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State
Oregon
ORS 273.775-273.790 MINERAL AND GEOTHERMAL RESOURCE RIGHTS

MINERAL AND GEOTHERMAL RESOURCE RIGHTS (http://www.leg.state.or.us/ors/273.html Accessed 2/14/2006)

273.775 Definitions for ORS 273.775 to 273.790



273.780 Certain mineral and geothermal resource rights property of state; exploration permit or lease; sale or exchange



273.785 Application of ORS 273.551 and 273.775 to 273.790; prohibition on retaining mineral or geothermal rights



273.787 Release and transfer of mineral or geothermal resources



273.790 Registry of rights under state board

MINERAL AND GEOTHERMAL RESOURCE RIGHTS



273.775 Definitions for ORS 273.775 to 273.790. (1) “Mineral” includes oil, gas, sulfur, coal, gold, silver, copper, lead, cinnabar, iron, manganese and other metallic ore, and any other solid, liquid or gaseous material or substance excavated or otherwise developed for commercial, industrial or construction use from natural deposits situated within or upon state lands, including mineral waters of all kinds.

(2) “Geothermal resources” shall have the same meaning given in ORS 522.005. [1974 c.51 §3; 1975 c.552 §41; 1981 c.588 §1; 1981 c.694 §1; 1983 c.740 §70a]



273.780 Certain mineral and geothermal resource rights property of state; exploration permit or lease; sale or exchange. (1) Mineral and geothermal resource rights in property owned by any state agency and mineral and geothermal resource rights retained as an interest in lands previously sold, granted or otherwise conveyed by the state or any agency thereof are property of the State of Oregon. Except as provided in ORS 273.785, proceeds therefrom shall accrue to the Common School Fund, and the State Land Board is declared to be the state agency acting for the state in any transaction respecting such mineral and geothermal resource rights.

(2) In addition to applicable requirements of ORS chapter 522, such mineral and geothermal resource rights shall be subject to exploration permit or lease by the Department of State Lands, in accordance with rules and conditions established by law or adopted by the department.

(3) Such mineral and geothermal resource rights shall be retained by the state in the absence of a finding by the State Land Board upon adequate facts presented to it that their sale or exchange is for the purpose of obtaining the greatest benefit for the people of this state, consistent with the conservation of lands under its jurisdiction under sound techniques of land management. [1974 c.51 §2; 1975 c.552 §40]



273.785 Application of ORS 273.551 and 273.775 to 273.790; prohibition on retaining mineral or geothermal rights. (1) Excluded from the operation of ORS 273.551 and 273.775 to 273.790 are:

(a) Soil, clay, stone, sand and gravel acquired or used by state agencies for the purpose of constructing or repairing roads or other state facilities, or the proceeds from such materials;

(b) Any mineral or geothermal resource rights or proceeds therefrom acquired and held by the State Fish and Wildlife Commission pursuant to Public Law 415, 75th Congress (50 Stat. 917, 16 U.S.C. 777); or if other disposition is required by federal rules or regulations or any agreement entered into at the time of acquisition of the mineral or geothermal resource rights by the state;

(c) Proceeds of mineral and geothermal resource rights acquired by the state pursuant to ORS 530.010 and 530.030, other than those distributed under ORS 530.110 (1)(c);

(d) Any mineral or geothermal resource rights or proceeds therefrom acquired after January 1, 1974, for the state by the Director of Veterans’ Affairs pursuant to ORS 88.720, 406.050 (2), 407.135 or 407.145. After consultation, the Department of State Lands and the Director of Veterans’ Affairs shall enter into an interagency agreement governing consultation between them concerning mineral and geothermal resource values on properties acquired for the state by the director. The Director of Veterans’ Affairs shall also adopt rules relating to the release of mineral and geothermal rights on such properties; and

(e) Any mineral or geothermal resource rights or proceeds therefrom given by a donor to any institution, department or activity under the control of the State Board of Higher Education that are acquired or held for the state by the State Board of Higher Education pursuant to ORS chapters 351 and 567. In managing mineral or geothermal resource leases, the State Board of Higher Education shall consult with the Department of State Lands in accordance with an interagency agreement established by the department and the State Board of Higher Education governing consultation between the department and the State Board of Higher Education and governing management of such mineral or geothermal resources.

(2) Notwithstanding ORS 273.780 (3), when the Department of State Lands offers real property for sale, the department may not retain the right to mineral or geothermal resources if:

(a) On January 1, 2004, the real property was located:

(A) Inside an urban growth boundary; or

(B) Within an area zoned for residential use on a lot or parcel that is three acres or smaller in size; and

(b) The value, if any, of the right to the mineral or geothermal resources is included in the total sale price of the real property. [1974 c.51 §4; 1991 c.467 §1; 2001 c.453 §1; 2003 c.676 §1]



273.787 Release and transfer of mineral or geothermal resources. (1) As used in this section:

(a) “Owner” means:

(A) The record holder of fee title interest in residential real property; or

(B) The contract purchaser of residential real property.

(b) “Residential real property” means real property that is sold by the Department of State Lands for the State Land Board and is located:

(A) Inside an urban growth boundary; or

(B) Within an area zoned for residential use on a lot or parcel that is three acres or smaller in size.

(2) An owner may apply to the department for release and transfer of the rights to mineral or geothermal resources reserved by the State of Oregon.

(3) Upon application by the owner, the department shall release and transfer to the owner the reserved rights to mineral and geothermal resources within 30 days after the first board meeting that is at least 60 days after the department received the completed application for release and transfer of the rights, unless the board finds that a significant mineral or geothermal resource exists. If the board finds that a significant mineral or geothermal resource exists, the owner may:

(a) Offer to purchase the resource for the value of the resource; or

(b) Withdraw the application.

(4) If the board finds that a significant mineral or geothermal resource exists under subsection (3) of this section and the owner offers to purchase the resource for the value of the resource:

(a) The board shall determine the value of the resource on the basis of an appraisal conducted by a state certified appraiser certified under ORS 674.310 or by a geologist who is registered under ORS 672.505 to 672.705 and qualified to assess the value of mineral and geothermal deposits.

(b) The board may not:

(A) Require an owner to obtain an appraisal under this section; or

(B) Require an owner to pay the cost of an appraisal conducted at the request of the board under this section.

(5) The department may charge a reasonable fee, not to exceed $150, to process an application under this section.

(6) The department may adopt rules to implement this section. [2003 c.676 §3]



273.790 Registry of rights under state board. The Department of State Lands shall establish and maintain a registry of mineral and geothermal resource rights placed under the jurisdiction of the State Land Board. [1974 c.51 §5]