(a) All state lands leased by the state board of land commissioners, for grazing and other agricultural purposes shall be leased in such manner and to such parties as shall inure to the greatest benefit to the state land trust beneficiaries. (b) No applicant shall be qualified to lease vacant lands unless that applicant is qualified under the provisions of W.S. 36-5-101, has or can gain access to the land and offers to pay an annual rental at not less than fair market value, as determined by the economic analysis pursuant to W.S. 36-5- 101(b), for the same or similar use of the land for a period of ten (10) years and who has not been found to have significantly violated any laws or regulations related to state lands. Also in leasing vacant lands: (i) Preference shall be given to applicants who are the owners, lessees or lawful occupants of adjoining lands, unless the board determines that the preference should not be recognized for good cause. The preference shall be administered as set forth in this paragraph: (A) In instances where one (1) applicant is eligible for the preference and a competing bidder is not, the applicant eligible for the preference may elect to meet the highest bid of the applicants not eligible for the preference; (B) When two (2) or more applicants are eligible for the preference, in determining to which applicant to award the lease, the director shall request a final bid from the applicants eligible for the preference in a manner as directed by the director to determine the successful applicant; (C) When two (2) or more applicants are eligible for the preference and one (1) or more applicants are not eligible for the preference, those applicants who are eligible for the preference may elect to match the highest bid. If two (2) or more applicants who are eligible for the preference elect to meet the highest bid, the lease shall be awarded pursuant to subparagraph (B) of this paragraph. (ii) Before accepting applications to lease vacant land, the director shall provide notice on the website of the office, directly to each adjoining private landowner as recorded within the county assessor's office and by any other means as prescribed by rule; (iii) If the board determines good cause exists not to recognize a preference under paragraph (i) of this subsection, the board shall issue written notice to the applicant who is not being given a preference. The notice shall include the board's statement of good cause not to recognize the preference and the opportunity to request a hearing to appeal the determination in accordance with the Wyoming Administrative Procedure Act. The board shall have the burden to demonstrate the good cause not to recognize the preference; (iv) As used in this subsection: (A) "Preference" means the elevated position of an applicant to participate in the vacant land bidding process as described in paragraph (i) of this subsection above applicants who are not the owners, lessees or lawful occupants of adjoining lands in good standing with the board; (B) "Vacant land" means land not currently subject to a grazing and agricultural lease from the board. (c) An applicant who is the holder of an expiring lease, and has paid the rental when due, and is not currently in violation of the provisions of the lease, and is qualified under the provisions of W.S. 36-5-101, shall have a preferred right to renew such lease by meeting the highest bid offered by another qualified applicant whose bid is not less than the minimum fair market value as determined by the board for the same or a similar use of land using the formula developed pursuant to W.S. 36-5-101(b) and not more than one hundred twenty percent (120%) of the maximum fair market value as determined by the board based on the previous year's values for the state, district or county, whichever is most localized and available, as determined by the national agricultural statistics service utilizing: (i) The private land lease rate per animal unit month for Wyoming grazing leases; or (ii) The private land irrigated or nonirrigated cropland lease rate, as applicable, for Wyoming cropland leases on irrigated or nonirrigated cropland; and (iii) A downward adjustment of twenty percent (20%) to reasonably reflect lessee contributions typically provided as a part of a private land grazing lease rate or a private cropland lease rate, as applicable. (d) If the lessee of state lands shall assign, sublease or contract all or any part of the lease area, the lease shall be subject to cancellation unless the director approves the assignment, sublease or contract subject to criteria established by the board of land commissioners provided that: (i) Approval shall not be arbitrarily or unreasonably withheld; (ii) All action upon each application shall inure to the greatest benefit of state land trust beneficiaries; (iii) In no event shall the lands be subleased unless one-half (1/2) of the excess rental is paid to the state. For purposes of this paragraph, "excess rental" means the amount of money received from the sublease by the lessee is in excess of the current annual grazing and agricultural lease rental. "Excess rental" shall be calculated by identifying the total money received for only the use of leased or subleased state lands and subtracting the annual lease rental; (iv) A lessee of state lands whose lease authorizes grazing on the state lands shall not be required to obtain the approval of the director to allow livestock the lessee does not own to graze on the state lands provided that: (A) Repealed by Laws 2026, ch. 22, § 2. (B) Repealed by Laws 2026, ch. 22, § 2. (C) Repealed by Laws 2026, ch. 22, § 2. (D) Notice of the presence of livestock not owned by the lessee shall be given to the board on a form provided by the office of state lands and investments not more than thirty (30) days after the arrival of the livestock on the leased land; (E) In addition to the annual rental amount, the lessee shall pay a monthly fee per head of non-owned livestock which shall be established by the board and shall not exceed fifty percent (50%) of the annual animal unit month rental rate. The payment shall be made to the board not later than thirty (30) days after the removal of the non-owned livestock. For purposes of this subparagraph, "animal unit month" means as defined by W.S. 41-3-116(a)(ii). (v) Repealed by Laws 2026, ch. 22, § 2. (vi) Repealed by Laws 2026, ch. 22, § 2. (e) Repealed By Laws 2007, Ch. 111, § 2. (f) Provided further, that whenever any state owned lands have been or may hereafter be condemned or acquired by the United States for war purposes and whenever said lands may hereafter be reconveyed to the state of Wyoming by the said United States or any department thereof, then in such event the state board of land commissioners shall give preference to the lessee holding said lands at the time of the taking of said lands by the said United States or any department thereof. (g) Provided further, that this act shall not be applicable to the leasing of state mineral lands under the provisions of W.S. 36-6-101 through 36-6-105, as amended. (h) As used in subsection (c) of this section, "preferred right" means the right to renew a lease provided to an existing holder of a grazing and agricultural lease by the board if the existing lease holder is in compliance with subsection (c) of this section. (j) No applicant shall be qualified to lease state lands for grazing and agricultural purposes without having actual and necessary use of the land for the production of agricultural commodities. (k) If at any time a state grazing lessee notifies the office that the common ownership of the entities holding the state grazing lease and owning the livestock grazing on the state grazing lease is not less than eighty percent (80%), a sublease or a non-owned livestock fee shall not be required.
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