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F I S C A L I M P A C T R E P O R T
SPONSOR Campos
ORIGINAL DATE
LAST UPDATED
2-6-06
2-6-06 HB
SHORT TITLE White Peak Area Land Purchase
SB 700
ANALYST Woods
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY06
FY07
NFI
$15,000.0
Non-Recurring
General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
Energy, Minerals and Natural Resources Department (EMNRD)
Department of Finance and Administration (DFA)
State Land Office (SLO)
SUMMARY
Synopsis of Bill
Senate Bill 700 makes an appropriation for the purchase of land in the White Peak area. Specifi-
cally, the legislation seeks to appropriate $15,000,000 from the general fund to the State Land
Office for expenditure in fiscal years 2007 and 2008 for the purchase of approximately twelve
thousand acres of the Stanley ranch in the White Peak area in Mora and Colfax counties, contin-
gent on a purchase agreement between the state land office and the owner of the land. Any unex-
pended or unencumbered balance remaining at the end of fiscal year 2008 shall revert to the gen-
eral fund.
SIGNIFICANT ISSUES
The State Land Office (SLO) indicates that the White Peak area near the Mora-Colfax County
line in Northern New Mexico has been a site of competing interests over land use between pri-
vate landowners and hunters, primarily over access to and use of state trust land. Complex land
ownership patterns characterize the area; roughly half of which is private land, the other half is
state trust land. Access to much of the state trust land requires traveling through or across private
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Senate Bill 700 Page
2
property, and there is disagreement regarding the status of roads used to access trust land
throughout the area. Consequently, the area has been the subject of land use conflict, continuing
law enforcement challenges and resource management concerns.
PERFORMANCE IMPLICATIONS
SLO notes that the land office would engage in negotiations and related efforts to purchase the
various properties. Those efforts would include appraisals, due diligence, purchase contract de-
velopment, title work and other related document preparation and filing. The land office has ex-
pertise for conducting such transactions, but certain elements would require specific contractors.
The bill would require an appropriation to support these contractors and transaction costs.
FISCAL IMPLICATIONS
If acquired as state trust land SLO suggests that the Land Office would realize increased reve-
nues resulting from the net increase in acreage, thus increasing distributions to designated bene-
ficiaries. Consolidated ownership could provide enhanced revenues through marketing and man-
aging select land uses.
The State Land Office and other agencies will need to expend budget, primarily in the form of
salaries, benefits and travel for the purchase and subsequent joint resource planning and man-
agement should the purchase succeed. Projected costs are undetermined at this point. The pur-
chase and certain transaction efforts will be supported by the appropriation.
ADMINISTRATIVE IMPLICATIONS
Acquisition of the property may reduce the level of effort expended by state agencies dealing
with access conflict, resource allocation and use, and enforcement. SLO suggests it will incur
administrative responsibilities related to purchase negotiations, appraisal, due diligence, contract
preparation and title work.
BW/nt