ORS 273.815 Department’s powers; terms of grazing lease; termination

In order to accomplish the purpose of ORS 273.805 to 273.825, the Department of State Lands may, with respect to common school grazing lands:

Protect the lands from fire, disease and insect pests, cooperate with others in such protection and enter into all agreements necessary or convenient therefor.

Lease the lands subject to such terms and conditions as the department prescribes or is otherwise prescribed by law. Leases shall be of sufficient duration so as to encourage the rehabilitation and improvement of the lands by the lessee.

Loan moneys belonging to the Common School Fund to lessees of the lands for the purpose of rehabilitating and improving the lands. The security for such loans shall be as prescribed by the department but shall not be more than equal in value to the amount loaned.

Reseed or reforest the lands, including the destruction of undesirable vegetation, and cooperate with others for such reseeding or reforestation, and make all agreements necessary or convenient thereto.

Require such undertakings, including performance bonds, as it considers appropriate to secure performance of any agreement or loan authorized by ORS 273.805 to 273.825.

In order to accomplish the purpose of ORS 273.805 to 273.825, the department may, with respect to common school grazing lands, apply the following to all leases entered into by the department after January 1, 1985:

The initial term of a lease shall be not less than 20 years, and at the end of the initial term the lease shall be renewed by the department for an additional term of 20 years. However, any lessee who is in default under the terms of the lease or has failed to comply with all management plans applicable to the lease shall not be eligible for renewal of the lease for an additional term of 20 years as provided in this paragraph.

The department shall give preference in the issuance of leases to:

Persons who are current lessees; and

Landowners engaged in the livestock business that seek to use the common school grazing lands for the grazing of livestock. For the purposes of this subparagraph, “landowner” means an individual or legal entity that is the owner of the land, water or water rights necessary to permit the proper use of the leased common school grazing lands in combination with the landowner’s privately owned or controlled land or water.

The department may terminate a lease of common school grazing lands:

Upon the default of the lessee as to any material term of the lease; or

If the lessee has failed to comply with any management plan adopted by the department and applicable to the leasehold.

Except as provided in paragraph (c) of this subsection, the department shall not terminate a common school grazing lands lease without the consent of the lessee. If the consent of the lessee cannot be obtained, the department may terminate a common school grazing lands lease only by contemporaneously agreeing to pay to the lessee compensation as provided by law for all damages caused by the termination of the lease, including any depreciation or loss of value to the remaining lands or businesses of the lessee.