Minnesota Session Laws - 1987, Regular Session

  

                         Laws of Minnesota 1987 

                        CHAPTER 357-S.F.No. 841 
           An act relating to natural resources; conservation 
          reserve program; definitions, eligibility for 
          inclusion, applications, agreements, payments, and 
          other terms and conditions; establishing a native 
          prairie bank program; appropriating funds; amending 
          and changing requirements for the waterbank programs; 
          amending Minnesota Statutes 1986, sections 40.41; 
          40.42, subdivision 5, and by adding subdivisions; 
          40.43, subdivisions 2, 3, 5, 6, and 7; 40.44, 
          subdivisions 2 and 3; 40.45; 84.943, subdivisions 1, 
          3, and 5; 84.944, subdivision 1; 84.95, subdivision 2 
          and by adding a subdivision; 105.391, subdivision 3; 
          and 105.392, subdivisions 1, 2, 3, 4, 5, and 6; 
          proposing coding for new law in Minnesota Statutes, 
          chapter 84. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1986, section 40.41, is 
amended to read: 
    40.41 [PURPOSE AND POLICY.] 
    It is the purposes of sections 40.41 to 40.45 to keep 
certain marginal agricultural land out of crop production or 
pasture to protect soil and water quality and support fish and 
wildlife habitat.  It is state policy to encourage the 
retirement of marginal, highly erodable land, particularly land 
adjacent to public waters and drainage systems, from crop 
production and to reestablish a cover of perennial vegetation. 
    Sec. 2.  Minnesota Statutes 1986, section 40.42, 
subdivision 5, is amended to read: 
    Subd. 5.  [LANDOWNER.] "Landowner" means a Minnesota 
resident who owns or is a buyer under a contract for deed, of 
land that qualifies as a family farm, a family farm corporation 
or an authorized farm corporation under section 500.24, 
subdivision 2 individuals, family farms, family farm 
corporations as defined under section 500.24, subdivision 2, 
paragraph (c), and authorized farm corporations as defined under 
section 500.24, subdivision 2, paragraph (d), which either own 
eligible land or are purchasing eligible land under a contract 
for deed.  
    Sec. 3.  Minnesota Statutes 1986, section 40.42, is amended 
by adding a subdivision to read: 
    Subd. 7.  [WETLAND.] "Wetland" means land that has a 
predominance of hydric soils and that is inundated or saturated 
by surface or groundwater at a frequency and duration sufficient 
to support, or that periodically does support, a predominance of 
hydrophytic vegetation typically adapted for life in saturated 
soil conditions.  
    Sec. 4.  Minnesota Statutes 1986, section 40.42, is amended 
by adding a subdivision to read: 
    Subd. 8.  [WINDBREAK.] "Windbreak" means a strip or belt of 
trees, shrubs, or grass barriers at least six rows deep and 
within 300 feet of the right-of-way of a highway. 
    Sec. 5.  Minnesota Statutes 1986, section 40.43, 
subdivision 2, is amended to read:  
    Subd. 2.  [ELIGIBLE LAND.] Land may be placed in the 
conservation reserve program if the land: 
    (1) is marginal agricultural land, or is adjacent to 
marginal agricultural land and is either beneficial to resource 
protection or necessary for efficient recording of the land 
description, or consists of a drained wetland, or is land that 
with a windbreak would be beneficial to resource protection. 
Cropland adjacent to the restored wetland may also be enrolled 
to the extent of up to four acres of cropland for each acre of 
wetland restored; 
    (2) was owned by the applicant landowner on January 1, 
1985, or for an application made on or after January 1, 1988, 
was owned by the applicant landowner, or a parent or other blood 
relative of the landowner, for at least three years before the 
date of application;  
    (3) is at least five acres in size, except for a windbreak, 
or is a whole field as defined by the United States Agricultural 
Stabilization and Conservation Services; 
    (4) is not set aside, enrolled or diverted under another 
federal or state government program; and 
    (5) was in agricultural crop production or pasture for at 
least two years during the period 1981 to 1985. 
    The eligible enrolled land of a landowner may not exceed 20 
percent of the landowner's total agricultural land acreage in 
the state, if the landowner owns at least 200 acres of 
agricultural land as defined by section 500.24, subdivision 2.  
If a landowner owns less than 200 acres of agricultural land the 
amount that may be enrolled in the conservation reserve is: 
    (a) all agricultural land owned, if 20 acres or less; or 
    (b) if the total agricultural land owned is more than 20 
acres but less than 200 acres, 20 acres plus ten percent of the 
balance of the agricultural land.  
    In selecting land for enrollment in the program, highest 
priority must be given to permanent easements that are 
consistent with the purposes stated in section 40.41.  
    Sec. 6.  Minnesota Statutes 1986, section 40.43, 
subdivision 3, is amended to read:  
    Subd. 3.  [CONSERVATION EASEMENTS.] The commissioner may 
acquire conservation easements on eligible land.  An easement 
may be permanent or of limited duration.  An easement of limited 
duration may not be acquired if it is for a period less than ten 
20 years.  The negotiation and acquisition of easements 
authorized by this section are exempt from the contractual 
provisions of chapter 16B. 
    Sec. 7.  Minnesota Statutes 1986, section 40.43, 
subdivision 5, is amended to read: 
    Subd. 5.  [AGREEMENTS BY LANDOWNER.] The commissioner may 
enroll eligible land in the conservation reserve program by 
signing an agreement in recordable form with a landowner in 
which the landowner agrees: 
    (1) to convey to the state a conservation easement that is 
not subject to any prior title, lien, or encumbrance; 
    (2) to seed the land subject to the conservation easement, 
as specified in the agreement, to establish and maintain 
perennial cover of either a grass-legume mixture or native 
grasses for the term of the easement, at seeding rates 
determined by the commissioner; or to plant trees or carry out 
other long-term capital improvements approved by the 
commissioner for soil and water conservation or wildlife 
management; 
    (3) to restore any drained wetland and to convey to the 
state a permanent easement for the wetland; 
    (4) that other land supporting natural vegetation owned or 
leased as part of the same farm operation during at the term of 
the easement time of application, if it supports natural 
vegetation or has not been used in agricultural crop 
production or pasture, will not be converted to agricultural 
crop production or pasture; and 
    (4) (5) to the enforcement of the terms of the easement and 
agreements in this subdivision by an action for specific 
performance, a mandatory injunction, or for damages in an amount 
not to exceed the total amount paid by the state to the 
landowner under subdivision 6, with interest from the date of 
each default under the agreement; and 
    (6) that the easement duration may be lengthened through 
mutual agreement with the commissioners of agriculture and 
natural resources if they determine that the changes effectuate 
the purpose of the program or to facilitate its administration. 
    Sec. 8.  Minnesota Statutes 1986, section 40.43, 
subdivision 6, is amended to read: 
    Subd. 6.  [PAYMENTS FOR CONSERVATION EASEMENTS AND 
ESTABLISHMENT OF COVER.] The commissioner must make the 
following payments to the landowner for the conservation 
easement and agreement: 
    (1) to establish the perennial cover or other improvements 
required by the agreement, up to 75 percent of the total 
eligible cost not to exceed $75 per acre for limited duration 
easements, and 100 percent of the total eligible cost not to 
exceed $100 per acre for perpetual easements; 
    (2) for the cost of planting trees required by the 
agreement, up to $75 75 percent of the total eligible cost not 
to exceed $200 per acre for limited duration easements, and 100 
percent of the total eligible cost not to exceed $300 per acre 
for perpetual easements; 
    (3) for a permanent easement, 70 percent of the township 
average equalized estimated market value of agricultural 
property as established by the commissioner of revenue at the 
time the of easement is conveyed application; and 
    (4) for an easement of limited duration, 90 percent of the 
present value of the average of the acceptable accepted bids for 
the federal conservation reserve program, as contained in Public 
Law Number 99-198, in the relevant geographic area and on bids 
made immediately prior to when accepted at the time of easement 
is conveyed.  If federal bid figures have not been determined 
for the area, or the federal program has been discontinued, the 
rate paid shall application; or 
    (5) an alternative payment system for easements based on 
cash rent or a similar system as may be determined by the 
commissioner. 
    The commissioner may not pay more than $50,000 to a 
landowner for all the landowner's conservation easements and 
agreements. 
    Sec. 9.  Minnesota Statutes 1986, section 40.43, 
subdivision 7, is amended to read: 
    Subd. 7.  [EASEMENT RENEWAL.] When a conservation easement 
of limited duration expires, a new conservation easement and 
agreement for an additional period of ten not less than 20 years 
may be acquired by agreement of the commissioner and the 
landowner, under the terms of this section.  The commissioner 
may adjust payment rates as a result of renewing an agreement 
and conservation easement only after examining the condition of 
the established cover, conservation practices, and land values. 
    Sec. 10.  Minnesota Statutes 1986, section 40.44, 
subdivision 2, is amended to read: 
    Subd. 2.  [TECHNICAL ASSISTANCE.] The commissioners of 
agriculture and natural resources must provide necessary 
technical assistance to landowners enrolled in the conservation 
reserve program.  The commissioner of natural resources must 
provide technical advice and assistance to the commissioner 
on (1) the form and content of the conservation easement and 
agreement, and on; (2) forestry and agronomic practices; and (3) 
hydrologic and hydraulic design relating to the establishment 
and maintenance of permanent cover, or other conservation 
improvements.  The commissioner of transportation must provide 
technical advice and assistance to the commissioners of 
agriculture and natural resources on the planting of windbreaks 
adjacent to highways.  The commissioners of agriculture and 
natural resources shall jointly prepare an informational booklet 
on the conservation reserve program and other state and federal 
programs for land acquisition, conservation, and retirement to 
be made available to eligible landowners and the general public. 
    Sec. 11.  Minnesota Statutes 1986, section 40.44, 
subdivision 3, is amended to read: 
    Subd. 3.  [SUPPLEMENTAL CONSERVATION PAYMENTS.] The 
commissioner may supplement cost-share payments made under other 
federal land retirement programs, up to $75 an acre, to the 
extent of available appropriations other than bond proceeds.  
The supplemental cost-share payments must be used to establish 
perennial cover on land enrolled or increase payments for land 
enrollment in programs approved by the commissioner, including 
the federal conservation reserve program and federal and state 
waterbank programs program.  
    Sec. 12.  Minnesota Statutes 1986, section 40.45, is 
amended to read: 
    40.45 [RULEMAKING.] 
    The commissioner shall may adopt emergency rules and is 
authorized to adopt to implement this act.  The emergency rules 
in order to implement sections 40.41 to 40.45 adopted on August 
27, 1986, shall remain in effect until December 31, 1987, or 
until amended or replaced by emergency or permanent rules.  The 
rules must include standards for tree planting so that planting 
does not conflict with existing electrical lines, telephone 
lines, rights-of-way, or drainage ditches. 
    Sec. 13.  Minnesota Statutes 1986, section 84.943, 
subdivision 1, is amended to read: 
    Subdivision 1.  [ESTABLISHMENT.] The Minnesota critical 
habitat private sector matching account is established as a 
separate account in the state treasury reinvest in Minnesota 
resources fund established under section 84.95.  The account 
shall be administered by the commissioner of natural resources 
as provided in this section.  
    Sec. 14.  Minnesota Statutes 1986, section 84.943, 
subdivision 3, is amended to read:  
    Subd. 3.  [APPROPRIATIONS MUST BE MATCHED BY PRIVATE 
FUNDS.] Appropriations transferred to the critical habitat 
private sector matching account may be expended only to the 
extent that they are matched equally with contributions to the 
account from private sources or by funds contributed to the 
nongame wildlife management account.  The private contributions 
may be made in cash or in contributions of land or interests in 
land that are designated by the commissioner of natural 
resources as program acquisitions.  Appropriations transferred 
to the account that are not matched within three years from the 
date of the appropriation shall cancel to the source of the 
appropriation.  For the purposes of this section, the private 
contributions of land or interests in land shall be valued in 
accordance with their appraised value. 
    Sec. 15.  Minnesota Statutes 1986, section 84.943, 
subdivision 5, is amended to read:  
    Subd. 5.  [PLEDGES AND CONTRIBUTIONS.] The commissioner of 
natural resources may accept contributions and pledges to the 
critical habitat private sector matching account.  A pledge that 
is made contingent on an appropriation is acceptable and shall 
be reported with other pledges as required in this section.  In 
the budget request for each biennium, the commissioner shall 
report the balance of contributions in the account and the 
amount that has been pledged for payment in the succeeding two 
calendar years. 
    Money in the account may be expended is appropriated to the 
commissioner of natural resources only for the direct 
acquisition or improvement of land or interests in land as 
provided in section 84.944.  To the extent of available 
appropriations other than bond proceeds, the money matched to 
the nongame wildlife management account may be used for the 
management of nongame wildlife projects as specified in section 
290.431.  Acquisition includes:  (1) purchase of land or an 
interest in land by the commissioner; or (2) acceptance by the 
commissioner of gifts of land or interests in land as program 
projects. 
    Sec. 16.  Minnesota Statutes 1986, section 84.944, 
subdivision 1, is amended to read: 
    Subdivision 1.  [ACQUISITION CONSIDERATIONS.] In 
determining what critical natural habitat shall be acquired or 
improved, the commissioner shall consider: 
    (1) the significance of the land or water as existing or 
potential habitat for fish and wildlife and providing fish and 
wildlife oriented recreation; 
    (2) the significance of the land, water, or habitat 
improvement to maintain or enhance native plant, fish, or 
wildlife species designated as endangered or threatened under 
section 97.488; 
     (3) the presence of native ecological communities that are 
now uncommon or diminishing; and 
     (4) the significance of the land, water or habitat 
improvement to protect or enhance natural features within or 
contiguous to natural areas including fish spawning areas, 
wildlife management areas, scientific and natural areas, 
riparian habitat and fish and wildlife management projects. 
    Based on the above clauses, the commissioner by order 
promulgated under section 97A.051, subdivision 3, must establish 
a process to prioritize what critical habitat shall be acquired 
or improved. 
     Sec. 17.  Minnesota Statutes 1986, section 84.95, 
subdivision 2, is amended to read:  
    Subd. 2.  [PURPOSES AND EXPENDITURES.] Money from the 
reinvest in Minnesota resources fund may only be spent for the 
following fish and wildlife conservation enhancement purposes: 
    (1) development and implementation of the comprehensive 
fish and wildlife management plan under section 84.942; 
    (2) implementation of the conservation reserve program 
established by section 40.43; 
    (3) soil and water conservation practices to improve water 
quality, reduce soil erosion and crop surpluses; 
    (4) enhancement of fish and wildlife habitat on lakes, 
streams, wetlands, and public and private forest lands; 
    (5) acquisition and development of public access sites and 
recreation easements to lakes, streams, and rivers for fish and 
wildlife oriented recreation; 
    (6) matching funds with government agencies, federally 
recognized Indian tribes and bands, and the private sector for 
acquisition and improvement of fish and wildlife habitat; 
    (7) research and surveys of fish and wildlife species and 
habitat; 
    (8) enforcement of natural resource laws and rules; 
    (9) information and education; 
    (10) implementing the aspen recycling program under section 
88.80; and 
    (11) necessary support services to carry out these purposes.
    Sec. 18.  Minnesota Statutes 1986, section 84.95, is 
amended by adding a subdivision to read: 
    Subd. 3.  [WORK PLAN.] By February 1 of each year the 
commissioner of natural resources, in consultation with the 
commissioner of agriculture, must present a written work plan 
for expenditure of money from the reinvest in Minnesota 
resources fund for the next fiscal year to the senate and house 
committees on agriculture and environment and natural resources 
for their review and comment.  Any recommendations to the 
commissioners by the committees must be returned to the 
commissioners by March 15.  By April 30 of each year the 
commissioner must make the work plan, with any revisions, 
available to the public for comment.  In so doing, the 
commissioner must hold at least three public meetings to inform 
the public of the work plan; one meeting to be held in the Twin 
Cities metropolitan area, the others at non-Twin Cities 
locations, one each in northern and southern Minnesota.  By 
January 15 of each year, the commissioner must prepare a written 
progress report on projects undertaken and money encumbered 
during the fiscal year just ended, and must transmit the report 
to the above committees and make the report available to the 
public. 
    Sec. 19.  [84.96] [NATIVE PRAIRIE BANK.] 
    Subdivision 1.  [ESTABLISHMENT.] The commissioner shall 
establish a native prairie bank, determine where native prairie 
land is located in the state, and prescribe eligibility 
requirements for inclusion of land in the native prairie bank.  
    Subd. 2.  [DEFINITION.] For the purposes of this section, 
"native prairie" means land that has never been plowed, with 
less than ten percent tree cover and with predominantly native 
prairie vegetation.  
    Subd. 3.  [EASEMENT ACQUISITION.] (a) The commissioner may 
acquire native prairie for conservation purposes by entering 
into easements with landowners.  The easements must be 
conservation easements as defined in section 84C.01, clause (1), 
except the easements may be made possessory as well as 
nonpossessory if agreed upon by the landowner and the 
commissioner.  
    (b) The easements may be permanent or of limited duration. 
Highest priority must be given to permanent easements consistent 
with the purposes of this section.  Easements of limited 
duration must be for at least 20 years, with provision for 
renewal for at least another 20-year period.  For easements of 
limited duration, the commissioner may reexamine and adjust the 
payment rates at the beginning of any renewal period after 
considering current land and crop values.  
    Subd. 4.  [EASEMENT AGREEMENT.] (a) In the easement between 
the commissioner and an owner, the owner must agree: 
    (1) to place in the program for the period of the easement 
eligible native prairie areas designated by the owner, including 
prairie covered by a federal or state easement that allows 
agricultural use and desirable land adjacent to the prairie as 
determined by the commissioner; 
    (2) not to alter the native prairie by plowing, heavy 
grazing, seeding to nonnative grasses or legumes, spraying with 
large amounts of herbicides, or otherwise destroying the native 
prairie character of the easement area, except mowing the native 
prairie tract for wild hay may qualify for easement as 
determined by the commissioner; 
    (3) to implement the native prairie conservation and 
development plan as provided in the easement agreement, unless a 
requirement in the easement agreement is waived or modified by 
the commissioner; 
    (4) to forfeit all rights to further payments under the 
terms of the easement and to refund to the state all payments 
received under the easement if the easement is violated at any 
time when the owner has control of the land subject to the 
easement, if the commissioner determines that the violation 
warrants termination of the easement, or if the commissioner 
determines that the violation does not warrant termination of 
the easement, the commissioner may determine refunds or payment 
adjustments to be paid by the commissioner; 
    (5) not to adopt a practice specified by the commissioner 
in the easement as a practice that would tend to defeat the 
purposes of the easement; and 
    (6) to additional provisions included in the easement that 
the commissioner determines are desirable.  
    (b) In return for the easement of the owner, the 
commissioner shall make payments as provided in subdivision 5 
and may provide advice on conservation and development practices 
on the native prairie in the easement and adjacent areas.  
    Subd. 5.  [PAYMENTS.] (a) The commissioner must make 
payments to the landowner under this subdivision for the 
easement.  
    (b) For a permanent easement, the commissioner must pay 50 
percent of the average equalized estimated market value of 
cropland in the township as established by the commissioner of 
revenue for the time period when the application is made.  
    (c) For an easement of limited duration, the landowner 
shall receive a lump sum payment equal to the present value of 
the annual payments for the term of the easement based on 50 
percent of the mean adjusted cash rental for cropland in the 
county as established by the commissioner of revenue for the 
time period when the application is made.  
    (d) To maintain and protect native prairies, the 
commissioner may enter into easements that allow selected 
agricultural practices.  Payment must be based on paragraph (b) 
or (c) but may be reduced due to the agricultural practices 
allowed after negotiation with the landowner. 
    Subd. 6.  [RENEWAL.] A limited-term easement may be 
converted to a permanent easement or renewed at the end of the 
easement period by mutual agreement of the commissioner and the 
owner, subject to any rate redetermination by the commissioner.  
    Subd. 7.  [EASEMENT RUNS WITH LAND.] If during the easement 
period the owner sells or otherwise disposes of the ownership or 
right of occupancy of the land, the new owner must continue the 
easement under the same terms or conditions.  
    Subd. 8.  [MODIFICATION AND TERMINATION BY AGREEMENT.] The 
commissioner may terminate an easement by mutual agreement with 
the owner if the commissioner determines that the termination 
would be in the public interest.  The commissioner may agree to 
modifications of agreements if the commissioner determines the 
modification is desirable to implement the native prairie 
program.  
    Subd. 9.  [RULES.] The commissioner of natural resources 
may adopt rules that include the procedures and payment rates to 
implement this section.  
    Sec. 20.  Minnesota Statutes 1986, section 105.391, 
subdivision 3, is amended to read:  
    Subd. 3.  Except as provided below, no public waters or 
wetlands shall be drained, and no permit authorizing drainage of 
public waters or wetlands shall be issued, unless the public 
waters or wetlands being drained are replaced by public waters 
or wetlands which that will have equal or greater public value.  
However, after a state waterbank program has been established, 
Wetlands which are eligible for inclusion in that program, the 
drainage of which is lawful, feasible, and practical and would 
provide high quality cropland and that is the projected land 
use, as determined by the commissioner, may be drained without a 
permit and without replacement of wetlands of equal or greater 
public value if the commissioner does not elect, within 60 days 
of the receipt of an application for a permit to drain the 
wetlands, to either (1) place the wetlands in the state 
waterbank program under section 105.392, or (2) acquire it in 
fee pursuant to section 97A.145, or (3) indemnify the landowner 
through any other appropriate means, including but not limited 
to conservation restrictions, easements, leases, or any 
applicable federal program.  The applicant, if not offered a 
choice of the above alternatives, is entitled to drain the 
wetlands involved. 
    In addition, the owner or owners of lands underlying 
wetlands situated on privately owned lands may apply to the 
commissioner for a permit to drain the wetlands at any time 
after the expiration of ten years following the original 
designation thereof.  Upon receipt of an application, the 
commissioner shall review the current status and conditions of 
the wetlands.  If the commissioner finds that the current status 
or conditions are such that it appears likely that the economic 
or other benefits from agricultural use to the owner or owners 
which would result from drainage would exceed the public 
benefits of maintaining the wetlands, the commissioner shall 
grant the application and issue a drainage permit.  If the 
application is denied, no additional application shall be made 
until the expiration of an additional ten years. 
    Sec. 21.  Minnesota Statutes 1986, section 105.392, 
subdivision 1, is amended to read: 
    Subdivision 1.  The legislature finds that it is in the 
public interest to preserve the wetlands of the state and 
thereby to conserve surface waters, to maintain and improve 
water quality, preserve wildlife habitat, to reduce runoff, to 
provide for floodwater retention, to reduce stream 
sedimentation, to contribute to improved subsurface moisture, to 
enhance the natural beauty of the landscape, and to promote 
comprehensive and total water management planning.  Therefore, 
the commissioner of natural resources is authorized to 
promulgate rules, which shall include the procedures and payment 
rates designed to effectuate the terms of this section.  This 
program is intended to supplement and complement the federal 
water bank program and the payment rates established shall be at 
least equal to the federal rates existing at the time any 
agreements are entered into. 
    Sec. 22.  Minnesota Statutes 1986, section 105.392, 
subdivision 2, is amended to read:  
    Subd. 2.  For the conservation of wetlands, whether or not 
included in the definition contained in section 105.37, 
subdivision 15, the commissioner shall have authority to may 
acquire wetlands in fee pursuant to section 97A.145, or may 
enter into easement agreements with landowners for the 
conservation of wetlands and other waters.  These easement 
agreements shall be conservation easements, as defined in 
section 84C.01, paragraph (1), but, in addition, may be made 
possessory as well as nonpossessory if agreed upon by the 
landowner and the commissioner.  These agreements easements 
shall be entered into for a period of ten not less than 20 
years, with provision for renewal for additional ten year not 
less than 20-year periods, or the agreements may provide that 
the easement will be permanent in duration.  Highest priority 
must be given to the selection of permanent easements.  The 
commissioner may reexamine the payment rates at the beginning of 
any ten year 20-year renewal period in the light of the then 
giving consideration to current land and crop values and make 
needed adjustments in rates for any renewal period. 
    Wetlands eligible for inclusion in the waterbank program 
shall have all the following characteristics as determined by 
the commissioner:  (a) type 3, 4, or 5 as defined in United 
States Fish and Wildlife Service Circular No. 39 (1971 edition); 
(b) its drainage is lawful, feasible, and practical; and (c) its 
drainage would provide high quality cropland and that is the 
projected land use.  Waters which have the foregoing 
characteristics but are less than ten acres in size in 
unincorporated areas or less than 2-1/2 acres in size in 
incorporated areas shall also be eligible for inclusion in the 
waterbank program, at the discretion of the commissioner.  
    Sec. 23.  Minnesota Statutes 1986, section 105.392, 
subdivision 3, is amended to read: 
    Subd. 3.  In the agreement easement between the 
commissioner and an owner, the owner shall agree: 
    (1) to place in the program for the period of the agreement 
eligible wetland areas the owner designates, which areas may 
include wetlands covered by a federal or state government 
easement which that permits agricultural use, together with such 
adjacent areas as determined desirable by the commissioner; 
    (2) not to drain, burn, fill, or otherwise destroy the 
wetland character of such areas, nor to use such areas for 
agricultural purposes, as determined by the commissioner; 
    (3) to effectuate the wetland conservation and development 
plan for the land in accordance with the terms of the agreement, 
unless any requirement thereof is waived or modified by the 
commissioner; 
    (4) to forfeit all rights to further payments or grants 
under the agreement and to refund to the state all payments or 
grants received thereunder upon violating the agreement at any 
stage during the time the owner has control of the land subject 
to the agreement if the commissioner determines that the 
violation is of such a nature as to warrant termination of the 
agreement, or to make refunds or accept such payment adjustments 
as the commissioner may deem appropriate if the commissioner 
determines that the violation by the owner does not warrant 
termination of the agreement; 
    (5) upon transfer of right and interest in the land subject 
to the agreement during the agreement period, to forfeit all 
rights to further payments or grants under the agreement and 
refund to the state all payments or grants received thereunder 
during the year of the transfer unless the transferee of any 
such land agrees with the commissioner to assume all obligations 
of the agreement; 
    (6) not to adopt any practice specified by the commissioner 
in the agreement easement as a practice which would tend to 
defeat the purposes of the agreement easement; and 
    (7) (6) to additional provisions which the commissioner 
determines are desirable and includes in the agreement easement 
to effectuate the purposes of the program or to facilitate its 
administration.  
    Sec. 24.  Minnesota Statutes 1986, section 105.392, 
subdivision 4, is amended to read: 
    Subd. 4.  In return for the agreement easement of the 
owner, the commissioner shall (1) make an annual payment to the 
owner for the period of the agreement at the rate as the 
commissioner determines to be fair and reasonable in 
consideration of the obligations undertaken by the owner; and (2)
must provide advice on conservation and development practices on 
the wetlands and adjacent areas for the purposes of this section 
as the commissioner determines to be appropriate.  In making the 
determination, the commissioner shall consider, among other 
things, the rate of compensation necessary to encourage owners 
of wetlands to participate in the waterbank program.  The 
commissioner must make the following payments to the landowner 
for the easement:  (1) for a permanent easement, 50 percent of 
the average equalized estimated market value of cropland in the 
township as established by the commissioner of revenue for the 
time period when the application is made; (2) for an easement of 
limited duration, a lump sum payment equal to the present value 
of the annual payments for the term of the easement based on 50 
percent of the mean adjusted cash rental for cropland in the 
county as established by the commissioner of revenue for the 
time period when the application is made. 
    Sec. 25.  Minnesota Statutes 1986, section 105.392, 
subdivision 5, is amended to read: 
    Subd. 5.  Any agreement A limited-term easement may be 
converted to a permanent easement or renewed or extended at the 
end of the agreement easement period for an additional period of 
ten 20 years by mutual agreement of the commissioner and the 
owner, subject to any rate redetermination by the commissioner.  
If during the agreement easement period the owner sells or 
otherwise disposes of the ownership or right of occupancy of the 
land, the new owner may must continue such agreement the 
easement under the same terms or conditions, or enter into a new 
agreement in accordance with the provisions of this section, 
including the provisions for renewal and adjustment of payment 
rates, or may choose not to participate in the program, except 
any water designated as wetlands shall not be drained. 
    Sec. 26.  Minnesota Statutes 1986, section 105.392, 
subdivision 6, is amended to read: 
    Subd. 6.  The commissioner may terminate any 
agreement easement by mutual agreement with the owner if the 
commissioner determines that the termination would be in the 
public interest, and may agree to any modification of agreements 
the commissioner may determine to be desirable to carry out the 
purposes of the program or facilitate its administration. 
    Sec. 27.  [APPROPRIATION.] 
    Subdivision 1.  [COMMISSIONER OF AGRICULTURE.] $1,800,000 
is appropriated from the general fund to the commissioner of 
agriculture for technical services and implementation of the 
conservation reserve program, to be available until June 30, 
1989.  $1,500,000 of this appropriation must be distributed to 
soil and water conservation districts.  The approved complement 
of the department of agriculture is increased by three positions 
in the classified service.  
    Subd. 2.  [COMMISSIONER OF NATURAL RESOURCES.] $1,200,000 
is appropriated from the general fund to the commissioner of 
natural resources to implement components of the comprehensive 
fish and wildlife plan under Minnesota Statutes, section 
84.942.  $480,000 of this appropriation is to assist both public 
and private landowners to improve wildlife habitat.  The 
approved complement of the department of natural resources is 
increased by eight positions in the classified service. 
    Approved June 2, 1987