# Title 85 — University and School Lands, Board of

## Article 85-04 — Surface Land Management

## Chapter 85-04-03 — Permanent Improvements

### § 85-04-03-01. Permanent and nonpermanent improvements.

1. Permanent improvements may not be placed on, removed from, or applied to any surface land
leased premises without the written consent of the commissioner. Permanent improvements
placed on or implemented on any surface land leased premises are the property of the state
of North Dakota.
2. A lessee may place nonpermanent improvements on any surface land leased premises
without written consent of the commissioner. Upon expiration of the surface land lease, the
lessee may remove the nonpermanent improvements within one hundred twenty days after
the surface land lease expires. Any nonpermanent improvements not removed within one
hundred twenty days become the property of the next lessee. The commissioner, upon written
application from the lessee before the end of the one-hundred-twenty-day period, for good
cause, may extend the period of time for removing nonpermanent improvements.
History: Effective January 1, 2020.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 15-08-26
### § 85-04-03-02. Application.

A lessee shall submit a request for a permanent improvement, using the electronic application
available on the department's website or a paper application provided upon request. The lessee shall
provide all information specifically required by the application and any supplemental information
requested by the department.
History: Effective January 1, 2020.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 15-08-26
### § 85-04-03-03. Rent credit, cost-share, and depreciation.

1. Rent credits, cost-share, and depreciation of project costs may be authorized at the sole
discretion of the commissioner.
2. Rent credits or cost-share may not exceed the approved maximum project cost as determined
by the commissioner or the actual project cost, less reimbursements from nondepartment
sources, whichever is lower.
3. The commissioner may depreciate project costs less reimbursements to the lessee from
nondepartment sources and rent credits or cost-share from the department for a period not to
exceed ten years.
4. Any unexpired depreciation amount must be available from the department before the surface
land lease auction and must be announced at the surface land lease auction. If the former
lessee is not the successful bidder at auction, the new lessee is required to compensate the
former lessee for the undepreciated amount and the department shall continue to depreciate

through the original depreciation term. The commissioner may cancel any undepreciated cost
of constructing a permanent improvement if the lessee fails to offer the minimum bid for the
land and the land is not leased at the next auction at which the land is offered, or if the lessee
fails to comply with the conditions of the surface land lease.
5. No rent credits, cost-share, or depreciation for livestock water developments are allowed on
surface land leased premises that receive an up-front livestock water deduction in determining
the minimum bid for public auction.
History: Effective January 1, 2020.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 15-04-24, 15-08-26
### § 85-04-03-04. General standards for a permit for a permanent improvement.

In reviewing an application for a permit for a permanent improvement, the commissioner may
consider the following:
1. Financial benefit to the trusts;
2. Availability of alternate site or route;
3. The least environmentally damaging site or route;
4. Physical stability of the landscape;
5. Whether technical assistance was sought in planning the proposed permanent improvement;
6. Potential for mineral development, including oil, gas, coal, construction aggregate, sodium
sulfate, chemical substances, metallic ore, or uranium ore;
7. Feasibility for reclamation;
8. Maintenance of existing wetlands and waterflows;
9. Any cultural, historical, archeological, and paleontological resources;
10. Habitat for federally listed threatened and endangered species;
11. Location of the proposed route or site in relation to section lines, quarter section lines, and
corridors;
12. Potential liability to the trusts; and
13. Any other information relevant to the application which would assist in the commissioner's
determination.
History: Effective January 1, 2020.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 15-08-26
### § 85-04-03-05. Issuance of a permit for permanent improvement.

The commissioner may determine whether to issue a permit for a permanent improvement and to
determine the maximum project cost, rent credit, cost-share, and depreciation amounts. The
commissioner may impose such terms on a permit as the commissioner deems necessary. A permit
must be issued prior to site preparation or construction.
History: Effective January 1, 2020.

General Authority: NDCC 28-32-02
Law Implemented: NDCC 15-08-26
