No net loss sale procedure.

85-04-07-03. No net loss sale procedure. 1. The department may recommend a tract of land that meets the criteria of section 85-04-07-02 to the commissioner for consideration for a no net loss sale. 2. If the commissioner determines to proceed with the sale, the commissioner shall present to the board the proposed no net loss land sale for preliminary review. Upon a determination that the board is willing to sell, the department shall: a. Notify the lessee if the lands are leased. b. Publish a notice of sale, that includes a request for bidders, pursuant North Dakota Century Code chapter 15-06. The notice of sale must contain: (1) The legal description of the proposed trust land tract to be sold; 2 (2) Instructions on how to register to bid; and (3) Deadline for bidders to register. c. Procure all appraisals from a certified appraiser for tracts to be sold and for lands provided for consideration as follows: (1) Appraisals must be obtained in accordance with North Dakota Century Code sections 15-06-22 and 15-06-23. (2) Appraisals for trust lands and the proposed no net loss sale land must be appraised by the same certified appraiser. (3) If the commissioner is not satisfied with the appraisals, the commissioner may require additional appraisals by alternative certified appraisers. d. Solicit public comment regarding the proposed sale. All comments must be in writing and include the following: (1) Name and address of the interested person; (2) The legal description of the proposed tract for sale as shown on the published notice; and (3) A detailed statement as to whether the interested person supports or opposes the sale. 3. a. To register, bidders shall provide the following: (1) A nonrefundable application fee; and (2) A legal description of the lands to be provided for consideration. b. Bidders shall agree to an offer to purchase that contains the following: (1) Bidder is subject to all costs associated to the bidder review and sale process, including: (a) Appraisal costs; (b) Title examination; and (c) Legal survey, if deemed necessary by the commissioner. (2) Bidder agrees to allow the department and its agents access to the lands offered for consideration or shall procure access on department's behalf. c. The department shall review the lands proposed by each potential bidder to determine if they meet the criteria under section 85-04-07-02. 4. The board shall review all approved registered bidders, including appraisals and land offered for consideration, any public comments, other relevant information including title examinations, and determine whether to proceed with the sale. If the board decides to proceed with the sale, the board shall establish a minimum acceptable sale price and the following must be conducted: a. If the land is leased, the commissioner shall notify the lessee within the months of October through January of the intent to sell the property. 3 b. The commissioner shall conduct an auction pursuant to North Dakota Century Code chapter 15-06. c. A purchase agreement shall be executed with the winning bidder at the closing of the sale. The purchase agreement must require: (1) The purchaser to pay twenty percent of the purchase price at the time the purchase agreement is executed; and (2) The purchaser to convey the land used as consideration within sixty calendar days after execution of the agreement. The commissioner may extend the deadline to convey, at the commissioner's sole discretion, up to a maximum of one hundred eighty days after execution of the purchase agreement. d. If no bids are received at auction, the tract may be sold for the board established minimum acceptable sale price to the first interested party at a private no net loss sale during the six months following the date of the auction. 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