37-604

37-604. Exchange of state land; procedure;
limitation and exceptions

(L10, Ch. 243, sec. 16)

A. The state land department and selection board, for proper management, control,
protection or public use of state lands, may exchange state lands managed by the
department for any other land within the state. The state land department and selection
board, to encourage compatible use of lands near military airports, may exchange state
lands managed by the department for private lands near military airports. Exchanges may
be made for land owned or administered by other state agencies, counties, municipalities
and private parties. Exchanges with the United States or its agencies shall be in
conformance with section 37-722, but the department shall also follow the procedures for
notifying interested parties prescribed by subsection C, paragraph 5 of this section and
the classification procedures in section 37-212.

B. The department shall adopt rules governing the application and procedure for the
exchange of state land. Such rules shall include the following requirements:

1. The application shall include:

(a) The name, age and residence of the applicant.

(b) A legal description of all lands to be considered for exchange.

(d) A list of the leasehold interest in the state land to be considered for
exchange.

(e) Accompanying agreements, if any, with the leaseholder or owner of improvements
on the state land to be considered for exchange.

2. Payment of fees prescribed for that purpose pursuant to section 37-107.

3. Such additional requirements as the department determines to be necessary. Upon
completion of processing and analyzing the application, and on determining that the
proposed exchange would benefit the applicable trust, the department shall notify and
deliver a report containing details of the proposed exchange to members of the selection
board. At the same time the department shall also notify and provide the report to the
state legislators from the legislative districts in which the lands proposed to be
exchanged are located.

C. Exchanges of state lands are subject to the following requirements:

1. The commissioner shall determine by at least two independent appraisals that the
state lands being considered for exchange are of substantially equal value or of lesser
value than the land offered by the applicant. However, the commissioner may determine
that rural lands being exchanged to consolidate land ownership for management purposes
require only one independent appraisal. The commissioner may require the applicant to
pay the cost of appraisals.

2. No county or municipality may be permitted to select lands in another county or
municipality.

3. State lands known to contain oil, gases and other hydrocarbon substances, coal
or stone, metals, minerals, fossils and fertilizer, in paying quantities, and state lands
adjoining lands upon which there are producing oil or gas wells, or adjoining lands known
to contain any of such substances in paying quantities shall not be exchanged. These
prohibitions against exchange shall not prevent the exchange of lands where the state
does not own such substances, minerals or metals in the lands to be considered for
exchange.

4. All state lands offered for trade pursuant to this section must be located in
the same county as the lands offered to the state. However, lands in adjoining counties
more than three miles outside the corporate boundaries of incorporated cities and towns
having a population of ten thousand people or less and lands in adjoining counties but
more than five miles outside the corporate boundaries of incorporated cities and towns
having a population in excess of ten thousand people may be exchanged to facilitate
consolidating land ownership if the boards of supervisors of the counties in which lands
are to be exchanged give their prior approval.

5. Prior to public notice of a proposed exchange of state lands for other lands,
the department and selection board shall give thirty days' notice in writing to other
interested state agencies, counties, municipalities, and leaseholders on state lands that
are or may be affected by the exchange.

6. Before any state land may be considered for exchange under the provisions of
this article, the land shall be classified as suitable for such purposes in accordance
with the provisions of section 37-212. Any person adversely affected by such
classification may appeal from the decision as provided in section 37-215.

7. The department shall publish notice of all proposed exchanges in the same manner
and places as is required for the sale of state lands pursuant to section 37-237, except
that the notice shall be published once each week for four consecutive weeks. The notice
shall contain a legal description of the properties involved and other pertinent terms
and conditions of the exchange. The department shall also schedule a public hearing on
the exchange contemplated in the notice. The hearing shall be held at the county seat of
the county in which the state lands proposed to be exchanged are located or in the county
in which the majority of the state lands is located. The hearing shall be held not less
than fifteen days prior to the date of the selection board's consideration of the
proposed exchange, and any person may appear and protest the proposed exchange at that
time.

D. Lands conveyed to the state under this article shall, upon acceptance of title
and recording, be dedicated to the same purpose and administered under the same laws to
which the lands conveyed were subject, but may be reclassified as provided in section
37-212.