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                                                   SENATE BILL NO. 3337

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State of Washington                              49th Legislature                              1985 Regular Session

By Senators Owen, Peterson and Lee

Read First time 1/25/85 and referred to committee on Natural Resources.

AN ACT Relating to public lands; amending RCW 79.01.134, 79.01.264, and 79.28.080.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 11, chapter 73, Laws of 1961 and RCW 79.01.134 are each amended to read as follows:

          The ((commissioner of public lands)) department of natural resources, upon application by any person, firm or corporation, may enter into a contract providing for the sale and removal of rock, gravel, sand and silt located upon state lands or state forest lands, and providing for payment to be made therefor on a royalty basis.  The issuance of a contract shall be made after public auction and such contract shall not be issued for less than the appraised value of the material.

          Each application made pursuant to this section shall set forth the estimated quantity and kind of materials desired to be removed and shall be accompanied by a map or plat showing the area from which the applicant wishes to remove such materials.  The ((commissioner of public lands)) department of natural resources may in ((his)) its discretion include in any contract entered into pursuant to this section, such terms and conditions protecting the interests of the state as ((he)) it may require.  In each such contract the ((commissioner of public lands)) department of natural resources shall provide for a right of forfeiture by the state, upon a failure to operate under the contract or pay royalties for periods therein stipulated, and he may require a bond with a surety company authorized to transact a surety business in this state, as surety, to secure the performance of the terms and conditions of such contract including the payment of royalties.  The right of forfeiture shall be exercised by entry of a declaration of forfeiture in the records of the ((commissioner of public lands)) department of natural resources.  The amount of rock, gravel, sand, or silt taken under the contract shall be reported monthly by the purchaser to the ((commissioner of public lands)) department of natural resources and payment therefor made on the basis of the royalty provided in the contract.

          The ((commissioner of public lands))  department of natural resources may inspect and audit books, contracts and accounts of each person removing rock, gravel, sand, or silt pursuant to any such contract and make such other investigation and secure or receive any other evidence necessary to determine whether or not the state is being paid the full amount payable to it for the removal of such materials.

        Sec. 2.  Section 66, chapter 255, Laws of 1927 as amended by section 15, chapter 109, Laws of 1979 ex. sess. and RCW 79.01.264 are each amended to read as follows:

          The ((commissioner of public lands)) department of natural resources may reject any and all bids for leases when the interests of the state shall justify it, and in such case ((he)) it shall forthwith refund to the person paying the same, any rental and bid deposit upon the return of receipts issued therefor.  If the ((commissioner)) department approves any leasing made by the auctioneer ((he)) it shall proceed to issue a lease to the ((lessee)) successful bidder upon a form approved by the attorney general.  All such leases shall be in duplicate, both to be signed by the lessee, and by the ((commissioner of public lands on behalf of the state, with the seal of the commissioner of public lands attached thereto)) department.  The original lease shall be forwarded to the lessee and the duplicate copy kept in the office of the ((commissioner of public lands)) department.

        Sec. 3.  Section 2, chapter 324, Laws of 1955 as amended by section 21, chapter 109, Laws of 1979 ex. sess. and RCW 79.28.080 are each amended to read as follows:

          In order to encourage the improvement of grazing ranges by holders of grazing permits, the ((land commissioner)) department of natural resources shall consider (1) extension of grazing permit periods to a maximum of ten years, and (2) reduction of grazing fees, in situations where the permittee contributes or agrees to contribute to the improvement of the range, financially, by labor, or otherwise.