Idaho Admin. Code r. 20.03.14.105

Current through September 2, 2024
Section 20.03.14.105 - CONFLICT AUCTIONS
01.Two or More Applicants. When two (2) or more eligible applicants apply to lease the same state endowment trust land for grazing, farming conservation, noncommercial recreation, or communication site purposes and the Department determines the proposed uses are not compatible, the Department will hold an auction.
02.Minimum Bid. Bidding begins at two hundred fifty dollars ($250) or the cost of preparing any required improvement valuation in connection with the expiring lease, whichever is greater.
03.Auction Bidding. Each applicant who appears in person or by proxy at the time and place so designated in said notice and bids for the lease is deemed to have participated in the auction. A proxy must be authorized by the lease applicant in writing prior to the start of the auction.
04.Withdrawal Prior to or Failure to Participate in an Auction. Applicants who either withdraw their applications after accepting the Department offered lease per Subsection 020.02 of this rule and prior to the auction that results in no need to schedule an auction or cancellation of a scheduled auction; or applicants who fail to participate at the auction by not submitting a bid which results in only one (1) participant at the scheduled auction, forfeit an amount equal to the lesser of the following:
a. The Department's cost of making any required improvement credit valuation;
b. For existing lessee applicants, any improvement credit payment that would otherwise be due if not awarded the lease; or
c. For conflict applicants, the rental deposit made.
05.High Bid Deposit. The high bidder is required to submit payment in the amount of the high bid at the conclusion of the auction.
06.Auction Procedures. The Department will prescribe the procedures for conducting conflicted lease auctions.
07.Withdrawal After Auction.
a. If the high bidder withdraws or refuses to accept the lease, the high bid payment will be retained by the Department.
i. If the auction involved only two (2) participants, the second high bidder will be awarded the lease.
ii. If the auction involved more than two (2) participants, the lease will be reauctioned.
b. If an auction bidder other than the high bidder withdraws a bid before Land Board review and action on the auction results, no adjustment will be made in the payment deposited by the high bidder.

Idaho Admin. Code r. 20.03.14.105

Effective March 18, 2022