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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

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