Chapter 676 Oregon Laws 2003

AN ACT

SB 923

Relating to state interests in land; creating new provisions; and amending ORS 273.785.

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 273.785 is amended to read:

273.785. (1) Excluded from the operation of ORS 273.551 and 273.775 to 273.790 are:

[(1)] (a) Soil, clay, stone, sand and gravel acquired or used by state agencies for the purpose of constructing or repairing roads or other state facilities, or the proceeds from such materials;

[(2)] (b) Any mineral or geothermal resource rights or proceeds therefrom acquired and held by the State Fish and Wildlife Commission pursuant to Public Law 415, 75th Congress (50 Stat. 917, 16 U.S.C. 777); or if other disposition is required by federal rules or regulations or any agreement entered into at the time of acquisition of the mineral or geothermal resource rights by the state;

[(3)] (c) Proceeds of mineral and geothermal resource rights acquired by the state pursuant to ORS 530.010 and 530.030, other than those distributed under ORS 530.110 (1)(c);

[(4)] (d) Any mineral or geothermal resource rights or proceeds therefrom acquired after January 1, 1974, for the state by the Director of Veterans’ Affairs pursuant to ORS 88.720, 406.050 (2), 407.135 or 407.145. After consultation, the Division of State Lands and the Director of Veterans’ Affairs shall enter into an interagency agreement governing consultation between them concerning mineral and geothermal resource values on properties acquired for the state by the director. The Director of Veterans’ Affairs shall also adopt rules relating to the release of mineral and geothermal rights on such properties[. The exclusion under this subsection shall be effective for such rights or proceeds acquired by the director after January 1, 1974]; and

[(5)] (e) Any mineral or geothermal resource rights or proceeds therefrom given by a donor to any institution, department or activity under the control of the State Board of Higher Education that are acquired or held for the state by the State Board of Higher Education pursuant to ORS chapters 351 and 567. In managing mineral or geothermal resource leases, the State Board of Higher Education shall consult with the Division of State Lands in accordance with an interagency agreement established by the division and the State Board of Higher Education governing consultation between the division and the State Board of Higher Education and governing management of such mineral or geothermal resources.

(2) Notwithstanding ORS 273.780 (3), when the Division of State Lands offers real property for sale, the division may not retain the right to mineral or geothermal resources if:

(a) On the effective date of this 2003 Act, the real property was located:

(A) Inside an urban growth boundary; or

(B) Within an area zoned for residential use on a lot or parcel that is three acres or smaller in size; and

(b) The value, if any, of the right to the mineral or geothermal resources is included in the total sale price of the real property.

SECTION 2. Section 3 of this 2003 Act is added to and made a part of ORS 273.775 to 273.790.

SECTION 3. (1) As used in this section:

(a) “Owner” means:

(A) The record holder of fee title interest in residential real property; or

(B) The contract purchaser of residential real property.

(b) “Residential real property” means real property that is sold by the Division of State Lands for the State Land Board and is located:

(A) Inside an urban growth boundary; or

(B) Within an area zoned for residential use on a lot or parcel that is three acres or smaller in size.

(2) An owner may apply to the division for release and transfer of the rights to mineral or geothermal resources reserved by the State of Oregon.

(3) Upon application by the owner, the division shall release and transfer to the owner the reserved rights to mineral and geothermal resources within 30 days after the first board meeting that is at least 60 days after the division received the completed application for release and transfer of the rights, unless the board finds that a significant mineral or geothermal resource exists. If the board finds that a significant mineral or geothermal resource exists, the owner may:

(a) Offer to purchase the resource for the value of the resource; or

(b) Withdraw the application.

(4) If the board finds that a significant mineral or geothermal resource exists under subsection (3) of this section and the owner offers to purchase the resource for the value of the resource:

(a) The board shall determine the value of the resource on the basis of an appraisal conducted by a state certified appraiser certified under ORS 674.310 or by a geologist who is registered under ORS 672.505 to 672.705 and qualified to assess the value of mineral and geothermal deposits.

(b) The board may not:

(A) Require an owner to obtain an appraisal under this section; or

(B) Require an owner to pay the cost of an appraisal conducted at the request of the board under this section.

(5) The division may charge a reasonable fee, not to exceed $150, to process an application under this section.

(6) The division may adopt rules to implement this section.

SECTION 4. The amendments to ORS 273.785 by section 1 of this 2003 Act apply to a sale of property that closes on or after the effective date of this 2003 Act.

Approved by the Governor August 21, 2003

Filed in the office of Secretary of State August 21, 2003

Effective date January 1, 2004

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