ANNUAL REPORT 2013 - 2014 Janice K. Brewer Vanessa P. Hickman Governor State Land Commissioner S e r v i n g A r i z o n a ’s S c h o o l s a n d P u b l i c I n s t i t u t i o n s S i n c e 1 9 1 5 Mission Statement To manage State Trust lands and resources to enhance value and optimize economic return for the Trust beneficiaries, consistent with sound business management principles, prudent stewardship, and conservation needs supporting socio-economic goals for citizens here today and future generations. To act in the best interest of Trust for the enrichment of the beneficiaries and preserve the long term value of the State’s Trust lands. Contents Message From the Commissioner ........................................................................ 4 About the Commissioner ...................................................................................... 5 Historical Overview ............................................................................................... 6 Revenues and Beneficiary Summary .................................................................... 8 Land Management Map ........................................................................................ 9 FY 2014 Total Revenue....................................................................................... 10 Permanent Funds ............................................................................................... 11 Expendable Revenue .......................................................................................... 12 Revenue by Beneficiary ...................................................................................... 13 State Trust Land Uses ........................................................................................ 14 Revenue Generation on State Trust Land ........................................................... 15 Fund and Beneficiary Summary: K-12 Education .............................................. 16 Fund and Beneficiary Summary: Universities...................................................... 17 Fund and Beneficiary Summary: Other Grants .................................................. 19 About the Land Department: Divisions and Sections .......................................... 21 Administration..................................................................................................... 21 Land Information, Title and Transfer ................................................................... 21 Real Estate Division ............................................................................................ 22 Appraisal Section ........................................................................................... 22 Planning and Engineering .............................................................................. 22 Rights of Way…………………………………………………………….…………..23 Sales and Commercial Leasing ...................................................................... 23 Information Systems and Resource Analysis ...................................................... 24 Natural Resources Division ................................................................................. 24 Range, Agriculture and Conservation Section ................................................ 24 Environmental Program .................................................................................. 25 Trespass Program .......................................................................................... 25 Minerals .......................................................................................................... 26 Water Rights ................................................................................................... 28 Natural Resource Conservation Districts ........................................................ 29 New Programs .................................................................................................... 30 Governor’s Natural Resources Review Council .............................................. 30 Land Exchange............................................................................................... 31 Board of Appeals ................................................................................................ 33 Financial Schedules ............................................................................................ 34 Receipts by Category .. ……………………………………………………….…….35 Rental Acreage and Receipts………………………………………………………36 Treasurer’s Formula Distribution..................................................................... 37 Janice K. Brewer Governor State of Arizona Please visit our website at www.land.az.gov MESSAGE FROM THE COMMISSIONER The Honorable Janice K. Brewer Governor of Arizona 1700 West Washington Street Phoenix, Arizona 85007 Dear Governor Brewer: It is my privilege to deliver to you the State Land Department’s (ASLD) Annual Report for Fiscal Year 2014 (FY 2014) as required by A.R.S. § 37-132. This report contains a summary of the ASLD’s management activities and the revenue the ASLD earned during the fiscal year. It is my primary and continuing goal to increase revenue for the beneficiaries of the State Trust and to protect the Trust’s long term interest. In FY 2014, the ASLD staff continued their diligent work supporting the Trust. As a result of careful economic planning and prudent stewardship, the ASLD again generated significant revenues for the Trust beneficiaries. In FY 2014, the ASLD generated approximately $259,000,000 for the Trust beneficiaries. We sold 5,744 acres of land increasing the cash value of the Permanent Endowment Fund by $103,000,000 and also received significant revenue from other sources. For example, the royalty receipts from mineral leases contributed $17,000,000 in proceeds this year, compared to $13,000,000 in FY 2013. In addition, we had noteworthy revenue of over $10,000,000 in agriculture and grazing leases, also an increase over FY 2013. These are revenues that directly benefit Trust beneficiaries. The ASLD continues to carry an outstanding balance for previous sales that are financed through the ASLD. The beneficiaries will earn interest on the balance at a rate ranging from five to eleven percent for an average term of seven years. To date, the total outstanding receivable balance from term sales is over $456,000,000 which earns interest on a daily basis. The revenue earned on this balance will be distributed to our beneficiaries over the next several years, and the payments on the remaining principal will be deposited in the Permanent Fund in future years. The ASLD continued to auction Trust land previously reclassified as suitable for conservation during FY 2014. The City of Scottsdale purchased 2,365 acres of Trust land for open space, Flagstaff added 2,251 acres for open space while Pima County added 818 acres of preserve land to its holdings. These conservation sales alone generated $35,000,000 for the Trust. The economic outlook for the ASLD and Trust beneficiaries remains positive. Auctions continue to become more competitive. In December of 2013, we had 15 bids for 105 acres near Tatum Road and Pinnacle Peak. This competitive bidding increased the total selling price by $2,000,000. Thank you for the opportunity to serve Arizona and the Trust beneficiaries as the State Land Commissioner. It has been an honor to work with you, your staff, the staff at the ASLD, and the citizens of Arizona over the past five years. It is my intention to continue to make appreciable advancements of the interests of those we serve. Sincerely, Vanessa P. Hickman State Land Commissioner 4 VANESSA P. HICKMAN Arizona State Land Commissioner ABOUT THE COMMISSIONER In November 2012, Vanessa Hickman was appointed as the Arizona State Land Commissioner. As such, she oversees the management of 9.3 million acres of Trust land across Arizona. Prior to beginning her tenure as Commissioner, Vanessa served as the Deputy State Land Commissioner and Deputy General Counsel to Governor Janice K. Brewer. Vanessa also worked in private practice in real estate litigation, land use and zoning. Vanessa graduated Magna Cum Laude from Arizona State University with a Bachelor of Arts Degree. She received her Juris Doctor from the Sandra Day O’Connor School of Law at Arizona State University. Vanessa is a Faculty Associate at Arizona State University, a member of the Arizona State Bar and serves on the ULI Arizona Advisory Board, ULI Women’s Leadership Initiative, Valley Partnership Board of Directors, the Arizona State Parks Board, Legislative Governmental Mall Commission, Transportation and Trade Corridor Alliance Steering Committee, on the Governor’s Natural Resource Review Council and is an active member of the Western States Land Commissioners Association. 5 Historical Overview LAND GRANT 1915: STATE LAND CODE ESTABLISHED Endowment of public lands for educational purposes was a practice established by the Northwest Ordinance in 1787. Congress established the Territory of Arizona on February 24, 1863 and granted sections 16 and 36 of each township for the benefit of the Common Schools. On May 20, 1912, an act of the First Legislature created the three-member State Land Commission to serve as Arizona’s temporary Land Department. The members were Mulford Winsor, Chairman; Cy Byrne, Secretary; and William A. Moody, member. The Commission was charged with assessing, evaluating, and making recommendations about the Trust land granted by Congress to the State. The Commission was to report back to the Legislature with its findings and conclusions by the end of the second Legislative session. The Enabling Act, passed on June 20, 1910, allowed for Arizona statehood. In addition to the previously designated sections of land, the Enabling Act assigned sections 2 and 32 of each township to be held in trust for the Common Schools. The needs of other public institutions were considered by Congress, and more than two million additional acres were allocated for their use. The Commission concluded that Arizona should not sell its Trust land outright, as other states had done. Instead, it should put the lands to their highest and best use. The decision to sell or lease the land should be based upon the potential use of each parcel. The Commission recommended the creation of a permanent State Land Department “... in order that the multitudinous detail attached to the State’s varied land interests may have constant attention and to prevent irretrievable loss.” The ASLD and the system by which Trust lands were to be managed were established in 1915 by the State Land Code. In compliance with the Enabling Act and the State Constitution, the State Land Code gave the ASLD authority over all Trust lands and the natural products from Trust land. Two men by a Model T Ford in the Pinal Mountains of Gila County, Arizona. (Photo courtesy of Arizona State Library, Archives and Public Records, History and Archives Division, Phoenix, #98-1660) CREATION OF THE LAND DEPARTMENT On May 20, 1912, an act of the First Legislature created the three-member State Land Commission to serve as Arizona’s temporary Land Department. The members were Mulford Winsor, Chairman; Cy Byrne, Secretary; and William A. Moody, member. The Commission was charged with assessing, evaluating, and making recommendations about the Trust land granted by Congress to the State. The Commission was to report back to the Legislature with its findings and conclusions by the end of the second Legislative session. 1914 photo of Arizona Governor George W.P. Hunt and members of the Arizona State Land Commission: Catherine Grove, George W.P. Hunt, Ethel Shoemaker, and E.L. Trippel. (Photo courtesy of Arizona State Library, Archives and Public Records, History and Archives Division, Phoenix, #97-6948) 6 Acres Per Beneficiary Common Schools (K-12) Since the ASLD’s inception, its mission has been to manage the Land Trust and to maximize its revenues for the beneficiaries. All uses of the land must benefit the Trust, a fact that distinguishes it from the way public land, such as parks or national forests, may be used. While public use of Trust land is not prohibited, it is regulated to ensure protection of the land and compensation to the beneficiaries for its use. 2014 9,400,000 8,064,614 University of Arizona 60,000 51,387 University Land Code 200,000 137,860 Normal Schools 200,000 174,786 Agricultural & Mechanical Colleges 150,000 124,944 School of Mines 150,000 123,254 Military Institutes 100,000 80,168 State Charitable, Penal, & Reformatory 200,000 77,225 Miners' Hospital 100,000 95,231 Penitentiaries 100,000 76,111 Legislative, Executive & Judicial Buildings 100,000 64,229 State Hospital 100,000 71,248 School for the Deaf & Blind 100,000 82,560 10,960,000 9,223,617 Total BENEFICIARIES 1912 There are 13 beneficiaries of State Trust land revenues. The Common Schools is the beneficiary with the largest Trust land acreage, originally receiving about 9.4 million acres of land. A 14th beneficiary, County Bonds, was funded by Trust revenues until it was eventually paid. Revenues derived from County Bond lands are now added to the Common Schools’ grant. Original Endowment Pattern Today, the original school section pattern exists only in a few locations such as the remote Arizona Strip. About three-quarters of the school section acreage was relocated through selections and exchanges that have consolidated the Trust lands into large blocks. TRUST LAND DISTRIBUTION Today the Arizona State Land Department is responsible for 9.2 million acres of Trust land. 7 REVENUES AND BENEFICIARY SUMMARY Revenues earned from Trust land are classified as either permanent or expendable receipts. Revenues derived from the sale of State Trust land and natural products are referred to as permanent receipts which are deposited into the permanent funds and invested in stocks, bonds, and interest-bearing securities by the State Treasurer. The Treasurer distributes money from the funds to the beneficiaries according to a constitutional formula. Expendable revenue includes lease revenue from Trust land leases and permits, interest from sales contracts, and the Treasurer’s formula distribution. This revenue is distributed directly to the beneficiaries for their use. Proposition 301 (passed by voters in the 2000 election) created a Classroom Site Fund whereby particular sources of funds, including revenue from the fiduciary management of State Trust land, are directed to fund items such as teacher salaries, classroom size reduction, and dropout prevention programs. According to Proposition 301, the first $72.3 million in expendable revenue for common schools can be used to fund the basic State Aid Formula, which funds education. Expendable revenue in excess of $72.3 million is deposited into the Classroom Site Fund. TRUST LAND GRANT BENEFICIARY 1st $72.3 million of expendable receipts State Aid Formula for K - 12 Common Schools (K - 12) (Includes County Bonds) Receipts over $72.3 million Classroom Site Fund Normal Schools Agricultural & Mechanical Colleges Military Institutes School of Mines Board of Regents to Distribute to Universities University Land Code University of Arizona (Act 0f 2/18/1881) School for the Deaf & Blind School for the Deaf & Blind Legislative, Executive & Judicial Buildings Legislature, Executive & Judicial Branch State Hospital State Hospital Miners’ Hospital (2 Grants) Pioneers' Home State Charitable, Penal, & Reformatory Penitentiaries 50% Pioneers' Home 25% Department of Corrections Department of Corrections 8 25% Department of Juvenile Corrections Land Management in Arizona Legend Public Land Ownership CATEGORY Private State Trust BLM Forest Service Indian Reservation Military City or County Parks State Parks Wildlife Refuge Other Natl. Parks 9 FY 2014 Total Revenue Natural Resources Total $ 10,048,718 Commercial Leasing Total $ 28,293,705 Rights of Way $ 4,138,620 Miscellaneous Rental $ 28,087,401 Rental Total $ 70,568,445 Sales Total $ 95,426,202 Royalties Total $ 17,157,534 Fees $ 3,182,385 Total ASLD Receipts $ 186,334,566 Total Trust Revenue FY 2004-2014 $450 $400 $350 Millions $300 $250 $200 $150 $100 $50 $0 Land Department Earnings 10 Permanent Funds  The ASLD deposited $103 million into the Permanent Funds in FY 2014.  In FY 2014 the combined value of the Permanent Funds exceeded $4.5 billion.  The Permanent Funds consist of revenues earned from the sale of State Trust land and assets such as minerals or other natural products.  Each beneficiary has its own Permanent Fund.  The State Treasurer manages the Permanent Funds and invests the funds in stocks, bonds and other interest bearing securities. Distributions from the Permanent Funds to the beneficiaries are based on a constitutional formula.  In FY 2014 the Treasurer distributed $73,032,624 to the Trust beneficiaries. Treasurer's Formula Distribution FY 2004- 2014 $90 $80 $70 Millions $60 $50 $40 $30 $20 $10 $0 Treasurer's Distribution Permanent Endowment Fund FY 2004-2014 $6 $5 Billions $4 $3 $2 $1 $0 Total Trust Endowment 11 Expendable Revenue  Expendable revenue includes revenue from Trust land leases and permits, interest from sales contracts, and the Treasurer’s Formula Distribution of the Permanent Funds.  Expendable revenues are distributed directly to the beneficiaries.  Expendable revenue totaled $140 million in FY 2014.  Revenue from Trust land leases, permits, and interest earnings from sales financed through the ASLD totaled $66.7 million.  The Treasurer distributed $73 million to the beneficiaries according to the constitutional Formula. Expendable Revenue FY 2004-2014 $200 $180 $160 Millions $140 $120 $100 $80 $60 $40 $20 $0 Land Department Expendable Revenue Beneficiaries Common Schools University Land Code University of Arizona (1881) School of Mines Agricultural & Mechanical Colleges School for the Deaf & Blind Normal Schools Military Institutes Subtotal Education ASLD Expendable $ 57,344,819 $ 1,299,107 $ 524,979 $ 178,195 $ 139,644 $ 175,892 $ 172,138 $ 61,592 $ 59,896,366 $ $ $ $ $ $ $ $ $ Treasurer's Distribution 67,781,808 398,034 972,149 241,653 213,753 106,667 74,618 12,041 69,800,723 State Charitable, Penal, & Reformatory Miners’ Hospital Penitentiaries State Hospital Legislative, Executive & Judicial Buildings Subtotal Non-Education Grand Total $ $ $ $ $ $ $ $ $ $ $ $ $ $ 2,353,835 333,014 246,012 126,639 172,401 3,231,901 73,032,624 3,512,715 1,715,596 1,052,434 367,100 110,752 6,758,597 66,654,963 12 Total Expendable $ 125,126,627 $ 1,697,141 $ 1,497,128 $ 419,848 $ 353,397 $ 282,559 $ 246,756 $ 73,633 $ 129,697,089 $ $ $ $ $ $ $ 5,866,550 2,048,610 1,298,446 493,739 283,153 9,990,498 139,687,587 13 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 7,720,997 1,589,643 779,138 360,866 5,180,567 $ 243,102,459 77,713 3,131,957 103,414,872 73,643 15,677,903 $ 227,471,248 10 14,180,775 97,774,159 1,854,447 291,197 285,399 459,640 555,315 598,829 206,696,446 346,819 3,062,653 177,081 201,918 178,980 81,569,820 100,063 1,365,511 Total Receipts are derived from the sale of State Trust land and natural products and are deposited into the permanent funds by the State Treasurer. 283,153 2,048,610 139,687,587 5,866,550 1,298,446 493,739 73,633 1,497,128 129,697,089 282,559 353,397 419,848 125,126,627 246,756 1,697,141 Total Permanent Fund Receipts include lease revenue from Trust land leases and permits, interest from sales contracts, and the Treasurer’s formula distribution. $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Total Expendable Permanent Receipts 172,401 333,014 73,032,624 2,353,835 246,012 126,639 12,041 972,149 69,800,723 106,667 213,753 241,653 67,781,808 74,618 398,034 Treasurer's Formula Distribution Expendable Receipts $ $ $ 110,752 1,715,596 66,654,963 64,229 $ 95,231 $ 9,223,617 $ $ $ $ 61,592 524,979 59,896,366 $ $ $ 80,168 $ 51,387 $ 8,839,573 $ Military Institutes University of Arizona (1881) Subtotal Education $ 175,892 $ $ $ $ $ 3,512,715 1,052,434 367,100 82,560 $ School for the Deaf & Blind 139,644 178,195 57,344,819 172,138 1,299,107 77,225 $ 76,111 $ 71,248 $ 124,944 $ 123,254 $ Agricultural & Mechanical Colleges School of Mines State Charitable, Penal, & Reformatory Penitentiaries State Hospital Legislative, Executive, & Judicial Buildings Miner's Hospital Total 8,064,614 $ 174,786 $ 137,860 $ ASLD Expendable Beneficiaries Common Schools (K-12) Normal Schools University Land Code Trust Acres FY 2014 REVENUE BY BENEFICIARY State Trust Land Uses SURFACE Rights of Way Grazing Commercial Commercial School Leases Agriculture Use Permits U.S. Government Homesite Institutional Taking Recreational Subtotal NO. OF LEASES % OF LEASES TOTAL ACREAGE % OF ACREAGE 7,611 73.79% 137,379 1.48% 1,216 11.79% 8,359,137 90.03% 299 2.90% 69,905 0.75% 21 0.20% 1,143 0.01% 338 3.28% 152,653 1.64% 652 6.32% 533,773 5.75% 157 1.52% 18,278 0.20% 1 0.01% 6 0.00% 10 0.10% 12,892 0.14% 9 0.09% 0 0.00% 10,314 100.00% 9,285,164 100.00% SUBSURFACE Mineral Mineral Exploration Mineral Material Oil & Gas Subtotal Total Leases NO. OF LEASES % OF LEASES TOTAL ACREAGE % OF ACREAGE 64 5.61% 10,024 0.89% 588 51.53% 267,952 23.68% 19 1.67% 1,775 0.16% 470 41.19% 851,692 75.27% 1,141 100.00% 1,131,443 100.00% 11,455 10,416,607 COUNTY DISTRIBUTION OF STATE TRUST LAND COUNTY Apache 652,660 Cochise 1,370,628 Coconino 1,122,339 Gila 31,231 Graham 496,321 Greenlee 171,824 La Paz 254,397 Maricopa 624,014 Misc 2,523 Mohave 565,128 Navajo 369,900 Pima 845,480 Pinal 1,205,463 Santa Cruz Yavapai Yuma TOTAL 14 ACRES 61,154 1,263,718 186,837 9,223,617 REVENUE GENERATION ON TRUST LAND Leases and Permits/Revenue Production Grazing Agriculture Use Permits Mineral Material Mineral Exploration Mineral Oil & Gas Acres 8,359,137 152,653 533,773 1,775 267,952 10,024 851,692 Leases 1,216 338 652 19 588 64 470 Stockpond Registrations 4,312 Certificated Surface Water Rights Well Registrations 130 2,925 Adjudication Statements of Claimant 7,025 Water Right Registrations 7,475 Grandfathered Groundwater Rights 264 15 Lease Rentals Grazing Agriculture Use Permits Mineral Material Mineral Exploration Mineral Oil & Gas TOTAL Public Auction Water Sales Lease Water Charges Mineral Royalties Income $ 3,059,250 $ 4,171,015 $ 5,148,772 $ 298,145 $ 1,193,537 $ 80,047 $ 1,246,726 $ 15,197,491 $ 320,351 $ 136,329 $ 11,008,521 Mineral Materials $ 1,724,794 Other Natural Products $ 3,926,138 TOTAL $ 17,116,133 GRAND TOTAL $ 32,313,624 FUND AND BENEFICIARY SUMMARY Common Schools Public K -12 Education Public education is by far the largest beneficiary of Trust land managed by the Department. Congress granted two sections of each township to common schools when Arizona became a territory and another two sections when Arizona became a state. The State was able to select federal lands equal to the sections that could not be granted due to the establishment of federal forests, parks and Indian reservations. Today, approximately 8 million acres remain in the Trust for common schools. In FY 2014, $81.5 million from sales and royalties was deposited into the Permanent Fund for common schools . In FY 2014, $125 million was generated in expendable receipts. According to A.R.S. § 37521 B, expendable receipts are distributed first to the School Facilities Board for revenue bonds, second to the New School Facilities Fund, if appropriated, third for basic state aid, and fourth, any receipts in excess of $72.3 million are deposited into the Classroom Site Fund, which is used for teacher raises, classroom size reduction and dropout prevention programs. Surface Leases Agriculture Acres Income 110,367 $ 2,921,718 15,502 7,361,382 6 $ $ $ 18,990,151 2,628,816 3,612 93,681 $ 3,763,658 446,031 $ 3,157,294 0 $ - 5,406 $ 325,351 17,438 $ 242,485 0 8,049,813 $ $ 14,964,800 46,997,885 9,685 247,169 $ $ 62,933 1,082,556 1,020 $ 116,144 Oil & Gas 741,673 $ 1,113,481 Total Subsurface 999,547 $ 2,375,115 Penalty & Interest $ 154,433 Sales Interest $ 7,817,385 School Leases $ - Treasurer's Formula Distribution $ 67,781,808 Grand Total Expendable $ 125,126,626 Permanent Fund Receipts $ 81,569,820 Permanent Fund (Book) $ 2,714,996,000 Commercial Grazing Homesite Rights of Way Use Permits Public Education Institutional Taking U.S. Government Other Total Surface Subsurface Leases Mineral Prospecting Permit Mineral Material COMMON SCHOOLS Acres and Income FY 2014 16 FUND AND BENEFICIARY SUMMARY Total University Grants Arizona’s three universities (Arizona State University, Northern Arizona University, and the University of Arizona) are the beneficiaries of six Trust grants. The total expendable revenue distributed to the Board of Regents and then to the universities to fund their operations was $4.3 million in FY 2014. An additional $16 million was earned and added to the permanent funds for the six grants, bringing the total Permanent Fund balance to $90 million. Board of Regents Distribution of Trust Revenues to the Universities Agricultural & Mechanical Colleges Grant 1/2 to UA and the other 1/2 split between the three universities based on engineering credit hours Military Institutes Grant Split between the three universities based on credit hours University Land Code Grant Split between the three universities based on credit hours Surface Leases Agriculture Commercial Grazing Homesite Acres Income 12,972 51,417 596,148 0 $ $ $ $ 299,801 269,579 256,952 - 8,014 33,378 0 $ $ $ 202,596 973,452 - Institutional Taking U.S. Government Other Total Surface 5,151 299 0 707,379 $ $ $ $ 1,051 1,100 2,004,529 Subsurface Leases Mineral Prospecting Permit 0 12,780 $ $ 74,505 284 $ 53,760 73,325 86,389 $ $ 95,218 223,483 Penalty & Interest Sales Interest Treasurer's Formula Distribution $ $ $ 22,515 125,128 1,912,248 Grand Total Expendable $ 4,314,899 Permanent Fund Receipts $ 16,027,258 Permanent Fund (Book) $ 90,095,000 Rights of Way Use Permits Public Education Mineral Material Oil & Gas Total Subsurface Normal Schools Grant 1/3 to each university UA 1881 Grants UA School of Mines Grant UA UNIVERSITY GRANTS Acres and Income FY 2014 17 18 0 $ 15,615 $ $ $ $ $ $ $ Total Subsurface Penalty & Interest Sales Interest Treasurer's Formula Distribution Grand Total Expendable Permanent Fund Receipts Permanent Fund Balance (Book) 14,925 $ 0 $ 690 $ 0 $ 132,731 $ 0 $ 86 $ 1,917 $ U.S. Government Oil & Gas Mineral Material Prospecting Permit Mineral Subsurface Leases Total Surface Other U.S. Government Institutional Taking 0 $ 11,336 $ Use Permits Public Education 1,806 $ 0 $ 107,163 $ 10,172 $ 251 $ Acres A&M Colleges Rights of Way Homesite Grazing Commercial Agriculture Surface Leases 15,382 $ 16,384 6,611,000 201,918 213,753 353,397 0 $ 2,721 $ 184 0 0 0 120 $ 8,334 $ 0 $ 17,094 $ $ $ 0 15,342 0 15,422 300 0 10 $ $ $ $ 8,641 $ 80 12,041 73,633 0 $ 179,542 $ 0 45,870 0 $ 5,623 $ 4,417 0 1,656 $ 121 146,654 $ 38,932 0 $ 22,539 $ 2,400 0 165 $ Acres 0 0 0 2,737,000 100,063 74,618 246,756 0 930 58,012 0 14,121 10,560 33,331 0 113,196 13,568 5,646 0 67,534 22,753 3,695 Income Normal Schools 0 Income $ $ 352,000 $ $ $ 0 $ 0 0 15,342 $ 16,045 $ 0 $ 0 426 40 $ 0 $ 339 0 82,180 $ 0 $ 0 122,834 0 $ 0 0 $ 0 $ 0 0 3,486 $ 0 $ 0 17,355 76,749 $ 44,779 268 $ 1,677 $ 1,656 55,601 0 $ Acres Military Institutes 3,442 Income $ $ $ $ $ $ 20,252 $ 0 $ 18,802 $ 0 $ 1,451 $ 0 $ 126,242 $ 0 $ 17 $ 0 $ 0 $ 4,080 $ 1,090 $ 0 $ 110,127 $ 8,483 $ 2,445 $ Acres 7,862,000 178,980 241,653 419,848 0 1,444 56,620 0 29,776 0 26,844 0 120,131 0 0 0 0 7,552 21,237 0 44,689 9,598 37,054 Income School of Mines University Grants FY 2014 FUND AND BENEFICIARY SUMMARY $ $ $ $ $ $ 17,482 $ 0 $ 15,923 $ 0 $ 1,559 $ 0 $ 138,083 $ 0 $ 8 $ 107 $ 0 $ 6,260 $ 2,382 $ 0 $ 117,855 $ 8,238 $ 3,233 $ Acres 0 14,732,000 1,365,511 398,034 1,697,141 22,681 1,040 33,446 0 19,934 0 13,511 0 1,241,940 1,100 0 1,051 0 892,725 83,319 49,958 154,014 59,775 Income University Land Code $ $ $ $ $ $ 564 $ 0 $ 0 $ 164 $ 400 $ 0 $ 48601 $ 0 $ 4 $ 406 $ 0 $ 2,594 $ 811 $ 0 $ 37,600 $ 308 $ 6,879 $ Acres 57,801,000 14,180,775 972,149 1,497,128 102,446 18,375 43,600 0 0 43,200 400 0 360,558 0 0 0 0 37,835 36,671 0 11,058 79,159 195,835 Income University of Arizona 1881 FUND AND BENEFICIARY SUMMARY Other Grants The remaining six Trust beneficiaries are the School for the Deaf and Blind; the Legislative, Executive and Judicial Buildings; the State Hospital; the Pioneers’ Home; the Department of Juvenile Corrections; and the Department of Corrections. These six beneficiaries were authorized in the Enabling Act and received 100,000 acres, except for the State Charitable Grant which received 200,000 acres.  The Pioneers’ Home received a total of $4,981,884 in expendable receipts in FY 2014.  The Department of Juvenile Corrections received $1,466,638 in expendable receipts in FY 2014.  The Department of Corrections received a total of $2,765,074 in expendable receipts in FY 2014. OTHER GRANTS Acres and Income FY 2014 Arizona Department of Juvenile Corrections Black Canyon School (BCS) operates intake and secure programming for youth. BCS houses all female youth and is located in Phoenix. (Photo courtesy of the Arizona Department of Juvenile Corrections) Arizona State Schools for the Deaf and Blind Henry C. White was the first principal, appointed by Governor George W. P. Hunt, and classes began in October, 1912. Nineteen children with hearing loss were the first students, and classes were held in a converted residence on the campus of the University of Arizona in Tucson. (Photo courtesy of the Arizona State Schools for the Deaf and Blind) Grant Beneficiary School for Deaf & Blind............................ ………….. School for Deaf & Blind Legislative, Executive & Judicial Buildings…………. Legislature, Executive & Judicial Branch State Hospital .......................................... ………….. State Hospital Miners’ Hospital (2 Grants) ...................... ………….. Pioneers’ Home State Charitable, Penal & Reformatory .... ………….. 50% Pioneers’ Home 25% Dept. of Juvenile Corrections 25% Dept. of Corrections Penitentiaries ........................................... ………….. Dept. of Corrections 19 20 $ $ $ Permanent Fund Receipts Permanent Fund Balance (Book) $ Sales Interest $ $ Penalty & Interest Grand Total Expendable 5,916 $ Total Subsurface Treasurer's Formula Distribution 0 $ 4,403 $ 0 $ 1,513 $ 0 $ 63,242 $ U.S. Government Oil & Gas Mineral Material Prospecting Permit Mineral Subsurface Leases Total Surface 0 $ 92 $ U.S. Government Other 0 $ Institutional Taking 0 $ 4,227 $ Use Permits Public Education 1,407 $ 0 $ 56,406 $ 5 $ 1,104 $ Acres Rights of Way Homesite Grazing Commercial Agriculture Surface Leases 0 $ 0 5,664,000 77,713 283,153 172,401 0 $ 0 421.72 333,014.00 126,584.89 7,626.63 43,001.97 - 9,337.34 20,239.91 13,003.00 3,131,956.77 $ 18,361,000.00 $ $ 2,048,609.88 $ $ 14,949 $ 23,554 0 0 $ 0 $ 9,337 $ 5,121 1,146 230 $ 0 119 $ 5,262 $ 18,433 0 5 $ 0 291,197 1,298,446 246,012 - 1,470 12,190 0 7,920 0 4,270 0 1,038,775 0 0 0 0 13,230 36,124 0 29,999 740,328 219,094 Income $ 11,155,000 $ $ $ $ $ 8,910 $ 5 $ 7,920 $ 0 $ 990 $ 0 $ 87,880 $ 1,778 $ 0 $ 0 0 14,342 $ 92,964.87 557 $ 0 $ 0 31,420.50 66,025 $ 456 $ 4,717 $ Acres Penitentiaries 28,636.96 966,794.95 418,565.11 Income 100,123 $ 1,538,382.39 168 $ 0 86,052 1 $ 0 $ 0 0 11,621 $ 0 $ 0 568 73,322 $ 23,513 1,565 $ 579 $ 25,920 8,323 12,866 $ Acres Miners’ Hospital 27,727 Income Legislative, Executive, & Judicial Buildings Other Grants FY 2014 177,081 282,559 106,667 0 2,143 7,481 0 7,321 0 160 0 166,268 0 0 0 0 22,730 32,728 0 33,823 6,937 70,051 Income $ 3,715,000 $ $ $ $ $ 7,081 $ 0 $ 6,921 $ 0 $ 160 $ 0 $ 85,356 $ 0 $ 32 $ 1 $ 0 $ 8,702 $ 798 $ 0 $ 73,180 $ 6 $ 2,638 $ Acres School for the Deaf & Blind FUND AND BENEFICIARY SUMMARY $ $ $ $ $ $ 7,777 $ 0 $ 7,479 $ 138 $ 0 $ 160 $ 79,629 $ 0 $ 117 $ 475 $ 0 $ 7,952 $ 1,142 $ 0 $ 63,211 $ 2,834 $ 3,898 $ Acres 0 $ 849 $ 0 95,813 79,403,000 1,854,447 5,866,550 2,353,835 1,064,766 $ $ $ $ $ $ 635 $ 7,693 21,249 77 $ 77 $ 88,000 60 $ 0 72,455 $ 0 $ 108 $ 80 $ 0 $ 7,201 $ 878 $ 120 2,330,887 0 0 76,929 0 826,469 50,365 0 $ 60,003 $ 27,292 0 204 $ 3,981 $ Acres 1,244,631 105,201 Income State Charitable, Penal, & Reformatory State Hospital 4,449,000 285,399 493,739 126,639 0 2,901 28,817 635 11,000 610 16,572 335,382 442 0 12,001 0 21,040 8,388 0 26,440 166,063 101,008 Income - ABOUT THE LAND DEPARTMENT Divisions and Sections ADMINISTRATION From 2009-2014 the ASLD generated over $1,525,120,721 for the Trust beneficiaries Administration Division The Administration Division is responsible for the operational & administrative functions of the Arizona State Land Department, including accounting, travel, budget, procurement and human resources. Accounting Section and Budgeting www.ospb.state.az.us/, the allocation of the enacted budget, and monitoring expenditures for compliance with legislative and executive intent as well as ensuring the Department’s adherence to the budgeted amount. The Accounting Section ensures the Department’s finances are handled in accordance with the Generally Accepted Accounting Principles and follow the rules and procedures adopted by the Department of Administration’s General Accounting Office www.gao.az.gov The unit also ensures the Department’s compliance with the State Procurement Code. It assists staff with procurement questions and acts as the Department’s liaison with the State Procurement Office www.azdoa.gov/spo to meet the Department’s procurement needs. The Section’s primary purpose is to properly bill, receive, and distribute Trust receipts. The Section also processes the Department’s expenditures. Human Resources Section The Human Resources Unit is responsible for recruiting, hiring, and conducting other personnel actions involving State Land Department employees. It is also a resource for employees regarding Department and state employee benefits. Budget & Procurement Section The Budget & Procurement Unit is responsible for the development and monitoring of the Department’s budget and for procurement activities. LAND INFORMATION, TITLE AND TRANSFER DIVISION Budget activities include developing the Department’s budget request for submission to the Governor’s Office of Strategic Planning Administrative Section Procedures & Information The Public Records area assists and instructs the public and Department staff, in person, telephonically and by e-mail in the research of computer records, interpretation of title documentation, microfiche records and case files. From 1912 to 2001 the Trust generated $1 Billion –the Trust now stands at over $4.5 billion (Continued on page 22) 21 ABOUT THE LAND DEPARTMENT Divisions and Sections LAND INFORMATION, TITLE AND TRANSFER The Administrative Procedures area is responsible for scheduling hearings related to appeals of Commissioner Decisions, either with the Office of Administrative Hearings or the Board of Appeals. This area coordinates the issuance of Commissioner Orders. Records of bankruptcy filings affecting Trust land leases, outstanding rental collection, complex records requests, administrative and litigation issues are maintained in this area. All 5 Year Rule Reviews and rule amendments for each of the 15 rules in Title 12, Chapter 5 that govern the Department are prepared here as well as amendments to all Department Instruction, Policy and Procedural Memos. This area also conducts settlement conferences and hearings related to oil and gas agreements, conservation of Trust lands and fact finding hearings. researched to verify payment of water assessment taxes as well as sales of Trust parcels. REAL ESTATE DIVISION Appraisal Section The Appraisal Section is tasked with the responsibility of determining land value for the Arizona State Land Department’s vast land holdings. While not all of the Trust land is appraised every year, appraisals are required when applicants become interested in leasing or purchasing Trust land. Further, appraisals are needed when utilities, private individuals and other entities require access over Trust Lands. Ultimately, the Appraisal Section is in place to assure that the Trust and its beneficiaries are adequately compensated. Title & Contracts Section The Title & Contracts Section is responsible for ensuring that electronic and paper records for the State’s title to 9.2 million acres of Trust land accurately reflect each acquisition, disposition, lease, permit and right of way that has transpired. This entails application processing, research and preparation of title reports for proposed transactions, legal issues or legislative proposals. Application and lease documents are constantly updated not only to adhere to the Arizona Administrative Code and Arizona Revised Statutes but also to assist customers in providing valuable information to the Department. County records are Planning & Engineering Section The Planning & Engineering Section handles land planning, entitlement, drainage and engineering issues affecting State Trust land throughout Arizona. Our primary mission is to handle technical and land use entitlement matters related to the management and disposition of State Trust land in the best interests of the State Trust’s beneficiaries while advancing the mission of the Trust. Our staff is based in Phoenix and Tucson and is composed of AICP-certified planners, registered Professional Engineers, (Continued on page 23) 22 ABOUT THE LAND DEPARTMENT Divisions and Sections and jurisdictional entities to meet its purpose. The majority of the revenue generated by the Section comes from sales and long-term commercial leases. Commercial leases vary in scope, from retail, industrial, office, mixed use, and public purposes, and vary in length, from 1 to 99 years. All sales and commercial leases must be approved by the Board of Appeals. Furthermore, all sales as well as commercial leases for more than 10 years must be granted to the highest and best bidder at a public auction, per the Enabling Act. All transactional decisions assure the highest and best use of the Land and are made in the best interests of the Trust. engineering technicians, planning project managers, and Geographic Information Systems analysts. The various disciplines that make up our staff work in tandem to leverage entitlement and technical opportunities to protect and enhance State Trust land values and to maximize the resulting return to the Trust. Typical activities include Clean Water Act Section 404 Permitting and technical coordination, development of regional drainage and infrastructure solutions, and revisions to existing zoning entitlements to accommodate shifting market needs. Rights of Way Section FY 2014 TRANSACTIONS A right of way is an encumbrance on the property it crosses. Rights of Way are granted across State Trust land for a variety of public and private uses, such as access roads, infrastructure, power lines, communication lines, and public roadways. Rights of Way are issued for terms ranging from one year to perpetuity. All rights of way in excess of 10 years must be approved by the Board of Appeals. Sales and Commercial Leasing Section The Sales and Commercial Leasing Section of the Real Estate Division of the ASLD processes the transactions of special land use permits, commercial leases, and sales of State Trust land. The Section not only processes all new and renewal applications but also administers the active leases that generate ongoing revenue for the Trust. The Section works closely with other Sections within the ASLD as well as with private sector 23  Jerry Ivy Revocable Trust purchased 193.04 acres of land in the Southeast valley for $30,200,000.  City of Scottsdale purchased 2365.17 acres of land in Scottsdale for $21,300,000 as part of the Arizona Preserve Initiative Program.  Taylor Morrison/Arizona Inc. purchased 105.72 acres of land in North Phoenix for $28,100,000 for residential development.  Pima County purchased 818.82 acres of land within its boundaries for $11,600,000 as part of the Arizona Preserve Initiative Program.  City of Flagstaff purchased 2251.20 acres of land within its boundaries for $11,600,000 as part of the Arizona Preserve Initiative Program.  Spectrum LNG, LLC purchased 10.47 acres of land in LaPaz County for $314,100 for the expansion of a natural gas facility. ABOUT THE LAND DEPARTMENT Divisions and Sections INFORMATION SYSTEMS AND RESOURCE ANALYSIS DIVISION NATURAL RESOURCES DIVISION The Information Systems and Resource Analysis Division (IS/RAD) consists of three major sections. As legislated, the Resource Analysis Division is headed by the State Cartographer who is tasked with a number of Geographic Information Systems (GIS) sharing duties. The State Cartographer also works closely with the Arizona Geographic Information Council. The IS/RAD division’s other sections consist of Information Technology which enabled the ASLD to effectively and securely manage the State Trust and provides innovative and reliable business systems to track ASLD’s assets. The GIS section is the first leg of the IS/RAD division. This section aids ASLD and at times other agencies in the complex analysis and visualization of spatial issues, for example determining which Trust lands have the highest potential for solar energy development. The GIS section also provides services that protect the interests of the trust and ensure that all land is put to the highest and best use. Range, Agriculture and Conservation Section The Range, Agriculture & Conservation Section oversees the Department’s agriculture and grazing leases, which generate roughly $7,000,000 in revenue each year from lease rental payments. Grazing leases amount to over 8,000,000 acres of State Trust land and can be found in every county in the state. Agriculture leases are predominantly in four counties: Pinal, Yuma, Maricopa and Cochise. These four counties make up over 75% of state agriculture leases. The Section has 5 Range Resource Area Managers, who work closely with grazing lessees on range improvement projects like fencing and water pipelines, and on land treatment projects such as grassland restoration or prescribed burning. An Agriculture Leasing Specialist is responsible for the state-wide agriculture leasing program. The Range, Agriculture & Conservation Section also includes a Natural Resource Conservation District (NRCD) Manager. This person administers funding to both NRCDs and their associated environmental education centers. NRCDs are managed by a five-person board composed of 3 elected supervisors and 2 appointed supervisors approved by the State Land Commissioner. Each district has the same responsibility, but in a different area of the state: to protect and conserve natural resources within their boundaries. 24 ABOUT THE LAND DEPARTMENT Divisions and Sections NATURAL RESOURCES DIVISION The Environmental Program Environmental Program The Environmental program is responsible for protection of soil, surface and groundwater, and air quality on State Trust land. The program responds to and investigates environmental contamination by regulated substances from illegal activities and lessee operations on State Trust land. The program reviews lease applications, contractor proposals, Phase I and II and remedial action reports and manages contaminated land remediation projects and fugitive dust issues on Trust Land. Cleaned up over 500 gallons of waste oil and other regulated substances and removed 260 tons of tires from a former commercial lease in the northwest valley. Removed 53 tons of tires near the Gila River in the west valley. Demolished several buildings on a former commercial lease in Gila Bend.    The Trespass Program Trespass Program Partnered with City of Buckeye to clean an area where unpermitted target shooting was occurring in preparation for development of Skyline Park. Partnered with City of Tucson Parks and Recreation Department and Tucson Clean and Beautiful to clean an area that was experiencing a high volume of illegal dumping and other criminal activity. Installed barricades in Desert Hills due to excessive off-highway vehicle activity in the residential area.  The Trespass Program is responsible for investigating reports of illegal occupancy of Trust land ranging from minor to major offenses. Most involve native plant damage or theft, mineral theft, roads or utilities placed without a right-of-way, and commercial or agricultural trespass. The more serious offenses are usually resolved through negotiations. Trespass Investigators also respond to numerous other concerns including; OHV complaints, dust, squatters, historic issues, trash and solid waste, target shooting, insect complaints, fire fuel complaints, weeds, and myriad of other matters.   Did You Know?     25 The Department processed 1,192 new customer applications; issued 8,670 recreational use permits and retrieved 7,814 lease and contract files for customers. The Department’s Public Records area answered more than 3,500 e-mail and telephone customer inquiries. Over 4,977 customers visited the Department in FY 2013. There are currently 7,628 rights of way and 4,043 leases or permits. ABOUT THE LAND DEPARTMENT Divisions and Sections NATURAL RESOURCES DIVISION Minerals Section The Minerals Section primarily supports five State-wide permitting and leasing programs:  Mineral Exploration Permits.  Mineral Leases for Hardrock and Industrial Minerals Mining.  Mineral Materials Leases for Common Variety Sand and Gravel or Aggregates.  Energy Minerals Leases for Oil and Gas or Geothermal Resources.  Special Land Use Permits for Split Estate Operations with ASLD Surface only. The Minerals Section also supports mineralsrelated functions for the ASLD:  Review and Comment on Land Sales or Leases.  Review and Comment on Land Use Plans and Preserve Initiatives.  Review and Proposals.  Review and Comment on Possible Land Exchanges.  Evaluate Proposed Legislation for Impacts to the Trust or on Mining in General. Comment on Annexation In addition, the Minerals Section works with other State Agencies in support of the Abandoned Mines Program with the Arizona State Mine Inspector’s Office, the Geological Mapping Advisory Committee with the Arizona Geological Survey, and legal Issues involving mining and minerals with the State Attorney General’s Office. 26 27 ABOUT THE LAND DEPARTMENT Divisions and Sections NATURAL RESOURCES DIVISION  Water Rights Section The Water Rights Section administers several programs related to use of water on State Trust land or extraction of water from State Trust for use on other land. The Water Rights Section:  Maintains water right registrations for stockponds and surface water rights and claims including maintaining compliance with state regulatory programs.  Assists lessees with development of new water supplies to ensure issuance of water rights in the name of the ASLD.  Administers grandfathered groundwater rights within Active Management Areas including compliance with reporting and conservation requirements.  Maintains the registry of wells and review applications for new wells to evaluate longterm impact to water resources on Trust land.  Monitors water levels on Trust land through a cooperative agreement with the Arizona Department of Water Resources, allowing sharing of equipment and data.      28 Administers the sale of water for use off of Trust land, through water auction, and lease water charges. Conducts water right evaluations and comment on land sales and lease applications. Administers ASLD’s domestic and agricultural contracts for mainstream Colorado River water on Trust land including coordination with lessees and the Bureau of Reclamation regarding water scheduling, reporting and payment of administrative and water charges. Monitors Colorado River regulatory activities and drought and comments on potential impacts to lessees and the Trust. Administers ASLD’s Central Arizona Project’s contract including scheduling deliveries, payment of administrative charges and monitoring regulatory changes in order to comment on potential impact to the Trust. Maintains statement of claimants for water uses on STL and assist the Attorney General’s office in this and other court proceedings. ABOUT THE LAND DEPARTMENT Divisions and Sections NATURAL RESOURCE CONSERVATION DISTRICTS Natural Resource Conservation Districts (NRCDs) were created following the dust bowl era to ensure participation in conservation efforts spearheaded by the newly formed Soil Conservation Service (SCS). Arizona passed the Conservation District Law in 1942 (Laws, 1941, Ch. 43, § 2.) NRCD laws are codified in Title 37, Chapter 6 of the Arizona Revised Statutes. Reorganized in 1994, SCS adopted the name Natural Resources Conservation Service (NRCS). The 32 State sponsored NRCDs are composed of a five person board that provides local voluntary leadership and knowledge. The NRCDs make available technical, financial, and educational assistance to provide for the conservation of their Districts’ natural resources. Conservation Districts are not aligned with any particular commodity. Many organizations and agencies utilize the neutral status of the Districts to implement projects and disseminate information regarding the changing environmental and natural resource management issues in Arizona. As a result of this state, federal, private partnership, NRCDs play a pivotal role in organizing, implementing, and coordinating with a variety of agencies concerning natural resource initiatives within their districts. In addition, state law empowers NRCDs to establish Education Centers. NRCD Education Centers provide practical, hands-on learning experiences that encourage critical thinking and demonstrate the necessity of individual stewardship and rural & urban interdependency. The programs are based on 29 current scientific information, include discussions of economic and social implications, offer delivery of national & regionally recognized environmental education programs, and offer integrated experiential curriculum that motivate students (improving test scores). Currently, 30 Districts sponsor 23 education centers. The State Land Commissioner also serves as the State Natural Resource Conservation Commissioner. ABOUT THE LAND DEPARTMENT New Programs GOVERNOR’S NATURAL RESOURCES REVIEW COUNCIL NRRC  A centralized GIS map viewer and catalog of agency documents. This system allows users to view several layers of GIS data from various agencies. Together with the centralized Clearinghouse, these systems create a one-stop-shop for information and data as it relates to the state’s natural resources. The System is called the Natural Resources Decision Support System.  A template and users guide for natural resource management planning, and information related to federal laws that speak to the states’ purview to be involved in federal planning and decision making. The Governor’s Natural Resources Review Council (NRRC) was established by Governor Brewer’s Executive Order 2013-02. The Council is comprised of nine state agencies that are impacted by natural resource related decisions handed down by federal agencies. Subcommittees The Council created five subcommittees to identify ways to carry out the provisions delineated in the Executive Order. Those five subcommittees include: Clearinghouse, Mitigation and Conservation Banking, Planning, GIS and Engagement & Partnering. The Subcommittees identified specific recommendations that were forwarded to the Council in an Interim Report, and it was later adopted by the Council. The Council then directed the Subcommittees to begin implementation of the recommendations in April 2014. The Council, through its subcommittees, have been implementing the following work product ultimately for greater collaboration and earlier engagement in the federal decision-making process:  A centralized clearinghouse for federal actions with an email notification system. Federal actions will be populated into a single website by agencies that initially receive them. The agency opens a folder for a specific federal action and an email notice is subsequently forwarded to all systems users who may also opt-out of receiving further notices. 30 ABOUT THE LAND DEPARTMENT New Programs LAND EXCHANGE In the 2012 general election, the voters approved Proposition 119 to amend the State Constitution to allow for exchanges of Trust land if specific requirements are met. Land exchange authority allows the Department to address a number of statefederal land management issues such as Trust lands captured within federal holdings and the exchange of Trust land to facilitate military base preservation. Specifically:  The exchange must be in the best interest of the state land trust.  The purpose of the exchange must be to either assist in preserving and protecting military facilities in this state from encroaching development or to improve the management of state lands for the purpose of sale or lease, or conversion of state land to public use.   There must be two independent appraisals that show that the true value of the land the state receives in the exchange is equal to or greater than the true value of the trust land the state conveys. There also must be two independent analyses that detail the income to the state land trust before and the projected income to the trust after the exchange, the financial impact of the exchange on each county, city, town and school district in which the lands are located, the physical, economic and natural resource impacts of the exchange on the local community and the impacts on local land uses and land use plans. must be held and an opportunity for public comment must be given. A proposed exchange is not effective unless it is approved by the voters at a statewide November general election.  Currently, there are approximately 1,141,049 acres of State Trust land impacted by federal land management decisions. These lands, estimated to have a surface value in excess of $430 million, are located in national monuments, military withdrawals, federal wilderness areas, national conservation areas or are impacted by federal land management decisions on adjacent federal lands. The Land Information, Title and Transfer Division is currently in the process of drafting rules for land exchanges. Trust Land Captured within the Ironwood Forest National Monument Located Northwest of Tucson, there are over 90,000 combined surface and subsurface Trust lands captured within the boundaries of the Ironwood Forest National Monument. Trust land is represented in dark blue. A detailed public notice of a proposed exchange must be given, public hearings 31 ABOUT THE LAND DEPARTMENT Trust Lands within Federal Holdings Federal Holding Arrastra Mountains BIA - Hopi Tribe Black Canyon Trails System BLM - Sonoita Valley Conservation Planning Buenos Aires National Wildlife Refuge Casa Grande Ruins National Monument Colorado River Indian Reservation Eagletail Mountains Grand Canyon-Parashant National Monument Harcuvar Mountains Hassayampa River Canyon Havasupai Indian Reservation Hummingbird Springs Ironwood Forest National Monument Kingman Burro Facility Lake Mead National Recreational Area Lake Pleasant (Expansion) Lake Pleasant (Santa Rita III) Lower San Pedro Mt. Nutt Navajo Indian Reservation North Maricopa Mountains Organ Pipe Cactus National Monument Petrified Forest National Park (Expansion) Rawhide Mountains Redfield Canyon Sahuaro National Park San Pedro Riparian National Conservation Area Sierra Estrella Signal Mountain Sonoran Desert Heritage Conservation Area Sonoran Desert National Monument Trigo Mountains Vermillion Cliffs National Monument Veterans Cemetary Walnut Canyon National Monument (Expansion) Total Surface Sub Surface 1,280.5 1,280.5 145,035.7 136,596.7 37.8 41.4 78,116.2 76,937.5 1,223.8 1,223.8 197.6 197.6 835.5 832.5 2,639.1 3,199.8 24,511.9 28,626.2 638.6 638.6 442.4 637.0 637.0 1,272.7 1,272.7 54,704.5 37,630.6 387.8 387.8 1,316.6 1,316.6 49,033.7 23,961.3 28,194.5 13,717.0 113,942.9 102,650.4 525.1 525.1 637.8 637.8 3,865.1 1,275.2 1,275.2 36,195.2 38,160.8 200.7 200.7 4,218.9 2,934.2 2,449.1 2,449.1 279.8 279.8 640.0 1,301.0 1,279.8 16,962.8 30,926.8 3,852.1 23,922.6 43.2 43.2 13,464.0 10,251.8 5.0 5.0 2,042.0 592,384.5 32 2,042.0 2,562.3 548,665.2 ABOUT THE LAND DEPARTMENT Board of Appeals BOARD OF APPEALS BOARD OF APPEALS MEMBERS Board Actions FY 2014 Sandra B. Kelley, Chair Scottsdale Arizona Revised Statute §37-215 requires all land sales and commercial leases to be approved by the Board of Appeals, which also serves as an Administrative Review Board. Member-at-Large Applicants and lessees may appeal to the Board a final decision of the State Land Commissioner that relates to appraisals and classifications. Jolene U. Dance, Vice-Chair Phoenix Member-at-Large The State Land Department Board of Appeals consists of five board members selected by the Governor and confirmed by the Senate for sixyear terms. Three members represent the 15 counties in the State, which is divided into three districts. Two members hold positions-atlarge. Norman Chappell, Phoenix Represents the Second District: Maricopa, Pinal, Gila, Yuma and La Paz counties Richard Poynter Prescott Represents the Third District: Mohave, Yavapai, Coconino, Apache and Navajo counties The current board members are Sandy Kelley (Chairperson), Jolene Dance (ViceChairperson), Norman Chappell and Richard Poynter. Vacant Tucson Represents the First District: Pima, Santa Cruz, Cochise, Graham and Greenlee counties The Board meets monthly unless special circumstances warrant additional sessions. Meetings are usually held in Phoenix. During this fiscal year, the Board approved 5 new commercial leases, 23 renewal leases, 52 rights-of-way sale appraisals, and 11 land sale appraisals. Current Trust acreage Surface Oil/Gas Mineral The Commissioner and the staff of the ASLD appreciate the considerable time and effort Board of Appeals members invest in serving the Trust and the citizens of Arizona. 9,277,863.69 8,964,103.09 8,978,114.05 33 Financial Schedules Receipts by Category..…………………....…..35 Rental Acreage and Receipts………………...36 Treasurer’s Formula Distribution……………..37 34 A&M Colleges Commercial Prepayment Common Schools (K-12)++ Leg., Exec & Judicial Military Institutes Miners' Hospital* Normal Schools Penitentiaries School for the Deaf & Blind School of Mines St Char., Pen. & Ref State Hospital University of Arizona (1881) University Land Code Total School & Institutions ++i 57,447,386 $ $ $ $ $ $ $ $ $ 16,300 4,796 10,094 108,582 139,772 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ ncluding County Bonds 213,945 $ 40 122 298 460 PENALTY & INTEREST 426 $ $ 154,434 $ 1,146 $ 300 $ 7,627 $ 930 $ 1,470 $ 2,143 $ 1,444 $ 21,249 $ 2,901 $ 18,375 $ 1,040 $ 213,485 $ 16,089,500 $ 3,182,385 OTHER LEASE RENTAL RECEIPTS 139,218 $ $ $ - $ 12,907,114 49,373,000 $ $ 109,606 $ $ 61,293 $ $ 1,581,384 $ $ 171,208 $ $ 1,050,964 $ $ 173,749 $ $ 176,751 $ $ 2,426,699 $ $ 364,199 $ $ 404,158 $ $ 1,275,386 $ $ 57,307,614 $ 12,907,114 $ 17,176,096 35,000 35,000 ROYALTY 201,918 15,257,187 77,713 10 228,883 99,987 148,954 177,081 178,980 227,792 283,399 116,888 142,303 17,141,096 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 86,273,776 $ - 66,312,633 2,903,073 76 142,243 1,626,655 2,000 14,063,887 1,223,208 86,273,776 SALES PRINCIPAL 9,133,864 $ - 7,817,385 126,585 1,064,766 102,446 22,681 9,133,864 SALES INTEREST $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Receipts by Category FY 2014 FINANCIAL SCHEDULES *Miners' Hospital & Miners' Hospital 1929 Combined - F.E.M.A. Lands Farm Loan Lands Fees: Lease, Sale & Misc. Lands Held in Trust Navigable Streambeds Total General Fund Trust Land Management Fund TOTAL RECEIPTS 35 186,334,566 51,300 4,836 10,216 108,880 175,232 TOTAL 341,562 12,907,114 138,914,638 188,465 61,602 4,847,553 272,201 1,343,631 352,973 357,176 5,367,162 652,499 14,705,754 2,664,619 182,976,950 RENTAL ACREAGE AND RECEIPTS BY TYPE OF LEASE FY 2014 SURFACE LEASES Agriculture Commercial Grazing Homesite Rights of Way Use Permits Institutional Taking U.S. Government Other Total Surface ACRES 152,652.99 71,047.55 8,359,137.07 5.63 108,180.43 533,673.01 12,891.56 18,277.51 0.00 9,255,865.74 $ $ $ $ $ $ $ $ $ $ RECEIPTS 4,171,014.66 22,483,505.21 3,059,250.03 3,611.66 4,138,620.47 5,148,772.30 415,330.81 242,485.00 14,966,342.00 54,628,932.14 SUBSURFACE LEASES Mineral Prospecting Permit Mineral Material Oil & Gas Total Subsurface ACRES 10,024.03 267,951.79 1,774.51 851,692.46 1,131,442.79 $ $ $ $ $ RECEIPTS 80,046.64 1,193,536.66 298,144.80 1,246,725.59 2,818,453.69 NON-LEASE REVENUES Penalty & Interest Sales Interest Royalty Land Sales Principal Rights of Way Sales Principal Settlements Commercial Prepayments Fees Total Non-Lease Revenues $ $ $ $ $ $ $ $ $ RECEIPTS 213,944.92 9,133,863.82 17,176,096.18 84,335,127.15 1,936,649.00 2,000.00 12,907,114.49 3,182,385.03 128,887,180.59 Grand Total $ 186,334,566.42 36 37 $ $ $ $ $ $ $ $ $ $ $ $ Normal Schools Agricultural & Mechanical Colleges Military Institutes School of Mines University Land Code University of Arizona (Act of 2/18/1881) School for the Deaf & Blind Legislative, Executive & Judicial Buildings State Hospital Miners' Hospital* State Charitable, Penal, & Reformatory Penitentiaries $ $ 235,446 67,373,883 $ 224,062 $ 282,856 $ $ 118,691 2,271,804 $ $ $ 167,816 101,606 881,688 $ $ 11,771 380,613 $ $ 70,689 209,066 $ 62,417,775 $ $ $ 17,421 73,032,624 $ 246,012 $ 333,014 $ $ 126,639 2,353,835 $ 172,401 106,667 $ 972,149 $ 5,658,741 $ 21,950 $ 50,158 $ $ 7,948 82,031 $ $ 4,585 5,061 $ $ 6,207 241,653 $ 90,461 $ 270 12,041 $ 398,034 $ $ 4,687 $ 3,929 74,618 $ 213,753 $ $ 5,364,033 Increase 67,781,808 $ FY Ending June 30, 2014 *Miners' Hospital & Miners' Hospital 1929 Combined - ++including County Bonds TOTAL $ Common Schools (K-12)++ FY Ending June 30, 2013 Treasurer’s FY 2014 Formula Distribution FINANCIAL SCHEDULES $ 1,487,291,570 5,340,477 33,834,437 7,832,215 3,896,577 7,759,104 4,786,124 25,914,900 12,407,847 1,779,421 1,248,297 9,189,110 2,734,387 1,370,568,674 1912-2014 1616 West Adams ● Phoenix, Arizona 85007 www.azland.gov