Senate Bill No. 472-Committee on Natural Resources
June 21, 1997
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Referred to Committee on Natural Resources
SUMMARY--Establishes minimum amount of fees that may be charged for certain leases of state land used for grazing livestock. (BDR 26-1013)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: No.
EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.
AN ACT relating to grazing fees; establishing the minimum amount of fees that may be charged for certain leases of state land used for grazing livestock; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1 Chapter 322 of NRS is hereby amended by adding thereto a new section to read as follows:
1. The fee for the term or any portion of the term of a lease of land for grazing livestock entered into pursuant to NRS 322.060 must not be less than:
(a) The minimum grazing fee determined pursuant to subsection 2; or
(b) The base value of the land determined pursuant to subsection 3,
whichever is greater.
2. To determine the minimum grazing fee for the purposes of subsection 1, the administrator of the division of state lands of the state department of conservation and natural resources, as ex officio state land registrar, shall:
(a) For each of the 3 years immediately preceding the year in which the land is leased:
(1) Divide the price of cattle as set forth in the beef price index for that year by the cost to produce livestock as set forth in the production price index for that year; and
(2) Multiply the quotient calculated pursuant to subparagraph (1) by the base value of the land determined pursuant to subsection 3 for that year; and
(b) Upon determining an amount for each year pursuant to paragraph (a), add each of those amounts and divide the sum by 3.
3. To determine the base value of the land for the purposes of subsection 1, the administrator shall determine the total number of animal unit months for the term of the lease and multiply that amount by $1.94. Every 6 years, the state land registrar shall revise the base value of the land determined pursuant to this subsection to adjust for inflation.
4. As used in this section:
(a) "Animal unit month" means the amount of forage required to sustain one cow for one month on any land specified in subsection 1.
(b) "Beef price index" means the index that:
(1) Indicates the price of cattle in this state; and
(2) Is published annually by the United States Department of Agriculture.
(c) "Production price index" means the index that:
(1) Indicates the cost to produce livestock in this state; and
(2) Is published annually by the United States Department of Agriculture.
Sec. 2 NRS 322.060 is hereby amended to read as follows:
322.060Leases or easements authorized pursuant to the provisions of NRS 322.050, and not made for the purpose of extracting oil, coal or gas or the utilization of geothermal resources from the lands leased, must be:
1. For such areas as may be required to accomplish the purpose for which the land is leased or the easement granted.
2. Except as otherwise provided in NRS 322.065 and 322.067, and section 1 of this act, for such term and consideration as the administrator of the division of state lands of the state department of conservation and natural resources, as ex officio state land registrar, may determine reasonable based upon the fair market value of the land.
3. Executed upon a form to be prepared by the attorney general. The form must contain all of the covenants and agreements usual or necessary to [such] those leases or easements.
Sec. 3 The amendatory provisions of this act do not apply to a lease specified in section 1 of this act that is executed before July 1, 1997.
Sec. 4 This act becomes effective on July 1, 1997.