LWVNM Study: Transfer of Federal Public Lands
Interview of State Land Commissioner Aubrey Dunn Nov. 13, 2017
Also present: Assistant Commissioners Kristen Haase and Kris McNeil.
LWV Members: Judy Williams, Barbara Calef, Chris Furlanetto, Ann Coulston, Jody Larson
Dunn presented a PowerPoint with State Trust history, explanation of funds, beneficiaries, and projects. The Land Ordinance of 1785 established a system dividing the states and territories into townships composed of 36 sections. At New Mexico statehood four sections of each township were put into a trust to be maintained for the benefit of educational and other institutions. Dunn pointed out that there are no trust lands on the land grants. Each section is allocated to a specific beneficiary. Those with more productive lands receive more money. Early in the state’s history land was sold to provide necessary funding for infrastructure. Now land is rarely sold; sales or leases must be done at public auction. The SLO has obtained Garrett’s Desert Inn in a trade for the old Dixon apple orchard with Cochiti Pueblo. The Inn will not be sold, but has been leased and will be remodeled. (The winning bidder was subsequently disqualified.)
By law there is an oil and gas lease sale every third Tuesday. Leases are for 5 years, but the lease is continued after that time so long as it is productive. The sales have increased since being conducted on the internet rather than in house.
Dunn made the following points:
- He believes we will not be using oil and gas (O&G) to power the U.S. in 20 years.
- SLO must plan to replace O&G income.
- 1,500 wind towers will be constructed in Corona in the next 18 months, many on private land.
- 2017 HB 24 remediation fund (supported by LWVNM) is in effect, working to clean up sites and protect endangered species such as the TX Hornshell Mussel.
- He has hired a second archaeologist.
- The SLO is trying to create larger blocks of lands by swapping.
- He does not want to sell any state land.
- SLO no longer allows private transfers.
- 100,000 acres are tied up in wilderness study areas; BLM doesn’t want to give anything up.
- In trades, value must be equal, so SLO got 78,000 acres of developable land in exchange for 43,000 acres of land within the Rio Grande del Norte Monument and the Sabinoso Wilderness. (Seidlitz said this is not final; need new appraisals)
Re transfer of Federal public lands to the state:
- Dunn does not favor the transfer of these lands to the states. If they transfer the federal lands, they have to transfer all of its uses, above and below ground. He says that 90% of SLO revenue comes from below ground, and 100% of the problems are above ground. He says this arrangement won’t work.
- Dunn would like to acquire the federal subsurface mineral rights under private lands. The feds own most of the mineral rights in NM; there are 6 million acres of unleased land. He says the ranchers, who own most of these lands, favor transfer of the mineral rights. NM would give 50% of the royalties to the fed for 10 years.
A different entity could be set up to lease the minerals; this is not covered by the NM Constitution.
Funds from the trust lands comprise 1/3 of the education budget ($2.6 billion.)
Other issues he mentioned:
- Venting and flaring should be tightened. OCD does the inspections and they have far too few inspectors. The companies like it this way.
- When the natural gas companies pay royalties, they pull out expenses first. They can do this because gas is not taxed at the wellhead, but at the point of production. This allows all sorts of things to be deducted and not counted in royalty payments.
- Re water rights and the recent case of the man who is selling Ogallala Aquifer drinking water to drillers for drilling. The SLO has leased the water to the man, Ray Westall , but he has not made the required payments. Dunn feels very strongly about water conservation.