Ariz. Admin. Code § R12-5-506 - Procedure in Processing Conflicting Applications

A. If two or more applicants apply for a lease or permit on the same land for the same purpose, the Department shall send a Notice of Conflicting Applications to each applicant requiring each applicant to submit to the Department a statement of equities containing the basis of the applicant's claim to the lease or permit and to serve a copy upon the other applicants within 30 days from the date of the Department's Notice, unless the time is extended by the Department or by stipulation of the applicants. If an applicant fails to submit a statement of equities, the Department may examine evidence or records, or review testimony from a hearing conducted under subsection (E)(2) and make a decision regarding the conflicting applications. The Department shall make its decision regarding an application filed for lease or permit under this Section in the best interest of the Trust.

B. An applicant shall have the statement of equities verified under oath before an officer authorized under the laws of this state to administer oaths, or sign the statement of equities accompanied by a certification under penalty of perjury that the information contained in the statement of equities is to the best of the applicant's knowledge and belief, true, correct, and complete. The statement of equities shall include information related to the factors considered under subsection (D).

C. An applicant, within 10 days from the date of receipt of the statement of equities of another applicant, may file with the Department and if filed, shall serve upon other applicants, a response to the other applicant's statement of equities.

D. In conducting an investigation and review, the Department shall consider the following factors:

1. An offer to pay more than appraised rental as an equity, if the Department determines not to go to bid on the conflict;

2. Whether the applicant's proposed land use or land management plan is beneficial to the Trust;

3. The applicant's access to or control of facilities or resources necessary to accomplish the proposed use;

4. The applicant's willingness to reimburse the owner of reimbursable non-removable improvements;

5. The applicant's previous management of land leases, land management plans, or any history of land or resource management activities on private or leased lands;

6. The applicant's experience associated with the proposed use of land;

7. Impact of the proposed use on future utility and income potential of the land;

8. Impact to surrounding state land;

9. Recommendations of the Department's staff; and

10. Any other considerations in the best interest of the Trust.

E. After investigation and review of the statements of equities, the Department may:

1. Request additional information from an applicant;

2. Conduct a hearing at the Department or another designated location at the earliest possible date, giving notice of time and place for hearing to all applicants;

3. Award the lease or permit to an applicant;

4. Reject all applications; or

5. Proceed to bid according to A.R.S. § 37-284.

F. The bid process is as follows:

1. If the Department determines to proceed to bidding, the Department shall issue a Notice of Call for Bidding that states the time and place bids will be accepted including the minimum rental that will be accepted.

2. The Notice shall specify the existence of a preferred right, if any. The Department shall include, with the Notice, a copy of the form of lease or permit that may be offered to the successful bidder. A bidder shall submit a written bid to the Department by 5:00 p.m. no later than 30 days from the date of the Notice. A bid shall be made on forms provided by the Department. The Department shall accept a bid form only with the original signature of the bidder. A bidder may either mail or deliver the bid in person to the Department.

3. The Department shall not accept a bid from anyone other than an applicant named in the Notice of Call for Bidding.

4. Unless subsection (F)(5) applies, the Department shall accept only one bid from each applicant. Once the bid is submitted, the Department shall not accept a second or substitute bid or any change to the original bid.

5. If the bids of two or more applicants are the same, are also the highest bids offered, and there is no preferred right, the Department shall repeat the bid procedure under subsections (F)(1) and (2) with the following exceptions, until a single highest bid is submitted:

a. In a call for new bids, the Department shall establish a new minimum rental that equals the highest amount offered in the previous bidding.

b. The Department shall accept new bids only from the applicants who submitted the highest matching bids.

6. The Department shall mail a Notice of Bid Results to all bidders. A bidder choosing to exercise a preferred right shall, within 15 days of the Department's issuance of the Notice of Bid Results, offer a bid matching the highest bid, in writing, on forms provided by the Department.

G. Nothing in this Section limits or diminishes the jurisdiction of the Department. This Section does not apply to an application for an oil or gas lease.

Notes

Ariz. Admin. Code § R12-5-506

Original rule, Art. I, Subchapter B, Ch. II (Supp. 76-4). Section R12-5-506 renumbered from Section R12-5-105 (Supp. 93-3). Section repealed; new Section made by final rulemaking at 9 A.A.R. 3817, effective October 4, 2003 (Supp. 03-3).