SF 893

1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to counties; authorizing county boards to
contract for the sale of biomass; amending Minnesota
Statutes 2004, section 282.04, subdivision 1.

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

Section 1.

Minnesota Statutes 2004, section 282.04,
subdivision 1, is amended to read:

Subdivision 1.

Timber sales; land leases and uses.

(a)
The county auditor may sell timber upon any tract that may be
approved by the natural resources commissioner. The sale of
timber shall be made for cash at not less than the appraised
value determined by the county board to the highest bidder after
not less than one week's published notice in an official paper
within the county. Any timber offered at the public sale and
not sold may thereafter be sold at private sale by the county
auditor at not less than the appraised value thereof, until the
time as the county board may withdraw the timber from sale. The
appraised value of the timber and the forestry practices to be
followed in the cutting of said timber shall be approved by the
commissioner of natural resources.

(b) Payment of the full sale price of all timber sold on
tax-forfeited lands shall be made in cash at the time of the
timber sale, except in the case of oral or sealed bid auction
sales, the down payment shall be no less than 15 percent of the
appraised value, and the balance shall be paid prior to entry.
In the case of auction sales that are partitioned and sold as a
single sale with predetermined cutting blocks, the down payment
shall be no less than 15 percent of the appraised price of the
entire timber sale which may be held until the satisfactory
completion of the sale or applied in whole or in part to the
final cutting block. The value of each separate block must be
paid in full before any cutting may begin in that block. With
the permission of the county contract administrator the
purchaser may enter unpaid blocks and cut necessary timber
incidental to developing logging roads as may be needed to log
other blocks provided that no timber may be removed from an
unpaid block until separately scaled and paid for. If payment
is provided as specified in this paragraph as security under
paragraph (a) and no cutting has taken place on the contract,
the county auditor may credit the security provided, less any
down payment required for an auction sale under this paragraph,
to any other contract issued to the contract holder by the
county under this chapter to which the contract holder requests
in writing that it be credited, provided the request and
transfer is made within the same calendar year as the security
was received.

(c) The county board may require final settlement on the
basis of a scale of cut products. Any parcels of land from
which timber is to be sold by scale of cut products shall be so
designated in the published notice of sale under paragraph (a),
in which case the notice shall contain a description of the
parcels, a statement of the estimated quantity of each species
of timber, and the appraised price of each species of timber for
1,000 feet, per cord or per piece, as the case may be. In those
cases any bids offered over and above the appraised prices shall
be by percentage, the percent bid to be added to the appraised
price of each of the different species of timber advertised on
the land. The purchaser of timber from the parcels shall pay in
cash at the time of sale at the rate bid for all of the timber
shown in the notice of sale as estimated to be standing on the
land, and in addition shall pay at the same rate for any
additional amounts which the final scale shows to have been cut
or was available for cutting on the land at the time of sale
under the terms of the sale. Where the final scale of cut
products shows that less timber was cut or was available for
cutting under terms of the sale than was originally paid for,
the excess payment shall be refunded from the forfeited tax sale
fund upon the claim of the purchaser, to be audited and allowed
by the county board as in case of other claims against the
county. No timber, except hardwood pulpwood, may be removed
from the parcels of land or other designated landings until
scaled by a person or persons designated by the county board and
approved by the commissioner of natural resources. Landings
other than the parcel of land from which timber is cut may be
designated for scaling by the county board by written agreement
with the purchaser of the timber. The county board may, by
written agreement with the purchaser and with a consumer
designated by the purchaser when the timber is sold by the
county auditor, and with the approval of the commissioner of
natural resources, accept the consumer's scale of cut products
delivered at the consumer's landing. No timber shall be removed
until fully paid for in cash. Small amounts of timber not
exceeding $3,000 in appraised valuation may be sold for not less
than the full appraised value at private sale to individual
persons without first publishing notice of sale or calling for
bids, provided that in case of a sale involving a total
appraised value of more than $200 the sale shall be made subject
to final settlement on the basis of a scale of cut products in
the manner above provided and not more than two of the sales,
directly or indirectly to any individual shall be in effect at
one time.

(d) As directed by the county board, the county auditor may
lease tax-forfeited land to individuals, corporations or
organized subdivisions of the state at public or private sale,
and at the prices and under the terms as the county board may
prescribe, for use as cottage and camp sites and for
agricultural purposes and for the purpose of taking and removing
of hay, stumpage, sand, gravel, clay, rock, marl, and black dirt
from the land, and for garden sites and other temporary uses
provided that no leases shall be for a period to exceed ten
years; provided, further that any leases involving a
consideration of more than $12,000 per year, except to an
organized subdivision of the state shall first be offered at
public sale in the manner provided herein for sale of timber.
Upon the sale of any leased land, it shall remain subject to the
lease for not to exceed one year from the beginning of the term
of the lease. Any rent paid by the lessee for the portion of
the term cut off by the cancellation shall be refunded from the
forfeited tax sale fund upon the claim of the lessee, to be
audited and allowed by the county board as in case of other
claims against the county.

(e) As directed by the county board, the county auditor may
lease tax-forfeited land to individuals, corporations, or
organized subdivisions of the state at public or private sale,
at the prices and under the terms as the county board may
prescribe, for the purpose of taking and removing for use for
road construction and other purposes tax-forfeited stockpiled
iron-bearing material. The county auditor must determine that
the material is needed and suitable for use in the construction
or maintenance of a road, tailings basin, settling basin, dike,
dam, bank fill, or other works on public or private property,
and that the use would be in the best interests of the public.
No lease shall exceed ten years. The use of a stockpile for
these purposes must first be approved by the commissioner of
natural resources. The request shall be deemed approved unless
the requesting county is notified to the contrary by the
commissioner of natural resources within six months after
receipt of a request for approval for use of a stockpile. Once
use of a stockpile has been approved, the county may continue to
lease it for these purposes until approval is withdrawn by the
commissioner of natural resources.

(f) The county auditor, with the approval of the county
board is authorized to grant permits, licenses, and leases to
tax-forfeited lands for the depositing of stripping, lean ores,
tailings, or waste products from mines or ore milling plants,
upon the conditions and for the consideration and for the period
of time, not exceeding 15 years, as the county board may
determine. The permits, licenses, or leases are subject to
approval by the commissioner of natural resources.

(g) Any person who removes any timber from tax-forfeited
land before said timber has been scaled and fully paid for as
provided in this subdivision is guilty of a misdemeanor.

(h) The county auditor may, with the approval of the county
board, and without first offering at public sale, grant leases,
for a term not exceeding 25 years, for the removal of peat new text begin and
for the production or removal of farm-grown closed-loop biomass
as defined in section 216B.2424, subdivision 1, or
short-rotation woody crops new text end from tax-forfeited lands upon the
terms and conditions as the county board may prescribe. Any
lease for the removal of peat new text begin , farm-grown closed-loop biomass,
or short-rotation woody crops new text end from tax-forfeited lands must
first be reviewed and approved by the commissioner of natural
resources if the lease covers 320 or more acres. No lease for
the removal of peat new text begin , farm-grown closed-loop biomass, or
short-rotation woody crops new text end shall be made by the county auditor
pursuant to this section without first holding a public hearing
on the auditor's intention to lease. One printed notice in a
legal newspaper in the county at least ten days before the
hearing, and posted notice in the courthouse at least 20 days
before the hearing shall be given of the hearing.

(i) Notwithstanding any provision of paragraph (c) to the
contrary, the St. Louis County auditor may, at the discretion of
the county board, sell timber to the party who bids the highest
price for all the several kinds of timber, as provided for sales
by the commissioner of natural resources under section 90.14.
Bids offered over and above the appraised price need not be
applied proportionately to the appraised price of each of the
different species of timber.

(j) In lieu of any payment or deposit required in paragraph
(b), as directed by the county board and under terms set by the
county board, the county auditor may accept an irrevocable bank
letter of credit in the amount equal to the amount otherwise
determined in paragraph (b), exclusive of the down payment
required for an auction sale in paragraph (b). If an
irrevocable bank letter of credit is provided under this
paragraph, at the written request of the purchaser, the county
may periodically allow the bank letter of credit to be reduced
by an amount proportionate to the value of timber that has been
harvested and for which the county has received payment. The
remaining amount of the bank letter of credit after a reduction
under this paragraph must not be less than 20 percent of the
value of the timber purchased. If no cutting of timber has
taken place on the contract for which a letter of credit has
been provided, the county may allow the transfer of the letter
of credit to any other contract issued to the contract holder by
the county under this chapter to which the contract holder
requests in writing that it be credited.