governmental Accounting Standards Board (GASB). The Boards auditors will conduct such an audit in accordance with Generally Accepted Government Auditing Standards (GAGAS). Loan recipients shall assist and provide any information required by the auditors.

History

• Effective 2025-12-03

Wyo. Code R. 060.0003.11.12032025 § 14 Reports

(a) The Director, or the Director's designee, shall review all reports prepared by OSLI and DEQ for submission to the USEPA.

History

• Effective 2025-12-03

Wyo. Code R. 060.0003.11.12032025 § 15 Program Compliance

(a) The Board shall administer the state revolving fund loan account program in accordance with all applicable federal laws and regulations. The Board shall enter into, and periodically update, a Memorandum of Understanding with OSLI and DEQ to implement the program and facilitate program compliance.

History

• Effective 2025-12-03

Wyo. Code R. 060.0003.11.12032025 § 16 Fees

(a) Unless stated within these rules, a loan origination fee of one-half of one percent (0.5%) of the amount of the loan will be collected at loan closing. The fees will be deposited to the Administrative Account as authorized by W.S. 16-1-205(d).

History

• Effective 2025-12-03

Wyo. Code R. 060.0003.11.12032025 § 17 IIJA Emerging Contaminants Funding

The Board may award funding from IIJA funds under this Section for projects that address Emerging Contaminants. For awards under this Section, the provisions of this Section shall supersede any inconsistent provisions in any other section of this Chapter.

(a) Loan and Additional Subsidies Eligibility.

(i) Applicants. Publicly Owned Water Systems in Wyoming listed on the IUP Project Priority List specifically related to Emerging Contaminants shall be eligible to apply for loans and Additional Subsidies under the Section.

(ii) Origination fees shall be waived for all loans closed utilizing the Emerging Contaminants capitalization grants from the IIJA bill.

(iii) Additional Subsidies. Additional Subsidies may be awarded in the form of PF, to the extent available, and in accordance with all federal regulations. All loans awarded under this section qualify for one hundred percent (100%) PF, contingent on compliance with federal requirements.

(iv) Disadvantaged Community Eligibility. All qualifying entities submitting loan applications for projects that address identified Emerging Contaminants through lab testing meeting the Emerging Contaminants definition in Section 2(d) are considered disadvantaged under this section and qualify for PF.

(b) Eligible Projects. Projects shall be eligible under this Section if they:

(i) Meet all Clean Water State Revolving Fund (CWSRF) eligibility criteria;

(ii) Are primarily intended to address previously identified Emerging Contaminants; and

(iii) Meet all other federal program requirements.

(c) Eligible Costs. The following project costs shall be eligible for reimbursement under this Section, subject to federal program requirements:

(i) Emerging contaminants costs associated with the construction of a new treatment facility or upgrade to an existing treatment facility that addresses Emerging Contaminants.

(ii) Costs for planning and design and associated pre-project costs.

(iii) Infrastructure related to pilot testing for treatment alternatives.

(iv) Costs not listed in Section 6 as being ineligible.

History

• Effective 2025-12-03

Wyo. Code R. 060.0003.11.12032025 § 18 Planning and Assessment Grants

The Board may use a portion of the Additional Subsidies from the capitalization grants to fund qualifying Planning and Assessment activities.

(a) The amount available for grants under this subsection shall be defined in the annual IUP.

(b) The following activities may qualify for grants under this subsection:

(i) Asset management, fiscal sustainability, cost and effectiveness analyses;

(ii) Capital improvement plans;

(iii) Integrated planning;

(iv) Long-term control plans;

(v) Water or energy audits;

(vi) Conservation plans facility plans;

(vii) Treatment works security and safety plans;

(viii) Risk or vulnerability assessments;

(ix) Emergency preparedness response and recovery plans;

(x) Drought management plans;

(xi) Climate adaptation plans;

(xii) Environmental management systems;

(xiii) Watershed management plans; and

(xiv) Total maximum daily load implementation plans.

(c) Applicants for grants under this Section shall submit an application on a form provided by OSLI and governed by the provisions of Section 8 of this Chapter.

(d) The Board shall award grants under this Section to such applicants and in such amounts as shall, in the judgment of the Board, inure to the greatest benefit of the citizens of the State of Wyoming and represent a prudent use of funds.

History

• Effective 2025-12-03

Chapter 13 School District Bond Guarantee Program

Wyo. Code R. 060.0003.13.02061998 School District Bond Guarantee Program

RULES AND REGULATIONS STATE LOAN AND INVESTMENT BOARD

Chapter 13

School District Bond Guarantee Program

Section 1. Authority.

This Chapter is promulgated under authority of W.S. 9-4-1001.

Section 2. Definitions.

(a) “Board” means the State Loan and Investment Board.

(b) “Director” means the Director of the Office of State Lands and Investments.

(c) “Office” means the Office of State Lands and Investments.

(d) “Stand-alone bond rating” means an independent rating agency analysis and rating of the bond without consideration of the Board’s potential bond guarantee.

(e) “Superintendent” means the State Superintendent of Public Instruction.

Section 3. General Policy.

(a) The Board shall guarantee payment of bonded indebtedness of creditworthy school districts under the provisions of this chapter in such a manner and to such applicants as shall, in the judgement of the Board, inure to the greatest benefit of the citizens of the state and represent a prudent use of state permanent funds.

Section 4. Bond Guarantee Program Eligibility.

(a) Applicants. School districts that have met the accreditation standards of the Wyoming Department of Education and are at or below the constitutional debt limit shall be eligible to apply for bond guarantees under this chapter.

(b) Purposes. The Board shall only guarantee bonds issued by eligible applicants to acquire or improve land; to acquire or erect buildings; to enlarge, improve,remodel, repair, or add to buildings; or to equip and furnish buildings.

(c) Bond Types and Ratings. The Board shall only guarantee bonded debt in the form of gen- eral obligation bonds that have been considered and confirmed to be investment grade or better by one or more nationally recognized bond rating agencies as designated by the Board.

Section 5. Limits on Bond Guarantees.

(a) Total Outstanding Bond Issues. The total outstanding principal of bonds guaranteed by the Board under this chapter shall not at any time exceed that amount authorized to be guaranteed by W.S. 9- 4-701 (j). The $100 million pledged pursuant to W.S. 9-4-701 (j) to guarantee school district bonds shall not be diminished in the event of an investment loss in the Common School Account in the Permanent Land Fund, nor as a result of the state’s pledge of other assets of that account.

Section 6. Application Procedure.

(a) Applications. A separate application shall be prepared for each bond issue that an applicant wants the Board to consider for guarantee. Applicants shall submit five (5) copies of their completed application to the Office. A completed Application for Bond Guarantee form, as provided to applicants by the Office, shall be included with each application.

(b) Timing of Applications. Applications for bond guarantees may be filed with the Office at any time and may be presented for Board consideration at any regular monthly meeting, or any special meeting, of the Board.

(c) Information Required for All Applications. If the principal amount of the bond issue is less than $5 million, the applicant shall submit a letter or other written confirmation that the issue is investment grade or better from one or more nationally recognized bond rating agencies as designated by the Board. If the principal amount of the bond issue is $5 million or greater, the applicant shall submit a letter or other written confirmation that the issue has received a stand-alone bond rating of investment grade or better from one or more nationally recognized bond rating agencies as designated by the Board. Districts shall be responsible for paying any rating agency fee.

(i) All applicants shall also provide the following information:

(A) The amount and purpose of the bond issue;

(B) The district’s need for the bond issue;

(C) How the need is assessed in the Department of Education’s annual needs assessment under W.S. 21-15-107;

(D) Whether the district would likely remain within constitutional debt limits after the issue, including a listing of all outstanding debt and associated debt service schedules;

(E) Whether the guarantee would likely result in reduced costs and an estimate of the cost savings.

(F) A financial statement describing the district’s overall financial status and stability.

(G) The status of the accreditation of the district by the Department of Educa- tion.

(H) A listing of the payments that the district received from the common school account of the permanent land income fund under W.S. 21-13-301 and from the school foundation pro- gram account under W.S. 21-13-313 for the five preceding years.

(I) A statement from the county clerk giving the date and results of the election(s) for approval of the bond issue.

(J) A statement from the county treasurer verifying the current valuation of the district and the outstanding indebtedness of the district.

Section 7. Board Consideration.

(a) The Board shall consider each application individually, allowing for comments from the applicant, the Superintendent, the State Treasurer, the Director and any other interested parties. For each bond guarantee approved, the Board shall establish the maximum allowable amount of the bond guarantee and any other terms and conditions it finds necessary pursuant to W.S. 9-4-1001 (c). Once approved by the Board, each bond guarantee is irreversible until the entire bonded debt has been retired.

Section 8. Bond Guarantee Administration.

(a) In order to assure liquidity, the State Treasurer shall keep invested anamount equal to at least 10% of the bond principal guaranteed, in direct U.S. Government obligations or in U.S. Government guaranteed obligations, which obligations mature in three years or less. Pursuant to W.S. 9-4-1001 and 9- 4-701(j), the State Treasurer’s Office shall administer the Board approved bond guarantees, in accordance with a Memorandum of Understanding dated February 1, 1996, approved by the Board and executed by the Office, the State Treasurer and the Superintendent. All applicants who receive bond guarantee approvals shall also enter into agreements with the State Treasurer pursuant to W.S. 9-4-1001(d). All such agree- ments shall include the following:

(i) Each participating district shall certify to the State Treasurer that, as of the date of issuance of the bonds, amounts on deposit in the Common School Income Account, which are to be distributed annu- ally to the district, are not reasonably expected by the district to be used (directly or indirectly) for the payment of principal or interest on, or the tender or retirement price of, the bonds or to fund a reserve or replacement fund for the bonds;

(ii) The participating school district shall certify on the date of issuance of any bond guaranteed under the school bond program that no funds received by the district from the Common School Income Account are reasonably expected to be used directly or indirectly for the payment of principal or interest on, or the tender or retirement price of, any bond of such school district, or to fund a reserve or replacement fund for any such bond.

Section 9. Procedure for Potential Defaulting Districts.

(a) A district shall notify the State Treasurer not less than fifteen (15) days before payment is due if the district believes it may be unable to make a payment of principal or interest on any debt obliga- tion guaranteed by the Board, using the Notification of Potential Default form provided by the Office.

(b) A district shall include a provision in its agreement with its independent paying agent that requires the paying agent to notify the State Treasurer not less than five (5) days prior to the date a payment is due if it becomes aware of a potential default on any debt obligation guaranteed by the Board. The State Treasurer shall pay the paying agent, from immediately available funds, a sufficient amount to cover the bond service payment at least one (1) day prior to the bond service due date.

(c) If the district defaults in the payment and the State Treasurer pays the paying agent as provided in subsection (b) of this section, the payments intercepted by the Board pursuant to W.S. 9-4- 1001 (d) (iii) shall be restored to the Common School Account in the Permanent Land Fund and the $100 million pledged pursuant to W.S. 9-4-701 (j)restored. In no event shall the State Treasurer make any payment of amounts on deposit in, or derived from, the Common School Income Account for the purpose of paying any defaulted principal or interest payment in respect to the guaranteed school bond.

(d) If the state makes payment on behalf of a district or if the district defaults in the payment, it shall submit a plan to the Board for approval specifying the modifications in its fiscal practices and general operations that the district intends to implement to resolve the problems which led to its inability to make the payment and to prevent further defaults. The district shall submit its plan within 45 days of the date of the default. The district shall implement all measures as approved and required by the Board pursuant to W.S. 9-4-1001 (d) (iii) (C).

Section 10. Audits and Inspections.

(a) The Superintendent, State Treasurer, Department of Education, or the Board may audit the records of the applicant and inspect the construction and operation of any project funded with bonds guar- anteed by the Board. Recipients of bond guarantees shall maintain and provide, if requested, a full and complete accounting of the use and distribution of the bond proceeds from issues guaranteed by the Board.

Section 11. Report to Bond Rating Companies.

(a) The Board shall prepare and submit an annual report of the bond guarantee program to those nationally recognized bond rating agencies as designated by the Board, which shall include, but is not limited to the following information:

(i) Market value of investments in the Common School Account in the Permanent Land Fund;

(ii) Amount of debt guaranteed by the Board;

(iii) Disclosure of any draws on the pledged funds due to defaults by a district.

(b) The Board shall report any proposed amendments or revisions to this chapter to those na- tionally recognized bond rating agencies as designated by the Board, prior to adoption, and shall provide the same with copies of the final rules as adopted and filed with the Secretary of State.

History

• Effective 1998-02-06

Chapter 14 Fees For Administrative Services and Interest Rates

Wyo. Code R. 060.0003.14.01232026 § 1 Authority

This Chapter is promulgated under the authority of Wyoming Statute (W.S.) 11-34-103(a), W.S. 11-34-103(b), W.S. 11-34-121, W.S. 11-34-118, W.S. 16-1-109, W.S. 11-34-117(a), W.S. 11-34-117(b), W.S. 11-52-102(b)(i), W.S. 16-1-205(b)(i), W.S. 16-1-305(b)(i), W.S. 35-11-530(a), W.S. 35-11-528(e), W.S. 21-18-319(a), W.S. 16-1-111(a), and W.S. 16-1-111(d).

History

• Effective 2026-01-23

Wyo. Code R. 060.0003.14.01232026 § 2 Fees

The Office shall collect the following fees for administrative services associated with the Board's programs:

(a) For all loans under Chapter 7:

(i) All applicants shall pay an application fee of one hundred dollars ($100.00).

(ii) All borrowers shall pay a fee of one percent (1%) of the amount of the loan at closing.

(b) For all loans under Chapter 38, the Office shall collect an origination fee in the amount of one-half of one percent (0.5%) of the approved loan amount.

(c) The fee for reamortization of any loan will be 1% of the reamortized amount.

(d) The Office shall collect fees on behalf of the Board for costs incurred by the Department of Education related to the approval and monitoring of charter schools pursuant to W.S. 21-3-302.1(c).

(e) For all loans under Chapter 43, the Office shall collect an origination fee in the amount of two percent (2%) of the approved loan amount.

History

• Effective 2026-01-23

Wyo. Code R. 060.0003.14.01232026 § 3 Interest Rates

The Board will charge the following interest rates on loans and amortized sales contracts associated with its programs:

(a) For loans awarded under Chapter 2, Joint Powers Act Loans, the interest rate shall be not less than the average rate of return realized on all Permanent Mineral Trust Fund investments as determined by the State Treasurer for the five (5) calendar years immediately preceding the year in which the loan is made; no equity requirement.

(b) For loans awarded under Chapter 7, Farm Loans:

(i) For farm loans that are not Beginning Agricultural Producer loans, the interest rate shall be equal to the yield on a United States Treasury security of the same duration of the loan. The Board may add an additional percentage not to exceed two percent (2%) as a risk premium to the interest rate established under this paragraph. The rate of interest for all farm loans shall not be less than three percent (3%).

(ii) For Beginning Agricultural Producer loans, as defined in Chapter 7, Section 2(c), for the first ten (10) years of the loan the rate shall be equal to the yield on a ten (10) year United States Treasury bond security. At the end of the ten (10) year period the interest rate shall be equal to the yield on a United States Treasury security of the same duration of the loan. The Board may add an additional percentage not to exceed two percent (2%) as a risk premium to the interest rate established under this paragraph. The rate of interest for all farm loans to Beginning Agricultural Producers shall not be less than three percent (3%). Loans to Beginning Agricultural Producers shall not exceed seventy percent (70%) of the land's value.

(iii) For the sale of lands acquired through farm loan foreclosure, the interest rate shall be:

(A) Eight percent (8%) per annum for contracts up to fifty percent (50%) of sale price;

(B) Nine percent (9%) per annum for contracts up to sixty percent (60%) of sale price;

(C) Ten percent (10%) per annum for contracts up to seventy percent (70%) of sale price.

(c) For loans awarded under Chapter 11, Clean Water State Revolving Fund Loans, the interest rate shall be:

(i) Zero percent (0%) per annum on Department of Environmental Quality Loans for corrective actions at leaking underground and aboveground storage tank sites, pursuant to W.S. 16-1-106(b);

(ii) Zero percent (0%) per annum for all eligible applicants that qualify Green Project Reserve funding as defined by Chapter 11;

(iii) One and one-half percent (1.5%) per annum for applicants receiving the full amount of Principal Forgiveness for which they are eligible;

(iv) Zero percent (0%) per annum on loans for applicants that volunteer to serve as a Clean Water State Revolving Fund equivalency project for a federal grant.

(v) A reduced rate as follows, when the program does not have sufficient Principal Forgiveness (PF) funding to award the applicants the full amount of PF that they are eligible for, in addition to receiving partial PF, the applicants shall receive a reduced interest rate as follows.

(A) Applicants eligible for seventy-five percent (75%) PF are eligible for an interest rate of one-half of one percent (0.5%) per annum;

(B) Applicants eligible for fifty percent (50%) PF are eligible for an interest rate of three-quarters of one percent (0.75%) per annum;

(C) Applicants eligible for twenty-five percent (25%) PF are eligible for an interest rate of one percent (1%) per annum;

(vi) In accordance with this paragraph loans may qualify for the large loan interest rate incentive as follows:

(A) Loans in an amount greater than or equal to seven million, five hundred thousand dollars ($7,500,000) and less than ten million dollars ($10,000,000) shall qualify for an interest rate of three-quarters of one percent (0.75%) per annum;

(B) Loans in an amount greater than or equal to ten million dollars ($10,000,000) and less than fifteen million dollars ($15,000,000) shall qualify for an interest rate of one-half of one percent (0.5%) per annum;

(C) Loans in an amount greater than or equal to fifteen million dollars ($15,000,000) shall qualify for an interest rate of one-quarter of one percent (0.25%) per annum.

(vii) Zero percent (0%) per annum for loans that will consolidate a smaller system into an already existing system; or consolidate two or more smaller systems into one consolidated system.

(viii) Zero percent (0%) per annum for loans receiving Investment in Infrastructure and Jobs Act (IIJA) Emerging Contaminants Funding.

(ix) One and one-quarter percent of one percent (1.25%) per annum for applicants that are not eligible for PF or for loans not receiving a reduced interest rate in accordance with any of the above provisions.

(d) For loans awarded under Chapter 16, Drinking Water State Revolving Fund Loans, the interest rate shall be:

(i) Zero percent (0%) per annum for all eligible applicants that qualify for Green Project Reserve funding, as defined by Chapter 16;

(ii) One and one-half percent (1.5%) per annum for applicants receiving the full amount of PF for which they are eligible.

(iii) Zero percent (0%) per annum on loans that volunteer to serve as a Drinking Water State Revolving Fund equivalency project for a federal grant.

(iv) A reduced rate as follows, when the program does not have sufficient PF funding to award the applicants the full amount of PF that they are eligible for, in addition to receiving partial PF, the applicants shall receive a reduced interest rate as follows.

(A) Applicants eligible for seventy-five percent (75%) PF are eligible for an interest rate of one-half of one percent (0.5%) per annum;

(B) Applicants eligible for fifty percent (50%) PF are eligible for an interest rate of three-quarters of one percent (0.75%) per annum;

(C) Applicants eligible for twenty-five percent (25%) PF are eligible for an interest rate of one percent (1%) per annum.

(v) In accordance with this paragraph loans may qualify for the large loan interest rate incentive as follows.

(A) Loans in an amount greater than or equal to five million dollars ($5,000,000) and less than seven million, five hundred thousand dollars ($7,500,000) shall qualify for an interest rate of three-quarters of one percent (0.75%) per annum.

(B) Loans in an amount greater than or equal to seven million, five hundred thousand dollars ($7,500,000) and less than ten million dollars ($10,000,000) shall qualify for an interest rate of one-half of one percent (0.5%) per annum.

(C) Loans in an amount greater than or equal to ten million dollars ($10,000,000) shall qualify for an interest of one-quarter of one percent (0.25%) per annum.

(vi) Zero percent (0%) per annum for loans receiving IIJA Emerging Contaminants Funding.

(vii) Zero percent (0%) per annum for loans receiving IIJA Lead Service Line Replacement Funding.

(viii) Zero percent (0%) per annum for loans that will consolidate a smaller system into an already existing system; or consolidate two or more smaller systems into one consolidated system.

(ix) One and one-quarter percent of one percent (1.25%) per annum for applicants that are not eligible for loans not receiving a reduced interest rate in accordance with any of the above provisions.

(e) For loans awarded under Chapter 35, Municipal Solid Waste Facilities Cease and Transfer Loan and Grant Program, interest rates:

(i) May be at zero percent, up to an annual interest rate equal to the average prime interest rate as determined by W.S. 35-11-528(e). In no event, shall the interest rate exceed an annual interest rate equal to the average prime interest rate as determined by the state treasurer. Interest rates established under this section shall be adjusted on January 1 of each year.

(ii) Shall be established in recognition of the repayment abilities and needs of the applicant eligible for loans under the program.

(f) For loans awarded under Chapter 37, Student Dormitory Capital Construction Loans:

(i) Loans shall be at an interest rate of one percent (1%) plus seventy-five thousandths of one percent (0.075%) for each year of the loan term in excess of five (5) years.

(ii) Refinanced loans under Chapter 37, shall be at the same rate specified under Subparagraph (A) of this Paragraph.

(g) For loans awarded under Chapter 38, Capital Construction Loans,

(i) Loans shall be at an interest rate equal to the yield on a United States treasury security of the same duration of the loan.

(ii) The board may add an additional percentage not to exceed two percent (2%) as a risk premium to the interest rate established under this subsection.

(iii) The rate of interest for all loans issued under Chapter 38 shall not be less than three percent (3%).

(h) For loans awarded under Chapter 43, Small Business Emergency Bridge Loan Program, interest rates:

(i) Shall not exceed zero percent (0%) plus the interest rate earned on pooled fund investments in the previous fiscal year.

(A) The interest rate shall be reduced to account for investment earnings and the rate of return on investments of the small business emergency bridge loan account.

History

• Effective 2026-01-23

Chapter 16 Drinking Water State Revolving Fund Loans

Wyo. Code R. 060.0003.16.12032025 § 1 Authority

This Chapter is adopted pursuant to Wyoming Statute (W.S.) 16-1-303(b).

History

• Effective 2025-12-03

Wyo. Code R. 060.0003.16.12032025 § 2 Definitions. In

addition to the definitions in Chapter 1, as used in this Chapter:

(a) "Additional Subsidies" means principal forgiveness, grants, and Green Project Reserve loans as authorized by state or federal legislation and as adopted by the Board.

(b) "County" means a political subdivision of the State of Wyoming pursuant to W.S. 18-1-101(a)-(y).

(c) "DEQ" means the Wyoming Department of Environmental Quality.

(d) "Emergency" means an imminent direct threat to the continued operation of a community water system.

(e) "Emerging Contaminants" refer to substances and microorganisms, including manufactured or naturally occurring physical, chemical, biological, radiological, or nuclear materials, which are known or anticipated in the environment, that may pose newly identified or re-emerging risks to human health, aquatic life, or the environment. These substances, microorganisms, or materials can include many different types of natural or manufactured chemicals and substances - such as those in some compounds of personal care products, pharmaceuticals, industrial chemicals, pesticides, and microplastics. For the Infrastructure Investment and Jobs Act (IIJA) Emerging Contaminants funding, eligible emerging contaminants are identified by the United States Environmental Protection Agency (USEPA).

(f) "Green Project Reserve" means funds loaned out for projects meeting the requirements of the USEPA for such projects to implement a process, material, technique, or technology that addresses water or energy efficiency goals, mitigates stormwater runoff, or encourages sustainable project planning, design, and construction.

(g) "Initiating Operations" means the earliest point in time when a capital infrastructure project is ready for use even if only for system testing purposes.

(h) "Intended Use Plan (IUP)" means the annual plan adopted by the State Loan and Investment Board and submitted to the USEPA that describes how the state intends to use the money in the Drinking Water Revolving Loan Account, including the IIJA Emerging Contaminants and Lead Service Line funding.

(i) "Infrastructure Investment and Jobs Act of 2021" (IIJA) means U.S. Public Law 117-58, signed November 15, 2021. The IIJA established supplemental funding for eligible Drinking Water State Revolving Fund (DWSRF) projects, Emerging Contaminants and Lead Service Line funding.

(j) "Joint Powers Board(s)" means legally organized Wyoming entities authorized to engage in joint or cooperative action by the Wyoming Joint Powers Act pursuant to W.S. 16-1- 101 et. seq.

(k) "Lead service lines" (LSL) means a service line made of lead, that connects the water main to the building inlet. A lead service line may be owned by the water system, owned by the property owner, or both. For the purposes of this Chapter, a galvanized service line is considered a lead service line if it ever was or is currently downstream of any lead service line or service line of unknown material. If the only lead piping serving the home or building is a lead gooseneck, pigtail, or connector, and it is not a galvanized service line that is considered an LSL then the service line is not a lead service line. The lead gooseneck, pigtail, and connector are considered an eligible expense for replacement.

(l) "Municipalities" means any incorporated or chartered city or town as established under Wyoming law (W.S. 15-9-103 (a)(x)).

(m) "Principal Forgiveness (PF)" means a portion of the loan's principal is forgiven and need not be repaid.

(n) "Project Priority List" means the list of projects found in the Intended Use Plan (IUP) expected to receive financial assistance under the Program, ranked by a priority system developed under Section 1452(b)(2)(A) of the Safe Drinking Water Act.

(o) "Select Water Committee" means a state legislative committee as defined in W.S. 28-11-101.

(p) "Special District" means any legally formed special district in Wyoming that is eligible for program funding.

(q) "Special Program Requirements" means the requirements set forth in state or federal law or directives and as adopted by the Board that may include, but are not limited to, restrictions on the types of project materials that may be used, required funding reserves and minimum wage requirements.

(r) "State Environmental Review Process (SERP)" means the review conducted by DEQ, pursuant to W.S. 16-1-304(a), of potential environmental impacts of projects receiving assistance from the Account.

(s) "Substantial Completion" means that stage in a project when the capital infrastructure constructed is capable of initiating operations or can be used for its intended purpose.

(t) "WWDO" means the Wyoming Water Development Office, which provides administrative and operational management of the programs administered by the Wyoming Water Development Commission.

(u) "USEPA" means the United States Environmental Protection Agency.

History

• Effective 2025-12-03

Wyo. Code R. 060.0003.16.12032025 § 3 General Policy

(a) The Board shall approve loans, grants, and Additional Subsidies under the provisions of this Chapter, subject to the Select Water Committee's review and recommendation of projects, in such a manner and to such applicants as shall, in the judgment of the Board, inure to the greatest benefit of the citizens of the State of Wyoming and represent a prudent use of loan funds.

(b) Funding for loans, grants, and Additional Subsidies under this Chapter are subject to receipt of grants from the USEPA and may be subject to supplemental congressional appropriation for the IIJA. To facilitate key provision of this Act, the Board will consider funding applications for:

(i) Projects addressing Emerging Contaminants;

(ii) Projects addressing Lead Service Lines; and,

(iii) Conventional safe drinking water projects.

History

• Effective 2025-12-03

Wyo. Code R. 060.0003.16.12032025 § 4 Base and Supplemental Funding Disadvantaged Community Eligibility

(a) The Office of State Lands and Investments (OSLI) shall determine if an applicant is disadvantaged by awarding points based on population trend, income data, unemployment data, enterprise system rate management, and the prior year's property tax and four percent (4%) State sales tax collections. The determination of an applicant's disadvantaged community eligibility status will be performed every year during the development of the Intended Use Plan (IUP). Applicants whose total points are nine (9) or greater are eligible for Principal Forgiveness (PF) of up to seventy-five percent (75%) of their loan amount. Applicants whose total points are equal to or greater than six (6) but less than nine (9) are eligible for PF of up to fifty percent (50%) of their loan amount. Applicants whose total points are equal to or greater than three (3) but less than six (6) are eligible for PF of up to twenty-five percent (25%) of their loan amount. Applicants whose total points are less than three (3) are not considered disadvantaged and are not eligible for PF. Depending upon the total amount of PF funding available, the amount of PF actually awarded may be less than the eligible amount.

(i) Population trend points are awarded based on the category that the applicant was in as of the most recently released decennial census (or other available population data acceptable to OSLI if decennial census data is not available). If an applicant can show population trend data demonstrating that it has likely dropped to a smaller category subsequent to the last decennial census, its points may be adjusted up accordingly at the sole discretion of the OSLI.

(A) Applicants whose population is five hundred (500) or less will receive three (3) points.

(B) Applicants whose population is between five hundred one (501) and three thousand, three hundred (3,300) will receive two (2) points.

(C) Applicants whose population is between three thousand, three hundred one (3,301) and ten thousand (10,000) will receive one (1) point.

(D) Applicants whose population is ten thousand, one (10,001) or greater will receive zero (0) points.

(ii) Income data points are awarded based on the ratio of the local annual median household income (AMHI) to the State AMHI, using data from the most recently released American Community Survey 5-year estimates. If no data directly corresponding to the applicant is available, the AMHI for the nearest Municipality will be used as the default. The applicant may provide alternate data acceptable to OSLI, such as an income survey, at the applicant's expense and in lieu of American Community Survey 5-year estimates.

(A) Applicants whose AMHI is less than sixty percent (60%) of the State AMHI will receive three (3) points.

(B) Applicants whose AMHI is sixty percent (60%) or greater, but less than seventy percent (70%) of the State AMHI will receive two and one-half (2.5) points.

(C) Applicants whose AMHI is seventy percent (70%) or greater, but less than eighty percent (80%) of the State AMHI will receive two (2) points.

(D) Applicants whose AMHI is eighty percent (80%) or greater, but less than ninety percent (90%) of the State AMHI will receive one and one-half (1.5) points.

(E) Applicants whose AMHI is ninety percent (90%) or greater, but less than one hundred ten percent (110%) of the State AMHI will receive one (1) point.

(F) Applicants whose AMHI is one hundred ten percent (110%) or greater of the State AMHI will receive zero (0) points.

(iii) Unemployment data points are awarded based on the relationship of the local unemployment rate to the State unemployment rate (State rate). Local and State unemployment rates shall be determined using the most recent information by county as published by the Wyoming Department of Workforce Services.

(A) Applicants whose unemployment rate is equal to or greater than the State rate will receive one (1) point.

(B) Applicants whose unemployment rate is less than the State rate will receive zero (0) points.

(iv) Enterprise system rate management points are awarded based on the entity's average annual water rate as a percentage of the their AMHI.

(A) Applicants whose average annual water rate is two percent (2%) or greater of their AMHI will receive one (1) point.

(B) Applicants whose average annual water rate is less than two percent (2%) of their AMHI will receive zero (0) points.

(v) Prior year's property tax and four percent (4%) State sales tax collection points will be awarded based on the amount of taxes collected by an entity, rounded to the nearest dollar, as reported in the most recently released Wyoming Department of Revenue's Annual Report. If no data directly corresponding to the applicant is available, the tax data for the nearest Municipality will be used as the default.

(A) Applicants whose total collections are two hundred fifty thousand dollars ($250,000) or less will receive five (5) points.

(B) Applicants whose total collections are between two hundred fifty thousand one-dollar ($250,001) and five hundred thousand dollars ($500,000) will receive four (4) points.

(C) Applicants whose total collections are between five hundred thousand one-dollar ($500,001) and one million dollars ($1,000,000) will receive three (3) points.

(D) Applicants whose total collections are between one million one dollars ($1,000,001) and two million five hundred thousand dollars ($2,500,000) will receive two (2) points.

(E) Applicants whose total collections are between two million five hundred thousand one dollars ($2,500,001) and five million dollars ($5,000,000) will receive one (1) point.

(F) Applicants whose total collections are greater than five million dollars ($5,000,000) will receive zero (0) points.

History

• Effective 2025-12-03

Wyo. Code R. 060.0003.16.12032025 § 5 Additional Subsidies and Special Program Requirements

(a) OSLI, DEQ and WWDO will assess, at least annually, the impacts of state and federal law on the Drinking Water State Revolving Fund loan program administered under this Chapter. OSLI will provide timely notice to eligible applicants of changes in Additional Subsidies and Special Program Requirements. Said notice will be not less than thirty (30) calendar days prior to any application deadline. Methods of notice include, but are not limited to, electronic, telephonic, written, website postings, video conferences or combinations of the same.

History

• Effective 2025-12-03

Wyo. Code R. 060.0003.16.12032025 § 6 Base and Supplemental Loan and Additional Subsidies Eligibility

(a) Applicants. Publicly Owned Water Systems in Wyoming as authorized in W.S. 16-1-305 shall be eligible for loans under this Chapter. This includes eligibility for Additional Subsidies when available.

(b) Principal Forgiveness. Additional Subsidies shall be awarded in the form of PF. The PF will be awarded in accordance with all federal regulations. OSLI will award points based on population trend, income data, unemployment data, enterprise system rate management, and the prior year's property tax and four percent (4%) State sales tax collections. Applicants whose total points are nine (9) or greater are eligible for PF of up to seventy-five percent (75%) of their loan amount. Applicants whose total points are equal to or greater than six (6) but less than nine (9) are eligible for PF of up to fifty percent (50%) of their loan amount. Applicants whose total points are equal to or greater than three (3) but less than six (6) are eligible for PF of up to twenty-five percent (25%) of their loan amount. Applicants whose total points are less than three (3) are not eligible for PF. Depending upon the total amount of PF funding available, the amount of PF actually awarded may be less than the eligible amount.

(i) Population trend points shall be awarded based on the applicant's population according to the most recently released decennial census (or other available population data acceptable to OSLI if decennial census data is not available). If an applicant demonstrates its population has decreased to a different category subsequent to the last decennial census, its points may be adjusted accordingly at the sole discretion of the Office.

(A) Applicants whose population is five hundred (500) or less will receive three (3) points.

(B) Applicants whose population is between five hundred one (501) and three thousand, three hundred (3,300) will receive two (2) points.

(C) Applicants whose population is between three thousand, three hundred one (3,301) and ten thousand (10,000) will receive one (1) point.

(D) Applicants whose population is ten thousand, one (10,001) or greater will receive zero (0) points.

(ii) Income data points shall be awarded based on ratio of the local annual median household income (AMHI) to the State AMHI, using data from the most recently released American Community Survey 5-year estimates. If no data directly corresponding to the applicant is available, the AMHI for the nearest Municipality will be used as the default. The applicant may provide alternate data acceptable to OSLI, such as an income survey, at the applicant's expense and in lieu of American Community Survey 5-year estimates.

(A) Applicants whose AMHI is less than sixty percent (60%) of the State AMHI will receive three (3) points.

(B) Applicants whose AMHI is sixty percent (60%) or greater, but less than seventy percent (70%) of the State AMHI will receive two and one-half (2.5) points.

(C) Applicants whose AMHI is seventy percent (70%) or greater, but less than eighty percent (80%) of the State AMHI will receive two (2) points.

(D) Applicants whose AMHI is eighty percent (80%) or greater, but less than ninety percent (90%) of the State AMHI will receive one and one-half (1.5) points.

(E) Applicants whose AMHI is ninety percent (90%) or greater, but less than one hundred ten percent (110%) of the State AMHI will receive one (1) point.

(F) Applicants whose AMHI is one hundred ten percent (110%) or greater than the State AMHI will receive zero (0) points.

(iii) Unemployment data points shall be awarded based on the relationship between the local unemployment rate to the State unemployment rate (State rate). Local and State unemployment rates shall be determined using the most recent information by county as published by the Wyoming Department of Workforce Services.

(A) Applicants whose unemployment rate is equal to or greater than the State rate will receive one (1) point.

(B) Applicants whose unemployment rate is less than the State rate will receive zero (0) points

(iv) Enterprise system rate management points are awarded based on the entity's average annual water rate as a percentage of their AMHI. AMHI data will be determined using data from the most recently released American Community Survey 5-year estimates. If no data directly corresponding to the applicant is available, the AMHI for the nearest Municipality will be used as the default. The applicant may provide alternate data acceptable to OSLI, such as an income survey, at the applicant's expense and in lieu of American Community Survey 5-year estimates.

(A) Applicants whose average annual water rate is two percent (2%) or greater of their AMHI will receive (1) point.

(B) Applicants whose average annual water rate is less than two percent (2%) of their AMHI will receive zero (0) points.

(v) Prior year's property tax and four percent (4%) State sales tax collection points will be awarded based the amount of taxes collected by an entity, rounded to the nearest dollar, as reported in the Wyoming Department of Revenue's Annual Report. If no data directly corresponding to the applicant is available, the tax data for the nearest Municipality will be used as the default.

(A) Applicants whose total collections are two hundred fifty thousand dollars ($250,000) or less will receive five (5) points.

(B) Applicants whose total collections are between two hundred fifty thousand one-dollar ($250,001) and five hundred thousand dollars ($500,000) will receive four (4) points.

(C) Applicants whose total collections are between five hundred thousand one-dollar ($500,001) and one million dollars ($1,000,000) will receive three (3) points.

(D) Applicants whose total collections are between one million one dollars ($1,000,001) and two million five hundred thousand dollars ($2,500,000) will receive two (2) points.

(E) Applicants whose total collections are between two million five hundred thousand one dollars ($2,500,001) and five million dollars ($5,000,000) will receive one (1) point.

(F) Applicants whose total collections are greater than five million dollars ($5,000,000) will receive zero (0) points.

(c) Principal Forgiveness Contingency. Receipt of PFis contingent on the applicant completing a first loan draw within eighteen (18) months of the effective date of the loan agreement and continuing to make loan draws at least quarterly until the project is complete. Failure of the applicant to comply with these terms shall result in the awarded PF being forfeited. A request for an extension may be submitted to OSLI for consideration if additional time is necessary.

(d) The amount of Green Project Reserve funding will be determined by DEQ based on the project information provided and the requirements of the state and federal regulations.

(e) AMHI data is based on information obtained from the most recent American Community Survey of the U.S. Census Bureau. Median Household Income data for Special Districts will be based on the closest Municipality unless income information via an income survey at district expense or other financial data acceptable to OSLI and the Board. If the applicant is a Special District or Joint Powers Board, it must be legally formed and approved prior to submitting its loan application. All applicants must be in compliance with all applicable reporting requirements of both the Wyoming Department of Revenue and the Wyoming Department of Audit prior to its application being considered by the Board. For consideration at the October Board meeting, applicants must file their current financial reports with the Department of Audit by September 10th and notify the OSLI in writing that the filing was done.

(f) Purposes. Eligible projects may consist of improvements to any components of a Water Supply System as appropriate and permitted by the Safe Drinking Water Act and USEPA. The Board may authorize loans to refinance existing debt incurred during the completion of an eligible project. The Board may also award loans and Additional Subsidies consistent with changes in state or federal law.

(g) Project Eligibility. Only projects on the current Drinking Water State Revolving Fund Intended Use Plan are eligible for loans and Additional Subsidies under this Chapter. Eligible applicants are responsible for ensuring that their project(s) is(are) listed on the current Drinking Water State Revolving Fund Intended Use Plan.

History

• Effective 2025-12-03

Wyo. Code R. 060.0003.16.12032025 § 7 Ineligible Project Costs

The following project costs shall be ineligible for reimbursement:

(a) Costs for any asset that is owned by a private property owner;

(b) Costs for tap fees, sewer and water fees, and plant investment fees;

(c) Engineering fees, including design, inspection and contract administration costs, over twenty percent (20%) of Board approved project costs, excluding design only or construction only Board approved costs;

(d) All non-cash costs except land that is integral to a treatment process and if allowed under federal law. Costs for land in excess of current fair market value and/or costs for an amount of land in excess of that needed for project purposes are ineligible;

(e) Costs for preparation or presentation of grant or loan applications for any source of funding;

(f) Costs for transportation, meals, lodging and incidentals incurred anywhere away from the site of the project or that exceed the current federal per diem reimbursement rate;

(g) Costs of tools, supplies and furnishings for capital projects not included in DEQ approved construction contract documents, including but not limited to, capital equipment, hammers, tools, furniture, drapes, blinds, file cabinets, file folders and survey stakes;

(h) Legal fees, except as pre-approved by DEQ or WWDO, and OSLI;

(i) Costs related to the issuance of bonds;

(j) Costs of elections;

(k) Costs to establish and form a Special District or Joint Powers Board;

(l) Costs not allowed by the USEPA;

(m) Costs incurred prior to loan award, except costs incurred for architectural and engineering design, surveying, state environmental review process (SERP) requirements, refinancing existing debt or in emergency circumstances;

(n) Costs for change orders not approved by DEQ or WWDO, and OSLI;

(o) Lump sum contracts unless approved by DEQ or WWDO, and OSLI;

(p) Any cost- not supported by one or more invoices, receipts, or other documentation unless approved by DEQ or WWDO, and OSLI;

(q) Costs associated with the applicant's own employees and equipment, unless pre-approved by DEQ or WWDO, and OSLI;

(r) Costs contrary to standard general State construction policies (for example, costs associated with engineer's and/or contractor's error(s));

(s) Markups by engineers/architects of sub-consultant and other outside charges;

(t) Portions of costs reimbursed or directly paid for by any other State or federal funding program;

(u) Projects undertaken using alternate design and construction delivery methods under W.S. 16-6-701, unless pre-approved by DEQ or WWDO.

History

• Effective 2025-12-03

Wyo. Code R. 060.0003.16.12032025 § 8 Application Procedure

(a) Applications. Separate applications shall be prepared for each loan. Applicants shall submit a complete application on a form provided by OSLI.

(b) Public Meeting Requirement. All eligible applicants must hold a minimum of one public meeting in advance of submitting an application for Board consideration. Notice of the public meeting is to be published in a local or regional newspaper fifteen (15) days prior to the same. The public meeting must provide the public an overview of the proposed project, financing and sustainability. The overview aspect of the public meeting must, at a minimum, address project scope, milestones and costs. The financing aspect of the public meeting must, at a minimum, address the financial impact of project costs upon the public. The sustainability aspect of the public meeting must, at a minimum, address revenue streams, adjustments of water and sewer rates or other sources required to sustain the proposed project. Eligible applicants must verify compliance with the public meeting requirement through documentation submitted with their loan applications.

(c) Timing of Board Consideration. The Board may consider applications for loans under this Chapter at any scheduled meeting. Applications must be received by the Director at least one hundred twenty (120) days prior to the Board meeting at which the application will be considered. Applicants must cure any defects in their applications no later than forty-five (45) calendar days before the Board meeting at which the application will be considered.

(d) Incomplete Applications. Incomplete applications, those missing one or more of the information items requested, and/or failing to meet established deadlines, shall not be presented to the Board for consideration until it is considered complete by program staff.

History

• Effective 2025-12-03

Wyo. Code R. 060.0003.16.12032025 § 9 Evaluation

(a) Criteria. The Board shall evaluate applications utilizing the following criteria:

(i) Whether the applicant has an appropriate Project Priority List ranking as required in Section 1452(b)(3) of the Safe Drinking Water Act and is listed on the fundable portion of the Intended Use Plan;

(ii) Whether the applicant can demonstrate Capacity Development capabilities in compliance with Section 1420 of the Safe Drinking Water Act and the applicable requirements of DEQ;

(iii) Whether the applicant can obtain or ensure the certification of the Operators of the Publicly Owned Water System in accordance with DEQ rules and regulations prior to obtaining financial assistance approval;

(iv) Whether the applicant is current on all its repayment obligations to the Board;

(v) Whether the applicant's dedicated source of revenue is acceptable to the Board and will be sufficient to provide security to repay its requested loan;

(vi) Whether the applicant is ready to proceed with construction or implementation of the project;

(vii) Whether the applicant has established an adequate operations and maintenance costs fund for the project for which applicant seeks funding;

(viii) Whether the applicant has made a significant commitment of funding resources for the project for which it seeks funding;

(ix) The percentage of the applicant's population directly served by the project;

(x) The project's priority rank on the current IUP; and

(xi) Whether the project is appropriately sized for the population to be served by the project.

(b) If assessments are included as part of the dedicated source of repayment, applicant shall establish an annual assessment equal to, or greater than, the amount of the annual debt service payment on the loan. This assessment schedule shall be filed with the County Assessor's Office on or before February 15th of each year for the full term of the loan, and a copy of the assessment shall be sent to OSLI annually.

(c) Interagency Consultation. OSLI shall facilitate interagency consultation with DEQ and WWDO through the review of applications for loans and Additional Subsidies and provide comments to the Director for Board consideration. The Board shall request the DEQ and the WWDO to provide the services required under W.S. 16-1-301 through 308.

History

• Effective 2025-12-03

Wyo. Code R. 060.0003.16.12032025 § 10 Board Consideration

.

(a) The Board shall consider each complete application and allow for comments from the applicant, the Director, DEQ and WWDO. The Board shall also establish loan amounts and terms. Loan terms for applicants that are not considered disadvantaged, as determined by the points evaluation described in Section 6(b), shall not exceed what is allowable by the federal and state regulations, or the useful life of the project, whichever is less. For applicants that are considered disadvantaged, as determined by the points evaluation described in Section 6(b), loan terms shall not exceed thirty (30) years, or the useful life of the project, whichever is less.

History

• Effective 2025-12-03

Wyo. Code R. 060.0003.16.12032025 § 11 Interest Rates

The interest rate for all loans made under this Chapter shall be established by the Board pursuant to Chapter 14 of these rules.

History

• Effective 2025-12-03

Wyo. Code R. 060.0003.16.12032025 § 12 Repayment

(a) Annual payments for all loans shall begin one (1) year after Substantial Completion of the project as indicated in the final project contract. Annual payments for loans used to refinance existing debt shall begin no later than one (1) year after loan approval.

History

• Effective 2025-12-03

Wyo. Code R. 060.0003.16.12032025 § 13 Disbursement of Loan Proceeds

(a) Requests for disbursements shall be submitted on a form provided by the Director and include supporting invoices, receipts, or other documentation establishing the eligibility of costs submitted for disbursement. Proceeds will only be disbursed for eligible project costs as set forth in this Chapter and within federal guidelines following review by OSLI and WWDO.

(b) Owners of any project that spans more than one (1) construction season shall annually submit an updated timeline to OSLI and WWDO for the project.

History

• Effective 2025-12-03

Wyo. Code R. 060.0003.16.12032025 § 14 Audits and Inspections

(a) The Board shall ensure compliance with the provisions of the Single Audit Act and Subpart F of Title 2 U.S. Code of Federal Regulations (CFR) Part 200. Uniform Administrative Requirements. Cost Principles, and Audit Requirements for Federal Awards. On an annual basis records of loan recipients shall be, at a minimum, compiled by an independent accounting firm. Notification of compliance shall be made to the Board in the form of a Compilation, Review, or Audited Financial Statement prepared by an independent accounting firm.

(b) The Board may, at its expense, conduct an independent audit of the loan recipient's records and inspect the construction and operation of the project. Loan recipients shall maintain project accounts in accordance with the Governmental Accounting Standards Board (GASB). The Boards auditors will conduct such an audit in accordance with Generally Accepted Government Auditing Standards (GAGAS). Loan recipients shall assist and provide any information required by the auditors.

History

• Effective 2025-12-03

Wyo. Code R. 060.0003.16.12032025 § 15 Reports

(a) The Director, or the Director's designee, shall review all reports prepared by the OSLI, DEQ and WWDO for submission to the USEPA.

History

• Effective 2025-12-03

Wyo. Code R. 060.0003.16.12032025 § 16 Program Compliance

(a) The Board shall administer the state drinking water revolving loan account program in accordance with all applicable federal laws and regulations. The Board shall enter into, and periodically update, Memorandums of Understanding with DEQ and WWDO to implement the program and facilitate program compliance.

History

• Effective 2025-12-03

Wyo. Code R. 060.0003.16.12032025 § 17 Fees

(a) Unless stated within these rules, a loan origination fee of one-half of one percent (0.5%) of the amount of the loan will be collected at loan closing. The fees will be deposited to the Administrative Account as authorized by W.S. 16-1-303(d).

History

• Effective 2025-12-03

Wyo. Code R. 060.0003.16.12032025 § 18 IIJA Emerging Contaminants Funding

The Board may award funding from IIJA funds under this Section for projects that address Emerging Contaminants. For awards under this Section, the provisions of this Section shall supersede any inconsistent provisions in any other section of this Chapter.

(a) Loan and Additional Subsidies Eligibility.

(i) Applicants. Publicly Owned Water Systems in Wyoming listed on the Project Priority List specifically related to Emerging Contaminants shall be eligible to apply for loans and Additional Subsidies under this Section.

(ii) Origination fees shall be waived for all loans closed utilizing the Emerging Contaminants capitalization grants from the IIJA bill.

(iii) Additional Subsidies. Additional Subsidies may be awarded in the form of PF, to the extent available, and in accordance with all federal regulations. All loans awarded under this section are eligible for one hundred percent (100%) PF, contingent on compliance with federal requirements.

(iv) Disadvantaged Community Eligibility. All qualifying entities submitting loan applications for projects that address identified Emerging Contaminants through lab testing meeting the Emerging Contaminants definition in Section 2(e) are considered disadvantaged under this section and qualify for one hundred percent (100%) PF.

(b) Eligible Projects. Projects shall be eligible under this Section if they:

(i) Meet all DWSRF eligibility criteria;

(ii) Are primarily intended to address previously identified Emerging Contaminants in drinking water; and

(iii) Meet all other federal program requirements.

(c) Eligible Costs. The following project costs shall be eligible for reimbursement under this Section, subject to federal program requirements:

(i) Costs associated with the construction of a new treatment facility or upgrade to an existing treatment facility that addresses Emerging Contaminants.

(ii) Development of a new source that addresses an Emerging Contaminant issue. Water rights purchases must meet all criteria in the Class Deviation for Water Rights in order to be eligible for funding under this section.

(iii) Consolidation with another water system that does not have Emerging Contaminants present or has removal capability.

(iv) Costs for planning and design and associated pre-project costs.

(v) Infrastructure related to pilot testing for treatment alternatives.

(vi) Creation of a new community water system to address unsafe drinking water provided by privately-owned wells or surface water sources.

(vii) Costs not listed in Section 7 as being ineligible.

History

• Effective 2025-12-03

Wyo. Code R. 060.0003.16.12032025 § 19 IIJA Lead Service Line Replacement Funding

The Board may award funding from IIJA funds under this Section for projects that replace LSLs, goosenecks, pigtails, or connectors. For awards under this section, the provisions of this section shall supersede any inconsistent provisions in any other section of this Chapter.

(a) Loan and Additional Subsidies Eligibility.

(i) Applicants. Publicly Owned Water Systems in Wyoming listed on the Project Priority List specifically related to LSL replacement funding shall be eligible to apply for loans and Additional Subsidies under the section.

(ii) Origination fees shall be waived for all loans closed utilizing the Lead Service Line Replacement capitalization grants from the IIJA bill.

(iii) Disadvantaged Community Eligibility. All entities with identified areas meeting the LSL definition in Section 2(k) are considered disadvantaged under this section and qualify for PF. Additional Subsidies may be awarded in the form of PF, to the extent available, and in accordance with all federal regulations. All loans awarded under this section are eligible for PF, contingent on compliance with federal requirements. OSLI shall award points based on population trend, income data, and unemployment data, enterprise system rate management, and the prior year's property tax and four percent (4%) sales tax collections, as set forth in Section 6 of this Chapter. Applicants whose total points are nine (9) or greater are eligible for PF of up to one hundred percent (100%) of their loan amount. Applicants whose total points are equal to or greater than six (6) but less than nine (9) are eligible for PF of up to seventy five percent (75%) of their loan amount. Applicants whose total points are equal to or greater than three (3) but less than six (6) are eligible for PF of up to fifty percent (50%) of their loan amount. Applicants whose total points are less than three (3) are eligible for PF of up to twenty-five percent (25%) of their loan amount.

(b) Eligible Project Costs. The following project costs shall be eligible for reimbursement under this Section, subject to federal project requirements:

(i) Complete removal of LSL, including all public and privately owned portions, or service lines made of galvanized iron or galvanized steel that are currently or have previously been downstream of lead components and replacement with a pipe that meets the federal program requirements and that complies with state and local plumbing codes and or building codes.

(ii) Removal of lead or galvanized goosenecks, pigtails, and connectors, and replacement with an acceptable material that meets the federal program requirements and that complies with state and local plumbing codes and or building codes.

(iii) Replacement of curb stops, curb stop boxes, and other service line appurtenances that are removed as part of full LSL replacement.

(iv) Site restoration, including landscaping, sidewalks, driveways, if the removal was necessary to replace the LSL.

(v) Permit fees, if the fees are normal, required, and specific to the LSL replacement.

(vi) Temporary pitcher filters or point-of-use devices certified by an American National Standards Institute accredited certifier to reduce lead during or for a short time period after LSL projects.

(vii) Development or updating of lead service line inventories, including locating and mapping lead service lines. Methods of investigation to develop inventories could include visual observation, water quality sampling for non-compliance, excavation, vacuum or hydro-excavation, statistical analysis, or other emerging technologies

(viii) Planning and design for infrastructure projects listed above.

(ix) Non-routine lead sampling, if not for compliance purposes, as part of an LSL replacement project.

(x) Costs not listed in Section 7 as being ineligible.

History

• Effective 2025-12-03

Wyo. Code R. 060.0003.16.12032025 § 20 Planning and Assessment Grants

The Board may use a portion of the Additional Subsidies from the capitalization grants to fund qualifying planning and assessment activities.

(a) The amount available for grants under this subsection shall be defined in the annual IUP.

(b) The following activities may qualify for grants under this subsection:

(i) Asset management, fiscal sustainability, cost and effectiveness analyses;

(ii) Capital improvement plans;

(iii) Integrated planning;

(iv) Long-term control plans;

(v) Water or energy audits;

(vi) Conservation plans facility plans;

(vii) Treatment works security and safety plans;

(viii) Risk or vulnerability assessments;

(ix) Emergency preparedness response and recovery plans;

(x) Drought management plans;

(xi) Climate adaptation plans;

(xii) Environmental management systems;

(xiii) Watershed management plans; and

(xiv) Total maximum daily load implementation plans.

(c) Applicants for grants under this Section shall submit an application on a form provided by OSLI and governed by the provisions of Section 9 of this Chapter.

(d) The Board shall award grants under this Section to such applicants and in such amounts as shall, in the judgment of the Board, inure to the greatest benefit of the citizens of the State of Wyoming and represent a prudent use of funds.

History

• Effective 2025-12-03

Chapter 17 Transportation Enterprise Fund Grants & Loans

Wyo. Code R. 060.0003.17.10051999 Transportation Enterprise Fund Grants & Loans

RULES AND REGULATIONS STATE LOAN AND INVESTMENT BOARD

Chapter 17

Transportation Enterprise Fund Grants and Loans

Section 1. Authority.

This chapter is adopted pursuant to W.S. 11-34-131(a)(i).

Section 2. Definitions.

(a) As used in this chapter:

(i) "Board" means the State Loan and Investment Board.

(ii) "Director" means the Director of the Office of State Lands and Invest- ments.

(iii) "Office" means the Office of State Lands and Investments.

(iv) "Management Council" means the legislative committee created by W.S. 28-8-102.

Section 3. Purpose.

The Board shall award grants and loans under the provisions of this chapter to public entities to foster investment in transportation projects of benefit to the general public within Wyoming.

Section 4. Eligibility.

(a) The Board interprets the term, "public entities" as it is used in W.S. 11-34-131(c) to include, but not be limited to:

(i) Wyoming counties;

(ii) Wyoming municipal corporations;

(iii) Senior citizen centers created pursuant to W.S. 18-2-105;

(iv) Airport boards created pursuant to W.S. 10-5-202;

(v) Regional transportation authorities created pursuant to W.S. 18-14-101;

(vi) Community boards created pursuant to W.S. 35-1-615; and

(vii) Entities under contract with a county, municipality, or school district pursuant to W.S. 35-1-614, or under contract with the Wyoming Department of Health pursuant to W.S. 35-1-620.

(b) Grants or loans may be awarded for the purpose of enhancing transportation in Wyoming.

Section 5. Application Procedure.

(a) Applicants shall prepare separate applications for each project on a form provided by the Office. Applicants shall submit three (3) copies of their completed application to the Office.

(b) The Board shall meet each year in November to consider applications for grants and loans under this chapter. Applications must be received by the Office no later than September 15th to be considered at the November meeting.

(c) The Board may consider applications on an emergency basis at any time. Applications for emergency consideration must be received by the Office no later than thirty (30) days prior to the meeting at which the application is considered by the Board.

(d) The application shall contain, at a minimum, the following information:

(i) The amount requested as a grant or loan;

(ii) A full description of the proposed project;

(iii) A detailed project cost estimate delineating all costs of the proposed project and the method by which the project costs were estimated;

(iv) The geographic scope of the proposed project;

(v) A description of other project funding sources, committed or pending, and the portion of the project cost expected to be funded from each source, including any future grant or loan applications under this chapter. The applicant must submit a funding commitment from all project funding sources, including the applicant, to demonstrate commitment to the project;

(vi) A standard resolution on a form provided by the Office;

(vii) If the applicant is a joint powers board, a copy of the certificate of organization filed with the Secretary of State, and a copy of an executed joint powers agreement ap- proved by the Attorney General; and

(viii) If an applicant submits multiple applications under this chapter for consid- eration at one meeting, a priority ranking of the multiple applications must be submitted by the applicant.

(e) Applications for grants or loans to purchase public transportation vehicles shall contain the following additional information:

(i) A report showing the annual ridership numbers for the last three (3) years;

(ii) The age, mileage, condition, and history of major repairs for the unit to be replaced; and

(iii) Signed assurances by the officers of the applicant that the project is in compliance with all applicable federal requirements.

(f) Within ten (10) working days of receipt of an application, the Office shall notify the applicant, in writing, if the application lacks any of the items required in subsections (c) and

(d) of this section. The applicant shall have ten (10) working days to submit the required information to the Office.

(g) Incomplete applications shall not be presented to the Board for consideration.

Section 6. Review by Department of Transportation.

The Director shall request the Wyoming Department of Transportation to review and evaluate all applications received by the Office.

Section 7. Recommendation by Legislative Committee.

The Office shall forward completed applications to the Management Council or legislative committee designated by the Management Council, for recommendation before consideration by the Board.

Section 8. Evaluation and Prioritization.

(a) The Board shall use the following criteria to evaluate all applications for grants or loans under this chapter:

(i) The extent of funding committed to the project from all sources;

(ii) The commitment of the applicant of significant local resources;

(iii) The appropriateness of the size of the project for the population to be served by the project;

(iv) The urgency of the project;

(v) The repayment status of the applicant's current obligations to the Board;

(vi) The extent to which the applicant is utilizing, or plans to utilize, available and qualified Wyoming-based professional firms and contractors on the project; and

(vii) The percentage of the applicant's population directly served by the project.

(b) The Board shall use the Wyoming Department of Transportation, Aeronautics Division's Priority Rating Model to prioritize applications for grants or loans to improve or maintain airline service facilities.

(c) The Board shall use the following criteria to prioritize applications for grants or loans to acquire public transportation vehicles:

(i) Applications for grants or loans to provide public transportation service to areas previously without service will have priority over applications to provide public transporta- tion service to areas currently served.

(ii) For applications for grants or loans to acquire replacement vehicles, priority shall be given to applications:

(A) To replace vehicles that are older, with higher mileage, in poorer condition, and with a history of major repairs;

(B) To replace vehicles in communities where annual ridership trends for the last three (3) years are increasing; and

(C) To replace vehicles in communities where the percentage of the general population, and the percentage of the elderly, low income, minority, socially disadvantaged elderly, and disabled populations utilizing the applicant's transportation system are higher.

Section 9. Board Consideration.

The Board shall consider each completed application, and in its sole discretion, establish the maximum amount of the grant or loan to be awarded.

Section 10. Loan Interest Rate.

The interest rate for loans extended under this chapter shall be established by the Board on a case-by-case basis.

Section 11. Loan Security.

(a) The Board may require a first-position security interest in any facility or equipment financed by a loan extended under this chapter. The Board may also require a first-position security interest in any user fees or assessments derived through the operation of the facility or equipment.

(b) If the Board obtains a lien on facilities, the borrower shall:

(i) Maintain adequate insurance on the facility;

(ii) Pay all applicable taxes and assessments when due; and

(iii) Maintain the facility in good condition.

Section 12. Disbursement and Administration.

(a) Grant or loan funds shall be disbursed to the grantee or borrower only as needed to discharge obligations incurred. Requests for disbursements shall be made on a form supplied by the Office and supported by adequate proof that such obligations have been incurred for project purposes and are due and owing.

(b) The minimum grant or loan disbursement shall be five hundred dollars ($500.00) unless it is the final disbursement of funds for the project.

(c) As a condition of the grant or loan, the grantee or borrower shall provide written assurance that title to public transportation vehicles funded under this chapter will not be conveyed for a term of five years or until the vehicle has one hundred thousand (100,000) miles, whichever comes first, without written permission from the Office.

(d) As a condition of the grant or loan, the grantee or borrower shall maintain collision and comprehensive insurance for each public transportation vehicle funded under this chapter for a period of five years or until the vehicle has one hundred thousand (100,000) miles, whichever comes first. In the event of a loss, the proceeds of the insurance shall be used to repair or replace the damaged vehicle.

Section 13. Reversion of Funds.

(a) If the Director determines that the project has not been commenced within one (1) year from the date the grant or loan is awarded, the grant or loan will automatically expire. Based upon information supplied by the grantee or borrower, the Director may grant an extension of time in which to commence the project.

(b) If the Director determines that the project has not been completed within a reasonable time, he shall notify the grantee or borrower in writing at least thirty (30) days prior to presenting the matter for Board review. The Board, upon review of the project circumstances, may terminate or modify the grant or loan.

(c) If, the Director determines that the project is complete, but the full amount of the grant or loan has not been expended, the Office shall notify the grantee or borrower of this determination. Thirty (30) days following the notification, the unused portion of the grant or loan shall revert to uncommitted status.

Section 14. Audits and Inspections.

The Board may, at its expense, conduct an audit of the records of the grantee or borrower and inspect the construction and operation of the project.

Section 15. Rule Amendments.

Amendments to these rules do not apply to applications filed after the effective date for phased construction projects which have already received partial funding under this chapter.

History

• Effective 1999-10-05

Chapter 26 Capital Improvement Projects-Countrywide Consensus List Awards (Block Allocations)

Wyo. Code R. 060.0003.26.11182008 Capital Improvement Projects-Countrywide Consensus List Awards (Block Allocations)

RULES AND REGULATIONS STATE LOAN AND INVESTMENT BOARD

Chapter 26

Capital Improvement Projects – Countywide Consensus List Awards (Block Allocations)

Section 1. Authority.

This chapter is adopted pursuant to Laws 2008, Chapter 48, Sections 328

(a) (v),(f)(g)(h) and (j) and 329(a)(v)(f)(g)(h) and (j).

Section 2. Definitions.

As used in this chapter:

(a) "Board" means the State Loan and Investment Board.

(b) "Capital Project" means the construction, replacement or improvement of a fixed asset or public service facility. Routine maintenance and repair does not constitute a capital project.

(c) "Consensus List" means a county-wide priority ranking of capital improvement projects from highest to lowest within available grant funding. This list must be certified as agreed to by the board of county commissioners and the governing bodies of the cities and towns within that county that comprise at least seventy percent (70%) of the incorporated population.

(d) "Director" means the Director of the Office of State Lands and Investments.

(e) "Eligible Applicant" means a county and its incorporated cities and towns, special districts and joint powers boards. The county must certify to the Board that the county board of commissioners and the councils of the cities and towns that comprise seventy percent (70%) of the incorporated population within that county have reached agreement on the project(s) for which the grants will be used.

(f) "Eligible Project Costs" means total project cost less ineligible project costs.

(g) "Office" means the Office of State Lands and Investments.

(h) "Public Service Facility" means a facility owned by the applicant and available for use by the general public including: water and sewer projects, storm drainage projects, street and road projects, solid waste disposal projects, acquisition of emergency vehicles, public administration buildings, health care facilities, senior citizens centers, jail and detention facilities, facilities needed to provide services to the disabled, costs to purchase medical equipment that generates revenue sufficient to service a Joint Powers Act Loan, as determined by the Board, and similar facilities as authorized by the Board.

Section 3. General Policy.

The Board shall award grants for capital projects under the provisions of this chapter based on certified county-wide consensus lists and funding availability for the benefit of the citizens of the state.

Section 4. Funding Availability.

Grant funding for this chapter is available pursuant to Laws 2008, Chapter 48, Section 328(a)(v)(f)(g)(h) and (j) and Section 329(a)(v)(f)(g)(h) and (j).

Section 5. Grant Eligibility.

(a) Applicants. Incorporated cities and towns, counties, special districts and joint powers boards shall be eligible to apply for grants under this chapter provided the applicant is an "eligible applicant" as defined in Section 2(e). If the applicant is a special district or joint powers board, it must be legally formed and approved and otherwise in compliance with statutory requirements of the Wyoming Department of Revenue prior to receiving a grant award under this chapter. An applicant must be in compliance with all applicable reporting requirements with the Wyoming Department of Audit prior to its application being considered by the Board.

(b) Ineligible Project Costs. The following project costs shall be ineligible for reimbursement from grant funds:

(i) Costs for any asset that is owned or maintained by a private property owner;

(ii) Costs for tap fees, sewer and water fees, and plant investment fees;

(iii) Engineering fees, including design, inspection and contract administration costs, over twenty percent (20%) of project cost;

(iv) All non-cash costs except land, labor, materials, equipment, and services provided by the applicant, and used for project purposes based on actual, appraised or market value;

(v) Costs for preparation or presentation of grant or loan applications for any source of funding;

(vi) Costs for transportation, meals and lodging incurred anywhere away from the site of the project;

(vii) Costs of tools and furnishings for capital projects, including but not limited to, capital equipment, hammers, tanks, furniture, drapes and blinds not integral to and necessary for the project;

(viii) Legal fees;

(ix) Costs related to issuance of bonds;

(x) Costs for real property in excess of current fair market value and/or costs for an amount of real property in excess of that needed for project purposes;

(xi) Costs to establish and form special districts or joint powers boards;

(xii) Costs incurred prior to grant award, except costs for architectural and engineering design or in emergency situations;

(xiii) Costs for a contingency or extra work allowance in excess of 10% of estimated construction costs.

(c) Impeding the Establishment of WyoLink. Any political subdivision which impedes the establishment of any necessary cellular tower or other equipment site required for the WyoLink interoperable public safety communications system on any property owned by that political subdivision shall not be eligible to receive funds distributed pursuant to these rules.

Section 6. Applications and Consensus List Procedures.

(a) Applications, Consensus Lists and Timing. Applications from eligible applicants for consideration for project funding are initially submitted locally into the county consensus list process in the county where the project is situated. For projects involving more than one county, applications are initially submitted into the county consensus list process in each of the project-affected counties. In reviewing applications the board of county commissioners and the governing bodies of the cities and towns within that county that comprise at least seventy percent (70%) of the incorporated population shall certify to the Board that they have reached agreement on the projects for which the funds will be used. Certified county consensus lists and supporting documentation must be submitted to the Office at least twenty (20) calendar days prior to any regular or special meeting of the Board.

The certified consensus list that the board of county commissioners submits to the Office for Board action shall consist of the following: A joint resolution certifying that the county commission and at least 70% of the incorporated population of the respective county have reached agreement on the project(s) to be funded under this chapter. The resolution shall list each project individually to be funded under this chapter. The resolution must also indicate the grant amount requested for each project and the percentage of the total project to be funded with a grant under this chapter. The resolution must not exceed the total amount allocated for the county. In addition, the resolution shall list other eligible project(s) that have been certified and can be substituted in the event that an original project(s) cannot proceed. For each individual project, the applicant shall submit an "Application Cover Page" on a form provided by the Office. The applicant shall also submit an individual "Project Summary" form provided by the Office.

(b) Incomplete Applications. Incomplete applications shall not be presented to the Board for consideration.

Section 7. Board Consideration.

The Board shall consider each eligible county's consensus list, allow for comments from the owner of the project and from the Director. The Board also will establish the maximum award for each eligible county for each project on each eligible county's consensus list.

Section 8. Grant Disbursement and Administration.

(a) Grant Disbursement. Each individual project is subject to the requirements of this section. Grant funds for eligible project costs shall be disbursed to the applicant only as needed to discharge obligations. Requests for disbursements shall be made on a form supplied by the Office and supported by adequate proof that such obligations have been incurred for project purposes and are due and owing.

(b) The minimum grant disbursement shall be One Thousand dollars ($1000.00) unless it is the final disbursement of grant funds for the project.

(c) Fund Reversion.

(i) If the Director determines that the project has not been commenced within one (1) year from the date the grant is approved, the grant will automatically expire. Based upon information supplied by the grantee, the Director may grant an extension of time in which to commence the project.

(ii) If the Director determines that the project has not been completed within a reasonable time, the Director will notify the grantee in writing at least thirty (30) days prior to presenting the matter for Board review. The Board, upon review of the project circumstances, may terminate or modify the grant award.

(iii) If the Director determines that the project is complete, but the full amount of the grant has not been expended, the Office shall notify the grantee of this determination. Thirty (30) days following the notification, the unused portion of the grant shall be disbursed according to the substitute project list or be reallocated to the countywide consensus process for that county.

Section 9. Audits and Inspections.

Each individual project is subject to requirements of this section. The Board may, at its expense, conduct an audit of the records of the applicant and inspect the construction and operation of the project.

History

• Effective 2008-11-18

Chapter 32 Capital Improvement Projects - Countywide Consensus List Awards (Block Allocations)

Wyo. Code R. 060.0003.32.09262014 Capital Improvement Projects - Countywide Consensus List Awards (Block Allocations)

RULES AND REGULATIONS STATE LOAN AND INVESTMENT BOARD

Chapter 32

Capital Improvement Projects – Countywide Consensus List Awards (Block Allocations)

Section 1. Authority.

This chapter is adopted pursuant to Session Laws of Wyoming 2011, Chapter 88, Section 342, Session Laws of Wyoming 2012, Chapter 26, Section 324 and Session Laws of Wyoming 2014, Chapter 26, Section 316.

Section 2. Definitions.

As used in this chapter:

(a) "Board" means the State Loan and Investment Board.

(b) "Capital Project" means the construction, replacement, or improvement of a fixed asset or public service facility and major building and facility repair and replacement. Routine maintenance and repair does not constitute a capital project

(c) "Consensus List" means a county-wide priority ranking of capital improvement projects from highest to lowest within available grant funding. This list must be certified as agreed to by the board of county commissioners and the governing bodies of the cities and towns within that county that comprise at least seventy percent (70%) of the incorporated population.

(d) "Director" means the Director of the Office of State Lands and Investments.

(e) "Eligible Applicant" means a county and its incorporated cities and towns, special districts and joint powers boards. The county must certify to the Board that the county board of commissioners and the councils of the cities and towns that comprise seventy (70%) of the incorporated population within that county have reached agreement on the project(s) for which the grants will be used.

(f) "Eligible Project Costs" means total project cost, less ineligible project costs.

(g) "Office" means the Office of State Lands and Investments.

(h) "Public Service Facility" means a facility owned by the applicant and available for use by the general public including: water and sewer projects, storm drainage projects, street and road projects, solid waste disposal projects, acquisition of emergency vehicles, public administration buildings, health care facilities, senior citizens centers, jail and detention facilities, facilities needed to provide services to the disabled, costs to purchase medical equipment that generates revenue sufficient to service a Joint Powers Act Loan, as determined by the Board, and similar facilities as authorized by the Board.

(i) "Major building and facility repair and replacement" means the repair or replacement of complete or major portions of building and facility systems at irregular intervals which is required to continue the use of the building or facility at its original capacity for its original intended use, including for compliance with the Americans with Disabilities Act, and including installing fire suppression systems and is typically accomplished by contractors due to the personnel demand to accomplish the work in a timely manner, the level of sophistication of the work or the need for warranted work;

(j) "Routine maintenance and repair" means activities necessary to keep a building or facility in safe and good working order so that it may be used at its original or designed capacity for its originally intended purposes, including janitorial, grounds keeping and maintenance tasks done on a routine basis and typically accomplished by ownership personnel with exceptions for any routine tasks accomplished by contractors such as elevator or other specialized equipment or building system maintenance.

Section 3. General Policy.

The Board shall award grants for projects under the provisions of this chapter based on certified county-wide consensus lists and funding availability for the benefit of the citizens of the state.

Section 4. Grant Eligibility.

(a) Applicants. Incorporated cities and towns, counties, special districts and joint powers boards shall be eligible to apply for grants under this chapter provided the applicant is an "eligible applicant" as defined in Section 2(e). If the applicant is a special district or joint powers board, it must be legally formed and approved and otherwise in compliance with statutory requirements of the Wyoming Department of Revenue prior to receiving a grant award under this chapter. An applicant must be in compliance with all applicable reporting requirements with the Wyoming Department of Audit prior to its application being considered by the Board.

(b) Ineligible Project Costs. The following project costs shall be ineligible for reimbursement from grant.

(i) Costs for any asset that is owned or maintained by a private property owner;

(ii) Costs for tap fees, sewer and water fees, and plant investment fees;

(iii) Engineering fees, including design, inspection and contract administration costs, over twenty percent (20%) of project cost;

(iv) All non-cash costs except land, labor, materials, equipment, and services provided by the applicant, and used for project purposes based on actual, appraised or market value;

(v) Costs for preparation or presentation of grant or loan applications for any source of funding;

(vi) Costs of tools and furnishings for capital projects, including but not limited to, capital equipment, hammers, furniture, drapes and blinds not integral to and necessary for the project;

(vii) Legal fees;

(viii) Costs related to issuance of bonds;

(ix) Costs for real property in excess of current fair market value and/or costs for an amount of real property in excess of that needed for project purposes;

(x) Costs to establish and form special districts or joint powers boards;

(xi) Costs incurred prior to grant award, except costs for architectural and engineering design or in emergency situations;

Section 5. Application and Consensus List Procedures.

(a) Applications, Consensus Lists and Timing. Applications from eligible applicants for consideration for project funding are initially submitted locally into the county consensus list process in the county where the project is situated. For projects involving more than one county, applications are initially submitted into the county consensus list process in each of the project-affected counties. In reviewing applications the board of county commissioners and the governing bodies of the cities and towns within that county that comprise at least seventy percent (70%) of the incorporated population shall certify to the Board that they have reached agreement on the projects for which the funds will be used. Certified county consensus lists and supporting documentation must be submitted to the Office at least thirty-five (35) calendar days prior to any regular or special meeting of the Board. Applicants must cure any deficiencies in their application(s) (incomplete application) no later than twenty-one (21) calendar days before any scheduled meeting of the Board. The certified consensus list that the board of county commissioners submits to the Office for Board action shall consist of the following:

(i) A joint resolution, on a form provided by the Office, certifying that the county commission and at least seventy percent (70%) of the incorporated population of the respective county have reached agreement on the project(s) to be funded under this chapter (priority list). The resolution shall list each project individually to be funded under this chapter. The resolution must also indicate the grant amount requested for each project and the percentage of the total project to be funded with a grant under this chapter. The resolution must not exceed the total amount allocated for the county.

(ii) The resolution shall include a list of other eligible project(s) that have been certified and can be substituted in the event that a project on the approved priority list project(s) cannot proceed (substitution list).

(1)  Changes to the priority list or substitution list must be submitted on a new joint resolution, on a form provided by the office and signed by all the representatives that signed the original resolution. This includes moving funding from a priority list project to a substitution list project. The prior approved project(s) must be listed on the priority list showing the awarded grant number, showing a decrease in the amount of grant funds requested for each project. The substitution list project (or new project) must include all of the information requested under Section 6(a)(i).

(iii) For each individual project, the applicant shall submit an "Application Cover Page" on a form provided by the Office.

(iv) For each individual project, the applicant shall submit a "Project Summary" form provided by the Office.

(b) Incomplete Applications. Incomplete applications shall not be presented to the Board for consideration.

Section 6. Board Consideration.

The Board shall consider each eligible county's consensus list, allow for comments from the owner of the project and from the Director. The Board will establish the maximum award for each eligible county for each project on each eligible county's consensus list.

Section 7. Grant Disbursement and Administration.

(a) Grant Disbursement. Each individual project is subject to the requirements of this section. Grant funds for eligible project costs shall be disbursed to the applicant only as needed to discharge obligations. Requests for disbursements shall be made on a form supplied by the Office and supported by adequate proof that such obligations have been incurred for project purposes and are due and owing.

(b) The minimum grant disbursement shall be One Thousand dollars ($1,000.00) unless it is the final disbursement of grant funds for the project.

(c) Fund Reversion.

(i) If the Director determines that the project is complete, but the full amount of the grant has not been expended, the Office shall notify the grantee of this determination. Thirty (30) days following the notification, the unused portion of the grant shall be reallocated to the countywide consensus process for that county.

Section 8. Audits and Inspections.

Each individual project is subject to the requirements of this section. The Board may, at its expense, conduct an audit of the records of the applicant and inspect the construction and operation of the project.

History

• Effective 2014-09-26

Chapter 33 Energy Impacted County Roads Program Grants

Wyo. Code R. 060.0003.33.09272011 Energy Impacted County Roads Program Grants

RULES AND REGULATIONS

STATE LOAN AND INVESTMENT BOARD

Chapter 33

Energy Impacted County Roads Program Grants

Section 1. Authority.

This chapter is adopted pursuant to W.S. 9-16-101 through W.S. 9-16- 103 and Session Laws of Wyoming 2011, Chapter 191.

Section 2. Definitions.

As used in this chapter:

(a) "Board" means the State Loan and Investment Board.

(b) "Director" means the Director of the Office of State Lands and Investments.

(c) "Office" means the Office of State Lands and Investments.

(d) "Eligible project costs" means total project cost, less ineligible project costs.

(e) "Energy development" means oil and gas development.

(f) "Energy impacted counties" means counties that the Board determines to be impacted by energy development in the Niobrara or similar formations. Counties included in this definition are: Campbell, Converse, Goshen, Hot Springs, Laramie, Natrona, Niobrara, Park, Platte and Washakie. In awarding grants, the Board shall consider (1) whether the county's total proposed energy impacted road project(s) exceed fifteen percent (15%) of the average total annual county expenditures for its road and bridge maintenance and construction expenditures for the preceding five (5) years; (2) whether the county has demonstrated that it has pursued alternative methods of funding including cost sharing from private sources; and (3) that the grant funds will not supplant existing funding levels from traditional sources.

(g) Energy impacted county road means a county dedicated and maintained road serving a site or sites, on which energy development has occurred, which requires construction, reconstruction, rehabilitation or expansion as a result of energy development as determined by the Board.

(h) Road includes:

(A) Bridges and culverts;

(B) Rights of way; and

(C) Purchase of land to complete a county road and bridge project.

Section 3. General Policy.

(a) The Board shall receive applications for program eligibility determination under the provisions of this chapter on an annual basis. After review of the applications, the Board shall as soon as practical notify the counties of its determination. Energy impacted counties shall remain eligible for grants under the program until the county no longer qualifies as determined by the Board.

(b) The Board shall award grants under the provisions of this chapter in such a manner and to such applicants as shall, in the judgment of the Board, inure to the greatest benefit of the citizens of the state and represent a prudent use of grant funds to address the impacts of energy development in the Niobrara and similar formations in the state.

Section 4. Maximum Grant Award Percentage.

No one county may be eligible to receive an amount in excess of forty percent (40%) of the total funds available at the beginning of the state's fiscal year, without unanimous approval of the Board.

Section 5. Grant Eligibility.

(a) Applicants. Energy impacted counties, as determined by the Board, shall be eligible to apply for grants under this chapter. Each application submitted to the Board under the program shall contain only one (1) proposed energy impacted county road project.

(b) Purposes. The Board may award grants for projects it deems necessary to mitigate the impacts of energy development. The Board may award grants to stockpile material for energy impacted county roads.

(c) Ineligible Project Costs. The following project costs shall be ineligible for reimbursement from grant funds and shall be ineligible to be counted toward the applicant's match:

(i) Costs to hire additional county employees.

(ii) Engineering fees, including design, inspection and contract administration costs, over twenty percent (20%) of project cost;

(iii) All non-cash costs except:

(A) Land, labor, materials, equipment, and services provided by the applicant, and used for project purposes, valued at reasonable, actual cost; and

(B) Land, labor, materials, equipment, and services provided to the applicant by others, at no cost to the applicant, used for project purposes and valued at reasonable, actual cost.

(iv) Costs for transportation, meals and lodging incurred anywhere away from the site of the project;

(v) Costs for preparation or presentation of grant or loan applications for any source of funding;

(vi) Costs incurred prior to grant award, except costs for architectural and engineering design or in emergency situations;

(vii) Costs for a contingency or extra work allowance in excess of 10% of estimated construction costs;

Section 6. Evaluation Criteria.

(a) Criteria. The Board shall evaluate applications utilizing one or more of the following criteria:

(i) The extent to which the applicant's total proposed energy impacted road projects exceed fifteen percent (15%) of the average total annual expenditures for road and bridge maintenance and construction expenditures for the preceding five (5) years.

(ii) The extent of funding committed to the project from all sources;

(iii) Whether the applicant has demonstrated that is has pursued alternative methods of funding including cost sharing from private sources;

(iv) Whether the applicant has funding for the project from other than state grants;

(v) Whether the project is appropriately sized in relation to the population to be served by the project;

(vi) The relative urgency of the project;

(vii) Whether the applicant is current on all its repayment obligations to the Board;

(viii) The extent to which the applicant is utilizing, or plans to utilize, available and qualified Wyoming based professional firms and contractors on the project;

(ix) The financial need of the applicant, as determined by the Board;

(x) The percentage of the applicant's population directly served by the project;

Section 7. Board Consideration.

The Board shall consider each application, allow for comments from the applicant and from the Director, and establish the maximum amount of the grant and the percent of eligible project costs that will be paid by the grant.

Section 8. Grant Disbursement and Administration.

(a) Grant Disbursement. Grant funds shall be disbursed to the applicant only as needed to discharge obligations incurred in accordance with the Board approved percentage split of eligible project costs. Requests for disbursements shall be made on a form supplied by the Office and supported by adequate proof that such obligations have been incurred for project purposes and are due and owing.

(b) The minimum grant disbursement shall be Five Hundred dollars ($500.00) unless it is the final disbursement of grant funds for the project.

(c) Fund Reversion.

(i) If the Director determines that the project has not been commenced within one (1) year from the date the grant is approved, the grant will automatically expire. Based upon information supplied by the grantee, the Director may grant an extension of time in which to commence the project.

(ii) If the Director determines that the project has not been completed within a reasonable time, the Director shall notify the grantee in writing at least thirty (30) days prior to presenting the matter for Board review. The Board, upon review of the project circumstances, may terminate or modify the grant award.

(iii) If the Director determines that the project is complete, but the full amount of the grant has not been expended, the Office shall notify the grantee of this determination. Thirty (30) days following the notification, the unused portion of the grant or loan shall revert to uncommitted status.

Section 9. Audits and Inspections.

The Board may, at its expense, conduct an audit of the records of the applicant and inspect the construction and operation of the project.

History

• Effective 2011-09-27

Chapter 35 Municipal Solid Waste Facilities Cease and Transfer Loan and Grant Program

Wyo. Code R. 060.0003.35.09062016 § 1 In General

(a) Authority: This chapter is adopted pursuant to W.S. 35-11-530.

(b) Applicability: The rules shall apply to any municipal solid waste facility operator.

(c) Objective: The objective of these rules and regulations is to provide grants and loans from the municipal solid waste facilities cease and transfer accounts for cease and transfer activities as provided in W.S. 35-11-528, 35-11-529 and 35-11-530.

(d) Definitions:

(i) "Board" means the State Loan and Investment Board.

(ii) "DEQ" means the Wyoming Department of Environmental Quality.

(iii) "Office" means the Office of State Lands and Investments.

(iv) Refer to Chapter 1, of the Wyoming Department of Environmental Quality, Solid Waste Rules and Regulations for definitions of the following: closure, facility, municipal solid waste, and operator.

History

• Effective 2016-09-06

Wyo. Code R. 060.0003.35.09062016 § 2 Program Eligibility

To be eligible for funding under the program, the applicant shall:

(a) Meet the eligibility criteria set forth in W.S. 35-11-528(d); and

(b) Be in compliance with all applicable reporting requirements with the Wyoming Department of Audit and Wyoming Department of Revenue prior to its application being considered by the Board.

History

• Effective 2016-09-06

Wyo. Code R. 060.0003.35.09062016 § 3 Project Costs

(a) Eligible project cost shall include total project cost for the activities identified in W.S. 35-11-528(b), less ineligible project cost.

(b) Ineligible project costs: The following project costs shall be ineligible for reimbursement from grant funds and shall be ineligible to be counted toward the applicant's match:

(i) Salaries or benefits for employees of the municipal solid waste facility;

(ii) Long-term monitoring at a closed municipal solid waste facility or a closed cell of a still operating municipal solid waste facility;

(iii) Operational costs of municipal solid waste facilities;

(iv) Costs for any asset that is owned by a private property owner;

(v) Costs for tap fees, sewer and water fees, and plant investment fees;

(vi) Engineering fees, including design, inspection and contract administration costs, over ten percent (10%) of projects costs, unless otherwise approved by DEQ;

(vii) All non-cash costs except:

(A) Land, labor, materials, equipment, and services provided by the applicant, and used for project purposes, valued at reasonable, actual cost;

(B) Land, labor, materials, equipment, and services provided to the applicant by others, at no cost to the applicant, used for project purposes and valued at reasonable, actual cost; and

(C) Land which is integral to the Municipal Solid Waste Facilities Cease and Transfer process but not costs for land in excess of current fair market value and/or costs for an amount of land in excess of that needed for project purposes. Land costs not defined in the application will be ineligible for reimbursement.

(viii) Costs for preparation or presentation of grant or loan applications for any source of funding;

(ix) Costs for transportation, meals and lodging incurred anywhere away from the site of the project;

(x) Costs of tools, supplies and furnishings for capital projects not included in DEQ-approved construction contract documents, including but not limited to, capital equipment, hammers, tanks, tools, furniture, drapes, blinds, file cabinets, file folders and survey stakes;

(xi) Legal fees;

(xii) Costs related to issuance of bonds;

(xiii) Costs for real property in excess of current fair market value and/or costs for an amount of real property in excess of that needed for project purposes;

(xiv) Costs to establish and form special districts or joint powers boards;

(xv) Costs incurred prior to grant or loan award, except costs for architectural and engineering design;

(xvi) Costs for a contingency or additional work allowance in excess of ten percent (10%) of estimated construction costs, unless otherwise approved by DEQ;

(xvii) Costs for change orders not approved by the Office and DEQ;

(xviii) Lump sum contracts unless approved by the Office and DEQ; and

(xvix) Costs for meals, transportation and incidental expenses in excess of federal per diem rates.

History

• Effective 2016-09-06

Wyo. Code R. 060.0003.35.09062016 § 4 Application Procedure

(a) Applications. Separate applications shall be prepared for each project. Applicants shall submit two (2) copies of their completed application to the Office. Applications shall be properly executed by the officers of the applicant.

(b) Timing of Board Consideration. Loan and/or grant applications must be received by the Director at least ninety (90) days prior to any scheduled meeting of the Board. Applicants must cure any defects in their applications no later than forty-five (45) calendar days before any scheduled meeting of the Board.

(c) Applications shall be reviewed by the DEQ and applicants will be notified of any deficiencies. When the DEQ has found an application to contain all required information and has completed its review, the DEQ shall provide a report to the Board. A copy of the report shall also be provided to the applicant. The report shall include the findings of the DEQ's review, recommendations for denial, approval or conditional approval of grants and/or loans, and a recommendation to the Board relating the proposed amount of a recommended grant and/or loan.

(d) Information Required for All Applications. The following information shall be provided in all applications:

(i) An application cover page on a form provided by the Office;

(ii) A project summary on a form provided by the Office;

(iii) The grant and/or loan amount requested and percentage of total project costs for which the grant is sought;

(iv) A full description of the proposed project, specifically including, but not limited to, a phased construction schedule, if applicable, and alternative project designs;

(v) A detailed project budget divided into at least six (6) month intervals delineating all costs of the proposed project and the method by which the project costs were estimated;

(vi) A licensed engineer's statement of the feasibility of the project;

(vii) The geographic area and population served directly and indirectly by the project and the percentage of the applicant's population directly served by the project;

(viii) A description of other project funding sources, committed or pending, the portion of the project cost expected to be funded from each source, including any future grant applications under this chapter, and copies of funding commitments from all project funding sources, including the applicant, to demonstrate commitment to the project;

(ix) If the applicant is a special district, a copy of the resolution that shows formation of the special district and certification from the Board of County Commissioners that the special district currently exists and is in good standing;

(x) If the applicant is a joint powers board, a copy of the certificate of organization filed with the Secretary of State, and a copy of an executed joint powers agreement approved by the Wyoming Attorney General's Office;

(xi) A standard resolution authorizing the filing of the application on a form provided by the Office;

(xii) A financial statement of the applicant, on a uniform "General Financial Information" form provided by the Office;

(xiii) If an applicant submits multiple applications under this chapter for consideration at one meeting, a priority ranking of the applications as established by the applicant;

(xiv) If the project is needed to meet federal or state health and safety requirements, documentation of the specific requirements and an explanation of how the project addresses the requirements;

(xv) For applications submitted by a special district, either standing alone or as a member of a joint powers board, the written review as required by W.S. 9-4-604(h);

(xvi) Other applicable information as requested by the Office; and

(xvii) Information demonstrating compliance with the eligibility criteria of Section 2 of this chapter.

History

• Effective 2016-09-06

Wyo. Code R. 060.0003.35.09062016 § 5 Grant and Loan Prioritization

Grants and/or loans shall be prioritized based on the criteria in W.S. 35-11-530(a)(iv).

History

• Effective 2016-09-06

Wyo. Code R. 060.0003.35.09062016 § 6 Loan Terms

(a) Interest rates for loans made under this chapter may be at zero percent, up to an annual interest rate equal to the average prime interest rate as determined by W.S. 35-11-528(e). In no event, shall the interest rate exceed an annual interest rate equal to the average prime interest rate as determined by the state treasurer. Interest rates established under this section shall be adjusted on January 1 of each year.

(b) Interest rates shall be established in recognition of the repayment abilities and needs of the applicant eligible for loans under the program.

(c) Loan amortization schedules, terms and conditions for each loan approved shall be based on the criteria in W.S. 35-11-528(e).

(d) The term of the loan shall not exceed thirty (30) years or the useful life of the project, whichever is less, and may be for a shorter term as determined by financial strength, repayment ability, security and other factors.

History

• Effective 2016-09-06

Wyo. Code R. 060.0003.35.09062016 § 7 Security

(a) The Board shall require such security as it deems advisable. Security for loans may include, but is not limited to, the pledge and assignment of designated special property assessments within a district, the pledge and assignment of user fees, the pledge and assignment of transfer station generated revenue, and/or a first lien on equipment and fixtures.

(b) Appraisals of offered security will be completed by staff appraisers from the Office.

(c) Every loan will be evidenced by a promissory note for the principal sum of the loan signed by the borrower(s).

(d) The loan agreement shall provide a legal right of access to the Board and its agents for the purposes of inspection, maintenance, inventory, retrieval of personal property and fixtures, and foreclosure proceedings. Such right shall be assignable to the purchaser at any foreclosure sale.

(e) All loan documents including, but not limited to, notes, mortgage deeds, and security instruments shall be executed in the form and manner acceptable to the Wyoming Attorney General's Office.

History

• Effective 2016-09-06

Wyo. Code R. 060.0003.35.09062016 § 8 State Loan and Investment Board Actions

(a) After DEQ approves a recommendation for an application, the loan and/or grant application package, containing all items described in Section 4 above, shall be forwarded to the Office for Board consideration at its next regularly scheduled meeting. This package shall include a report from DEQ stating its recommendation regarding the applicant's loan request. All items required in Sections 2-5 of these rules shall be addressed in the report.

(b) Upon approval by the Board, documents shall be prepared for execution of the agreements necessary for the loan and/or grant to be made to the applicant.

(c) Grant and/or loan funding shall be awarded in accordance with W.S. 35-11-528(d) and (h).

(d) Participation in the program shall not restrict funding for a municipal solid waste facility from any other program created or supported by the state, including, but not limited to, any other program under the authority of and administered by the Board.

History

• Effective 2016-09-06

Wyo. Code R. 060.0003.35.09062016 § 9 Disbursement of Loan Proceeds

Requests for disbursements shall be submitted on a form provided by the Office and include supporting invoices establishing the eligibility of costs submitted for disbursement. Loan proceeds will only be disbursed for eligible project costs as set forth in this chapter following review by the Office and DEQ.

History

• Effective 2016-09-06

Wyo. Code R. 060.0003.35.09062016 § 10 Audits and Inspections

The DEQ or Board may, at their expense, conduct an audit of the records of the applicant and inspect the construction and operation of the project.

History

• Effective 2016-09-06

Chapter 36 Aeronautics Loan Program

Wyo. Code R. 060.0003.36.12162013 Aeronautics Loan Program

RULES AND REGULATIONS STATE LOAN AND INVESTMENT BOARD

CHAPTER 36

Wyoming Aeronautics Loan Program

Section 1. Authority and Purpose.

These rules and regulations are adopted pursuant to W.S. 9-12-703(e) to administer the Wyoming Aeronautics Commission Loan Program.

Section 2. Definitions.

(a) "Administrator" means the Administrator of the Wyoming Department of Transportation (WYDOT) Aeronautics Division.

(b) "Commission" means the Wyoming Aeronautics Commission.

(c) "Division" means the WYDOT Aeronautics Division.

(d) "Board" means the State Loan and Investment Board.

(e) "Office" means the Office of State Lands and Investments.

(f) "Director" means the Director of the Office of State Lands and Investments.

(g) "Revenue-generating facilities" means facilities owned by the applicant that generate revenue from user fees or assessments paid by the beneficiaries of the facilities.

Section 3. General Policy.

The Board shall extend loans under the provisions of these rules and regulations in such a manner and to such applicants as shall, in the Board's judgment, create the greatest benefit for the state's citizens and represent a prudent use of loan funds.

Section 4. Loan Eligibility.

(a) Applicants. Wyoming counties, cities and towns, and joint powers boards specifically involved in providing governing authority over airports and empowered pursuant to W.S. 10-5-101 through W.S. 10-5-204 shall be eligible to apply for loans under these rules and regulations. Joint powers boards applying for loans shall be legally formed and approved before applying.

(b) Purposes. Loans may be extended to public-use airports for construction, development, and improvement of airport facilities generating user fees, except that no loans shall be extended for fuel system or fuel tank removal or for asbestos removal.

(c) Ineligible Project Costs. The following project costs shall be ineligible for reimbursement:

(i) Costs for any asset that is owned by a private property owner;

(ii) Costs for tap fees, sewer and water fees, and plant investment fees;

(iii) All non-cash costs except land which is integral to the treatment process and if allowable under federal law but not costs for land in excess of current fair market value and/or costs for an amount of land in excess of that needed for project purposes;

(iv) Costs for preparation or presentation of grant or loan applications for any source of funding;

(v) Costs for transportation, meals and lodging incurred anywhere away from the site of the project;

(vi) Costs of tools, supplies and furnishings for capital projects not included in the approved construction contract documents, including but not limited to, capital equipment, hammers, tools, furniture, drapes, blinds, file cabinets, file folders and survey stakes;

(vii) Legal fees, except as pre-approved by the Office and Division;

(viii) Costs related to the issuance of bonds;

(ix) Costs of elections;

(x) Costs to establish and form special districts or joint powers boards;

(xi) Costs incurred prior to loan award, except costs incurred for architectural and engineering design, surveying, state environmental review process (SERP) requirements, site investigations (such as geotech) or in emergency circumstances;

(xii) Costs for change orders not approved by the Office and Division;

(xiii) Lump sum contracts unless approved by the Office and Division;

(xiv) Costs for meals and incidental expenses in excess of federal per diem rates;

Section 5. Application Procedure.

(a) Applications. Separate applications shall be prepared for each project. Applicants shall submit 3 copies of their completed application to the Division.

(b) Timing. The Division shall receive properly executed loan applications for loans under this chapter at least 15 working days before the next regular Aeronautics Commission meeting.

(c) Information Required. A properly executed loan application shall be submitted. The Division shall provide the applicant with the application forms. The following items shall be provided in the application package:

(i) A full description of the proposed project, including a licensed engineer's statement of feasibility for the project, if applicable.

(ii) The loan amount requested and the proposed source of repayment.

(iii) A description of other project funding sources committed and the anticipated portion of the project cost to be funded from each source, including any future loan applications under this chapter. A copy of the funding commitment from other participants shall be provided if requested by the Commission.

(iv) Most recent audit of financial statements. If applicant does not have audited financial statements, a current balance sheet and income statement must be provided.

(v) If requested by the Commission, a copy of the joint powers agreement approved by the Attorney General and a copy of the certificate of organization filed with the Secretary of State.

(vi) A list of sources for repayment of this loan, including amounts to be used for this purpose and, if applicable, letters of commitment from prospective lessees to assist in establishing the estimated utilization factor and in calculating repayment capability.

(vii) Other applicable information the Commission deems reasonable, prudent, and necessary.

(d) Preliminary Review. Within 10 working days of receiving an application for a loan, the Division shall notify the applicant, in writing, if the application lacks any item required in preceding subsection (c) of this section. The applicant shall have 10 working days to submit the required information.

(e) Incomplete Applications. Incomplete applications shall not be presented to the Commission for consideration.

Section 6. Evaluation.

(a) Criteria. The Division shall evaluate the applications, and the Administrator shall formulate a recommendation to the Commission using the following criteria:

(i) Whether the user fees or assessments generated by the project will be sufficient to justify the loan as a reasonable and prudent investment of state funds,

(ii) Whether the proposed project is eligible for the Aeronautics Commission Loan Program,

(iii) Whether the proposed project is in compliance with the current Division accepted Airport Layout Plan and the overall development of the airport,

(iv) Whether the applicant is meeting any and all current and past repayment obligations to the Commission, and

(v) The proposed project's merit in relation to the overall state system planning and its usefulness in achieving state goals.

(b) Interagency consultation. The Administrator may request pertinent state agencies to assist in reviewing applications and providing comments to the Division for Commission consideration.

Section 7. Commission Consideration.

The Commission shall consider each loan application, allow for comments from the applicant and the Administrator, recommend the loan amount and comment on the appropriateness and nature of the type of security offered for the loan. The Commission shall then recommend approval or disapproval of the loan request to the Board.

Section 8. Terms of Repayment.

The terms of repayment for loans made pursuant to these rules and regulations shall not exceed 20 years unless explicitly allowed by W.S. 9-12-703 (b). Terms of repayment shall also adhere to the conditions set forth in the specific loan documents. After the initial payment, which shall be prorated, all yearly payments shall be due on the same date each year.

Section 9. Loan Interest Rate.

The interest rate for loans under this chapter shall be five (5) percent per annum or as otherwise established by W.S. 9-12-703(d).

Section 10. Security Interest.

(a) The Board may require a first-position security interest in the revenue- generating facility and the user fees or assessments. The Board and Commission also reserve the right to withhold the applicant's yearly state grant funding and apply those funds to the unpaid loan balance if the applicant defaults on the loan.

(b) During the life of the loan, the applicant shall:

(i) Maintain adequate insurance on the facility,

(ii) Pay all applicable taxes and assessments when due,

(iii) Maintain the facility in good condition, and

(iv) Adhere to and enforce the sponsor's assurances according to the certificate of state airport loan.

(c) If at any time the applicant is found in noncompliance with the above requirements, they will be given thirty (30) days to cure the deficiencies. If after thirty (30) days the deficiencies are not cured the Board may call the loan.

Section 11. Default

In the event of a default, the Office will consult with the Commission on the appropriate way to collect the debt in compliance with state and federal laws.

Section 12. State Loan and Investment Board Actions.

(a) After the Commission recommends an application, the loan application package, containing all items described in Section 5 (c) above, shall be forwarded to the Office for a review of the applicant's credit worthiness. The package shall include a certification from the Commission stating its recommendation of the applicant's loan request. All items contained in Sections 6 through 8 of these rules shall be recorded and noted in the certification.

(b) If the applicant is found to be credit worthy, the Board will consider the application at its next regularly scheduled meeting.

(c) Upon approval of the Board, the Office shall execute the necessary loan documents. The Board shall perfect this loan in the county where the asset is located.

Section 13. Disbursement of Loan Proceeds.

Loan proceeds shall be disbursed in minimum draws of $1,000 in accordance with a schedule that has been agreed upon and stipulated in the loan agreement. Requests for disbursements shall be submitted on a form provided by the Director and include supporting invoices establishing the eligibility of costs submitted for disbursements. Loan proceeds will only be disbursed for eligible project costs as set forth in this Chapter and within approved guidelines following review by the Office and the Commission.

Section 14. Audits and Inspections.

The Commission or Board may, at its expense, audit the records of the applicant and inspect the construction and operation of the project at any time during the term of the loan.

History

• Effective 2013-12-16

Chapter 37 Student Dormitory Capital Construction Loans

Wyo. Code R. 060.0003.37.09252023 § 1 Authority

This Chapter is adopted pursuant to Wyoming Statute (W.S.) 21-18-319. Pursuant to 2023 Wyo. Sess. Laws Chapter 135, § 4(a)(ii), the Board shall not authorize, approve, structure, guarantee or finance a student dormitory capital construction loan on and after April 1, 2023.

History

• Effective 2023-09-25

Wyo. Code R. 060.0003.37.09252023 § 2 Definitions

In addition to the definitions in Chapter 1, as used in this Chapter:

(a) "Capital renewal" is the planned replacement of building subsystems such as roofs, electrical systems, HVAC systems and plumbing systems that have reached the end of their useful life.

(b) "Community college" means Casper College District, Central Wyoming College District, Eastern Wyoming College District, Laramie County Community College District, Northern Wyoming Community College District, Northwest College District or Western Wyoming Community College District.

(c) "Financial review" means audited financial statements.

History

• Effective 2023-09-25

Wyo. Code R. 060.0003.37.09252023 § 3 General Policy

Loans shall be made in such a manner and to such community colleges as shall, in the judgement of the Board, represent a wise investment of state funds.

History

• Effective 2023-09-25

Wyo. Code R. 060.0003.37.09252023 § 4 Eligible Applicants

(a) To be an eligible applicant, community colleges must be able to demonstrate:

(i) A commitment to adequately maintain the project for the term of the loan;

(A) A commitment to adequately maintain the project shall be

demonstrated by:

(I) A resolution, adopted by the governing body of the community college, describing its commitment to maintain the project for at least the term of the loan and identifying a funding source for maintenance, and

(II) A maintenance plan.

(ii) All costs for the construction of the dormitory will be funded at the time of receipt of the loan.

(b) Applicants must be compliant with all applicable reporting requirements of the Community College Commission, State Budget Office, and Department of Audit prior to the application being considered by the Board.

History

• Effective 2023-09-25

Wyo. Code R. 060.0003.37.09252023 § 5 Eligible Purposes

(a) Applications for loan shall be made only for the following purposes:

(i) Construct new student dormitories;

(ii) Renovate or upgrade buildings or existing student dormitories; and

(iii) Capital renewal.

(b) Applications for loan may include amounts for the costs associated with the purchase of land, buildings, facilities and rights of way necessary to complete the dormitory project.

History

• Effective 2023-09-25

Wyo. Code R. 060.0003.37.09252023 § 6 Application Procedure

(a) Applications.

(i) Each applicant shall submit a written loan application, on the form furnished by the Office. At a minimum, the application shall include:

(A) A signed resolution stating the amount and term of the loan being requested, name of project, repayment source(s), and agreeing to maintain the project for the life of the loan;

(B) A detailed project summary which includes a breakdown of total project costs, a project timeline and repayment source(s);

(C) Commitment letters from all funding sources, if applicable;

(D) An engineer's Feasibility Statement; and

(E) A formal maintenance plan documenting how the applicant will adequately maintain the project for the life of the loan.

(ii) Incomplete applications shall not be submitted to the Board for

consideration.

(iii) Any false or misleading statements made by the applicant in an application shall be grounds for summary rejection of the application.

(iv) Timing. Loan applications must be received by the Office at least ninety

(90) calendar days prior to any regularly scheduled meeting of the Board.

(b) Consideration.

(i) The Office shall conduct a preliminary review of all applications received. If the Office identifies issues with the application which would result in a negative recommendation to the Board, the Office shall notify the applicant within thirty (30) days of receiving the application of the issues and the applicant shall have the opportunity to correct the application or withdraw the application. Applicants must cure any defects in their application no later than forty-five (45) calendar days before any regularly scheduled meeting of the Board.

(ii) All applications shall be reviewed by the Attorney General to certify the legality of the transaction and to determine if an election is required by law.

(iii) When determining whether to make a loan, the Board shall consider the

following:

(A) The need for the project; and

(I) Need may be demonstrated by: (1.) Occupancy rate;

(2.) Student enrollment compared to available dormitory

space;

(3.) The number of students on a community college's

dormitory waiting list; and/or

(4.) Any other relevant information demonstrating the

need for the project.

(B) The community college's ability to repay the loan.

(I) Ability to repay may be demonstrated by:

(1.) Other efforts to fund the dormitory projects; (2.) The community college's budget; and

(3.) Any other relevant information demonstrating

financial need.

(c) Funding Prioritization.

(i) First priority shall be granted to community colleges with a significant

demonstrated need to increase student dormitory capacity on campus. When determining whether a project qualifies for first priority funding, the Board may consider:

(A) The number of dormitory rooms available compared to number of enrolled students and how that ratio compares to other community colleges in the state;

(B) Student enrollment trends over the past five (5) school years;

(C) Age of current dormitories;

(D) Other affordable available rental space in the community; and

(E) Any other relevant information that would help the Board determine a community college's need to increase student dormitory capacity on campus.

History

• Effective 2023-09-25

Wyo. Code R. 060.0003.37.09252023 § 7 Loan Terms

(a) Interest rate. The interest rate for loans under this Chapter shall be pursuant to Chapter 14 of the rules as established by the Board and a one-half of one percent (0.5%) origination fee shall be collected on the amount approved.

(b) Length. The term of each loan shall be set by the Board with due regard given to repayment ability, the useful life of the project, and the security offered, but in no event shall the term be less than five (5) years or exceed twenty-five (25) years.

(c) Repayment. Payments shall be made in accordance with the agreed upon terms within the executed loan documents.

History

• Effective 2023-09-25

Wyo. Code R. 060.0003.37.09252023 § 8 Security

(a) Every loan shall be evidenced by a promissory note for the principal sum of the

loan.

(b) Every loan shall have adequate security in the form of:

(i) Pledge of revenues from the student dormitory for which the loan was

granted;

(ii) Pledge of other revenue available to a community college; and/or

(iii) Any other security deemed adequate to secure repayment of the loan.

(c) If an appraisal for the purchase of land is required, the applicant shall be responsible for ensuring one is completed prior to submitting a loan application.

(i) Office staff shall review and approve the methodology used for valuation

of the project and security and the overall market value prior to loan closing.

History

• Effective 2023-09-25

Wyo. Code R. 060.0003.37.09252023 § 9 Disbursements

(a) Requests for disbursements shall be submitted on a form provided by the Director and include supporting invoices establishing the eligibility of costs submitted for disbursement. Loan proceeds will only be disbursed for eligible project costs as set forth in this Chapter and within established guidelines following review by the Office.

(b) The Office shall inspect and verify any reports and records required by the Board and submitted by the borrower before proceeds shall be released for payment.

History

• Effective 2023-09-25

Wyo. Code R. 060.0003.37.09252023 § 10 Ineligible Project Costs

(a) The following costs are ineligible:

(i) Costs related to any other infrastructure needs of the community college that are not directly associated with the development and construction, renovation, or capital renewal of student dormitories;

(ii) Costs for preparation or presentation of loan application;

(iii) Costs incurred prior to loan award, except costs for architectural and engineering design, surveying and environmental review, if required;

(iv) Engineering fees, including design, inspection and contract administration costs, over fifteen percent (15%) of the project cost;

(v) Markups by engineers/architects of sub-contractor and other outside

charges;

(vi) Costs for transportation, meals, lodging and incidentals incurred offsite from the project or that exceeds the current federal per diem reimbursement rate;

(vii) Costs associated with the borrower's own employees and equipment;

(viii) Costs for real property in excess of current fair market value and costs for an amount of real property in excess of that needed for project purposes;

(ix) Costs related to issuance of bonds;

(x) Legal fees;

(xi) Costs for sidewalks that are owned or maintained by a private property

owner; and

(xii) Costs for a contingency or extra work allowance in excess of ten percent (10%) of estimated construction costs.

History

• Effective 2023-09-25

Wyo. Code R. 060.0003.37.09252023 § 11 Refinancing

(a) If a borrower anticipates that it will be unable to make a required loan payment, the Board may refinance the loans, provided that:

(i) The borrower's inability to make payment is due to causes completely beyond its control and without the fault or negligence of the borrower;

(ii) The Board determines that refinancing is necessary for the better protection of the permanent mineral trust fund; and

(iii) The term of the refinanced loan does not exceed twenty-five (25) years from the date of refinancing.

(b) If a borrower becomes delinquent on its required loan payment, the Board may refinance the loan, provided that:

(i) The Board determines that refinancing is necessary for the better protection of the permanent mineral trust fund; and

(ii) The term of the refinanced loan does not exceed twenty-five (25) years from the date of refinancing.

(c) Interest rate. The interest rate for refinanced loans under this Chapter shall be pursuant to Chapter 14 of the rules as established by the Board.

(d) If the Board approves the refinancing of a loan, the borrower shall pay a refinancing fee pursuant to W.S. 21-18-319(b)(x) prior to the execution of the loan amendment.

History

• Effective 2023-09-25

Wyo. Code R. 060.0003.37.09252023 § 12 Reporting Requirements

(a) Annually, by April 30th, the borrower shall provide to the Office a report on the progress of the project.

(b) When the loan is paid in full, the borrower shall provide a comprehensive report to the Office that, at a minimum, includes:

(i) A financial review; and

(ii) A list of accomplishments as a result of the loan.

History

• Effective 2023-09-25

Wyo. Code R. 060.0003.37.09252023 § 13 Audits and Inspections

(a) On an annual basis, records of the borrower shall be, at a minimum, compiled by an independent accounting firm. The borrower shall provide the Office a Compilation, Review or Audited Financial Statement.

(b) The Board may, at its expense, conduct an independent audit of the borrower's records and inspect the construction and operation of the project.

History

• Effective 2023-09-25

Chapter 38 Capital Construction Loans

Wyo. Code R. 060.0003.38.09252023 § 1 Authority

This Chapter is adopted pursuant to Wyoming Statute (W.S.) 16-1-111.

History

• Effective 2023-09-25

Wyo. Code R. 060.0003.38.09252023 § 2 Definitions

In addition to the definitions in Chapter 1, as used in this Chapter:

(a) "Airport Board" means an airport board or joint powers board specifically involved in the construction, development, and improvement of airport facilities generating user fees.

(b) "Airport Project" means the construction, development, and improvement of airport facilities generating user fees, but shall not include fuel system or fuel tank removal or for asbestos removal.

(c) "Capital construction" means new construction, expansion, renovation, or replacement of an existing facility or facilities.

(d) "City" means any incorporated municipality having a population of four thousand (4,000) or more which has been declared a city or which has taken the necessary steps to be and has been proclaimed a city.

(e) "Commission" means the Wyoming Aeronautic Commission.

(f) "Division" means the Wyoming Department of Transportation Aeronautics Division.

(g) "Infrastructure project" means a capital construction project which may lawfully be undertaken within the powers of the political subdivision.

(h) "Irrigation District" means an irrigation district under W.S. 41-7-201.

(i) "Political subdivision" means Wyoming cities, towns, counties, special districts, school districts, and community college districts.

(j) "Special Districts" means special districts specifically involved in providing facilities or functions enumerated in W.S 16-1-104(c).

(k) "Street and road projects" means the construction, maintenance or improvement of a public street, road or alley within a city, town, or county.

(l) "Town" means any incorporated municipality, not a city.

(m) "Water Conservancy Districts" means a district created under the Water Conservancy Act, W.S. 41-3-701 through -779.

History

• Effective 2023-09-25

Wyo. Code R. 060.0003.38.09252023 § 3 General Policy

(a) Loans shall be made in such a manner and to such parties as shall, in the judgment of the Board, represent a prudent investment of state funds.

(b) The capital construction loan program is not intended to benefit investors or developers.

History

• Effective 2023-09-25

Wyo. Code R. 060.0003.38.09252023 § 4 Eligible Applicants

(a) Political subdivisions are eligible for loans for infrastructure projects. In order to qualify for a loan, the political subdivision must be able to demonstrate the following:

(i) A commitment to adequately maintain the project for the duration of the loan; and

(ii) All project costs will be funded at the time of receipt of the loan.

(b) Wyoming cities, towns, and counties are eligible for loans for street and road projects. In order to qualify for a loan, the city, town, or county must be able to demonstrate the following:

(i) A commitment to adequately maintain the project for the duration of the loan;

(ii) All project costs will be funded at the time of receipt of the loan;

(iii) All related infrastructure, including water and sewer is or will be in place at the time of receipt of the loan; and

(iv) No outstanding loans exist under this Chapter for a street and road project.

(c) Wyoming Irrigation Districts and Water Conservancy Districts are eligible for loans for replacement or major maintenance projects of storage, diversion, transmission, and distribution systems. In order to qualify for a loan, the district must be able to demonstrate the following:

(i) The entity was legally formed and approved prior to submitting an application;

(ii) The applicant has applied to all other eligible grant or loan programs and has fully applied any awards or loans from those programs to the project;

(iii) A commitment to adequately maintain the project for the duration of the loan; and

(iv) All project costs will be funded at the time of receipt of the loan.

(d) Airport Boards that have been legally formed and approved are eligible for loans for Airport Projects.

(e) Ownership of Project.

(i) For applicants qualifying under Subsections (a), (b) and (d) of this Section, the applicant must own the project in its entirety.

(ii) For applicants qualifying under Subsection (c) of this Section, the applicant must either own the project in its entirety or hold a valid lease for all parts of the project that:

(A) Permits the applicant to perform the proposed work; and

(B) Is for an indefinite term or a term covering the useful life of the project.

(f) Applicants must be compliant with all applicable reporting requirements of the Wyoming Department of Audit and Wyoming Department of Revenue prior to the application being considered by the Board.

History

• Effective 2023-09-25

Wyo. Code R. 060.0003.38.09252023 § 5 Eligible Purposes

Loans may be made for Airport Projects, Infrastructure Projects, and Street and Road Projects and may include costs associated with the following purposes:

(a) Purchase of land, buildings, and improvements associated with capital construction;

(b) Renovation or upgrade of existing infrastructure; and/or

(c) Planning and construction.

History

• Effective 2023-09-25

Wyo. Code R. 060.0003.38.09252023 § 6 Application Procedure

(a) Applications.

(i) Each applicant shall submit a written loan application to the Office on the form furnished by the Office. Applicants seeking a loan for an Airport Project shall also submit a copy of the application to the Division. At a minimum, the application shall include:

(A) A signed resolution stating the amount of the loan being requested, name of project and repayment source(s), and agreeing to maintain the project for the life of the loan;

(B) A detailed project summary which includes a breakdown of total project costs, a project timeline and proposed repayment source(s);

(C) Commitment letters from all funding sources, if applicable;

(D) Engineer's Feasibility Statement;

(E) A formal maintenance plan documenting how the borrower will adequately maintain the project for the life of the loan;

(F) If the applicant is a special district, documentation of the formation of the special district and certification by the Board of County Commissioners that the special district currently exits; and

(G) If the applicant is a Joint Powers Board, a copy of the joint powers agreement approved by the Attorney General and a copy of the certification of organization filed with the Secretary of State.

(ii) Incomplete applications shall not be submitted to the Board for consideration.

(iii) Any false or misleading statements made by the applicant in an application shall be grounds for summary rejection of the application.

(iv) Timing.

(A) All loan applications must be received by the Office at least ninety (90) calendar days prior to any regularly scheduled meeting of the Board. Applicants must cure any defects in their application no later than forty-five (45) calendar days before any regularly scheduled meeting of the Board.

(B) Applications for Airport Projects loans must also be received by the Division at least fifteen (15) working days before a regular Commission meeting prior to the Board meeting to consider the Loan.

(b) Consideration.

(i) The Office shall conduct a preliminary review of all applications received. If the Office identifies issues with the application which would result in a negative recommendation to the Board, the Office shall notify the applicant within 30 days of receiving the application of the issue and the applicant shall have the opportunity to correct the application or withdraw the application. Applicants must cure any defects in their application no later than forty- five (45) calendar days before any regularly scheduled meeting of the Board. The Office may summarily reject any applications with uncured defects or that are otherwise clearly ineligible.

(ii) All applications shall be reviewed by the Attorney General to certify the legality of the transaction and to determine if an election is required by law.

(iii) The following will be considered when reviewing applications:

(A) The project's contribution to health, safety and welfare of the citizens in the political subdivision as demonstrated by:

(I) The extent the project will protect the citizens from exposure to hazards that may result in adverse consequences;

(II) Achieving compliance with state and federal mandates; or

(III) Any other relevant information demonstrating the project's contribution to the health, safety and welfare of the citizens.

(B) The applicant's need for the project and financial need of the applicant in relation to the project; and

(C) The applicant's ability to repay the loan.

(iv) For applications for Airport Project loans, the Division shall evaluate the applications for airport related projects and the Administrator shall formulate a recommendation the Commission using the following criteria:

(A) Whether the proposed project is in compliance with the current Division accepted Airport Layout Plan and the overall development of the airport;

(B) Whether the applicant is meeting any and all current and past repayment obligations to the Commission; and

(C) The proposed project's merit in relation to the overall state system planning and its usefulness in achieving state goals.

(v) For applications for Airport Project loans, the Commission shall:

(A) Consider each airport loan project application and allow for comments from the applicant and the Administrator of the Division; and

(B) Make a written recommendation to the Board whether to award a loan and documenting any concerns. If the recommendation is to award a loan, the Commission shall recommend the loan amount and comment on the appropriateness and nature of the type of security offered for the loan.

History

• Effective 2023-09-25

Wyo. Code R. 060.0003.38.09252023 § 7 Loan Terms

(a) Interest Rate. The interest rate for loans under this Chapter shall be pursuant to Chapter 14 of these rules.

(b) Origination Fee. The Office shall collect an origination fee in the amount of one-half of one percent (0.5%) of the approved loan amount.

(c) Length. The term for each loan shall be set by the Board with due regard given to repayment ability and the security offered, but in no event shall the term be less than five (5) years or exceed twenty-five (25) years.

(d) Repayment. Payments shall be made in accordance with the agreed upon terms within the executed loan documents.

History

• Effective 2023-09-25

Wyo. Code R. 060.0003.38.09252023 § 8 Security

(a) Every loan shall be evidenced by a promissory note or loan agreement for the principal sum of the loan.

(b) Loans shall be adequately secured to the Board's satisfaction. Loans may be secured with:

(i) Pledge of the revenues from the project for which the loan was granted;

(ii) Pledge of other available revenues to the borrower;

(iii) A mortgage covering all or part of the project, or a pledge of the lease of the project;

(iv) An assignment of lease revenues; and/or

(v) Any other security deemed adequate to secure repayment of the loan.

(c) If an appraisal is required, the applicant shall be responsible for ensuring one is completed prior to submitting a loan application. Office staff shall review and approve the methodology used for valuation and the overall market value prior to loan closing.

(d) The Board may require a first-position security interest in the revenue-generating facility and the user fees or assessments.

History

• Effective 2023-09-25

Wyo. Code R. 060.0003.38.09252023 § 9 Disbursements

(a) Requests for disbursements shall be on a form provided by the Office and include supporting invoices establishing the eligibility of costs submitted for disbursement. Loan proceeds shall only be disbursed for eligible project costs as set forth in this Chapter and within established guidelines following review by the Office.

(b) The Office shall inspect and verify any reports and records required by the Board and submitted by the borrower before proceeds shall be released.

History

• Effective 2023-09-25

Wyo. Code R. 060.0003.38.09252023 § 10 Ineligible Project Costs

The following costs are not eligible for funding under this program:

(a) Costs for preparation or presentation of loan application;

(b) Costs incurred prior to loan award, except costs incurred for architectural and engineering design, surveying and environmental review, if required;

(c) Engineering fees, including design, inspection and contract administration costs, in excess of fifteen percent (15%) of project cost;

(d) Markups by engineers/architects of sub-contractor and other outside charges;

(e) Costs for transportation, meals, lodging and incidentals incurred offsite from the project or that exceed the current federal per diem reimbursement rate;

(f) Costs associated with the borrower's own employees and equipment;

(g) Costs for real property in excess of current fair market value and/or costs for an amount of real property in excess of that needed for project purposes;

(h) Costs related to issuance of bonds;

(i) Costs for furnishings;

(j) Legal fees;

(k) Costs for sidewalks that are owned or maintained by a private property owner; and

(l) Costs for contingency or extra work allowance in excess of 10% of estimated construction costs.

History

• Effective 2023-09-25

Wyo. Code R. 060.0003.38.09252023 § 11 Refinancing

(a) If a borrower anticipates that it will be unable to make a required loan payment, the Board may refinance the loan, provided that:

(i) The borrower's inability to make payment is due to causes completely beyond its control and without the fault or negligence of the borrower;

(ii) The Board determines that refinancing is necessary for the better protection of the permanent mineral trust fund; and

(iii) The term of the refinanced loan does not exceed twenty-five (25) years from the date of refinancing.

(b) If a borrower becomes delinquent on its required loan payment, the Board may refinance the loan, provided that:

(i) The Board determines that refinancing is necessary for the better protection of the permanent mineral trust fund; and

(ii) The term of the refinanced loan does not exceed twenty-five (25) years from the date of refinancing.

(c) Interest rate. The interest rate for refinanced loans under this Chapter shall be pursuant to Chapter 14 of these rules.

(d) If the Board approves the refinancing of a loan, the borrower shall pay a refinancing fee prior to the execution of the loan amendment.

History

• Effective 2023-09-25

Wyo. Code R. 060.0003.38.09252023 § 12 Audits and Inspections

(a) On an annual basis, records of the borrower shall be, at a minimum, compiled by an independent accounting firm. The borrower shall provide the Office a Compilation, Review or Audited Financial Statement.

(b) The Board may, at its expense, conduct an independent audit of the borrower's records and inspect the construction and operation of the project.

History

• Effective 2023-09-25

Chapter 40 Health and Human Services Capital Construction ARPA Grants

Wyo. Code R. 060.0003.40.12082022 § 1 Authority

This Chapter is adopted pursuant to 2022 Wyo. Sess. Laws Ch. 50, §§ 2, FN 16; 3(d).

History

• Effective 2022-12-08

Wyo. Code R. 060.0003.40.12082022 § 2 Definitions

In addition to the definitions in Chapter 1, as used in this Chapter:

(a) "ARPA" means the federal American Rescue Plan Act, Pub. L. 117-2.

(b) "Business days" means Monday through Friday, except for federal or state holidays.

(c) "Community Mental Health Center Regional Crisis Stabilization Facility" means a human services provider that currently provides community-based, short-term residential treatment units for immediate care to individuals experiencing a mental health or substance use disorder crisis.

(d) "COVID-19" means as defined in W.S. § 1-1-141(a)(ii).

(e) "Entity Funds" means funding provided directly by an applicant and includes an applicant's operating, reserve, or investment funds, loans, and direct donations received by the applicant. "Entity Funds" does not include federal or state grant funding.

(f) "Final Rule" means the Treasury's regulations governing the Coronavirus State and Local Fiscal Recovery Funds, 87 Fed. Reg. 4338-4454 (Jan. 27, 2022) (codified at 31 C.F.R. pt. 35).

(g) "Fund" means the eighty-five million dollars ($85,000,000.00) appropriated to the Board for "HHS Capital Construction" by 2022 Wyo. Sess. Laws Ch. 50, § 2 from the State and Local Fiscal Recovery Fund. The Fund is divided into two categories:

(i) "Broad-Eligibility Funds" means the sixty-three million dollars ($63,000,000.00) from the Fund available for any qualifying project; and

(ii) "Narrow-Eligibility Funds" means the twenty-two million dollars ($22,000,000.00) from the Fund available only to certain applicants specified in § 4(d) of this Chapter.

(h) "Incurred." A cost has been "incurred" when the recipient has incurred an obligation with respect to such cost.

(i) "Qualifying Health and Human Services Infrastructure and Capital Construction Investment" or "Qualifying Project" means an eligible rural telehealth pilot project or a capital construction project that:

(i) Improves:

(A) A health care facility as defined W.S. § 35-2-901; or

(B) A facility operated by a Qualifying Human Services Provider;

(ii) Is eligible for funding with State and Local Fiscal Recovery Funds under 42 U.S.C. § 802(c)(1)(A) and the Final Rule as a proportional response to the public health emergency to address an identified harm caused or exacerbated by COVID-19; and

(iii) Provides a public benefit that substantially outweighs any private benefit.

(j) "Qualifying Human Services Provider" means an entity providing human services programs as defined in W.S. § 35-1-613 licensed by, regulated by, or receiving funding from the Wyoming Department of Health or the Wyoming Department of Family Services.

(k) "Rural Health Clinic" means a clinic that is located in a rural area designated as a shortage area, is not a rehabilitation agency or a facility primarily for the care and treatment of mental diseases, and meets all other requirements of 42 C.F.R. §§ 405 and 491.

History

• Effective 2022-12-08

Wyo. Code R. 060.0003.40.12082022 § 3 General Policy

The Board shall award grants from the fund under the provisions of this Chapter in accordance with ARPA and 2022 Wyo. Sess. Laws Ch. 50 and in such a manner and to such applicants as shall, in the judgment of the Board, inure to the greatest benefit of the citizens of the state and represent a prudent use of the Fund.

History

• Effective 2022-12-08

Wyo. Code R. 060.0003.40.12082022 § 4 Award of Funds

(a) The Board may award grants from the Fund.

(b) Grants awarded from this Chapter may only be used to cover costs:

(i) Incurred during the period beginning on March 3, 2021, and ending on December 31, 2024;

(ii) Incurred as a part of a Qualifying Project; and

(iii) Meet all applicable requirements contained in ARPA and the Final Rule.

(c) Funding limitations.

(i) The maximum grant amount for a single project shall be ten million dollars ($10,000,000.00).

(ii) All grant funding is conditioned on a match of funds in a one-to-one (1:1) ratio from any other source of funding, unless this condition is modified by the Board pursuant to Section 9 of this Chapter.

(d) Funding allocations.

(i) Awards from the Fund shall be allocated in accordance with this paragraph.

(A) Broad-Eligibility Funds shall be available for grants to any applicant eligible under § 5 of this Chapter.

(B) From the Narrow-Eligibility Funds, seven million dollars ($7,000,000.00) shall be available for grants to Community Mental Health Center Regional Stabilization Facilities and women's substance use disorder facilities for any qualifying project.

(C) From the Narrow-Eligibility Funds, thirteen million dollars ($13,000,000.00) shall be available for grants to Rural Health Clinics for any qualifying project.

(D) From the Narrow-Eligibility Funds, two million dollars ($2,000,000.00) shall be available for grants for eligible rural telehealth pilot projects.

(ii) Unless otherwise specified in the Board's award, the Office shall draw amounts for any awarded grant first from any Narrow-Eligibility Funds for which the project is eligible. If the project is not eligible for Narrow-Eligibility Funds or no Narrow-Eligibility Funds applicable to the project remain, the Office shall then draw from Broad-Eligibility Funds.

History

• Effective 2022-12-08

Wyo. Code R. 060.0003.40.12082022 § 5 Eligible Applicants

(a) To be an eligible entity for a grant under this Chapter:

(i) The applicant must be legally formed and approved prior to submitting an application; and

(ii) The applicant must be in compliance with all applicable reporting requirements with the Wyoming Department of Audit, Wyoming Department of Revenue, Wyoming Department of Family Services, and Wyoming Department of Health prior to its application being considered by the Board.

(b) To be eligible for Narrow-Eligibility Funds, the qualifying project must also meet the purposes of the applicable narrow funds, as set forth in § 4(d) of this Chapter.

History

• Effective 2022-12-08

Wyo. Code R. 060.0003.40.12082022 § 6 ARPA Eligibility Justification

All projects under this Chapter must be eligible for funding under ARPA and the Final Rule. Eligible projects must be a direct and proportional response to COVID-19 or its negative economic impacts.

(a) Each application shall contain a justification explaining how the project is eligible under ARPA for funding.

(i) Applications for capital projects shall include the capital project justification described in Subsection (b) of this Section.

(ii) Application for rural telehealth projects shall include the rural telehealth project justification described in Subsection (c) of this Section.

(b) Justification for Capital Projects. For each proposed capital project, the application shall contain a written justification, which shall include:

(i) A detailed description of the identifiable harm caused or exacerbated by COVID-19 that the project is intended to address. This description shall include:

(A) A detailed description of the specific harm to be addressed by the requested funding;

(B) A detailed description of how the specified harm was exacerbated or caused by COVID-19; and

(C) Supporting quantitative information on the extent and type of the specified harm, such as the number of individuals or entities affected, and establishing a link between the harm and COVID-19.

(ii) An independent assessment demonstrating why a capital project is appropriate to address the specified harm, which shall include:

(A) An explanation of why the applicant's existing capital equipment, property, or facilities are inadequate to addressing the specified harm;

(B) A description of how the proposed project will address the identified harm;

(C) An explanation of why policy changes or additional funding to pertinent programs or services would be insufficient without the corresponding capital projects; and

(D) A description of why other possible non-capital interventions would be inefficient, costly, or otherwise not reasonably designed to remedy the specified harm without additional capital expenditure.

(iii) An objective comparison of the proposed capital project against alternative capital expenditures and demonstrate why their proposed capital project is superior to alternative capital expenditures that could be made. Applicants shall assess the proposed capital project against at least two alternative types or sizes of capital expenditures that are potentially effective and reasonably feasible. Where relevant, applicants shall compare the proposed project against the alternative of improving existing capital assets already owned or leasing other capital assets. Applicants shall use quantitative data when available. For each identified alternative, applicants shall provide:

(A) A comparison of the effectiveness of the capital projects in addressing the specified harm. This comparison shall consider the effectiveness of the capital projects in addressing the specified harm over the useful life of the capital asset and shall consider metrics such as the number of impacted or disproportionately impacted individuals or entities served, when such individuals or entities are estimated to be served, the relative time horizons of the project, and consideration of any uncertainties or risks involved with the capital project; and

(B) A comparison of the expected total cost of the capital projects. This comparison shall consider the expected total cost of the capital project required to construct, purchase, install, or improve the capital assets intended to address the specified harm. Applicants shall include pre-development costs in their analysis and shall provide an estimate of ongoing operational costs.

(c) Justification for rural telehealth projects. For rural telehealth projects, the applicant shall provide:

(i) A description of the harm necessitating the project, which shall include:

(A) A detailed description of the specific harm to be addressed by the requested funding;

(B) A detailed description of how the harm was exacerbated or caused by COVID-19; and

(C) Supporting quantitative information on the extent and type of the harm, such as the number of individuals or entities affected.

(ii) A description of the telehealth project, which shall include:

(A) A detailed description of the project specifications, including the details of any infrastructure to be improved or constructed, and the type and quantity of any equipment, software, or other goods or services that will be purchased with grant funds;

(B) A detailed description of how the project addresses the specified harm or need; and

(C) An explanation of how the project is a proportional response to the specified harm, including a comparison of the proposed project to other possible ways of addressing the specified harm.

History

• Effective 2022-12-08

Wyo. Code R. 060.0003.40.12082022 § 7 Application Procedure

(a) Applications. Separate applications shall be prepared for each individual project. Applicants shall submit applications in a manner prescribed by the Office. All applications shall be properly executed by the officers of the applicant.

(b) Timing. The Board may establish one (1) or more open application periods by providing notice to the public on the Office's website. The Board may modify an open application period at any time before the end of the application period. After the close of each application period, the Board shall designate a regular or special meeting to consider applications received during the application period and post notice of that meeting on the Office's website. Applications received by the Office after the close of the application period will not be considered at the designated Board meeting, but may be resubmitted during any later application period designated by the Board.

(c) Required Information. The following information shall be provided by all applicants:

(i) A complete application on a form provided by the Office;

(ii) A standard resolution authorizing the filing of the application on a form provided by the Office;

(iii) A certification statement attesting that the funds being requested will be used in accordance with all requirements and conditions of the ARPA, 2022 Wyo. Sess. Laws Ch. 50, and this Chapter. If it is determined that the funds were not used as intended, the recipient shall refund disbursed funds to the Office within fifteen (15) Business Day following notification;

(iv) The amount of any CARES grants awarded by the State and any ARPA State and Local Fiscal Recovery Funds the applicant has received and a brief summary of how the funds were spent, or plan to be spent;

(v) A detailed project budget delineating all costs of the proposed project and the method by which the project costs were estimated;

(vi) Expected draw down of funds broken into at least six (6) month intervals;

(vii) For capital projects, a licensed architect's or engineer's statement that the project is feasible and can reasonably be completed by December 31, 2026;

(viii) Copies of funding commitments from all project funding sources, including the applicant, demonstrating sufficient match funding;

(ix) Copies of audited financial statements for the past three (3) years;

(x) Copies of approved budgets for fiscal years ending in 2021, 2022 and 2023, if available;

(xi) If the applicant is a special district, a copy of the resolution that shows formation of the special district and certification from the applicable Board of County Commissioners that the special district currently exists;

(xii) If the applicant is a joint powers board, a copy of the certificate of organization filed with the Secretary of State, and a copy of an executed joint powers agreement approved by the Attorney General;

(d) The ARPA Eligibility Justification required by Section 6 of this Chapter;

(e) Additional Information Required: If the funding request is for the purchase of a building or land, a market analysis must be completed and submitted with the application to determine the fair-market value. Office staff shall review and approve the methodology used for valuation and the overall market value prior to grant funds being disbursed for reimbursement of related costs.

(f) Preliminary Review. The Office shall notify the applicant, in writing, if the application lacks any of the items required in sub-Sections (c) and (d) of this section. The applicant shall have five (5) Business Day to submit the required information.

(g) False or Misleading Statements.

(i) Any false or misleading statements made by the applicant in an application shall be grounds for summary rejection of the application.

(ii) Any requests made for reimbursement that are determined to be false or misleading and/or ultimately ineligible after the funds have been disbursed shall be paid back to the Office within fifteen (15) Business Days following notification.

(h) Incomplete Applications. Applications that are missing one (1) or more of the information items requested and/or fail to meet established deadlines, shall not be presented to the Board for consideration.

(i) Summary Rejection. The Office shall summarily reject all applications that are clearly ineligible under this Chapter or ARPA.

History

• Effective 2022-12-08

Wyo. Code R. 060.0003.40.12082022 § 8 Ineligible Project Expenses

(a) Ineligible Project Costs. The following is a non-exclusive list of project costs ineligible for reimbursement from the Funds:

(i) Revenue replacement;

(ii) Debt service and replenishment of rainy day funds;

(iii) Satisfaction of settlements and judgments;

(iv) Any use that disregards or violates federal conflict of interest requirements, or other federal, state, and local laws and regulations;

(v) Damages covered by insurance;

(vi) Payroll or benefits expenses for employees whose work duties are not substantially dedicated to mitigating or responding to the COVID-19 public health emergency;

(vii) Expenses that have been or will be reimbursed under any federal program, such as the reimbursement by the federal government pursuant to ARPA or repayment of federal loans;

(viii) Costs incurred prior to March 3, 2021;

(ix) Any expense that is ineligible under ARPA or the Final Rule;

(x) Reimbursement to donors for donated items or services;

(xi) Workforce bonuses other than hazard pay or overtime;

(xii) Severance pay;

(xiii) Legal settlements;

(xiv) Prepayment on contracts;

(xv) Costs for tap fees, sewer and water fees, and plant investment fees;

(xvi) All non-cash costs;

(xvii) Costs for preparation or presentation of applications;

(xviii) Costs for transportation, meals and lodging and incidentals incurred anywhere away from the site of the project or that exceed the current federal per diem reimbursement rate;

(xix) Costs related to issuance of bonds;

(xx) Costs for real property in excess of current fair market value and/or costs for an amount of real property in excess of that needed for project purposes;

(xxi) Costs to establish and form special districts or joint powers boards;

(xxii) Costs for a contingency or extra work allowance in excess of ten percent (10%) of estimated construction costs;

(xxiii) Costs of elections;

(xxiv) Costs associated with the applicant's equipment;

(xxv) Legal costs unless pre-approved by OSLI;

(xxvi) Markups by engineers/architects of sub-consultant and other outside charges; and

(xxvii) Retirement of debt.

History

• Effective 2022-12-08

Wyo. Code R. 060.0003.40.12082022 § 9 Match Requirements

(a) Applicants shall provide fifty percent (50%) match funding for the total project cost, unless modified by the Board pursuant to subsection (b) this Section. Match funding may come from any source that may legally serve as a match for the Board's funds.

(i) Applicants must have all match funding committed and verified by the Office before the Office may disburse any grant funds.

(ii) The Board may conditionally award grants to applicants that do not have all match funding committed by the date of the grant award. Applicants shall raise the required match funding prior to receiving any disbursements. If applicants fail to raise the required match funding in accordance with the schedule provided in this Paragraph, the grant shall be considered forfeited and all grant funding shall revert to the Office.

(A) No later than six (6) months from the date of award, the grantee shall have thirty-three percent (33%) of the required match funding committed to the project;

(B) No later than one (1) year from the date of award, the grantee shall have sixty-six percent (66%) of the required match funding committed to the project;

(C) No later than December 31, 2023, the grantee shall have the full amount of the required grant funding committed to the project.

(b) The Board may modify the match requirement upon a determination of need in accordance with this subsection.

(i) If the applicant is a taxing authority:

(A) The Board shall not reduce the match requirement for a county unless the county imposes at least eleven (11) or ninety-one and sixty-seven one-hundredths percent (91.67%) of the available mills authorized by Art. XV § 5 of the Wyoming Constitution, or unless the county is imposing the optional sales tax authorized under W.S. 39-15-204(a)(i) or (iii);

(B) The Board shall not reduce the match requirement for a municipality unless the municipality imposes at least seven (7) or eighty-seven and five-tenths percent (87.5%) of the available mills authorized by Art. XV § 6 of the Wyoming Constitution; and

(C) The Board shall not reduce the match requirement for a special district which imposes less than eighty percent (80%) of any authorized mill levy.

(ii) If the Board determines that an applicant has an increased need for financial assistance, the Board may reduce the match requirement by 5% for each of the below criteria the applicant meets:

(A) The applicant is a county, city, or town whose population is below the state median for its entity type, as determined by the last federal census;

(B) The applicant is a special district or nongovernmental organization whose primary service area includes less than 1,300 people, as determined by the last federal census;

(C) The Average Median Household Income of the geographic area served by the applicant is below the State AMHI, using data from the most recently released American Community Survey 5-year estimates. If no data directly corresponding to the applicant is available, the county AMHI will be used as the default;

(D) The applicant's primary service area has a proportion of the population living below the federal poverty level greater than the state median, as determined by the last federal census;

(E) The applicant's unemployment rate or the unemployment rate of the applicant's primary service area is equal to or greater than the state median, as determined by the last census;

(F) The applicant has not received any federal relief funding of any kind;

(G) The applicant has not received any federal relief funding that could have legally been used for capital construction.

(c) Applicants may provide in-kind contributions to the project as all or part of the required match.

(i) Any proposed in-kind match must be reasonable and easily valued at fair market value.

(ii) An applicant submitting an in-kind match shall provide an appraisal or other reasonable demonstration of the fair market value of the match.

(iii) The Board shall determine the value of the proposed in-kind match.

(iv) If the Board determines that an applicant's proposed in-kind match is not sufficient to meet the required match, the Board may conditionally grant the application in accordance with § 9(a)(ii) of this Chapter.

History

• Effective 2022-12-08

Wyo. Code R. 060.0003.40.12082022 § 10 Evaluation of Applications

(a) Criteria. The Board shall evaluate applications utilizing the following criteria:

(i) Whether the project is an appropriate use of the Fund and in compliance with all applicable state and federal laws, rules, and regulations;

(ii) The applicant's financial ability to assist in funding the project and to support the project in the future to ensure the continued operation and investment into the project for the foreseeable future;

(iii) The source, amount and status of match funding;

(iv) The applicant's historical investments into capital assets;

(v) The current available healthcare facilities in the relevant community;

(vi) The impact of COVID-19 on the populations served by the applicant;

(vii) The amount of grant funding received by the applicant related to the COVID-19 pandemic and how those funds were spent; and

(viii) The applicant's timeline to expend all grant funds.

(b) To assist the Board in prioritizing among eligible projects, the Office shall compute a score for each project in accordance with this subsection. The Office shall calculate a score for each project based on:

(i) The applicant's financial ability to assist in funding the project and to support the project in the future to ensure the continued operation and investment into the project for the foreseeable future;

(A) Applicants demonstrating stable financial viability for at least ten (10) years shall receive three (3) points under this Paragraph;

(B) Applicants demonstrating stable financial viability for at least five (5) years shall receive two (2) points under this Paragraph;

(C) Applicants demonstrating stable financial viability for at least three (3) years shall receive one (1) point under this Paragraph;

(D) Applicants demonstrating financial viability for less than three (3) years or failing to demonstrate stable financial viability at this time shall receive zero (0) points under this Paragraph.

(ii) The amount of match funding;

(A) Applicants providing a full fifty percent (50%) match shall receive two (2) points under this Paragraph;

(B) Applicants requesting a reduction in the required match shall receive zero (0) points under this Paragraph;

(iii) The source of match funding;

(A) Applicants funding the full amount of the required match from Entity Funds shall receive (3) points under this Paragraph

(B) Applicants funding less than one hundred percent (100%) but more than 50% of the required match amount from Entity Funds shall receive (2) points under this Paragraph;

(C) Applicants funding between twenty-five percent (25%) and fifty percent (50%) of the required match amount from Entity Funds shall receive one (1) point under this Paragraph;

(D) Applicants funding less than twenty-five percent (25%) of the required match amount from Entity Funds shall receive zero (0) points under this Paragraph;

(iv) The status of match funding;

(A) Applicants with the full required match amount committed at the time of scoring shall receive two (2) points under this Paragraph;

(B) Applicants that have not yet fully funded the required match shall receive zero (0) points under this Paragraph;

(v) The applicant's historical investments into capital assets;

(A) Applicants investing in capital assets in the last three (3) years shall receive three (3) points under this Paragraph;

(B) Applicants investing in capital assets in the last ten (10) years shall receive two (2) points under this Paragraph;

(C) Applicants investing in capital assets in the last twenty (20) years shall receive one (1) point under this Paragraph;

(D) Applicants that have not made capital investments in the last twenty (20) years shall receive zero (0) points under this Paragraph;

(vi) The availability of similar facilities in the relevant community;

(A) Applicants in communities with no reasonably similar facilities within fifty (50) miles shall receive three (3) points under this Paragraph;

(B) Applicants in communities with no reasonably similar facilities within thirty-five (35) miles shall receive two (2) points under this Paragraph;

(C) Applicants in communities with no reasonably similar facilities within fifteen (15) miles shall receive one (1) point under this Paragraph;

(D) Applicants in communities with reasonably similar facilities shall receive zero (0) points under this Paragraph;

(vii) Whether the applicant provides primary care services, integrated care practices, and/or services on the mental health continuum

(A) Applicants serving primary care needs for both physical and mental health through an integrated care model shall receive three (3) points under this Paragraph;

(B) Applicants with more than fifty percent (50%) of their practice providing primary care services for physical health or services on the mental health continuum shall receive two (2) points under this Paragraph;

(C) Applicants with less than fifty percent (50%) but more than twenty-five percent (25%) of their practice providing primary care services for physical health or services on the mental health continuum shall receive one (1) point under this Paragraph;

(D) Applicants with twenty-five percent (25%) or less of their practice providing primary care services for physical health or services on the mental health continuum shall receive zero (0) points under this Paragraph.

(viii) The relative need of the community;

(A) Applicants serving communities located in qualifying census tracts shall receive two (2) points under this Paragraph;

(B) Applicants that do not serve communities located in qualifying census tracts shall receive zero (0) points under this Paragraph.

(ix) The availability of other relief funding;

(A) Applicants that did not receive any CARES funding or direct ARPA funding shall receive three (3) points under this Paragraph;

(B) Applicants receiving other relief funding shall receive zero (0) points under this Paragraph.

History

• Effective 2022-12-08

Wyo. Code R. 060.0003.40.12082022 § 11 Board Consideration

The Board shall consider each application, allow for comments from the applicant and from the Director, and establish the maximum amount of the grant, if any. The Board may limit comment time at the discretion of the Chair.

History

• Effective 2022-12-08

Wyo. Code R. 060.0003.40.12082022 § 12 Fund Disbursement and Administration

(a) Fund Disbursement. Funds shall be disbursed to the applicant only as needed to discharge obligations incurred in accordance with the Board approved project costs. Requests for disbursements shall be made on a form supplied by the Office and supported by adequate proof that such obligations have been incurred for project purposes and are due and owing. From the time the project commences to the completion of the project, requests shall be submitted for reimbursement no more frequently than once a month and not less than quarterly.

(b) Fund Reversion. Any grant funds that have not been obligated by October 1, 2024 shall be deemed rejected by the recipient and shall revert to the Office. All requests for reimbursement for eligible expenses must be received by the Office no later than October 1, 2026. Any unused portions of the grants awarded pursuant to this Chapter shall revert to the US Department of the Treasury on December 31, 2026 whether or not the project is completed and all eligible expenses have been requested for reimbursement.

History

• Effective 2022-12-08

Wyo. Code R. 060.0003.40.12082022 § 13 Reporting Requirements

(a) Applicants shall comply with all federal and state reporting requirements.

History

• Effective 2022-12-08

Wyo. Code R. 060.0003.40.12082022 § 14 Audits and Inspections

(a) The Board may, at its expense, conduct an audit of the records of the applicant.

(b) The applicant shall allow the Federal and/or state government to conduct an audit of the records related to the expenditure of moneys from the Fund.

(c) The applicant shall comply with any applicable requirements of the Single Audit Act or other federal reporting and audit requirements. If seven hundred fifty thousand dollars ($750,000.00) or more is disbursed in any given year, an audit must be completed in accordance with 31 C.F.R. Part 200, Subpart F.

History

• Effective 2022-12-08

Chapter 41 Water and Sewer ARPA Grants

Wyo. Code R. 060.0003.41.12082022 § 1 Authority

This Chapter is adopted pursuant to 2022 Wyoming Session Laws Ch. 50, §§ 2, FN 18; 3(d).

History

• Effective 2022-12-08

Wyo. Code R. 060.0003.41.12082022 § 2 Definitions

In addition to the definitions in Chapter 1, as used in this Chapter:

(a) "ARPA" means the federal American Rescue Plan Act, Pub. L. 117-2.

(b) "Business Days" means Monday through Friday, except for federal or state holidays.

(c) "COVID-19" means as defined in W.S. § 1-1-141(a)(ii).

(d) "Eligible project" means a project authorized under 31 C.F.R. § 35.6(e)(1).

(e) "Final Rule" means the Treasury's regulations governing the Coronavirus State and Local Fiscal Recovery Funds, 87 Fed. Reg. 4338-4454 (Jan. 27, 2022) (codified at 31 C.F.R. pt. 35).

(f) "Fund" means the fifty million dollars ($50,000,000.00) appropriated to the Board for eligible water and sewer projects by 2022 Wyo. Sess. Laws Ch. 50, § 2 from the State and Local Fiscal Recovery Fund.

(g) "Incurred." A cost has been "incurred" when the recipient has incurred an obligation with respect to such cost.

(h) "Tribal Councils" means the Northern Arapaho Business Council and Eastern Shoshone Business Council on the Wind River Reservation. The term "Tribal Councils" does not include businesses, not-for-profit organizations, or any other entity owned or operated by the tribes or tribal members.

History

• Effective 2022-12-08

Wyo. Code R. 060.0003.41.12082022 § 3 General Policy

The Board may award grants under the provisions of this Chapter in accordance with applicable state and federal law and in such a manner and to such applicants as shall, in the judgment of the Board, inure to the greatest benefit of the citizens of the state and represent a prudent use of the Fund.

History

• Effective 2022-12-08

Wyo. Code R. 060.0003.41.12082022 § 4 Award of Funds

(a) The Board may award grants from the Fund.

(b) The Office shall only disburse awarded funds to reimburse applicants for eligible expenses from projects approved by the Board.

(c) The maximum grant for any single project shall be seven million, five hundred thousand dollars ($7,500,000.00).

(d) All grant awards shall be contingent upon a match of funds in a ratio of no more than eighty-five cents ($0.85) of grant funds to no less than fifteen cents ($0.15) from matching funds provided by the project sponsor.

(i) All match funds shall be committed prior to the Board approving a grant under this Chapter.

(ii) An applicant may provide match funds from any eligible source. Applicants shall be responsible for ensuring that their match funding may legally be used as a match for the purposes of this program.

(iii) Loans from the Board, including capital construction loans and state revolving fund loans, may only be used as match funding for the purposes of this Chapter if the loan has been previously awarded and there is an executed loan agreement.

History

• Effective 2022-12-08

Wyo. Code R. 060.0003.41.12082022 § 5 Eligible Applicants

(a) Eligible entities.

(i) Cities, towns, counties, and special districts providing water and sewer services shall be eligible to apply for grants under this Chapter.

(ii) The Tribal Councils shall be eligible to apply for grants under this Chapter on the same terms as the governmental entities identified in paragraph (i) of this subsection. Businesses owned by the Tribes or tribal members shall not be eligible for grants under this Chapter.

(b) To be eligible for a grant under this Chapter, an applicant must:

(i) Be a legally formed and approved entity prior to submitting an application;

(ii) Be an eligible applicant for water and sewer improvements under all applicable federal and state laws.

(iii) Be in compliance with all applicable reporting requirements with the Wyoming Department of Audit and Wyoming Department of Revenue prior to its application being considered by the Board; and

(iv) Own all aspects of the project, unless the project is authorized under 31 C.F.R. § 35.6(e)(1)(vii).

History

• Effective 2022-12-08

Wyo. Code R. 060.0003.41.12082022 § 6 Project Eligibility

All grants awarded under this Chapter must be eligible under 42 U.S.C. § 802(c)(1)(D) and 31 C.F.R. § 35.6(e)(1). Pursuant to 31 C.F.R. § 35.5(a), grants awarded from the fund shall only be used to cover costs incurred during the period beginning on March 3, 2021, and ending on December 31, 2024 for an eligible project.

History

• Effective 2022-12-08

Wyo. Code R. 060.0003.41.12082022 § 7 Application Procedure

(a) Applications. Separate applications shall be prepared for each individual project. Applicants shall submit applications in a manner prescribed by the Office. All applications shall be properly executed by the officers of the applicant.

(b) Timing. The Board may establish one (1) or more open application periods by providing notice to the public on the Office's website. The Board may modify an open application period at any time before the end of the application period. After the close of each application period, the Board shall designate a regular or special meeting to consider applications received during the application period and post notice of that meeting on the Office's website. Applications received by the Office after the close of the application period will not be considered at the designated Board meeting, but may be resubmitted during any later application period designated by the Board.

(c) Required Information. The following information shall be provided by all applicants:

(i) A complete application on a form provided by the Office;

(ii) A written justification explaining why the project is necessary. The justification under this paragraph shall provide:

(A) A detailed description of how the project is responsive to an identified need to achieve or maintain an adequate minimum level of service;

(B) An explanation of how the proposed capital expenditure will provide an adequate minimum level of service;

(C) An explanation of how the project is cost effective, which shall include a comparison of the proposed capital project against alternative capital expenditures and a demonstration of how the proposed capital expenditure is superior; and

(D) An explanation of how the project will be maintained over the useful life of the infrastructure.

(iii) A standard resolution authorizing the filing of the application on a form provided by the Office;

(iv) A certification statement attesting that the funds being requested will be used in accordance with all requirements and conditions of ARPA. If it is determined that the funds were not used as intended, they shall be paid back to the Office within fifteen (15) Business Day following notification;

(v) If the applicant is a special district, a copy of the resolution that shows formation of the special district and certification from the applicable Board of County Commissioners that the special district currently exists;

(vi) If the applicant is a joint powers board, a copy of the certificate of organization filed with the Secretary of State, and a copy of an executed joint powers agreement approved by the Attorney General;

(vii) The amount of any CARES grants awarded by the State and any ARPA State and Local Fiscal Recovery Funds the applicant has received and a brief summary of how the funds were spent, or plan to be spent; and

(viii) Other applicable information as requested by the Office.

(d) Additional Information Required. If the funding request is for the purchase of a building or land, a market analysis must be completed to determine the fair-market value. Office staff shall review and approve the methodology used for valuation and the overall market value prior to grant funds being disbursed for reimbursement of related costs.

(e) Preliminary Review. The Office shall notify the applicant, in writing, if the application lacks any of the items required in sub-Sections (c) and (d) of this section. The applicant shall have five (5) Business Days to submit the required information.

(f) False or Misleading Statements.

(i) Any false or misleading statements made by the applicant in an application shall be grounds for summary rejection of the application.

(ii) Any requests made for reimbursement that are determined to be false or misleading and/or ultimately ineligible after the funds have been disbursed shall be paid back to the Office within fifteen (15) Business Days following notification.

(g) Incomplete Applications. Applications that are missing one (1) or more of the information items requested and/or fail to meet established deadlines, shall not be presented to the Board for consideration.

(h) Summary Rejection. The Office shall summarily reject all applications that are clearly ineligible under this Chapter or ARPA.

History

• Effective 2022-12-08

Wyo. Code R. 060.0003.41.12082022 § 8 Ineligible Project Expenses

(a) Ineligible Project Costs. The following is a non-exclusive list of project costs ineligible for reimbursement from the Funds:

(i) Revenue replacement;

(ii) Debt service and replenishment of rainy day funds;

(iii) Satisfaction of settlements and judgments;

(iv) Any use that disregards or violates federal conflict of interest requirements, or other federal, state, and local laws and regulations;

(v) Damages covered by insurance;

(vi) Costs incurred prior to March 3, 2021;

(vii) Payroll or benefit expenses;

(viii) Expenses that have been or will be reimbursed under any federal program, such as the reimbursement by the federal government pursuant to ARPA;

(ix) Any expense that is ineligible under ARPA, the final rule, or the guidance;

(x) Reimbursement to donors for donated items or services;

(xi) Workforce bonuses;

(xii) Severance pay;

(xiii) Prepayment on contracts;

(xiv) Costs for tap fees, sewer and water fees, and plant investment fees;

(xv) All non-cash costs;

(xvi) Costs for preparation or presentation of applications;

(xvii) Costs for transportation, meals and lodging and incidentals incurred anywhere away from the site of the project or that exceed the current federal per diem reimbursement rate;

(xviii) Costs related to issuance of bonds;

(xix) Costs for real property in excess of current fair market value and/or costs for an amount of real property in excess of that needed for project purposes;

(xx) Costs to establish and form special districts or joint powers boards;

(xxi) Costs for a contingency or extra work allowance in excess of 10% of estimated construction costs;

(xxii) Costs of elections;

(xxiii) Retirement of debt;

(xxiv) Legal fees unless preapproved by OSLI;

(xxv) Costs associated with the applicant's equipment; and

(xxvi) Markups by engineers/architects of sub-consultant and other outside charges.

History

• Effective 2022-12-08

Wyo. Code R. 060.0003.41.12082022 § 9 Evaluation Criteria

The Board shall evaluate applications utilizing the criteria established in this section.

(a) In determining whether to award a grant, the Board shall consider:

(i) Whether the project is an eligible expenditure under applicable State and Federal law;

(ii) Whether the project will inure to the benefit of the citizens of the state; and

(iii) Whether the project represents a prudent use of the fund.

(b) To assist the Board in prioritizing among eligible projects, the Office shall compute a score for each project in accordance with this subsection. The Office shall calculate a score for each project based on:

(i) The status of the proposed project;

(A) Applications submitted for additional funding for a project currently in the construction phase shall receive three (3) points.

(B) Applications submitted for funding for a project that has been designed and is ready to bid shall receive two (2) points.

(C) Applications seeking funding for a project that has not yet been designed shall receive one (1) point.

(ii) The amount of match funding being provided by the applicant;

(A) Applicants providing fifty percent (50%) or more in match funding shall receive five (5) points.

(B) Applicants providing thirty-six percent (36%) to forty-nine (49%) in match funding shall receive four (4) points.

(C) Applicants providing twenty-six percent (26%) to thirty-five percent (35%) in match funding shall receive three (3) points.

(D) Applicants providing sixteen percent (16%) to twenty-five percent (25%) in match funding shall receive two (2) points.

(E) Applicants providing the minimum fifteen percent (15%) in match funding shall receive zero (0) points.

(iii) The source of match funding;

(A) If the applicant's entire match is a loan or from the applicant's enterprise account, the applicant shall receive three (3) points;

(B) If the applicant's match is partially funded by a loan or from the applicant's enterprise account, the applicant shall receive two (2) points;

(C) If the applicant's match is entirely grant funded, the applicant shall receive zero (0) points.

(iv) The applicant's submissions to the Office's State Revolving Fund Intended Use Plan (IUP);

(A) If the proposed project is on the current 2022 IUP, applicant shall receive one (1) point.

(B) If the proposed project is not on the current 2022 IUP, the applicant shall receive zero (0) points.

(v) The population served by the proposed project;

(A) Applicants whose population is five hundred (500) or less shall receive three (3) points.

(B) Applicants whose population is between five hundred one (501) and three thousand, three hundred (3,300) shall receive two (2) points.

(C) Applicants whose population is between three thousand, three hundred one (3,301) and ten thousand (10,000) shall receive one (1) point.

(D) Applicants whose population is greater than ten thousand (>10,000) shall receive zero (0) points.

(vi) The severity of the impact of the COVID-19 public health emergency;

(A) The percentage of revenue loss attributed to the public health emergency, as determined by comparing the applicant's revenues for the 2020-2021 fiscal year to the previous three years.

(I) Applicants with a ten percent (10%) to nineteen percent (19%) decrease in revenue shall receive one (1) point.

(II) Applicants with a twenty percent (20%) to twenty-nine percent (29%) decrease in revenue shall receive two (2) points.

(III) Applicants with a thirty percent (30%) to thirty-nine percent (39%) decrease in revenue shall receive three (3) points.

(IV) Applicants with a forty percent (40%) to forty-nine percent (49%) decrease in revenue shall receive four (4) points.

(V) Applicants with a fifty percent (50%) or more decrease in revenue shall receive five (5) points.

(B) For water and sewer applicants applying for funding to supplement funding for projects planned or ongoing projects that have already incurred higher project costs or project bidding environments due to the public health emergency;

(I) Applicants with a twenty percent (20%) to thirty-five percent (35%) increase in project costs shall receive one (1) point.

(II) Applicants with a thirty-six percent (36%) to fifty percent (50%) increase in project costs shall receive two (2) points.

(III) Applicants with a fifty-one percent (51%) to sixty-five percent (65%) increase in project costs shall receive three (3) points.

(IV) Applicants with a sixty-six percent (66%) or higher increase in project costs shall receive four (4) points.

(vii) The average median household income (AMHI) in the area to be served by the proposed project compared to the state's AMHI:

(A) Applicants whose AMHI is less than sixty percent (60%) shall receive five (5) points.

(B) Applicants whose AMHI is sixty percent (60%) or greater, but less than seventy percent (70%) shall receive four (4) points.

(C) Applicants whose AMHI is seventy percent (70%) or greater, but less than eighty percent (80%) shall receive three (3) points.

(D) Applicants whose AMHI is eighty percent (80%) or greater, but less than ninety percent (90%) shall receive two (2) points.

(E) Applicants whose AMHI is ninety percent (90%) or greater, but less than one hundred ten percent (110%) shall receive one (1) point.

(viii) Whether the proposed project eliminates noncompliance with EPA or DEQ regulations pertaining to the applicant's current systems;

(A) If the proposed project shall eliminate existing noncompliance, applicant shall receive three (3) points.

(B) If the proposed project will prevent noncompliance that is not currently existing, but is imminent or may be reasonably anticipated, the applicant shall receive two (2) points.

(C) If the proposed project will not eliminate violations, applicant shall receive zero (0) points.

(ix) Whether the proposed project achieves the regionalization of two (2) or more systems;

(A) If the proposed project does achieve regionalization, applicant shall receive one (1) point.

(B) If the proposed project does not achieve regionalization, applicant shall receive zero (0) points.

(x) Whether the applicant has a plan for completing the project if, for any reason, the awarded funds are not expended by the deadline for expending ARPA funds.

(A) Applicants who have a plan shall receive one (1) point.

(B) Applicants who do not have a plan shall receive zero (0) points.

History

• Effective 2022-12-08

Wyo. Code R. 060.0003.41.12082022 § 10 Board Consideration

(a) The Board shall consider each application, allow for comments from the applicant and from the Director, and establish the maximum amount of the grant, if any. The Board may limit comment time at the discretion of the Chair.

History

• Effective 2022-12-08

Wyo. Code R. 060.0003.41.12082022 § 11 Fund Disbursement and Administration

(a) Fund Disbursement. Funds shall be disbursed to the applicant only as needed to discharge obligations incurred in accordance with the Board approved project costs. Requests for disbursements shall be made on a form supplied by the Office and supported by adequate proof that such obligations have been incurred for project purposes and are due and owing. From the time the project commences to the completion of the project, requests shall be submitted for reimbursement no more frequently than once a month and not less than quarterly.

(b) Fund Reversion. Any grant funds that have not been obligated by October 1, 2024 shall be deemed rejected by the recipient and shall revert to the Office. All requests for reimbursement for eligible expenses must be received by the Office no later than October 1, 2026. Any unused portions of the grants awarded pursuant to this Chapter shall revert to the US Department of the Treasury on December 31, 2026 whether or not the project is completed and all eligible expenses have been requested for reimbursement.

History

• Effective 2022-12-08

Wyo. Code R. 060.0003.41.12082022 § 12 Reporting Requirements

(a) Applicants shall comply with all federal and state reporting requirements.

History

• Effective 2022-12-08

Wyo. Code R. 060.0003.41.12082022 § 13 Audits and Inspections

(a) The Board may, at its expense, conduct an audit of the records of the applicant.

(b) The applicant shall allow the Federal and/or state government to conduct an audit of the records related to the expenditure of moneys from the Fund.

(c) The applicant shall comply with the Single Audit Act. If seven hundred fifty thousand dollars ($750,000.00) or more is disbursed in any given year, an audit must be completed in accordance with 31 C.F.R. Part 200, Subpart F.

History

• Effective 2022-12-08

Chapter 42 Local Government Project ARPA Grants

Wyo. Code R. 060.0003.42.12092022 § 1 Authority

This Chapter is adopted pursuant to 2022 Wyo. Sess. Laws Chapter 50, § 2 footnote 17; § 3(d).

History

• Effective 2022-12-09

Wyo. Code R. 060.0003.42.12092022 § 2 Definitions

In addition to the definitions in Chapter 1, as used in this Chapter:

(a) "ARPA" means the federal American Rescue Plan Pub. L. 117-2.

(b) "Business Days" means Monday through Friday, except for federal or state holidays.

(c) "Capital Project" means any project that includes the alteration, construction, demolition, enlargement, improvement, maintenance, reconstruction, remodel, renovation, or repair of any new or existing infrastructure, except that "Capital Project" shall not include Water Projects.

(d) "COVID-19" means as defined in W.S. § 1-1-141(a)(ii).

(e) "Final Rule" means the Treasury's regulations governing the Coronavirus State and Local Fiscal Recovery Funds, 87 Fed. Reg. 4338-4454 (Jan. 27, 2022) (codified at 31 C.F.R. pt. 35).

(f) "Fund" means fifty million dollars ($50,000,000.00) appropriated to the Board for Local Government Support Projects by 2022 Wyo. Sess. Laws Ch. 50, § 2 footnote 17 from the State and Local Fiscal Recovery Fund.

(g) "Incurred." A cost has been "incurred" when the recipient has incurred an obligation with respect to such cost.

(h) "Non-Capital Project" means a project that is not a Capital Project or a Water Project.

(i) "Tribal Councils" means the Northern Arapaho Business Council and Eastern Shoshone Business Council on the Wind River Reservation. The term "Tribal Councils" does not include businesses, not-for-profit organizations, or any other entity owned or operated by the Tribes or tribal members.

(j) "Water Project" means any water or wastewater project eligible for ARPA funding under 31 C.F.R. § 35.6(e)(1).

History

• Effective 2022-12-09

Wyo. Code R. 060.0003.42.12092022 § 3 General Policy

The Board shall award grants under the provisions of this Chapter in accordance with ARPA and 2022 Wyo. Sess. Laws Chapter 50 and in such a manner and to such applicants as shall, in the judgment of the Board, inure to the greatest benefit of the citizens of the state and represent a prudent use of the Fund.

History

• Effective 2022-12-09

Wyo. Code R. 060.0003.42.12092022 § 4 Eligible applicants

(a) Eligible entities. Cities, towns, counties, and Tribal Councils shall be eligible to apply for grants under this Chapter. Businesses owned in whole or in part by the Tribal Councils shall not be eligible applicants.

(b) Entities eligible under Subsection (a) of this Section that are members of a Joint Powers Board may submit applications for projects to improve assets of the Joint Powers Board.

(c) To be eligible for a grant under this Chapter:

(i) An applicant must be in compliance with all applicable reporting requirements with the Wyoming Department of Audit and Wyoming Department of Revenue prior to its application being considered by the Board;

(ii) For capital projects, the applicant must own the project or be a member of a Joint Powers Board that owns the project.

History

• Effective 2022-12-09

Wyo. Code R. 060.0003.42.12092022 § 5 ARPA Eligibility Justification

All projects under this Chapter must be eligible for funding under ARPA and the Final Rule.

(a) Each application shall contain a justification explaining how the project is eligible under ARPA for funding.

(i) Applications for Capital Projects shall include the Capital Project justification described in Subsection (b) of this Section.

(ii) Applications for Non-Capital Projects shall include the Non-Capital Project justification described in Subsection (c) of this Section.

(iii) Applications for Water Projects shall include the Water Project justification described in Subsection (d) of this Section.

(iv) If an applicant is unsure of the classification of its proposed project is, it shall submit a written request for determination to the Office. Upon receipt of such request, the Office shall provide a binding determination of which justification is required.

(v) If an applicant submits the wrong category of justification, the Office shall notify the applicant in writing and the applicant shall have until the end of the relevant application period, as set forth in § 6(b) of this Chapter, to submit the proper justification. In no event shall the application deadline be extended because an applicant submitted the wrong justification.

(b) Justification for Capital Projects. For each proposed Capital Project, the application shall contain a written justification, which shall include:

(i) A detailed description of the identifiable harm caused or exacerbated by COVID-19 that the project is intended to address. This description shall include:

(A) A detailed description of the specific harm to be addressed by the requested funding;

(B) A detailed description of how the specified harm was exacerbated or caused by COVID-19; and

(C) Supporting quantitative information on the extent and type of the specified harm, such as the number of individuals or entities affected, and establishing a link between the harm and COVID-19.

(ii) An independent assessment demonstrating why a Capital Project is appropriate to address the specified harm, which shall include:

(A) An explanation of why the applicant's existing capital equipment, property, or facilities are inadequate to addressing the specified harm;

(B) A description of how the proposed project will address the identified harm;

(C) An explanation of why policy changes or additional funding to pertinent programs or services would be insufficient without the corresponding Capital Projects; and

(D) A description of why other possible non-capital interventions would be inefficient, costly, or otherwise not reasonably designed to remedy the specified harm without additional capital expenditure.

(iii) An objective comparison of the proposed Capital Project against alternative capital expenditures and demonstrate why their proposed Capital Project is superior to alternative capital expenditures that could be made. Applicants shall assess the proposed Capital Project against at least two alternative types or sizes of capital expenditures that are potentially effective and reasonably feasible. Where relevant, applicants shall compare the proposed project against the alternative of improving existing capital assets already owned or leasing other capital assets. Applicants shall use quantitative data when available. For each identified alternative, applicants shall provide:

(A) A comparison of the effectiveness of the Capital Projects in addressing the specified harm. This comparison shall consider the effectiveness of the Capital Projects in addressing the specified harm over the useful life of the capital asset and shall consider metrics such as the number of impacted or disproportionately impacted individuals or entities served, when such individuals or entities are estimated to be served, the relative time horizons of the project, and consideration of any uncertainties or risks involved with the Capital Project; and

(B) A comparison of the expected total cost of the Capital Projects. This comparison shall consider the expected total cost of the Capital Project required to construct, purchase, install, or improve the capital assets intended to address the specified harm. Applicants shall include pre-development costs in their analysis and shall provide an estimate of ongoing operational costs.

(c) Justification for Non-Capital Projects. Each application for a Non-Capital Project shall contain a justification explaining how the project is eligible, which shall include:

(i) A detailed description of the identifiable harm caused or exacerbated by the public health emergency that the project is intended to address. This description shall include:

(A) A detailed description of the specific harm to be addressed by the requested funding;

(B) A detailed description of how the specified harm was exacerbated or caused by COVID-19; and

(C) Supporting quantitative information on the extent and type of the specified harm, such as the number of individuals or entities affected, and establishing a link between the harm and COVID-19.

(ii) A detailed description of how the project is a reasonable and proportional response to the identified harm. This description shall include:

(A) A description of how the project will address the identified harm, supported by any available quantitative information;

(B) A description of how the project is cost-effective and financially proportionate to the identified harm; and

(C) A description of how the project is superior to other means of addressing the identified harm.

(d) Justification for Water Projects. Each application for a Water Project shall contain a justification explaining:

(i) Why the project is necessary, including:

(A) An explanation of how the project is responsive to an identified need to achieve or maintain an adequate minimum level of service;

(B) An explanation of how the proposed capital expenditure will provide an adequate minimum level of service;

(C) An explanation of how the project is cost effective, which shall include a comparison of the proposed capital project against alternative capital expenditures and a demonstration of how the proposed capital expenditure is superior; and

(D) An explanation of how the project will be maintained over the useful life of the infrastructure; and

(ii) What other funding options the applicant has explored and why funding under this program is necessary.

History

• Effective 2022-12-09

Wyo. Code R. 060.0003.42.12092022 § 6 Application Procedure

(a) Applications. Separate applications shall be prepared for each individual project. Applicants shall submit applications in a manner prescribed by the Office. All applications shall be properly executed by the officers of the applicant.

(b) Timing. The Board may establish one (1) or more open application periods by providing notice to the public on the Office's website. The Board may modify an open application period at any time before the end of the application period. After the close of each application period, the Board shall designate a regular or special meeting to consider applications received during the application period and post notice of that meeting on the Office's website. Applications received by the Office after the close of the application period will not be considered at the designated Board meeting, but may be resubmitted during any later application period designated by the Board.

(c) Justification. Each application shall include the justification required by Section 5.

(d) Application Information. The following information shall be provided by all applicants:

(i) A complete application on a form provided by the Office;

(ii) The appropriate ARPA eligibility justification required by Section 5 of this Chapter.

(iii) A standard resolution authorizing the filing of the application on a form provided by the Office;

(iv) A certification statement attesting that the funds being requested will be used in accordance with all requirements and conditions of ARPA. If it is determined that the funds were not used as intended, they shall be paid back to the Office within fifteen (15) Business Day following notification.

(v) The amount of any CARES grants awarded by the State and any ARPA State and Local Fiscal Recovery Funds the applicant has received and a brief summary of how the funds were spent or how the applicant plans to spend the funds; and

(vi) Other applicable information as requested by the Office.

(e) Additional Information Required: If the funding request is for the purchase of a building or land, a market analysis must be completed to determine the fair-market value. Office staff shall review and approve the methodology used for valuation and the overall market value prior to grant funds being disbursed for reimbursement of related costs.

(f) Preliminary Review. The Office shall notify the applicant, in writing, if the application lacks any of the items required in sub-Sections (c) and (d) of this section. The applicant shall have five (5) Business Day to submit the required information.

(g) False or Misleading Statements.

(i) Any false or misleading statements made by the applicant in an application shall be grounds for summary rejection of the application.

(ii) Any requests made for reimbursement that are determined to be false or misleading and/or ultimately ineligible after the funds have been disbursed shall be paid back to the Office within fifteen (15) Business Days following notification.

(h) Incomplete Applications. Applications that are missing one or more of the information items requested and/or fail to meet established deadlines, shall not be presented to the Board for consideration.

(i) Summary Rejection. The Office shall summarily reject all applications that are clearly ineligible under this Chapter or ARPA.

History

• Effective 2022-12-09

Wyo. Code R. 060.0003.42.12092022 § 7 Ineligible Project Expenses

(a) Ineligible Project Costs. The following is a non-exclusive list of project costs ineligible for reimbursement from the Funds:

(i) Revenue replacement;

(ii) Debt service and replenishments of rainy day funds;

(iii) Satisfaction of settlements and judgments;

(iv) Any use that disregards or violates federal conflicts of interest requirements, and other federal, state, and local laws and regulations;

(v) Damages covered by insurance;

(vi) Costs incurred prior to March 3, 2021;

(vii) Payroll or benefits expenses for employees whose work duties are not substantially dedicated to mitigating or responding to the COVID-19 public health emergency;

(viii) Expenses that have been or will be reimbursed under any federal program, such as the reimbursement by the federal government pursuant to ARPA;

(ix) Any expense that is ineligible under ARPA or the Final Rule;

(x) Reimbursement to donors for donated items or services;

(xi) Workforce bonuses not eligible under the Final Rule;

(xii) Severance pay;

(xiii) Prepayment on contracts;

(xiv) Costs for tap fees, sewer and water fees, and plant investment fees;

(xv) All non-cash costs;

(xvi) Costs for preparation or presentation of applications;

(xvii) Costs for transportation, meals and lodging and incidentals incurred anywhere away from the site of the project or that exceed the current federal per diem reimbursement rate;

(xviii) Costs related to issuance of bonds;

(xix) Costs for real property in excess of current fair market value and/or costs for an amount of real property in excess of that needed for project purposes;

(xx) Costs to establish and form special districts or joint powers boards;

(xxi) Costs for a contingency or extra work allowance in excess of 10% of estimated construction costs;

(xxii) Costs of elections;

(xxiii) Costs associated with the applicant's equipment; and

(xxiv) Markups by engineers/architects of sub-consultant and other outside charges.

(b) If the Office determines that any grant funds were expended for an ineligible purpose, the Office shall notify the grantee and the grantee shall have five (5) business days to refund the Office the full amount disbursed for the ineligible expenditure.

History

• Effective 2022-12-09

Wyo. Code R. 060.0003.42.12092022 § 8 Evaluation Criteria

(a) The Board shall evaluate applications on a merit basis utilizing the following criteria:

(i) Whether the project is an appropriate use of the Fund and in compliance with ARPA;

(ii) The status of the project, with increased consideration for projects that are shovel ready;

(iii) The population to be served relative to the size of the request, with increased consideration for projects serving larger populations with less funding;

(iv) Whether alternative sources for funding are available, including the Board's other programs authorized under pursuant to 2022 Wyo. Sess. Laws Chapter 50;

(v) Whether the applicant received funding under previous COVID-19 relief programs administered by the Board;

(vi) How the applicant spent any direct ARPA funding it received;

(vii) If the applicant is a water or sewer project, whether there are other non-water or sewer projects that should be prioritized.

(b) To assist the Board in prioritizing among eligible projects, the Office shall compute a score for each project in accordance with this subsection. The Office shall calculate a score for each project based on:

(i) The population served by the proposed project;

(A) Applicants whose population is five hundred (500) or less shall receive three (3) points under this Paragraph.

(B) Applicants whose population is between five hundred one (501) and three thousand, three hundred (3,300) shall receive two (2) points under this Paragraph.

(C) Applicants whose population is between three thousand, three hundred one (3,301) and ten thousand (10,000) shall receive one (1) point under this Paragraph.

(D) Applicants whose population is greater than ten thousand (>10,000) shall receive zero (0) points under this Paragraph.

(ii) The average median household income (AMHI) in the area to be served by the proposed project compared to the state's AMHI:

(A) Applicants whose AMHI is less than sixty percent (60%) shall receive five (5) points under this Paragraph.

(B) Applicants whose AMHI is sixty percent (60%) or greater, but less than seventy percent (70%) shall receive four (4) points under this Paragraph.

(C) Applicants whose AMHI is seventy percent (70%) or greater, but less than eighty percent (80%) shall receive three (3) points under this Paragraph.

(D) Applicants whose AMHI is eighty percent (80%) or greater, but less than ninety percent (90%) shall receive two (2) points under this Paragraph.

(E) Applicants whose AMHI is ninety percent (90%) or greater, but less than one hundred ten percent (110%) shall receive one (1) point under this Paragraph.

(iii) Applicant's unemployment rate compared to the state's unemployment rate as of June 30, 2022:

(A) Applicant's whose unemployment rate is higher than the state's unemployment rate shall receive one (1) point under this Paragraph.

(B) Applicant's whose unemployment rate is equal to or lower than the state's unemployment rate shall receive zero (0) points under this Paragraph.

(iv) The amount of match funding being provided by the applicant:

(A) Applicants providing fifty percent (50%) or more in match funding shall receive five (5) points under this Paragraph.

(B) Applicants providing thirty-six percent (36%) to forty-nine (49%) in match funding shall receive four (4) points under this Paragraph.

(C) Applicants providing twenty-six percent (26%) to thirty-five percent (35%) in match funding shall receive three (3) points under this Paragraph.

(D) Applicants providing sixteen percent (16%) to twenty-five percent (25%) in match funding shall receive two (2) points under this Paragraph.

(E) Applicants providing fifteen percent (15%) to five percent (5%) in match funding shall receive one (1) point under this Paragraph.

(F) Applicants providing less than five percent (5%) in match funding shall receive zero (0) points under this Paragraph.

(v) Source of match funding:

(A) If the applicant's entire match is a loan or from the applicant's own funds, the applicant shall receive three (3) points under this Paragraph.

(B) If the applicant's match is partially funded by grant funding (including ARPA SLFRF the county, city or town received) or private donations for the specific project and partially funded by the applicant's own funds, the applicant shall receive two (2) points under this Paragraph.

(C) If the applicant's match is entirely grant or donation funded, the applicant shall receive one (1) point under this Paragraph.

(D) If the applicant is not providing a match, the applicant shall receive zero (0) points under this Paragraph.

(vi) The availability of other relief funding:

(A) Applicants that did not receive any CARES funding or direct ARPA funding shall receive three (3) points under this Paragraph.

(B) Applicants receiving other relief funding shall receive zero (0) points under this Paragraph.

(vii) Whether the proposed project eliminates noncompliance with regulations pertaining to the applicant's proposed project:

(A) If the proposed project shall eliminate existing noncompliance, applicant shall receive three (3) points under this Paragraph.

(B) If the proposed project will prevent noncompliance that is not currently existing, but is imminent or may be reasonably anticipated, the applicant shall receive two (2) points under this Paragraph.

(C) If the proposed project will not eliminate violations, applicant shall receive zero (0) points under this Paragraph.

(viii) Whether the proposed project promotes or achieves the regionalization of two (2) or more services, systems, or jurisdictions:

(A) If the proposed project does achieve regionalization, applicant shall receive three (3) points under this Paragraph.

(B) If the proposed project does not achieve regionalization, applicant shall receive zero (0) points under this Paragraph.

(ix) The status of the proposed project:

(A) Applications submitted for additional funding for a Capital Project currently in the construction phase shall receive three (3) points under this Paragraph.

(B) Applications submitted for funding for a Non-Capital Project with an anticipated start date in 2022, or a Capital Project that has been designed and is ready to bid shall receive two (2) points under this Paragraph.

(C) Applications seeking funding for a Capital Project that has not yet been designed or a Non-Capital Project with a start date on or later than January 2023 shall receive zero (0) points under this Paragraph.

(x) Whether the project is a Water Project or related to other eligible project categories:

(A) Applications for projects that are not Water Projects shall receive four (4) points under this Paragraph.

(B) Applications for Water Projects shall receive zero (0) points under this Paragraph.

(xi) Whether the applicant has a plan for completing the project if, for any reason, the awarded funds are not expended by the deadline for expending ARPA funds:

(A) Applicants who have a plan shall receive one (1) point under this Paragraph.

(B) Applicants who do not have a plan shall receive zero (0) points under this Paragraph.

(xii) Whether the proposed project promotes economic development:

(A) If the proposed project promotes economic development, applicants shall receive two (2) point under this Paragraph.

(B) If the proposed project does not promote economic development, applicants shall receive zero (0) points under this Paragraph.

(xiii) Whether the applicant has a formal maintenance policy and/or an asset management/capital improvement plan for which the asset funding is being requested:

(A) For applications to acquire assets, applicants with a formal maintenance policy and an asset management/capital improvement plan shall receive three (3) points under this Paragraph.

(B) For applications to acquire assets, applicants with a formal maintenance policy or an asset management/capital improvement plan shall receive two (2) points under this Paragraph.

(C) For applications to acquire assets, applicants with neither a formal maintenance policy nor an asset management/capital improvement plan shall receive zero (0) points under this Paragraph.

(xiv) Whether the applicant has a plan to sustain a non-capital program beyond the window for the use of ARPA funds:

(A) For applications that do not involve the purchase of assets, applicants with demonstrated revenue stream to continue the process beyond December 31, 2026 shall receive three (3) points under this Paragraph.

(B) For applications that do not involve the purchase of assets, applicants with a plan to develop a revenue stream to continue the process beyond December 31, 2026 shall receive one (1) points under this Paragraph.

(C) For applications that do not involve the purchase of assets, applicants without a plan to continue the process beyond December 31, 2026 shall receive zero (0) points under this Paragraph.

(xv) Whether the funding being requested is for a partnership project with other communities:

(A) If the proposed project for which funding is being request is a partnership project with other communities the applicant will receive two (2) points under this Paragraph.

(B) If the proposed project for which funding is being request is not a partnership project with other communities the applicant will receive zero (0) points under this Paragraph.

(xvi) The taxes imposed by the applicant:

(A) A county imposing at least eleven (11) or ninety-one and sixty-seven one-hundredths percent (91.67%) of the available mills authorized by Art. XV § 5 of the Wyoming Constitution, or imposing the optional sales tax authorized under W.S. 39-15-204(a)(i) or (iii) shall receive two (2) points under this Paragraph;

(B) A municipality imposing at least seven (7) or eighty-seven and five-tenths percent (87.5%) of the available mills authorized by Art. XV § 6 of the Wyoming Constitution shall receive two (2) points under this Paragraph;

(C) Applicants imposing the economic development tax authorized under W.S. § 39-15-204(a)(vi) shall receive an additional two (2) points under this Paragraph.

(D) Other counties and municipalities shall receive zero (0) points under this Paragraph.

History

• Effective 2022-12-09

Wyo. Code R. 060.0003.42.12092022 § 9 Board Consideration

The Board shall consider each application, allow for comments from the applicant and from the Director, and establish the maximum amount of the grant.

History

• Effective 2022-12-09

Wyo. Code R. 060.0003.42.12092022 § 10 Fund Disbursement and Administration

(a) Fund Disbursement. Funds shall be disbursed to the applicant only as needed to discharge obligations incurred in accordance with the Board approved project costs. Requests for disbursements shall be made on a form supplied by the Office and supported by adequate proof that such obligations have been incurred for project purposes and are due and owing. Requests shall be submitted for reimbursement no more frequently than once a month and not less than quarterly.

(b) Fund Reversion. Any grant funds that have not been obligated by October 1, 2024 shall be deemed rejected by the recipient and shall revert to the Office. All requests for reimbursement for eligible expenses must be received by the Office no later than October 1, 2026. Any unused portions of the grants awarded pursuant to this Chapter shall revert to the US Department of the Treasury on December 31, 2026 whether or not the project is completed and all eligible expenses have been requested for reimbursement.

History

• Effective 2022-12-09

Wyo. Code R. 060.0003.42.12092022 § 11 Reporting Requirements

Applicants shall comply with all federal and state reporting requirements.

History

• Effective 2022-12-09

Wyo. Code R. 060.0003.42.12092022 § 12 Audits and Inspections

(a) The Board may, at its expense, conduct an audit of the records of the applicant.

(b) The applicant shall allow the Federal and/or state government to conduct an audit of the records related to the expenditure of moneys from the Fund.

(c) The applicant shall comply with the Single Audit Act. If seven hundred fifty thousand dollars ($750,000.00) or more is disbursed in any given year, an audit must be completed in accordance with 31 CRF Part 200, Subpart F.

History

• Effective 2022-12-09

Chapter 43 Small Business Emergency Bridge Loans

Wyo. Code R. 060.0003.43.01232026 § 1 Authority

This Chapter is adopted pursuant to Wyoming Statute (W.S.) 11-52-102(b)(i).

History

• Effective 2026-01-23

Wyo. Code R. 060.0003.43.01232026 § 2 Definitions

In addition to the definitions in Chapter 1, as used in this Chapter:

(a) "Business days" means Monday through Friday, except for federal or state holidays.

(b) "Financial Institution" means a bank or credit union having a place of business within this state and that is chartered under state or federal law.

(c) "Fund" means the small business emergency bridge loan account created pursuant to W.S. 11-52-102(f).

(d) "Natural Disaster" means an extreme event caused by natural environmental factors that overwhelms local resources and threatens the safety and function of a community or business, including but not limited to, blizzards, droughts, earthquakes, floods, pandemics, tornados, wildfires, and failures of infrastructure.

History

• Effective 2026-01-23

Wyo. Code R. 060.0003.43.01232026 § 3 General Provisions

(a) Loans shall be made in such a manner and to such parties as shall, in the judgment of the Director, represent a prudent investment of state funds.

(b) The small business emergency bridge loans program is not intended to benefit businesses engaged in loan packaging, offering or providing short-term rentals, speculation, multi-sales distribution, gaming, investing, lending or any activity that violates state or federal law.

History

• Effective 2026-01-23

Wyo. Code R. 060.0003.43.01232026 § 4 Eligible Applicants

(a) To be eligible for a loan under this Chapter:

(i) The applicant must be legally established and in operation prior to the natural disaster occurring;

(ii) The applicant must be physically located and doing business within the area(s) for which the Governor has declared a natural disaster;

(iii) The applicant must have one (1) or more persons who own not less than fifty percent (50%) of the business, who can apply for the loan and who must serve as guarantor for the loan;

(iv) The applicant and guarantor, must have a credit score of not less than five hundred fifty (550);

(v) The applicant must not be on probation or parole at the time of application; and

(vi) The applicant must be in compliance with all applicable reporting requirements with the Wyoming Secretary of State.

History

• Effective 2026-01-23

Wyo. Code R. 060.0003.43.01232026 § 5 Eligible Purposes

(a) Funds may only be used to cover costs for business purposes, which may include, but are not limited to;

(i) Fencing repair;

(ii) Replacement of livestock;

(iii) Replacement of buildings or shelters;

(vi) Business vehicles;

(v) Inventory replacement;

(vi) Equipment damaged or destroyed in the natural disaster;

(vii) Leasing land for business purposes;

(viii) Necessary trucking and transportation expenses; and,

(ix) Temporary facilities for the business to operate.

History

• Effective 2026-01-23

Wyo. Code R. 060.0003.43.01232026 § 6 Financial Institution Registration

(a) Financial Institutions will register with the Office to be eligible to assist borrowers. The Office will maintain a list of registered Financial Institutions on the Office's website and any other locations deemed appropriate.

(b) No less than annually, the Office will review the list of registered Financial Institutions to ensure they are still eligible to be on the list.

History

• Effective 2026-01-23

Wyo. Code R. 060.0003.43.01232026 § 7 Application Procedure

(a) Applications.

(i) Applicants may submit multiple loan applications in response to any Governor declared natural disaster, but in no case shall the aggregate sum of all applications exceed seven hundred fifty thousand dollars ($750,000.00).

(ii) Applications must be submitted directly to a registered Financial Institution. Upon receipt of a completed application and all required documentation the financial institution will complete a detailed evaluation and provide a funding recommendation to the Office.

(iii) All applications must be properly executed by the applicant.

(b) Timing. Applications may be submitted no later than twenty-four (24) months after a natural disaster has been declared by the Governor.

(c) Required Information. The following information shall be provided by all applicants to their chosen registered Financial Institution:

(i) An application on a form prepared by the Office and provided to the registered Financial Institution of choice, completed by the applicant;

(ii) Copies of financial statements for the past three (3) years for the applicant and any guarantors;

(iii) Copies of approved budgets for prior and current fiscal years, if available;

(iv) Copies of business formation documents;

(v) Copies of any revenue generating contracts;

(vi) Detailed budget delineating all costs for which the loan funds will be utilized and the method by which the costs were estimated;

(vii) Detailed list of all assets owned by the applicant at the time of the natural disaster; and,

(viii) Any other document required by the registered Financial Institution.

(d) Additional Information Required: If the funding request is for the purchase of a building, a market analysis must be completed and submitted with the application to determine the fair market value. Office staff shall review and approve the methodology used for valuation and the overall market value prior to loan funds being disbursed

(e) False or Misleading Statements.

(i) Any false or misleading statements made by the applicant in an application shall be grounds for summary rejection of the application.

(ii) Any reports on spent loan funds that are determined to be false or misleading or are ultimately ineligible after the funds have been disbursed shall result in the entire outstanding loan balance being called and must be paid back to the Office within thirty (30) Business Days following notification.

(f) Incomplete Applications. Applications that are missing one (1) or more of the information items requested shall not be considered by the Office for funding.

(g) Summary Rejection. The Office shall summarily reject all applications that are clearly ineligible under this Chapter.

History

• Effective 2026-01-23

Wyo. Code R. 060.0003.43.01232026 § 8 Evaluation and Approval of Applications

(a) Criteria. The Office shall evaluate applications utilizing the following criteria:

(i) Funding recommendation provided by the reviewing registered Financial Institution, including any terms and conditions that should be included in the loan;

(ii) Applicant's need;

(iii) Applicant's ability to repay the loan;

(iv) Eligibility of the proposed use of the Funds; and

(v) Availability of the Funds.

(b) Within five (5) business days of receiving the funding recommendation from the registered Financial Institution, the Office shall review the funding recommendation and ensure the eligibility of the applicant.

(c) After the Office has determined the applicant to be eligible, the Director may approve the application.

(d) Loans approved by the Director do not require subsequent approval by the Board.

History

• Effective 2026-01-23

Wyo. Code R. 060.0003.43.01232026 § 9 Loan Terms

(a) Amount. The maximum loan amount for a single Applicant shall be seven hundred fifty thousand dollars ($750,000.00).

(b) Interest rate. The interest rate for loans under this Chapter shall be pursuant to Chapter 14 of the rules established by the Board and a two percent (2%) origination fee shall be collected on the approved loan amount.

(i) The Office will pay one percent (1%) of the origination fee from the Fund.

(ii) The Applicant will pay the remaining one percent (1%) of the origination fee from the loan proceeds.

(c) Length. The term for each loan shall be set by the Office with due regard given to repayment ability and the security offered, but in no event shall any term exceed three (3) years.

(d) Repayment. Payments shall be made in accordance with the agreed upon terms within the executed loan documents.

History

• Effective 2026-01-23

Wyo. Code R. 060.0003.43.01232026 § 10 Security

(a) Every loan shall be evidenced by a promissory note for the principal sum of the loan.

(b) Loans shall be adequately secured to the Office's satisfaction. Loans must be fully secured with:

(i) Insurance proceeds or other anticipated funds that the business will receive as a result of the natural disaster;

(ii) A mortgage on other land or property that covers all or part of the loan;

(iii) Equipment;

(iv) Assets owned by the business.

(v) Pledge of other available revenues to the borrower; or

(vi) Any other security deemed adequate to secure repayment of the loan.

(c) If an appraisal or market analysis is required, the applicant shall be responsible for ensuring one is completed prior to submitting a loan application.

(i) Office staff shall review and approve the methodology used for valuation and the overall market value prior to loan closing.

History

• Effective 2026-01-23

Wyo. Code R. 060.0003.43.01232026 § 11 Ineligible Project Expenses

(a) Ineligible Project Costs. The following is a non-exclusive list of costs ineligible for reimbursement from the Fund:

(i) Expansion of the business operations;

(ii) Purchase of additional property not owned prior to the natural disaster;

(iii) Purchase of additional equipment not owned prior to the natural disaster.

(iv) Any use that disregards or violates conflict of interest requirements, or other federal, state, and local laws and regulations; and,

(v) Reimbursement to donors for donated items or services.

History

• Effective 2026-01-23

Wyo. Code R. 060.0003.43.01232026 § 12 Fund Disbursement and Administration

(a) Requests for disbursements shall be on a form provided by the Director and include supporting documentation establishing the eligibility of costs for which the loan funds will be utilized. Loan proceeds will only be disbursed for eligible project costs as set forth in this Chapter and within established guidelines following review by the Office.

(b) The Office shall inspect and verify any reports and records required by the Director and submitted by the borrower before proceeds shall be released.

History

• Effective 2026-01-23

Wyo. Code R. 060.0003.43.01232026 § 13 Grants, Gifts, or Other Funds

(a) Any grants, gifts or other funds received to be included in the Fund will be awarded on a pro-rata basis for the loans awarded in response to the specific natural disaster for which it was donated.

(b) Any grants, gifts or other funds an individual would like to make to a particular borrower will not be accepted by the Office. These must be given by the donor directly to the specific borrower.

History

• Effective 2026-01-23

Wyo. Code R. 060.0003.43.01232026 § 14 Reporting Requirements

(a) Annually, before October 1 of each year, the Office shall review the program and report to the Board, joint appropriations committee, joint agriculture, state and public lands and water resources interim committee on the loans made under this Chapter, all outstanding loan commitments, repayments received and the balance of the Fund.

(b) Annually, before September 1 of each year, all borrowers with an outstanding loan must report to the Office the amount of loan funds spent in the prior twelve (12) months and what the funds were spent on.

(c) Applicants shall comply with all federal and state reporting requirements.

History

• Effective 2026-01-23

Wyo. Code R. 060.0003.43.01232026 § 15 Audits and Inspections

(a) The Board may, at its expense, conduct an independent audit of the records of the applicant and inspect the items purchased or operations of the business.

History

• Effective 2026-01-23