Requirements of no net loss sale.

85-04-07-02. Requirements of no net loss sale. A sale of original grant lands, excluding sale of of tracts listed in subsection 1, 2, or 3 of section 85-04-07-01 is subject to the following: 1. The proposed sale must result in no net loss of leasable original grant lands; and 2. The land provided as consideration must provide accessible and leasable land equal or greater in acres, unless otherwise provided in this section, and value to the trust from which the original grant lands were sold, for which the department then shall consider the criteria listed below for any no net loss sale. Land provided for a no net loss sale is not required to satisfy all criteria outlined below. Criteria must be considered in a cumulative manner and meeting certain criteria may not guarantee approval. a. A no net loss sale must result in the board receiving equal or greater asset value to the trusts. Any appraisals considered by the department must include both the values for the trust lands' highest and best use and the current use. b. The department may consider features not reflected in the market price to which it is difficult to assign a monetary value, including location, proximity to public lands, 1 recreational opportunities, scenery, other amenities, and results of cultural resources inventories in evaluating the relative value of trust lands. c. A no net loss sale must result in the board receiving equal or greater income to the trusts. The projected income for the proposed no net loss sale land must be estimated using the board's minimum lease rate. The minimum lease rate for the proposed no net loss sale land must be compared to the present income received by the trusts from the trust lands, including all current and potential future revenue streams from surface leases, encumbrances, development of natural resources, and other sources, and any tax liability. d. A no net loss sale must result in the board receiving equal or greater acreage, except the board may consider receiving less acreage in return for one or more of the following: (1) Improved dedicated access; (2) Substantially higher value in relation to the amount of acres lost; or (3) Substantially higher income in relation to the amount of acres lost. e. The proposed no net loss sale may not fragment trust land holdings by creating isolated parcels of trust land. f. The proposed no net loss sale land must have similar income and value potential as the trust lands. g. A no net loss sale may not diminish access to trust lands. The no net loss land should provide equal or improved access. 3. In connection with any no net loss sale the department may use any available information, including information provided by the applicant or the department's own knowledge, regarding lands and resources to estimate value for purposes of a preliminary evaluation, including completion of an environmental assessment. 4. In all no net loss sales and subject to applicable law, the board shall reserve all minerals underlying the trust lands pursuant to section 5 of article IX of the Constitution of North Dakota. History: Effective January 1, 2021; amended effective April 1, 2026. General Authority: N.D. Constitution article IX, § 6; NDCC 15-01-02, 28-32-02 Law Implemented: NDCC 15-06, 15-08