New Mexico State Land Office Patrick H. Lyons, Commissioner of Public Lands

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1 New Mexico State Land Office Patrick H. Lyons, Commissioner of Public Lands Re: Land Exchange Procedure Dear Prospective Land Exchange Applicant: Thank you for your interest in exchanging non-trust lands for state trust lands. The following is some important information explaining the land exchange process. Attached you will find a copy of the State Land Office land exchange rule, Rule 21 ( NMAC) which governs exchanges, forms that you will need to fill out and submit with the required fee or deposit and other pertinent information. First, the New Mexico Commissioner of Public Lands (Commissioner) has jurisdiction over all state trust lands in New Mexico. The Commissioner is also the executive officer in charge of the New Mexico State Land Office. State trust lands are referred to as trust lands because they are held in trust by the Commissioner for the benefit of the trust s beneficiary institutions New Mexico s public schools, universities, and certain other state public institutions. As trustee, the Commissioner will take no action regarding state trust lands unless it is in the best interest of the trust. Consistent with the Commissioner s duties as trustee, no land exchange will be approved unless the exchange will substantially benefit the trust. The principles that guide the land exchange process are spelled out in more detail in Rule 21 (enclosed), especially Section Exchange Standards, and also are summarized on the enclosed sheet entitled, New Mexico State Land Office Exchange Policy & Principles. The exchange process will generally take place in six steps, as briefly described below. If your are initiating an exchange process, you cannot move from the first to the second step unless and until you receive a letter from the State Land Office notifying you that the Commissioner continues to be interested in pursuing the proposed exchange. We will also let you know if the Commissioner has decided to terminate the exchange process, which he may do at any time prior to entering into an exchange agreement (Step 5). Step 1: Fill out and submit the enclosed Initial Application form. This is a relatively short, simple form the purpose of which is to permit the Commissioner to determine whether your suggestion for a land exchange appears to offer sufficient potential benefit to the trust to warrant further investigation. It is important to complete this form carefully and accurately in order to allow the State Land Office to make informed decisions about proceeding with the exchange applied for.a nonrefundable $ application fee must accompany the Initial Application. This step does not apply if you are responding to a published notice soliciting exchange proposals. In that case, begin with Step 2. 1

2 Step 2: Step 3: Step 4: Step 5: Step 6: Fill out and submit the enclosed Land Exchange Proposal form. If you have received written tentative approval of your initial application for a land exchange (Step 1), or if you are responding to a published advertisement soliciting exchange proposals for particular state trust land, proceed with this step. This form will require substantial research and effort on your part to accurately complete. A deposit of five hundred dollars ($500.00) for processing, plus any additional deposit amount set forth in a published notice soliciting exchange proposals must accompany your proposal. Completion of this form and submission of the deposit lets us know that you are serious and motivated to complete the exchange transaction and gives us an information base to evaluate your proposal and compare it with other proposals. After you submit a complete Land Exchange Proposal, State Land Office staff will investigate in detail the proposed exchange. You may be asked to supply additional information in this process. Advertisement. If the Commissioner decides to pursue the exchange, by law the State Land Office must advertise in newspapers for 10 consecutive weeks and solicit additional, competing proposals in all cases of exchanges with private parties and typically in exchanges with governmental entities. You must submit to the Commissioner a deposit to cover the entire cost of advertisement, as well as other exchange costs. Note: Steps 2 and 3 will be reversed if you are submitting your proposal in response to a published advertisement soliciting exchange proposals. Selection of Proposals. After the ten-week advertising period, the Commissioner will either select the highest and best exchange proposal or reject all proposals. In the process of making this determination, the State Land Office may require applicants to submit additional reports or information, including reports or information related to appraisals, surveys, title documents, title insurance, cultural properties, environmental issues, etc. If the Commissioner selects a proposal, the Commissioner and the selected applicant must enter into a written exchange agreement before the exchange can proceed. The Commissioner can require additional information in the process of coming to such an agreement. Exchange Agreement: Before an exchange can be completed, the parties must enter into a written exchange agreement. Either party may withdraw from the proposed transaction at any time prior to entering into such a written agreement. Closing. Following execution of an exchange agreement, the parties will exchange conveyance instruments at a formal closing. The Commissioner will convey state trust land by state patent, and require that the exchange proponent convey the private land by warranty deed. The state patent will reserve to the State all minerals of whatsoever kind, as well as certain water reservations (as detailed in the enclosed initial application 2

3 and land exchange proposal forms) and may contain other reservations and restrictions. FEES AND DEPOSITS: A non-refundable fee of $60.00 is required with an Initial Application. A separate deposit toward costs of the proposed exchange must be submitted with an Exchange Proposal. If you submit an Exchange Proposal before a public notice soliciting exchange proposals has been published, the amount of the deposit required to be submitted with your proposal is $500.00, and you will be billed later for other exchange costs such as advertising and improvement value, and, in some cases, title work, appraisal and/or surveying. If you submit an Exchange Proposal in response to a published notice soliciting exchange proposals, you must submit with your proposal the deposit amount called for in the public notice. There is always a chance that a third party will submit an exchange proposal that is more beneficial to the trust than yours. If so, and if the Commissioner ultimately enters into an exchange agreement with the third party, your deposit (excluding $60.00 non-refundable Initial Application fee) will be refunded. Further instructions and guidance are provided on the enclosed forms and in Rule 21 ( NMAC), also enclosed. 3

4 New Mexico State Land Office Exchange Policy & Principles Land exchanges are a useful management tool. For the State Land Office they present an opportunity to make land ownership adjustments that take advantage of economic opportunities resulting in greater net revenue benefits for the trust s beneficiary institutions, including the state s public schools. The Commissioner of Public Lands and the State Land Office have a legal fiduciary duty to optimize trust revenues from State Trust Lands while protecting and preserving those lands so as to enable them to continue producing value into the future. It is therefore important that the State Land Office have exchange policies that ensure exchanges are prudent and above reproach. The following list represents core policies of Commissioner Lyons that will guide exchanges involving state trust land during his administration. Exchanges will be considered only when it is determined that the trust will benefit materially. The trust must receive at least true value for the state trust lands exchanged. The State Land Office will fully investigate all exchange proposals before entering into an exchange transaction. The process for exchanges must protect the trust and be fair to all parties. All private exchanges of state trust lands (as well as exchanges with non-federal governmental entities in most cases) must be advertised and bid competitively. By law, the Commissioner is required to reserve the minerals in state trust land conveyed and an Exchange Patent will reserve all minerals of whatsoever kind (including materials such as oil, gas, sand, gravel, caliche, shale, rock, etc.), as well as geothermal resources, and the right to access and extract the minerals, to the State and further reserving to the State of New Mexico any and all water rights vested in the State of New Mexico as of the date of sale which are located on or derived from the subject land, any and all water rights appurtenant to or riparian to the subject land as of the date of sale and the right to renew and extend any water easements, water leases or water rights existing as of the date of sale together with the right to receive the rents and revenues therefrom. More detailed mineral reservation language appears in the Initial Application and the Land Exchange Proposal forms, enclosed. Costs associated with private land exchanges (appraisal, survey, advertising, title insurance, processing by the State Land Office, etc.) will be borne by the applicant. 1

5 Exchange costs with governmental entities may be shared when negotiated and detailed in a bilateral Exchange Agreement. In any exchange, the applicant must comply with all applicable laws and regulations, including but not limited to, State Land Office Rule 21 (NMAC ), environmental laws, and New Mexico Cultural Properties Act (NMSA through 23). Exchange standards and requirements are set out in more detail in State Land Office Rule 21 ( NMAC), particularly Section

6 NEW MEXICO STATE LAND OFFICE Initial Application Land Exchange TO: New Mexico Commissioner of Public Lands Attention: Surface Resources Division/EXCHANGES P.O. Box Old Santa Fe Trail Santa Fe, NM Instructions: The State Land Office will use this application to make its initial determination of whether your exchange proposal should be declined or investigated further. If we determine to further investigate your proposal, we will request you to first complete a more detailed, sworn exchange proposal and to submit a deposit. Enclose with this Initial Application a $60.00 non-refundable application fee. 1) Applicant s Name: Company: Address: Telephone: 2) Provide the legal description of the non-trust lands, including the number of acres, that you propose to offer for exchange. If possible, include a copy of your deed with this application. 3) State the estimated market value of your land. 1

7 4) Describe the current use(s) of your land. 5) Provide the correct legal name of the current owner of the non-trust land (if different from the applicant s name as stated above). 6) To the best of your knowledge, was the land you propose to exchange ever used for any of the following: mining, oil and gas production, gas station, dry cleaners, landfill or other waste disposal, or manufacturing? Yes No If so, please explain: 7) Describe any environmental issues affecting or potentially affecting your land, including but not limited to any involving hazardous waste, groundwater contamination, threatened or endangered species, and provide any documentation you have related to such issues. 8) Do you know of any archaeological sites or cultural properties located on your land? Yes No If your answer is yes, please describe the archaeological sites or cultural properties and provide any available documentation 2

8 9) Are there any claims, liens, mortgages, or any other liabilities associated with your land? Yes No If so, please describe and attach relevant documentation: NOTE: Any land exchanged for state trust land must be free of all claims, liens, or mortgages at the time of conveyance. 10) Does the Applicant own the mineral rights in the non-trust lands? Yes No If Yes, attach any available documentation of ownership of mineral rights in the non-trust lands. If Yes, do the non-trust lands offered for exchange include mineral rights in such lands? Yes No 11) If applicable, describe any water rights located on or appurtenant to the nontrust lands proposed for exchange, including priority, place and purpose of use, point of diversion, and whether the rights have been adjudicated or are certified and licensed. Please attach copies of documents establishing or verifying such water rights. 12) Provide a legal description of the state trust land and number of acres you would like to acquire. 13) State the estimated value of the state trust lands you would like to acquire. 3

9 14) Explain why you are interested in pursuing this land exchange. 15) Provide any additional information that you believe the State Land Office should consider in evaluating your proposal. (Attach additional sheets as necessary.) 16) Identify any additional supporting documents you are submitting with this application. 17) Please include a non-refundable application fee of $ ) Do you understand and accept that in accordance with legal requirements, any State Trust Land conveyed in an exchange will be subject to a reservation to the State all minerals of whatsoever kind, including but not limited to oil, natural gas, helium, carbon dioxide, coal, lignite, uranium, saline, brine, copper, iron, lead, talc, barite, gold and silver, precious and semi-precious stones, caliche, building stones, shale, clay, sand, gravel and rock for crushing, and geothermal resources located in, under, or upon the land, as well as the right of the Commissioner to enter into leases and grant rights of way or easements for exploration or exploitation of the mineral estate? Yes No 19) Do you understand and accept that any State Trust Land conveyed in an exchange may be subject to a reservation to the State of any and all water rights vested in the State of New Mexico as of the date of sale which are located on or derived from the subject land, any and all water rights appurtenant to or riparian to the subject land as of the date of sale and the right to renew and extend any water easements, water leases or water rights existing as of the date of sale together with the right to receive the rents and revenues therefrom. Yes No Signature Printed Name: Title (if applicable): Company (if any): Date 4

10 NEW MEXICO STATE LAND OFFICE Land Exchange Proposal: LE #: State Trust Lands for Non-Trust Lands TO: New Mexico Commissioner of Public Lands Attention: Surface Resources Division/EXCHANGES P.O. Box Old Santa Fe Trail Santa Fe, NM FROM Name: Address: Telephone: Fax: ( ) ( ) INSTRUCTIONS You should complete and submit this Land Exchange Proposal only if: (1) the State Land Office has already approved your Initial Application for further consideration; OR (2) you are responding to a published notice soliciting exchange proposals for specified state trust lands. If you are responding to a published notice soliciting exchange proposals, complete this Land Exchange Proposal and submit it without first submitting an initial application. This Land Exchange Proposal form is divided into two parts. In Part 1 you are required to provide detailed information about the lands you are offering to exchange and the state trust land you seek to acquire. In Part 2 you are required to read, understand and accept several terms and conditions regarding the land exchange process. If you cannot provide all of the requested information in the space provided, simply attach additional pages to this form. Also attach documents requested. After completing this form, you must swear or affirm before a notary that the information provided and statements made in your proposal, including all attached pages and the Initial Application (if any), are true and correct to the best of your knowledge and belief. After completing this Land Exchange Proposal, please submit it with the required deposit amount to the address shown above. Regarding the amount of deposit required, please see DEPOSIT REQUIRED on page 9 of this application. 1

11 PART 1 1. Provide a correct and complete legal description of the non-trust lands offered for exchange. The description must be in aliquot parts and must delineate each full or partial quarter quarter section and each full or partial lot and must state the acreage in each. The description also must state the total acreage of the non-trust lands offered and describe all easements, rights of way, leases or other encumbrances or servitudes burdening or benefiting the land. See separate instructions, New Mexico State Land Office Standard Survey Requirements. 2. A survey plat of the non-trust lands that the applicant is offering for exchange based upon a bona fide field survey and prepared and certified by a licensed New Mexico land surveyor may be required before the Commissioner makes a final selection of a proposal but need not be submitted with this Exchange Proposal at this time 3. Attach an appraisal of the non-trust lands conforming to the Uniform Standards of Professional Appraisal Practice conducted by a licensed or certified New Mexico Land Appraiser previously selected or approved by the Commissioner. The appraisal should include a complete listing of all improvements on the non-trust land; state the value of each; and provide the basis and method for determining the value of the improvements. Provide the name of the appraiser and the date of the appraisal here: Please also provide the appraisal report in electronic format. CAUTION PLEASE NOTE: In accordance with Rule 21, Land Exchanges ( B(4) NMAC), the appraiser must be selected or approved by the Commissioner. To avoid your possibly having to conduct and pay for a second appraisal, the Commissioner should select or approve the appraiser before the appraisal is conducted. See also separate instructions, New Mexico State Land Office Standard Criteria for Appraisal Reports. 4. Describe any water rights located on or appurtenant to the non-trust lands proposed for exchange, including priority, place and purpose of use, point of diversion, and whether the rights have been adjudicated or are certified and licensed. Please attach copies of documents establishing or verifying such water rights. 2

12 5. Identify any leases, rights of way, easements or other interests affecting the nontrust lands proposed for exchange and the owners and terms of such interests. Please attach copies of documents establishing or verifying such interests; 6. Provide a complete listing of any known cultural properties, including any archaeological or historical sites, located on the non-trust lands offered for exchange and attach any available documentation thereof. An independent cultural properties assessment may be performed by the Land Office, and an archeological study report may be requested. 7. Provide a complete description of any environmental hazards or threatened or endangered species located on or in close proximity to the non-trust lands offered for exchange and attach any available documentation thereof. An independent environmental assessment may be performed by the Land Office, and a Phase I and/or Phase II report may be requested. 8. Does the applicant own the non-trust lands proposed for exchange in fee simple absolute? Yes No If your answer is no, please explain and state whether or not the applicant will own the non-trust lands in fee simple absolute at the time of the proposed exchange. 9. Are there any mortgages or other liens, purchase contracts, lawsuits, charges or liabilities attached to or involving the non-trust lands? Yes No 3

13 If your answers is yes, please describe each; state by what measures it will be released before closing ; and attach documentation of the mortgage, lien, liability, etc. 10. Provide documentation of title to the non-trust lands proposed for exchange including an owner s title insurance policy commitment naming the State of New Mexico, Commissioner of Public Lands, trustee under the Act of June 20, 1910, 36 stat. 557, ch. 310 as the insured in at least the amount of the appraised value of the lands. 11. Who owns the mineral rights in the non-trust lands? 12. Do the non-trust lands offered for exchange include mineral rights in such lands? 13. Attach any available documentation of ownership of mineral rights in the nontrust lands. 14. List and describe all covenants, equitable servitudes, master plans, subdivision plats, deed restrictions or any other limitations on land use that apply to the non-trust lands. 15. Is the non-trust land zoned? If so, what is the current zoning? 16. How much income, such as rents and royalties, has the non-trust land generated over the past two years, if any? Please describe the activities that have generated such income: 17. List and describe any matters not already covered that you believe affect or may affect the use, value or income generating potential of the non-trust lands. 4

14 18. Provide a legal description in accordance with the requirements stated in Item 1 above and the attached instructions, New Mexico State Land Office Standard Survey Requirements of the state trust lands that the applicant seeks to acquire and the total acreage. 19. A survey plat of the trust lands that the applicant seeks to acquire in the exchange based upon a bona fide field survey and prepared and certified by a licensed New Mexico land surveyor may be required before the Commissioner makes a final selection of a proposal but need not be submitted with this Exchange Proposal at this time. 20. If the Commissioner has not already performed an appraisal of the trust lands proposed for exchange, provide an appraisal of the trust lands conforming to the requirements stated in Item 3 above. 21. Before proceeding further with the exchange procedure, the Commissioner may require an exchange applicant to supplement its exchange proposal with any of the following: (a) the exchange applicant's affidavit and/or any other documentation regarding: (i) any water rights that are the subject of application, permit, certificate, license or declaration, whether partially or fully developed, on or appurtenant to lands proposed for exchange; (ii) any transfer, lease or change of ownership of appurtenant water rights by any exchange party or its predecessors in title within the previous five years; and (iii) any liens or encumbrances against such appurtenant water rights, along with any available documentation; (b) a deposit of an amount sufficient to pay (i) costs of advertisement; (ii) the value of improvements located on the trust lands proposed for exchange, as determined by the commissioner (or a bill of sale or a waiver of payment signed by the owner of the improvements); ; (iii) any other costs of the exchange, such as fees of surveyors, appraisers or title companies not paid by the applicant; (c) any further or additional archeological survey, report, description or disclosure regarding any cultural properties located on the trust lands and/or the non-trust lands proposed to be exchanged; (d) one or more environmental studies, assessments or reports regarding the lands to be exchanged dealing with hazardous materials, wildlife habitat, threatened or endangered species or other environmental issues, conforming to requirements set by the commissioner; (e) further or supplemental title documents acceptable to the commissioner evidencing the exchange applicant s marketable fee simple title to the non-trust lands proposed for exchange and such other documents as the commissioner may deem necessary to evidence any outstanding interests in or servitudes upon such property and the absence of claims, mortgages, or other liens, charges or liabilities against such property, including title abstract, title insurance policy commitments, and conditions 5

15 upon or changes to title insurance policy commitments such as the deletion of certain coverage exclusions. (f) further or supplemental documentation regarding minerals located on or under the lands proposed to be exchanged; (g) further or supplemental appraisals of the lands to be exchanged or of improvements on them, or corrections to existing appraisals; (h) further or supplemental surveys or corrections to surveys. (i) any other pertinent documentation or information requested by the Commissioner. 22. If any of the information on your Initial Application (if you submitted one) is incorrect or incomplete, or needs to be updated, please provide the corrected or updated information here or in the form of attachments. NOTE: State Land Office Rule 21, Exchanges ( (B)(4)(q) NMAC) provides that the Commissioner may waive specific requirements for information and documentation to be supplied with this exchange proposal, unless otherwise required by law, if he finds it is in the best interest of the trust to do so. If you have good cause why the Commissioner should waive one or more of the above requirements for information or documentation, you may request a waiver from the State Land Office at the above address. You must state and explain your reasons for seeking a waiver. There is no assurance that a waiver will be granted. 6

16 PART 2 1. The Commissioner of Public Lands (Commissioner) will only complete an exchange transaction if it is in the best interest of the trust. The Commissioner is under no obligation to complete any land exchange and may withdraw from an exchange transaction without any obligation to an applicant at any time in the process prior to entering into a written exchange agreement, or as provided in such an agreement. Do you understand and accept this condition? Circle One: Yes No 2. The Land Office will not consider your proposal unless you submit with it a deposit in the amount stated in the published notice soliciting exchange proposals or available from the State Land Office at the above address. The deposit will not be refunded even if the Commissioner ultimately decides not to exchange lands with you, unless he enters into an exchange transaction with a different applicant, in which case that applicant s deposit will be used to cover the deposit items and yours will be refunded. Do you understand and accept this condition? Circle One: Yes No 3. If the Commissioner decides to pursue this land exchange proposal, the State Land Office must advertise the proposed exchange in two papers for 10 weeks, if this has not already been done. Third parties will be able to compete with your proposal by submitting their own proposals, and the Commissioner may enter into an exchange agreement and transaction with a qualified applicant other than you if he finds that doing so is in the best interest of the trust. Do you understand and accept this condition? Circle One: Yes No 4. You will be required to pay all advertising costs. If the Commissioner accepts a proposal submitted by an applicant other than you, then the Commissioner will require the third party to reimburse your advertising costs. However, if the Commissioner decides not to complete the exchange transaction for any reason, then you will not be entitled to reimbursement for advertising costs. Do you understand and accept this condition? Circle One: Yes No 5. If the Commissioner has authorized improvements to be placed on the State Trust Lands that you seek to acquire, the owner of those improvements must be compensated for their value, if any, before the exchange transaction can be completed. (Payment will be required unless the owner of the improvements waives the right to compensation or sells the improvements to you, as evidenced by a bill of sale.) Do you understand and accept this condition? 7

17 Circle One: Yes No 6. You will be required to pay all other costs and expenses associated with the exchange, including, but not limited to, appraisal costs, survey costs, environmental reports, archeological reports, recording costs, title insurance policy costs, closing costs. Do you understand and accept this condition? Circle One: Yes No 7. You will be permitted access to the state trust lands you wish to acquire by obtaining written permission from the State Land Office, such as a Right of Entry Permit, which may contain conditions or restrictions. Do you understand and accept this condition? Circle One: Yes No 8. Land Office employees and contractors will need to have access to the non-trust land to appraise it, conduct surveys, and to perform other necessary inspections. Do you agree to allow or arrange for such access to the non-trust land? Circle One: Yes No 9. Any exchange of New Mexico State Trust Lands must proceed in accordance with applicable laws and regulations, including the New Mexico Enabling Act and State Land Office Rule 21, NMAC. Do you promise to abide by applicable laws and regulations in this exchange process? Circle One: Yes No 10. If the Commissioner accepts this proposal as the highest and best submitted received for the State Trust Lands involved and sufficiently beneficial to the trust, you and the Commissioner will still need to enter into an exchange agreement setting forth various terms, conditions and details of an exchange transaction before an exchange can take place. The Commissioner may withdraw from the transaction without obligation to you at any time before an exchange agreement is entered into, or as may be provided in the exchange agreement. Do you understand and agree with these requirements and processes? Circle One: Yes No 11. If your proposal is accepted, the Commissioner enters into an exchange agreement with you, and terms and conditions of the agreement are met, the State Trust Lands will be conveyed to you by a State exchange patent and the non-trust lands must be conveyed to the State by a warranty deed. There can be no outstanding mortgages, real estate contracts, liens or other such encumbrance on the non-trust lands at the time they are conveyed to the State. Do you understand and agree to these requirements? 8

18 Circle One: Yes No 12. The patent by which the State will convey state trust lands to you (assuming all preconditions are met) will be subject to any existing rights of way, easements, leases, or other encumbrances shown or referred to in the patent and also will be subject to reservations to the State, including a reservation of all minerals of whatsoever kind, including but not limited to oil, natural gas, helium, carbon dioxide, coal, lignite, uranium, saline, brine, copper, iron, lead, talc, barite, gold and silver, precious and semiprecious stones, caliche, building stones, shale, clay, sand, gravel and rock for crushing, and geothermal resources located in, under, or upon the land and the right of the Commissioner to issue leases, rights of way and easements for the exploration and exploitation of the mineral estate, and further reserving to the State of New Mexico any and all water rights vested in the State of New Mexico as of the date of sale which are located on or derived from the subject land, any and all water rights appurtenant to or riparian to the subject land as of the date of sale and the right to renew and extend any water easements, water leases or water rights existing as of the date of sale together with the right to receive the rents and revenues therefrom. Do you understand and agree to these requirements? Circle One: Yes No DEPOSIT REQUIRED PLEASE SUBMIT WITH THIS APPLICATION A DEPOSIT CONSISTING OF FIVE HUNDRED DOLLARS ($500.00) AND, IF YOU ARE SUBMITTING THIS PROPOSAL IN RESPONSE TO A PUBLISHED NOTICE SOLICITING EXCHANGE PROPOSALS, THE OTHER DEPOSIT AMOUNTS LISTED IN THE PUBLISHED NOTICE. IF YOU ARE SUBMITTING THIS PROPOSAL BEFORE A NOTICE SOLICITING EXCHANGE PROPOSALS HAS BEEN PUBLISHED, YOU NEED ONLY SUBMIT THE $ PORTION OF THE DEPOSIT WITH THIS APPLICATION AND WILL BE BILLED LATER FOR THE OTHER DEPOSIT AMOUNTS, ONCE THEY HAVE BEEN DETERMINED. I, [name of individual], on behalf of [business organization or other entity if applicable] do solemnly swear (or affirm), under penalty of perjury, that I have truthfully and accurately completed this Land Exchange Proposal, including an Initial Application (if applicable) and all attached documents, based on my personal knowledge and to the best of my ability and belief. [signature] [date] Print Name: 9

19 Title: ACKNOWLEDGEMENT FOR A NATURAL PERSON ACTING IN HIS OWN RIGHT State of ) ) ss. County of ) The foregoing instrument was sworn to or affirmed and acknowledged before me this day of, 20, by. My Commission Expires: Notary Public FOR A NATURAL PERSON AS PRINCIPAL BY ATTORNEY-IN-FACT State of ) ) ss. County of ) The foregoing instrument was sworn to or affirmed and acknowledged before me this day of, 20, by as attorneyin-fact on behalf of. (Name of principal.) My Commission Expires: Notary Public FOR A PARTNERSHIP ACTING BY ONE OR MORE PARTNERS State of ) ) ss. County of ) The foregoing instrument was sworn to or affirmed and acknowledged before me this day of, 20, by, partner(s) on behalf of, a partnership. (Name of partnership) (state) My Commission Expires: Notary Public 10

20 FOR A LIMITED PARTNERSHIP ACTING BY ONE OR MORE GENERAL PARTNERS State of ) ) ss. County of ) The foregoing instrument was sworn to or affirmed and acknowledged before me this day of, 20, by, general partner(s), on behalf of, a limited partnership. (Name of limited partnership) (state) My Commission Expires: Notary Public FOR A CORPORATION, INCORPORATED ASSOCIATION, LIMITED LIABILITY COMPANY OR GOVERNMENT ENTITY State of ) ) ss. County of ) The foregoing instrument was sworn to or affirmed and acknowledged before me this day of, 20, by, (Title) of, a (Name of corporation, LLC or government entity) (State of incorporation, registration, etc.), (Type of organization such as corporation, LLC, political subdivision, etc.) on behalf of said organization. My Commission Expires: Notary Public 11

21 NEW MEXICO STATE LAND OFFICE Standard Criteria for Appraisals 1. The appraiser must be approved in advance by the Commissioner of Public Lands. 2. The appraisal report is to be addressed to the Commissioner of Public Lands, as client, and, in most cases, the intended users will be the client and the applicant. 3. The appraisal must fully comply with the current edition of the Uniform Standards for Professional Appraisal Practice (USPAP). 4. Although the preferred report format is Self-Contained, a Summary format may be allowed in certain instances with prior approval of the State Land Office. In either case, however, the report must contain complete sale details and appropriate marketbased support for any quantitative (percentage or dollar) adjustments to the sales. When adequate support for specific adjustments is not available, a qualitative (i.e., superior, inferior) analysis may be used, provided that the comparable sales analyzed bracket the subject in terms of superior and inferior qualities, and that a detailed discussion of all of the elements of comparison considered is included for each sale. 5. The purpose of the appraisal is to estimate the market value of the fee simple interest in the subject property, excluding surface and subsurface mineral rights, unless otherwise instructed. State Trust land must be appraised based on its highest and best use as though in private ownership and available for sale in the open market. 6. In some cases, the assignment may require an allocation of the total value estimate attributable to land and improvements. These estimates are intended only for internal use by the State Land Office, and shall not be used with any other appraisal. Improvement value must not be confused with improvement cost, and the total of the allocated land and improvement value estimates may not exceed the market value of the property as a whole. 7. When appraising multiple, related properties, such as with an exchange, the valuation may be contained within one report. However, if the highest and best use of the property falls into two or more groups, the report must contain a separate property description, highest and best use, land sales, and valuation section for each group. Also, each non-contiguous tract must be separately identified in the appropriate property description section, together with the reasoning as to why the tract is part of a selected group. Submit one original and two (2) hard copies of the report to: New Mexico State Land Office 310 Old Santa Fe Trail P.O. Box 1148, Santa Fe, NM Attention: Scott McDowell For additional information, please contact Scott McDowell at Office: (505) , Mobile: (505) smcdowell@slo.nm.state.us 1

22 NEW MEXICO STATE LAND OFFICE INSTRUCTIONS FOR LAND SURVEYS I. Survey plats must show land in aliquot parts. Plats of land surveys used for transactions involving trust lands administered by the Commissioner of Public Lands and the State Land Office (including surveys of lands that may be offered in exchange for state trust lands) must show the land surveyed in aliquot parts, and for any partial quarterquarter section, lot or partial lot included must show the acreage in each such partial quarter-quarter section, lot or partial lot. The survey plat also must depict all rights of way and easements that affect the land being surveyed and include a reference to the recording information for all documents relating to the creation or use of such rights of way or easements. The survey plat also must show the acreage, by aliquot part, partial quarter-quarter section, lot or partial lot, for each right of way and easement. The survey plat also should include the metes and bounds for each parcel, right of way, or easement. An electronic draft of the survey should be submitted for review by State Land Office staff before the final survey is submitted. In addition to a survey, the Commissioner may require an Improvement Location Report to be prepared in accordance with NMAC Section II. Separate Legal Description. In addition to a plat, a survey must include a separate legal description of the land surveyed and for each right of way and easement, which must be stated in aliquot parts including any partial quarter-quarter sections, lots or partial lots and must state the acreage for each aliquot part or lot, whether full or partial. The legal description also should include the metes and bounds description for each parcel. III. Licensed Professional Land Surveyor. Each survey must be performed by a licensed professional New Mexico land surveyor. The survey submitted must contain the land surveyor s original signature. IV. Conformance to Minimum Standards for Surveying in New Mexico. Any survey must conform to the Minimum Standards for Surveying in New Mexico, NMAC Sections through or any replacement regulations, as well as applicable statutes and other law. Any such survey must be sufficient to warrant the removal of standard exceptions 1, 2, 3, and 4 from a title policy. V. Electronic Format. Survey plats and legal descriptions should be provided to the State Land Office in electronic as well as paper format, unless the State Land Office has determined that electronic format is not necessary for a particular survey If you have any questions, please contact Rod Martinez, Mapping Bureau, New Mexico State Land Office, or rmartine@slo.state.nm.us 2

23 TITLE 19 NATURAL RESOURCES & WILDLIFE CHAPTER 2 STATE TRUST LANDS PART 21 LAND EXCHANGES ISSUING AGENCY: Commissioner of Public Lands New Mexico State Land Office. [ NMAC - Rp, NMAC, 06/15/04] SCOPE: This part pertains to all exchanges of lands held in trust by the commissioner of public lands under the terms of the Enabling Act and subsequent legislation except land exchanges with the United States Department of the Interior. In cases of land exchanges with the state, its agencies or political subdivisions, or federal government agencies other than the Department of the Interior, the commissioner shall determine on a case-by-case basis whether to apply the requirements of Paragraph 6 of Subsection B of NMAC, Subsection C of NMAC, Subsection D of NMAC and Subsection A of NMAC that call for publication and competitive selection of exchange proposals. This part does not apply to land exchanges with the United States Department of the Interior except to the extent that the commissioner decides to apply any portion of this part to a specific exchange to ensure substantial conformity with the requirements of the Enabling Act. [ NMAC - Rp, , 06/15/04] STATUTORY AUTHORITY: The commissioner s authority to manage and dispose of trust lands is found in N.M. Const. Art. XIII, Section 2, and in Section NMSA The authority to promulgate this part is found in Section NMSA The authority to designate Carrie Tingley Children s Hospital as the beneficiary institution with respect to newly acquired trust lands for which no other beneficiary is specified is found in Section NMSA [ NMAC Rp, NMAC, 06/15/04] DURATION: Permanent. [ NMAC Rp, NMAC, 06/15/04] EFFECTIVE DATE: June 15, [ NMAC Rp, NMAC, 06/15/04] OBJECTIVE: The objective of this part is to provide for the orderly and lawful exchange of trust lands when such exchanges will result in a material benefit to the trust not otherwise available, and when the exchange of such trust lands would benefit the trust more than their retention. [ NMAC Rp, NMAC, 06/15/04] DEFINITIONS: The following terms are used in this part as defined below: A. beneficiary institutions means those institutions or other entities specified in Section NMSA 1978, as amended, or other provisions of statute for whose benefit trust lands are held. 3

24 B. commissioner means the New Mexico commissioner of public lands or the commissioner's agents or employees who are authorized to act in the commissioner's stead in a particular transaction. C. cultural property means a structure, place, site or object having historic, archaeological, scientific, architectural or other cultural significance and included on or eligible for inclusion on either the New Mexico register of cultural properties pursuant to the New Mexico Cultural Properties Act, NMSA 1978, Sections through (1969), or listed on or eligible for listing on the National Register of Historic Places pursuant to the National Historic Preservation Act, 16 U.S.C. Section 470. D. description when used in connection with describing land, means a description given in aliquot parts in such a way as to delineate each full or partial quarter quarter section and each full or partial lot and the acreage of each, or a description in some other form approved by the commissioner A description shall include a description of all encumbrances and of all easements or other servitudes burdening or benefiting the property except to the extent that this requirement is waived by the commissioner. E. exchange means a conveyance of trust lands by the commissioner to a party in exchange for a conveyance of non-trust lands by that exchange party to the commissioner. F. exchange agreement means a formal, written agreement entered into between the commissioner and an exchange party for an exchange of trust lands and nontrust lands. G. exchange applicant means a governmental or private entity, including an Indian tribe or pueblo, that has filed an application to exchange lands or an exchange proposal, or both, under this rule and that owns fee simple absolute title, or the right to acquire fee simple absolute title, to the surface estate and/or the mineral estate in lands proposed for exchange. H. exchange party means an exchange applicant whose exchange proposal has been accepted by the commissioner and who has entered into an exchange agreement with the commissioner. I. exchange proposal means a proposal for an exchange submitted to the commissioner by an exchange applicant in conformance with the requirements of this rule and the provisions of any published request for exchange proposals. J. hazardous materials means any substance or material that is governed or regulated by any statute, regulation, rule, order, finding or directive promulgated, issued or enacted by a federal, state or local governmental entity and that relates to industrial hygiene or environmental protection, including but not limited to the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), 42 U.S.C. Sections and any successor provisions, and the Resource Conservation and Recovery Act (RCRA), 42 U.S.C. Sections and any successor provisions. K. improvements means any of the following: (1) any item of tangible property developed, placed, created or constructed on the lands involved including, but not limited to, buildings, roadways, equipment and fixtures; (2) water rights appurtenant to the lands involved, including without limitation any water rights developed or used on the land involved for the benefit of that land; and 4

25 (3) any tangible or intangible property, rights, approvals or privileges obtained or developed for the benefit of, or made appurtenant to, the lands involved that are designated as improvements by the commissioner. L. improvement value means the value of improvements placed on trust lands, which value is finally determined or accepted by the commissioner. M. non-trust lands means lands other than trust lands, located in New Mexico. N. qualified appraiser means a state licensed or certified real estate appraiser as set forth in Sections , and NMSA 1978 or any successor provisions of law. O. schedule of fees means a written schedule of administrative fees established by the commissioner and available to the public, which the commissioner in his discretion may change from time-to-time. P. state means the state of New Mexico. Q. state land office means the New Mexico state land office. R. true value means fair market value as determined by an objective, reliable and commercially acceptable method including but not necessarily limited to appraisal by an appraiser. S. trust means the trust established by the Enabling Act (Act of June 20, 1910, 36 Statutes at Large 557, Chapter 310), and that trust's assets, which are administered through the state land office by the commissioner. T. trust lands means all lands with all appurtenant rights and privileges, owned by the trust as shown in the state land office master title tract books or other records of the state land office. U. working day means any day other than a Saturday, a Sunday or a day on which the state land office is required to be closed. [ NMAC Rp, NMAC, 06/15/04] EXCHANGE STANDARDS: A. The commissioner may enter into an exchange when the commissioner determines that the exchange will result in a material benefit to the trust and the purpose of the exchange would serve the best interests of the trust. B. Trust lands may be exchanged for non-trust lands owned in fee simple absolute by a governmental entity or by a private entity or entities. The commission cannot accept in an exchange any lands subject to a mortgage, lien or other encumbrance. C. In any exchange, the trust must receive at least true value for the trust lands that are conveyed to an exchange party. To meet this requirement, the commissioner shall appraise the trust lands and the non-trust lands proposed to be exchanged at their true value and can only proceed with an exchange after first determining that the non-trust lands to be received by the state are of equal or greater value to the trust. Such an appraisal may be conducted, at the commissioner s discretion, (a) by a qualified state land office employee; (b) by a qualified appraiser selected in advance by the commissioner; or (c) by a qualified appraiser not selected in advance by the commissioner but whose appraisal report is reviewed by either a qualified state land office employee or a different qualified appraiser and such review arrives at an independent assessment of value. The commissioner may select another method of determining true value if he determines that such method is in the best interests of the trust and conforms to law. This provision shall not be construed as prohibiting the use of 5

26 a running exchange account as provided in Subsection F of this section. (1) Appraisals conducted or received by the commissioner in connection with an exchange or proposed exchange under this rule, as well as the commissioner s review of any such appraisal, shall be considered confidential information and not public information until the commissioner has selected an exchange proposal as provided in NMAC. The commissioner may waive confidentiality in the case of any appraisal or any review of an appraisal if he determines that it is in the best interest of the trust to do so. D. The non-trust lands received by the commissioner in an exchange and any proceeds therefrom shall be applied to and become a part of the trust for which the trust lands exchanged by the commissioner were originally granted. Provided, however, that an exchange applicant may, in connection with a proposed exchange, offer to convey to the state, as a bonus, land in addition to that which will provide true value to the trust. In such a case, if the commissioner and the applicant enter into an exchange agreement as provided in NMAC, and the exchange agreement so provides, the additional land offered as a bonus may be designated to the Carrie Tingley Crippled Children s Hospital trust in accordance with NMSA 1978, Section (1989). E. A single exchange transaction may involve more than one exchange party and may involve trust lands held in trust for the benefit of more than one beneficiary. When the exchange involves the commissioner conveying lands held in trust for more than one beneficiary institution, the non-trust lands received by the commissioner in the exchange shall be apportioned to the different beneficiary institutions in such a way that the value of each beneficiary institution s interest in the newly acquired lands is proportional to its interest in the trust lands conveyed, subject to the same proviso for designation of lands offered as a bonus to the Carrie Tingley Crippled Children s Hospital trust set forth in Subparagraph D above. F. When the commissioner determines that the best interests of the trust will be promoted thereby, he may, in his discretion, enter into an agreement with a state agency or entity or a political subdivision of the state, to engage in a series of exchanges over a period of time. Such an agreement will provide for a running exchange account in which both agencies will, among other things: (a) account for the value of all properties exchanged; (b) make provision for differences in the property values of one exchange to be offset against property values in subsequent exchanges; (c) provide for methods of discharge and reduction of account balances; (d) provide for interest on account exchange balances which remain undischarged for over one year; (e) provide for interagency annual reconciliation of account balance figures; and (f) provide for termination of the agreement and a method for final resolution of outstanding account balances. G. The commissioner shall convey the trust lands being exchanged using such instruments of conveyance as he deems best, which instruments shall contain such reservations to the trust as are required by law and as are deemed appropriate by the commissioner. Conveyances of trust lands shall be subject to all valid existing rights at the date of conveyance. (1) A conveyance document by which the commissioner conveys trust lands shall be similar in content to a state land office patent and may be entitled Exchange Patent. (2) A conveyance document by which the commissioner conveys trust lands shall reflect any existing oil, gas, mineral or geothermal leases on the property being conveyed by the commissioner. H. In any exchange, the commissioner shall receive conveyances of non-trust 6