Chapter 60 Oregon Laws 2005

AN ACT

HB 2111

Relating to retained interests in property; creating new provisions; and amending ORS 273.780 and 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] do not apply to:

[(a)] (1) 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] those materials[;].

[(b)] (2) [Any] Mineral or geothermal resource rights or proceeds [therefrom] from those rights 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)] an agreement with the federal government under 16 U.S.C. 669 to 669i (P.L. 75-415).[; or]

(3) Mineral or geothermal resource rights or proceeds from those rights 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[;].

[(c)] (4) 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)[;].

[(d)] (5) [Any] Mineral or geothermal resource rights or proceeds [therefrom] from those rights 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 Department 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 of Veterans’ Affairs. The Director of Veterans’ Affairs shall [also] adopt rules relating to the release of mineral and geothermal rights on such properties[; and].

[(e)] (6) [Any] Mineral or geothermal resource rights or proceeds [therefrom] from those rights 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 Department of State Lands in accordance with an interagency agreement established by the department and the State Board of Higher Education governing consultation between the department and the State Board of Higher Education and governing management of [such] the mineral or geothermal resources.

(7) Mineral or geothermal resource rights or proceeds from those rights acquired and held by the Department of Transportation. In managing mineral or geothermal resource leases, the Department of Transportation shall enter into an intergovernmental agreement with the Department of State Lands governing consultation between the departments and governing management of the mineral or geothermal resources.

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

[(a) On January 1, 2004, 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. ORS 273.780 is amended to read:

273.780. (1) Mineral and geothermal resource rights in property owned by any state agency and mineral and geothermal resource rights retained as an interest in lands previously sold, granted or otherwise conveyed by the state or any agency thereof are property of the State of Oregon. Except as provided in ORS 273.785, proceeds therefrom shall accrue to the Common School Fund, and the State Land Board is declared to be the state agency acting for the state in any transaction respecting such mineral and geothermal resource rights.

(2) In addition to applicable requirements of ORS chapter 522, such mineral and geothermal resource rights shall be subject to exploration permit or lease by the Department of State Lands, in accordance with rules and conditions established by law or adopted by the department.

(3) [Such] The mineral and geothermal resource rights shall be retained by the state in the absence of a finding by the State Land Board upon adequate facts presented to it that their sale or exchange is for the purpose of obtaining the greatest benefit for the people of this state, consistent with the conservation of lands under its jurisdiction under sound techniques of land management.

(4) Notwithstanding subsection (3) of this section, when the Department of State Lands offers real property for sale, the department may not retain the rights to mineral or geothermal resources if:

(a) On January 1, 2004, 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 rights to the mineral or geothermal resources is included in the total sale price of the real property.

SECTION 3. The amendments to ORS 273.785 by section 1 of this 2005 Act apply to mineral or geothermal resource rights or proceeds from those rights acquired by the Department of Transportation before, on or after the effective date of this 2005 Act.

Approved by the Governor May 18, 2005

Filed in the office of Secretary of State May 19, 2005

Effective date January 1, 2006

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