Trust Lands Update - April 2002

22-Apr-2002

Trust Lands Administration Update

April 2002

Permanent Fund -
The end of March 2002 estimated balance in the Public Schools' permanent fund was $357,000,000. The Public Schools' permanent fund is the largest part of Total Trust Assets which now stand at an estimated $417,500,000. The Trust Lands Administration has a goal of

$1 billion in Total Assets by 2010.

Mineral Lease Offering -
Bids are now being accepted for Trust Land mineral leases located in various counties around the state. The commodities being offered include oil & gas, metalliferous minerals, gypsum and oil shale. Bids must be received by 5:00 p.m., Friday April 26, 2002, at Trust Lands offices in Salt Lake City. Interested parties can review the offering on the Trust Lands Internet site at http://www.utahtrustlands.com/minerals/competitive.htm. More information and lease applications are available by contacting the Trust Lands office at 801-538-5100

Grazing Fee Announced -
Following a discussion of livestock prices, United States Bureau of Land Management grazing fees, and cost of production conditions, the TLA Board of Trustees - during its April Board Meeting - approved the administration's recommendation of maintaining the grazing fee for Fiscal Year 2003 at the same level as FY 2002. The fee is $2.05 per Animal Unit Month plus a five-cent noxious weed fee. Payments for FY 2003 are due July 1, 2002.

TLA administers 1,536 grazing permits representing 203,609 AUMs statewide.

Emery County Coal -
For the past decade, the mainstay of trust land coal mining revenues has been from the Crandall Canyon mine, operated by Genwal Resources, Inc. The mine is located 10 miles up Huntington Canyon, in Emery County.

Mining began on the trust land sections within the mine in 1991. Since that time, more than 12,000,000 tons of trust coal have been extracted, generating more than $13,000,000 in revenues. That $13,000,000 is nearly two-thirds of all trust land coal revenues generated during the past 20 years - confirming the historic importance of the Crandall Canyon mine to the Trust.

The Crandall Canyon trust coal reserves will be mined out near the end of 2003 bringing another $2,000,000 in revenue to the school permanent fund.

May Trust Land Auction -
The next semi-annual auction of trust lands is set for Friday, May 3, 2002, in St. George. The sale will begin at 10:00 a.m. in the St. George City Council Chambers at 175 East 200 North.

The auction features 13 parcels ranging in size from about one acre to as much as 480 acres. These properties are located in Carbon, Summit, Rich, Uintah, San Juan, Kane, Tooele and Washington Counties

For more information, call TLA toll-free at 1-877-LAND SALE (1-877-526-3725). Or, visit the TLA Internet site at www.trustlands.com and follow the LAND AUCTION link under "Surface Group."

Real estate brokers are welcome, but must pre-register. Financing may be available. The public is invited.

Washington County Kayenta Development -
Eighty acres of school trust lands are becoming part of the prestigious Kayenta residential development in Ivins. In October 2000, the Trust Lands Administration entered into a development lease with Kayenta Homesites to put homes on the parcel. The developer planned and developed the land, then began selling lots in September 2001.

The development lease requires the developer to make all improvements and to pay 33 percent of the gross sales price of each lot to Trust Lands. So far, 14 lots (out of 39 in Phase I) have been sold and the revenue generated for the Trust totals almost $400,000.




For more information contact:
Dave Hebertson
(801) 538-5102
davehebertson@utah.gov
Trust Lands Administration, 675 East 500 South, Suite 500, Salt Lake City, UT 84102