Arizona sets rules for state land planning, leases, and exploration

The commissioner must create and approve five-year plans for state trust land in every county. The plans cover state trust land in each Arizona county. Plans must conform to the conceptual land use plan and identify land projected for sale, lease, conservation, master planning, or zoning. Land may still be conveyed even if it is not listed in either plan. Within two years after this section takes effect, the commissioner must complete the plans and update the conceptual land use plan. Each five-year plan stays in effect until revised.

The Department must post its application review criteria and standard terms for state land agreements. These rules cover applications and agreements for use, possession, occupancy, lease, or conveyance of state land. An application may be withdrawn if the applicant does not answer a written and electronic notice within three months, then does not answer a final notice within 30 days. Agreement terms must be authorized by law and cannot be stricter than the law allows.

The Department must give lessees lease-end notices and improvement reimbursement plans. These requirements apply to lessees of state land. The reimbursement plan must value previously approved improvements through an independent vendor and give a reasonable payment timeline. The Department must provide the notice at least six months before lease expiration and the reimbursement plan within six months after the lease or holdover ends.

The commissioner may renew an existing production lease without public auction and must use an indexed royalty rate. This applies to existing production leases on state trust land. The commissioner must determine that the lessee follows the lease, the lease is producing or will produce within two years after renewal, and the renewal term is allowed by state law. The commissioner may review the indexed royalty rate no more than once every five years.