person desiring to lease a tract of state land or portion thereof for any use
other than the present classification must submit an application proposing such
alternative use. If such application is received from anyone other than from
the existing lessee for a reclassification, then proper notice shall be given
to the appropriate lessee. The department shall conduct a capability inventory
of the tract, and if it determines such proposed use to be in the
best interests of the state, the tract may be reclassified and leased for such
alternative use. The person submitting an application for reclassification will
be notified of the department's decision at least 90 days prior to the date
applications and bids for leases or licenses are due.
(2) Each tract of land reclassified to be
leased for an alternative use shall be subject to the bidding procedures for
unleased land as described in ARM 36.25.115, except:
(a) where classified grazing land is
reclassified to agricultural land upon application of the existing lessee; or
(b) land upon which a cabinsite was in
existence on or before October 1, 1983.
(3) Each tract of land to be licensed for a
use other than that for which it is reclassified shall be subject to the bidding
procedures for unleased or unlicensed land as set forth in ARM 36.25.115.
(4) Prior to the cultivation of any land
leased or licensed for grazing purposes, the lessee must apply and receive
permission from the department, for reclassification to agriculture as
provided in this rule. Failure to obtain written approval before cultivating
state land shall result in either cancellation of the lease or license or a
rental of twice the regular agricultural rental on the land illegally
cultivated, as provided by 77-6-209, MCA. Such determination shall
be subject to the appeal procedures in ARM 36.25.121.
(5) The department reserves the right to
reclassify or issue a land use license on, or withdraw all or a portion of land
without application which is leased or licensed for grazing, agricultural or
timber purposes upon reasonable notice to the user. The lessee shall be
entitled to reasonable compensation for any improvements on the withdrawn land
and to an adjustment or return payment of rent.