Surface Management

SURFACE LAND LEASE

eyland_leaseagreementname                                                                                        

Lease number: ndland_leasenum                    Expires: eyland_expirationdate              

           The State of North Dakota, acting by and through the Board of University and School Lands (“LESSOR”) and its agent, the Commissioner of University and School Lands (”COMMISSIONER”), hereby leases to LESSEE the land in ndland_countyidnameCounty, ND & described herein ("the Lease"):

(the “LAND”)

    THIS LEASE, executed this eyland_effectivedate, and between LESSOR and the following LESSEE, is conditioned upon payment of ndland_annualrent, before January 1 of each year and LESSEE'S compliance with all of the terms of this Lease.  (The first year’s rent has been paid.)

         (the “LESSEE”)

AUTHORIZED USES

(Cropland:  ndland_cropacres Acres)         (Hayland:  ndland_hayacres Acres)        (Grass:  ndland_grassacres Acres)

TERMS AND CONDITIONS

         1.   LEASE TERM.  The Lease term (“Lease Term”) begins on this eyland_effectivedate, and ends on eyland_expirationdate.

         2.  ASSIGNMENTS AND THIRD PARTY USE.  This Lease or any part thereof shall not be assigned, nor shall LESSEE allow the land or any part thereof to be used in any manner by anyone other than LESSEE without the prior written consent of COMMISSIONER.  A grazing permit issued by a grazing association to a member‑permittee does not violate this clause.

         3.  PROHIBITED USES.  The land shall only be used for the purposes set forth above.  LESSEE may not cultivate additional acreage or change the location of fields. Other prohibited uses include, but are not limited to, equipment storage; hay storage; trash dumping; rock dumping; feedlots; feeding; draining water on or off the land; mining scoria, gravel, clay, or any other minerals; cutting wood; or allowing others to do the same unless authorized in writing by LESSOR.

         4. NONPERMANENT IMPROVEMENTS.  LESSEE may place nonpermanent improvements, (e.g., fences, corrals, water tanks, and mobile calf creep feeders) on the Land and must remove any such improvements within one-hundred twenty (120) days after this Lease is terminated or expires, whichever is earlier.  Any nonpermanent improvements not removed within one-hundred twenty (120) days shall become the property of the next lessee.  COMMISSIONER, upon written request from LESSEE received before the end of the 120‑day period, may, for cause, extend the period of time for removing nonpermanent improvements.

         5. PERMANENT IMPROVEMENTS.  Permanent improvements (e.g., buildings, wells, dams, water holes, water lines, trees) may not be placed on or removed from the Land without prior written consent of COMMISSIONER.  All permanent improvements shall be deemed the property of LESSOR.  However, at the discretion of COMMISSIONER, the cost of permanent improvements may be paid to the LESSEE to protect the LESSEE'S investment in the Land or in the event the Land is leased to another person, sold, or exchanged.  To be eligible for such cost share, the application must be received and approved by COMMISSIONER prior to the commencement of construction of any such permanent improvement.

         6. USE AND MAINTENANCE OF PERMANENT IMPROVEMENTS. LESSEE may use existing wells, dams, dugouts and water lines on the Land and any other improvements belonging to LESSOR. Said use is subject to payment of any undepreciated costs of improvement projects remaining as of the effective date of this Lease.  LESSEE shall maintain all improvements belonging to LESSOR, at no expense to LESSOR, in as good condition as received, normal wear excepted.  Major repairs to improvements must be approved in writing by COMMISSIONER prior to beginning work.  All repairs shall be deemed the property of LESSOR subject only to the right of LESSEE to request cost share for major repairs, as defined in paragraph 5.

         7. LESSEE ACCEPTS LIABILITY FOR INJURIES AND DAMAGES TO HIMSELF AND OTHERS - CONDITION OF PREMISES.  LESSOR makes no representation concerning the condition, safety, or usability of the Land or any improvements thereon. LESSEE leases the Land and any improvements on an "as is" basis.   LESSOR does not covenant that the Land and its improvements are fit or safe for the purposes for which LESSEE intends to use them. LESSEE accepts liability and indemnifies and holds harmless LESSOR for any loss that may be suffered by the person or property of LESSEE, LESSEE’S employees and agents, and anyone else, when such loss is in any way related to LESSEE’S use and management of the Land and its improvements.

         8. RANGELAND USE.  LESSEE shall not allow overgrazing which would result in forage production below the potential forage production for good range condition.

         9. CROPLAND USE.  If cropland is specifically authorized by this Lease, LESSEE shall maintain the Land consistent with good cropping practices for similar soils in the area.  LESSEE shall prevent soil loss through erosion in excess of the established soil loss tolerance by the use of crop residue management, reduced tillage practices, grassed waterways, stripcropping, or any other accepted conservation practices.  Cropland must be farmed under the Federal crop program such that crop bases are maintained unless exempted in writing by COMMISSIONER.                                                                                                          

         10. WEED CONTROL.  LESSEE shall control all noxious weeds on the Land and maintain the Land in a reasonably weed free condition.

         11. CONSERVATION PLAN.  LESSOR reserves the right to require LESSEE to implement a soil conservation or range management plan at any time during the Lease to prevent damage or to improve the condition of the Land. 

         12. ROAD DITCHES.  LESSEE shall mow and maintain road ditches as required by law.

         13. PUBLIC ACCESS.  LESSEE may not post or otherwise prohibit non‑vehicular public access to the land, but exceptions may be granted at the sole discretion of COMMISSIONER.  If LESSEE desires to be notified prior to anyone entering the land, LESSEE shall post only signs provided by COMMISSIONER setting forth LESSEE'S name, address, and telephone number.  LESSEE may not lease, sell or otherwise charge for access on the land.

         14. ENCUMBRANCES.  This Lease is subject to all existing and future coal, oil, natural gas, uranium, gravel, scoria, clay, and other mineral leases and exploration permits covering the Land.  LESSEE agrees that the holders of such leases or permits may enter upon the Land and conduct exploration and mining operations.  This Lease is further subject to all existing and future easements, rights-of-way, and other servitudes covering the Land and LESSEE agrees to honor the same.  LESSEE shall not be entitled to any compensation by reason of such leases, permits, easements, rights-of-way, or servitudes unless otherwise provided for by LESSOR.

         15. RIGHT OF ENTRY.  LESSOR or its agent may enter the Land at any time without notification for the purpose of inspecting the Land and improvements thereon.  LESSEE further agrees to allow LESSOR or its agent access to the Land across LESSEE'S property, or property leased by the LESSEE.

         16. SALE OR EXCHANGE.  This Lease is specifically made subject to termination in the event LESSOR notifies LESSEE, during the months of October through January of any year during the Lease Term, that all or a portion of the Land will be sold or exchanged by LESSOR.  If the Land is sold or exchanged, LESSEE shall surrender possession of the Land within thirty days of LESSOR mailing to LESSEE a notice of the sale or exchange.

         17. COMPLIANCE WITH LAWS AND REGULATIONS.  LESSEE shall comply with all rules and regulations of the Board of University and School Lands and all state and federal laws, including payment of any taxes and special assessments levied against the Land and costs associated with management of the Land or LESSEE'S interest thereon.

         18. FAILURE TO PAY RENT.  If LESSEE fails to pay rent when due, this Lease shall automatically expire on the last day of the lease period for which rent was last paid.  In order to enforce such forfeiture of Lease, no demand for rent either written or verbal need be given LESSEE nor is a notice of termination required.

         19.  CANCELLATION.  If LESSEE fails to comply with any of the terms and conditions of this Lease, it may be cancelled by LESSOR.    Cancellation is effective upon actual delivery of a notice of cancellation by LESSOR, except that no notice is required for cancellation as provided in paragraph 18.

         20. NO WARRANTY OF TITLE.  LESSOR neither warrants nor agrees to defend title to the Land.

21.  ADDITIONAL LEASE PROVISIONS. This Lease is made subject to any additional lease provisions made known prior to leasing which are hereby attached and made a part hereof.

         22. AMENDMENTS.  Lease amendments must be in writing and executed by both the LESSOR and LESSEE. 

         IN WITNESS WHEREOF, the State of North Dakota, acting by and through the Board of University and School Lands, has caused this Lease to be executed in its name by its agent, the Commissioner of University and School Lands.

                                    THE STATE OF NORTH DAKOTA, acting by and through the

                                                                         Board of University and School Lands

                                                                Commissioner of University and School Lands

NORTH DAKOTA DEPARTMENT OF TRUST LANDS

1707 N 9^th Street

P.O. Box 5523

Bismarck, ND  58506‑5523

701-328-2800

https://land.nd.gov

SFN14791 (01/2022)

Surface Leasing - Frequently Asked Questions

For additional information please contact the Department at (701) 328-2800

What are Trust Lands?

At statehood, lands were granted to the state (typically section 16 and 36 of every township) with the sole purpose of providing funding for "common schools". Currently the North Dakota Department of Trust Lands (NDDTL) manages approximately 706,480 surface acres and 2.6 million mineral acres. NDDTL is charged with managing these lands and 18 separate Trusts and Funds, with the largest Trust being the Common Schools Trust (K-12th grade students are the recipients of the Common School Trust fund dollars).

Who can lease Trust Lands?

Anyone can lease Trust Lands with a few caveats. Bidders and lessees must be 18 years of age or older and provide payment in full at the auction. Trust Lands can only be leased for pasture and meadow purposes which is laid out in the ND Constitution.

How long is a Trust Lands lease?

Leases are usually offered for a 5-year term, effective from January 1st to December 31st. In some cases, NDDTL may offer leases for shorter terms than the standard. Rents are fixed for the life of the term.

When and where are Surface Lease Auctions Held?

Auctions are held in-person, in the county seat where the land is located. The Department conducts most auctions in the Fall, around October. But auctions are also held on a limited basis in the Spring. Auctions are open to the public.

How does bidding occur on School Trust Lands?

Tracts are offered according to the advertisement, in order of appearance. Bids will start at the minimum advertised Fair Market Value (FMV) Price. No bids lower than the advertised amount will be accepted.

Is a lease payment due every year?

Yes, the first year’s lease payment is due directly after the lease auction. Subsequent yearly payments are due before the last business day in January.

Can a tract be subleased?

Subleasing is a direct violation of the lease. Lessees should contact the department in advance of any third party use so that NDDTL can determine whether the arrangement is prohibited by the lease. Allowances can be made for shares agreements, custom grazing, or grazing associations if disclosed in advance.

How can Trust Lands be used?

Trust Lands are leased under three main categorizes: Grass, Crop, and Hay.

Grass: These acres may either be grazed or, if suitable, hayed.

Crop: These acres designated for annual crop production and may be utilized for cash crops, hay, or forage.

Hay: These acres must remain in perennial cover and cannot be cropped. Hayland renovations may be approved by Department.

Who owns the fence on Trust Lands?

The Department does not own or provide fence on School Trust Lands (except for a few rare circumstances). An existing fence may belong to the previous lessee or be owned wholly or partially by an adjacent landowner. NDDTL does not determine or defend claim to fencing materials; meaning bidders are responsible to provide fence or make necessary arrangements to obtain it. Rental rates are discounted from the market average to offset for the lack of fence.

Is access to Trust Lands guaranteed to lessees?

Trust Lands are leased as is and NDDTL makes no guarantee of legal access. Bidders should ensure they have legal access to tracts before leasing them at auction.

Do Trust Lands have water available for livestock?

Access to water for livestock depends on the specific tract of Trust Lands. Trust Lands may have dams, dugouts, wells, or in some cases no access to water. Cost share is available to install water developments. It should be noted that any non-permanent infrastructure associated to a water development (water tanks, submersible pump, solar panels, etc.) would be the property of the current lessee.

Does Trust Lands have specific turn-in or turn-out dates for cattle grazing?

No, Trust Lands do not have specific grazing timelines or stocking rates as long as the lessee keeps the Trust Lands in a good range condition. If the Trust Lands is determined to not be in good range condition, a specific grazing restriction will be implemented.

Are lessees responsible for noxious weed control?

Yes, lessees are responsible for noxious weed control. Cost share is available for noxious weed control on grass acres for lessees (up to 100% of the approved chemicals and up to 50% of the labor).

Can a lessee control hunting access on Trust Lands?

No, a lessee cannot control hunting access. A Trust Lands lease only grants agricultural use. Trust Lands are open to non-vehicular public access. However, lessees can apply for Trust Lands to be either closed to public access or to receive notification before the public enters Trust Lands. For lands to be closed, specific criteria must be met.

Can a Trust Lands Lease be terminated?

Yes, a Trust Lands lease can be terminated if the lessee has violated the lease terms and conditions.