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Text version of visual diagram titled "Agriculture Lease Acreage Adjustments"

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Ninety-five percent of Colorado's 2.8 million acres of trust land is leased for agriculture. Adjustments to agriculture leases can occur when the land is leased for other purposes.

Definitions

  • Layered leases: when two or more contracts are placed on the same trust land property.
  • Planning lease: short-term (one to three years) contract that grants lessee with exclusive rights to apply for production lease. No physical activity occurs.
  • Production lease: long-term (ten to 40 years) contract.
  • Lease rider: an amendment to an existing contract. Requires signatures from both parties.

Process

  • Ongoing from step 1 through step 8: continued agriculture operations and ongoing communication.

  • Pre-application phase

    • Step 1: A third party expresses interest in submitting a planning lease on the same property.
    • Step 2: Staff evaluates the effects of layering the leases using board policies, and the lease framework for solar projects. 
      • Step 2a: Staff declines interest.
      • OR Step 3b: Staff invites third party to submit a planning lease application.
  • Planning lease application phase
    • Step 3: Agency receives a planning lease application from a third party on the same property.
    • Step 4: Staff determines affected acreage and contacts agriculture lessee. This includes notifying lessee in writing and requesting feedback from agriculture lessee.
      • Step 4a: Lessee requests board review. Lessee addresses Board at public meeting. 
        • Step 4ai: Board denies planning lease application.
        • OR Step 4aii: Board approves planning lease. Staff sends 12 month cancellation notice to agriculture lessee.
      • OR Step 4b: Staff approves planning lease.
  • Planning lease phase
    • Step 5: Staff issues a planning lease. Reported to the Board.
      • Step 5a: No production lease application submitted. Planning lease expires.
      • OR Step 5b: planning lessee applies for a production lease.
    • Step 6: Production lease presented to board for approval.
      • Step 6a: Board denies production lease.
      • OR Step 6b: Board approves lease.
    • Step 7: Staff develops lease rider to reduce acreage leased for agriculture.
    • Step 8: Agriculture lessee signs rider.
  • Production phase
    • Step 9: Production lessee obtains all necessary permits and complies with local, state, and federal regulations.
    • Step 10: Development and production occurs.