Surface Management

Grassland leasing is the most widely recognized function of the Land Department with over 4,500 leases held by approximately 2,200 lessees. School lands are found in 50 counties statewide, are concentrated in the state’s livestock producing regions, and consist of 97% pasture and 3% crop or hay.

School lands are leased at public auctions with maximum lease terms of 5 years. A Fair Market Value leasing system sets the minimum bids for each tract so they compare to what private landowners in the area are getting for their leases. Private rental rates are obtained from an annual statewide survey of farmers and ranchers, compiled on a county by county basis, and adjusted for tract quality and other factors. Currently, state lands are nearly 100% leased; producing over $4 million in income each year.

The Surface Management Division also processes easements for pipelines, electrical transmission lines, county roads and highways and leases for gravel and aggregate mining.