OAC 385:25 — Surface Leasing for Agricultural and Commercial Purposes (§ 385:25-1-1 to 385:25-1-44)

This Chapter establishes procedures for acquiring a surface lease on School Land either for agricultural or commercial purposes as authorized by 64 O.S. §§ 1023 and 1056 et seq. or acquiring an easement across trust lands. Notes Okla. Admin. Code § 385:25-1-1 Amended at 16 Ok Reg…

When a lease is forfeited, canceled or judicially terminated for nonpayment of rent or violation of contract, the Commissioners may offer the lease to the highest bidder under sealed bid or at public auction. The Commissioners retain the right to collect remaining lease rental le…

Notes Okla. Admin. Code § 385:25-1-11 Revoked at 16 Ok Reg 1451, eff 5-27-99 AUTHORITY: OK-OAC 64 O.S., §§ 260, 1001 through 1002, 1004, 1018 through 1019, 1023, 1043, 1050 through 1052, 1056 through 1062, and 1093

The State shall reserve the right to sell or commercially develop all or any part of the premises leased, or any lesser estate, right, easement, commercial lease, or other interest at any time. If less than the entire tract is sold or leased, the annual rental may be reduced prop…

(a) Easements. The State shall reserve for itself, its lessees, permittees or grantees, and their assigns, easements for ingress and egress for any purpose of exploring for, drilling, producing, storing and marketing of oil, gas, coal, and any other minerals which may be produced…

(a) Consent. No improvements shall be placed upon School Land without written consent of the Commissioners. (b) Compliance with law. Any improvements placed on School Land not in compliance with Commission rules or Oklahoma Statutes shall be deemed to become the property of trust…

All surface lessees of school lands must agree to sign and execute any soil conservation plan or program promulgated or approved by the Secretary, and to comply with the terms of such plan or program and must specifically agree to maintain all terraces, ponds, dams, waterways, we…

The lessee of agricultural land shall comply with established farm programs to protect crop bases and allotments as set out in the invitation to bid and lease contract. Notes Okla. Admin. Code § 385:25-1-15 Amended at 16 Ok Reg 1451, eff 5-27-99; Amended at 29 Ok Reg 1306, eff 6-…

All agricultural leases shall specify the number of acres cultivated, acres non-cultivated, and acres nonusable. The acreage designations are provided in the invitation to bid and are incorporated by reference into the lease contract. No change in the use of any portion of the la…

No surface lease nor any lessee owned improvements may be assigned, transferred, conveyed or relinquished without prior written consent of the Commissioners. The State shall have a lien on all property of the lessee, whether improvements, crops or movable structures, to the exten…

Violation of any of the provisions of a surface lease or failure to pay rent on school land shall subject the lessee to legal or administrative action or both at the option of the Commissioners to collect rent or damages or both. Notes Okla. Admin. Code § 385:25-1-18 Amended at 1…

No agricultural lease shall be executed in favor of any corporation or its agent, or a third party for the use and benefit of a corporation, except as provided in 18 Okl. St. Ann., 1981 §951, et seq. (Farming & Ranching Act). Notes Okla. Admin. Code § 385:25-1-19 Amended at 16 Ok…

In addition to terms defined in 64 O.S. §§ 1023 and 1056 et seq. the following words or terms when used in this Chapter shall have the following meaning unless the context indicates otherwise: "Commercial lands" means those trust lands which may have a greater value or use which …

(a) Holdover tenants bound by an agricultural lease shall be billed at a rate and terms of the expired lease contract. Legal proceedings will be brought to remove the holdover tenant from the premises and for payment of accrued rental, interest and costs for the holdover period. …

(a) Form and method. Prior to any property being offered for surface lease, an appraisal for rental purposes on form provided by Commissioners of the Land Office shall be made by appraisers of the Land Office. Appraisals will be made in accordance with Uniform Standard of Profess…

The awarding of all surface leases will be in compliance with 64 O.S. §§ 1023 and 1056 et seq; and the mandates ofO.E.A. v. Nigh, 642 P.2d 230 (1982), and where applicable, at the sole discretion of the Commissioners. The Notice of Invitation to Bid shall be incorporated by refer…

The public bid process for school land surface leases shall be as follows: (1) Notice. The method for advertising the leases for public bid shall be at the sole discretion of the Commissioners, or their designee, and to provide the best method to provide the information to prospe…

Upon approval and acceptance by the Secretary to the Commissioners and receipt of the balance of the first year's rent, the lessee(s)' copy of the lease contract will be mailed to the successful bidder and Lessor's copy retained by the Land Office. Failure to execute and return c…

At the termination of a lease, the lessee may remove any or all improvements made by the lessee and shall have the right to harvest or remove any growing crop on the land. If the lessee is in default of any terms of the lease, the lessee shall not be allowed to remove the improve…

Notes Okla. Admin. Code § 385:25-1-26 Revoked at 16 Ok Reg 1451, eff 5-27-99 AUTHORITY: OK-OAC 64 O.S., §§ 260, 1001 through 1002, 1004, 1018 through 1019, 1023, 1043, 1050 through 1052, 1056 through 1062, and 1093

Notes Okla. Admin. Code § 385:25-1-27 Revoked at 16 Ok Reg 1451, eff 5-27-99 AUTHORITY: OK-OAC 64 O.S., §§ 260, 1001 through 1002, 1004, 1018 through 1019, 1023, 1043, 1050 through 1052, 1056 through 1062, and 1093

Notes Okla. Admin. Code § 385:25-1-28 Revoked at 16 Ok Reg 1451, eff 5-27-99 AUTHORITY: OK-OAC 64 O.S., §§ 260, 1001 through 1002, 1004, 1018 through 1019, 1023, 1043, 1050 through 1052, 1056 through 1062, and 1093

Notes Okla. Admin. Code § 385:25-1-29 Revoked at 16 Ok Reg 1451, eff 5-27-99 AUTHORITY: OK-OAC 64 O.S., §§ 260, 1001 through 1002, 1004, 1018 through 1019, 1023, 1043, 1050 through 1052, 1056 through 1062, and 1093

All trust lands are subject to lease and the Commissioners of the Land Office are in charge of leasing the lands to maximize the income to the Trust beneficiaries while taking necessary care to conserve and preserve the trust estate, reserving the right to refuse any or all bids.…

Upon approval of the Commissioners of the Land Office and payment of all amounts due on lease, lessee may assign the lease by completing forms provided by the CLO. Notes Okla. Admin. Code § 385:25-1-30 Amended at 16 Ok Reg 1451, eff 5-27-99 AUTHORITY: OK-OAC 64 O.S., §§ 260, 1001…

(a) Prohibition of sublease of an agricultural lease. Subleasing of an agricultural lease is prohibited. (b) Commercial leases. Commercial leases may be sublet as provided in the commercial lease contract. (c) Sublease without permission cause for cancellation. Subleasing without…

All commercial leases shall be for a term not to exceed fifty-five (55) years, the exact term to be at the sole discretion of the Commissioners. Notes Okla. Admin. Code § 385:25-1-32 Added at 16 Ok Reg 1451, eff 5-27-99 AUTHORITY: OK-OAC 64 O.S., §§ 260, 1001 through 1002, 1004, …

(a) Upon categorization of trust land as commercial and prior to its being offered for lease, an appraisal for fair market value shall be made by appraisers designated by the Land Office on a form acceptable to the Commissioners of the Land Office. Appraisals will be made in acco…

(a) Short term commercial leases. Commercial leases with a term of three (3) years or less must be for annual rent of not less than fair market rental value, but no public bidding is required. (b) Long term commercial leases. Commercial leases with a term of over three years shal…

Unless lessee is otherwise exempt by Constitution or statute, ad valorem property taxes shall be paid on any improvements and structures which would be subject to ad valorem property taxes if constructed on privately owned land. Notes Okla. Admin. Code § 385:25-1-35 Added at 16 O…

Any permanent improvement made on commercial trust property after July 1, 1989, shall revert to the Trust at the expiration or termination of the lease unless the Commissioners and the lessee agrees to allow removal of improvements prior to the expiration or termination of the le…

At the sole discretion of the Commissioners, funding may be provided for development of plans and building infrastructure on commercial lands to be developed. Notes Okla. Admin. Code § 385:25-1-37 Added at 16 Ok Reg 1451, eff 5-27-99 AUTHORITY: OK-OAC 64 O.S., §§ 260, 1001 throug…

Commissioners may plat lands for commercial development and designate and dedicate to the appropriate governmental entity easements for a utility corridor and streets to service the development. Notes Okla. Admin. Code § 385:25-1-38 Added at 16 Ok Reg 1451, eff 5-27-99 AUTHORITY:…

Notes Okla. Admin. Code § 385:25-1-39 Added at 16 Ok Reg 1451, eff 5-27-99; Revoked at 29 Ok Reg 1306, eff 6-25-12 AUTHORITY: OK-OAC 64 O.S., §§ 260, 1001 through 1002, 1004, 1018 through 1019, 1023, 1043, 1050 through 1052, 1056 through 1062, and 1093

All leases of lands for agricultural or commercial purposes shall be in writing and shall be upon such terms and conditions and at such rental as may be determined by the Commissioners. All such leases shall be upon the form furnished by the Commissioners. All leases shall contai…

Notes Okla. Admin. Code § 385:25-1-40 Added at 16 Ok Reg 1451, eff 5-27-99; Revoked at 29 Ok Reg 1306, eff 6-25-12 AUTHORITY: OK-OAC 64 O.S., §§ 260, 1001 through 1002, 1004, 1018 through 1019, 1023, 1043, 1050 through 1052, 1056 through 1062, and 1093

(a) Authorization. The Commissioners may authorize exchange of lands held in Trust for other lands held by other entities on an equal value basis. (b) Criteria. It is the intent of the CLO to exchange lands held in Trust that are landlocked, too small in size to be an economic un…

Irrigation permits may be issued to agricultural lessees for the purpose of irrigating CLO Trust Lands. The permit fee shall be determined by the market value rental amount for irrigated acres for comparable deeded land. The permit shall have a delinquency interest rate of 16%. T…

The Commissioners, or their designee, may authorize issuing right of entry permits for the purpose of individuals searching for Treasure Trove on CLO Trust lands. The fee and term for the permit shall be determined by the appropriate land management personnel but in no case shall…

(a) Commission. A real estate broker commission may be paid to a Broker who represents a commercial business that acquires a long-term commercial lease from the CLO. The broker's fee shall only be paid when the commercial business has opened the business for operation. (b) Fee. T…

(a) Agricultural lease terms. All surface leases for agricultural purposes will be appraised for market value annual rental and offered at public bid for terms not to exceed five (5) years at not less than the appraised market value. (b) Short term commercial leases. The granting…

Notes Okla. Admin. Code § 385:25-1-6 Revoked at 16 Ok Reg 1451, eff 5-27-99 AUTHORITY: OK-OAC 64 O.S., §§ 260, 1001 through 1002, 1004, 1018 through 1019, 1023, 1043, 1050 through 1052, 1056 through 1062, and 1093

The term of all surface leases will be in compliance with 64 O.S. § 1023, and where applicable, at the sole discretion of the Commissioners. Notes Okla. Admin. Code § 385:25-1-7 Amended at 15 Ok Reg 1754, eff 5-12-98; Amended at 29 Ok Reg 1306, eff 6-25-12 AUTHORITY: OK-OAC 64 O.…

The State shall have the right to designate certain tracts that are in need of extensive conservation work as special conservation leases. A complete plan of conservation work shall be developed. Any such Plan would contain projects needed, completion dates of each practice, and …

The heir(s) or devisee(s) of a deceased lessee shall succeed to the interest and have all rights of the lessee under the lease contract. Notes Okla. Admin. Code § 385:25-1-9 Amended at 16 Ok Reg 1451, eff 5-27-99 AUTHORITY: OK-OAC 64 O.S., §§ 260, 1001 through 1002, 1004, 1018 th…