73rd OREGON LEGISLATIVE ASSEMBLY--2005 Regular Session
Enrolled
House Bill 2111
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Governor Theodore R.
Kulongoski for Department of Transportation)
CHAPTER ................
AN ACT
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 - } { + . + }
Enrolled House Bill 2111 (HB 2111-INTRO) Page 1
{ - (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
Enrolled House Bill 2111 (HB 2111-INTRO) Page 2
(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. + }
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Passed by House March 17, 2005
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate May 3, 2005
...........................................................
President of Senate
Enrolled House Bill 2111 (HB 2111-INTRO) Page 3
Received by Governor:
......M.,............., 2005
Approved:
......M.,............., 2005
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2005
...........................................................
Secretary of State
Enrolled House Bill 2111 (HB 2111-INTRO) Page 4