Leasing and Permitting Chapter 2 - Agricultural Leasing

PROCEDURAL HANDBOOK

Leasing and Permitting

Chapter 2 – Agricultural Leasing

Issue Date

March 6, 2006

Issued By:

Department of the Interior

Bureau of Indian Affairs

Division of Real Estate Services

1849 C Street, N.W.

Washington, DC 20240

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Leasing and Permitting Chapter 2 – Agricultural Leasing

TABLE OF CONTENTS

CHAPTER 2 – AGRICULTURAL LEASING

PROCEDURAL HANDBOOK...................................................................................................... 1

1.0 INTRODUCTION .............................................................................................................. 2

2.0 PROCESS AND PROCEDURES OVERVIEW ................................................................ 3

3.0 GENERAL AUTHORITIES AND POLICIES .................................................................. 4

4.0 PROCEDURES................................................................................................................... 4

Pre-Lease Activity................................................................................................................... 6

Negotiated Lease Preparation................................................................................................ 11

Lease Preparation from an Advertised Sale .......................................................................... 15

Lease Issuance....................................................................................................................... 20

Lease Amendment, Assignment, and Sublease..................................................................... 23

Lease Compliance ................................................................................................................. 27

5.0 ATTACHMENTS............................................................................................................. 30

Attachment 1A Appraisal Request Form ............................................................................ 31

Attachment 2A Review of Land Appraisals ....................................................................... 35

Attachment 3A Finding of No Significant Impact (FONSI)............................................... 38

Attachment 4A Categorical Exclusion Exception Checklist............................................... 41

Attachment 5A Leasing Activities Timeline on Farm/Pasture Leases ............................... 44

Attachment 6A Sample Conservation Plans ....................................................................... 46

Attachment 7A Agricultural Lease File Layout.................................................................. 51

Attachment 8A TSR Request Form .................................................................................... 54

Attachment 9A Sample 90 Day Notice............................................................................... 56

Attachment 10A Sample Power of Attorney for Leasing ................................................... 58

Attachment 11A Owner’s Consent to Lease ....................................................................... 61

Attachment 12A Sample Agricultural Lease ...................................................................... 64

Attachment 13A Agricultural Leasing Checklist ................................................................ 70

Attachment 14A Sample Advertised Sale Notice ............................................................... 72

Attachment 15A Sample Award Letter............................................................................... 75

Attachment 16A Recordation Form .................................................................................... 77

Attachment 17A Sample Agricultural Lease Modification................................................. 79

Attachment 18A Sample Agricultural Lease Assignment .................................................. 81

Attachment 19A Lease Inspection Report .......................................................................... 84

Attachment 20A Sample 10 Day Show Cause Notice ........................................................ 86

Attachment 21A Sample Cancellation Letter...................................................................... 88

6.0 ADDITIONAL INFORMATION/GUIDANCE............................................................... 91

6.1 Owner Managed Tracts.................................................................................................. 91

6.2 Agricultural Permits....................................................................................................... 91

6.3 USDA Farm Services Agency Subsidies/CRP and GRP Programs .............................. 91

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Leasing and Permitting Chapter 2 – Agricultural Leasing

1.0 INTRODUCTION

Agricultural lands include grazing, croplands, and those watered by flood, sprinkler, or drip

irrigation systems and so-called dry farm lands which rely on natural precipitation. All

agricultural leases may be negotiated, usually by the landowner. If the individual landowner(s) or

the tribe has been unable to negotiate a lease, then the BIA realty office may advertise the land

available for lease on behalf of the individual landowner(s). For tribal lands, the BIA will

recognize the authority of the tribe having jurisdiction over the land and will advertise and issue

the lease in accordance with applicable tribal laws and policies. Most leases, whether advertised

by the BIA or negotiated by the landowner, require approval by the Secretary or his/her

designee. Leases that are negotiated by the landowner must also be in a form acceptable to the

Secretary.

Farm and pasture lands may be leased for terms up to ten years with rental adjustments after the

fifth year. Undeveloped or underdeveloped lands may be placed under long-term development

leases of up to 25 years for specialized crops that require substantial investment. In some

situations, a landowner’s parcel is not an economic unit and must be combined with other parcels

to form a viable resource management area.

Agency or tribal staff is generally responsible for obtaining documentation that supports the

lease and reviewing the proposed lease terms, conditions and provisions which may include, but

are not limited to, the following:

 Land status - The legal description and ownership of the land to be leased.

 Conservation principles - All farming and grazing operations must be in accordance with

the principles of sustained yield management, the land classification, integrated resource

management planning and sound conservation practices.

 Bonds - Bonds are required to ensure compliance with the terms of the lease. Bonds may

be waived at the request of a tribe or landowner(s) owning a majority interest.

 Adequate rental rate - In most instances, agricultural leases must provide for the payment

of at least fair market rental. The rental is determined by competitive bidding, appraisal

or any other appropriate valuation method.

 Leasehold improvements - Improvements that will be constructed are usually described

by their type and location on the leased premises.

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Leasing and Permitting Chapter 2 – Agricultural Leasing

2.0 PROCESS AND PROCEDURES OVERVIEW

The agricultural leasing procedures have been segregated into the following categories:

Pre-Lease Activity

The purpose of this procedure is to provide requirements regarding identification of lands

available for lease and those activities required before the land can be leased either by the

landowner or the Government.

Negotiated Lease Preparation

The purpose of this procedure is to provide requirements regarding receipt of a proposed

negotiated lease from a potential lessee and review of the document to ensure compliance with

regulations.

Lease Preparation from an Advertised Sale

The purpose of this procedure is to provide requirements regarding advertisement of available

tracts, conduct of a lease sale and preparation of a draft lease.

Lease Amendment, Assignment, and Sublease

The purpose of this procedure is to provide requirements regarding the activities required to issue

an approved agricultural lease, culminating with the approval of the lease and recordation of the

encumbrance in the Land Titles and Records Office (LTRO).

Lease Administration

The purpose of this procedure is to provide requirements regarding processing of any subsequent

amendments, assignments, subleases, or other leasehold documents to an agricultural lease. BIA

review of the transaction ensures the best interests of the landowner are protected, the trust asset

is conserved and the transaction is in compliance with the existing lease stipulations and all

applicable tribal and federal statutes and regulations.

Lease Compliance

The purpose of this procedure is to provide requirements regarding the activities required to

monitory leases for financial and land use compliance. An agricultural lease may be terminated

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Leasing and Permitting Chapter 2 – Agricultural Leasing

or canceled if any of the provisions of the lease have been violated and remain uncorrected after

a notice to correct has been given to the lessee and its sureties.

3.0 GENERAL AUTHORITIES AND POLICIES

The following statutes provide primary authority specifically for agricultural leasing activities:

 25 U.S.C. 380

 25 U.S.C. 415

 25 U.S.C. 415b

 25 U.S.C. 3715 - American Indian Agriculture Resource Management Act of 1994

(AIARMA)

For a description of these and other federal laws affecting leasing and permitting, see Chapter 1,

Section 2.1 of this handbook.

4.0 PROCEDURES

This section of the handbook presents the complete text and associated attachments (if applicable)

for each procedure associated with Agricultural Leasing.

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Leasing and Permitting Chapter 2 – Agricultural Leasing

Pre-Lease Activity

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Leasing and Permitting Chapter 2 – Agricultural Leasing

PRE-LEASE ACTIVITY

Purpose

This procedure includes identification of lands available for lease and those activities required

before the land can be leased either by the landowner or the Government.

Scope

This procedure is operated by designated agency or tribal realty staff.

Process

Step 1: Identify land available for lease.

 Examine leases that will be expiring during the next leasing cycle, 10 - 14 months in

advance of the expiration date.

 If an automated system is available, generate a report that will show which leases

will be expiring. An annual review of this report will provide a list of lands to

determine current conservation requirements, current stocking rates, and any new or

pending land use requirements.

 Examine agency records, plat books, logs, etc., to determine those leases that are

expiring.

 Identify currently unleased lands that are available for lease.

 Idle lands are lands that are not currently being leased for agricultural purposes.

Conduct a bi-annual review and analysis process that will help determine which

lands may be classified as idle.

 Notify the tribe of expiring leases or idle tribal lands to ascertain the tribe’s intent to

advertise for lease, renew to existing lessees, or the application of any other tribal law

regarding the leasing of tribal lands. Tribes generally have the authority to develop their

own leasing laws and policies on tribal lands.

 The single owner of an allotted tract may request that BIA advertise the tract for lease, or

he may personally negotiate with a potential lessee, subject to BIA approval. In these

situations, providing the landowner with lease stipulations and valuations is necessary

so they have the information needed for fair and successful negotiations. The BIA

cannot lease single-owned tracts of trust land without the landowner’s consent, however,

BIA has the discretion to lease in order to conserve and protect the trust resource.

Step 2: Obtain a market survey, rent study, or appraisal for allotted lands.

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Leasing and Permitting Chapter 2 – Agricultural Leasing

 Request a valuation that is consistent with the Uniform Standard of Professional

Appraisal Practice (USPAP) from the designated appraisal staff. (See Attachment 1A -

Appraisal Request Form.)

 The need for a full appraisal is the exception, and usually only required for negotiated

leases or for rental adjustments.

 Agricultural leases must provide for the payment, in most cases, of fair annual rental.

The rental may be determined by competitive bidding, appraisal, or any other

appropriate valuation method. Any appraisal prepared must be in accordance with the

USPAP.

 Trust land appraisals not prepared by the Office of Appraisal Services (OAS) must be

reviewed by OAS before approval of a trust land or resource transaction, even if the

appraisal was prepared by a compacted or contracted tribe. The review of appraisals

has been declared an inherently federal function. (See Attachment 2A - Review of Land

Appraisals.)

Step 3: Determine, in consultation with regional environmental staff and the Regional

Archeologist, the actions necessary to ensure compliance with the National

Environmental Policy Act (NEPA), National Historic Preservation Act (NHPA),

and Endangered Species Act (ESA).

 In some cases, a reservation-wide environmental assessment for existing agricultural

leasing activity may be completed. An environmental tiering document that builds off the

previously approved reservation-wide assessment can be processed to satisfy NEPA

requirements for agricultural leasing. (See Attachment 3A - Finding of No Significant

Impact [FONSI].) This facilitates the issuing of agricultural leases where there is no

change in land use. The Agency Superintendent can approve FONSI documents and

such decision documents may be included in the lease review and approval process.

 A categorical exclusion document is prepared for each lease where there is no

environmental assessment that will cover the proposed action. (See Attachment 4A -

Categorical Exclusion Exception Checklist.) For detailed instructions on the use and

application of the categorical exclusion exemption, refer to the BIA NEPA Handbook for

further discussion or contact the local environmental staff for guidance.

 If there is no environmental staff at the local office, contact the next highest level office.

For example: If a tribal/agency office does not have an environmental staff person,

contact the designated Regional Office, Branch of Environmental Services.

 The NEPA process analyzes and discloses the significant impacts a proposed action

may have on the quality of the human environment.

Step 4: Notify Land Operations/Natural Resources of intent to lease available tracts.

(See Attachment 5A - Leasing Activities Timeline on Farm/Pasture Leases.)

 Land Operations staff needs to know the cultivated and pasture acreage in the tracts. If

there is a change in land use, they must consider the change in their analysis.

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 Natural resources staff completes a new or updated conservation plan.

 A conservation plan may include a map showing the approximate location of

improvements, conservation measures, stocking rates and any other applicable

stipulations/provisions. (See Attachment 6A - Sample Conservation Plans.)

 Determine conservation provisions and possible associated penalties for failure to

comply with those provisions. Penalties for various conservation stipulations will

need to be approved usually in advance by the Regional Office. For example, some

provisions may indicate that failure to summer fallow will result in a certain per acre

penalty rate.

Step 5: Determine land use requirements. In an agricultural lease, all farming and

grazing operations must be in accordance with the principles of sustained yield

management, integrated resource management planning, sound conservation

practices, and other community goals. These principles will be conveyed in

applicable tribal laws, leasing policies, or agricultural resource management

plans. These principles must be stipulated in an agricultural lease. (See Exhibit 6

- Mandatory and Optional Lease Provisions.)

Step 6: Construct a lease file. (See Attachment 7A - Agricultural Lease File Layout.)

Step 7: Notify individual landowners of intent to lease.

 Verify land ownership of the tracts available for lease.

 Review appropriate title documents which may include a Title Status Report or

agency ownership records. (See Attachment 8A - TSR Request Form.)

 Send a 90-day notice to individual trust landowners indicating the Bureau’s intent to

lease the tract unless the individual trust landowners negotiate a lease with the lessee of

their choice within a three-month period. (See Attachment 9A - Sample 90 Day Notice.)

 Pursuant to AIARMA, 25 U.S.C. 3701-3715, the owners of a majority interest have

the authority to enter into an agricultural lease on behalf of the minority interest

holders in the surface estate as long as the minority interest holders receive fair

market value for their interest.

 If a 90-day notice is returned UNDELIVERABLE, check with the Office of Trust

Funds Management (OTFM) to ensure the address of landowner(s) is current. Some

landowners may be “whereabouts unknown”.

 To meet the requirements in 25 CFR 162.214(b), the 90 Day Notice may be used to

apprise the landowners that they have the right to appeal the decision, to approve or

disapprove a lease.

 Some offices issue a Power of Attorney form with the 90-day notice. (See Attachment

10A - Sample Power of Attorney for Leasing.)

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 One notice may be issued for all trust land interests an individual trust landowner has

in all tracts that are available for lease.

Step 8: If the landowner intends to negotiate on his/her/their own behalf, provide

information that will facilitate the negotiation. This may include the following:

 A sample lease format

 Ownership of the lands to be leased including owners’ names, addresses, and

their undivided interest in the tract

 Appraisal or market rental information

 Consent of lessor forms (See Attachment 11A - Owner’s Consent to Lease.)

 Legal description of the tract, and other existing physical characteristics of the

land including existing fencing, water, and improvements

 A copy of the conservation plan

 In most instances, the potential lessee initiates the negotiation for a new lease.

 If the tribe owns the majority interest in the land, the tribe may negotiate leases for the

tribal land. In those situations, the tribe must be made aware of any non-negotiable

stipulations such as stocking rates, conservation stipulations, and other measures to

maintain sustained yield and long-term viability of the land.

 Inform all interested parties of the date negotiations must be completed and the

information returned for approval.

REVIEW

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Effective Date

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Initial Issuance

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Leasing and Permitting Chapter 2 – Agricultural Leasing

Negotiated Lease Preparation

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NEGOTIATED LEASE PREPARATION

Purpose

This procedure includes receipt of a proposed negotiated lease from a potential lessee and

review of the document to ensure compliance with regulations.

Scope

The activities to perform new leases will occur in each case of a negotiated lease.

Process

Step 1: Receive a proposed negotiated lease package.

 Ensure the package is received within the 90-day period.

 Ensure that the lease is in a form acceptable to the Secretary.

 Verify the identity of the landowner (i.e. driver’s license, tribal membership card, other

valid identification).

Step 2: Review lease package for compliance with regulations.

 Determine if majority consent is achieved.

 For negotiated leases, the Secretary may consent on behalf of the following trust

interest landowners as long as it is determined that the lease is in their respective

best interest.

 Individuals found to be non compos mentis by a court of competent jurisdiction:

 Orphaned minors

 The undetermined heirs and devisees of deceased Indian owners

 Individuals who have given BIA a Power of Attorney to lease their land

 Individuals whose whereabouts are unknown to BIA after reasonable attempts

are made to locate such individuals

 Individual Indian landowners of fractionated Indian land, when necessary to

protect the interests of the individual Indian landowners

 The consents made by BIA on behalf of the above are counted in determining the

majority consent requirement.

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Leasing and Permitting Chapter 2 – Agricultural Leasing

 If a lease term is longer than five (5) years, verify that the proposed lease provides for

one or more rental adjustment during the duration of the lease. Exceptions can be

examined at 25 CFR 162.223. Exception example: If a tribe establishes a policy under

25 CFR 162.203(b)(4) for an agricultural lease on tribal lands for a term of more than five

(5) years, they may also negotiate a provision with no rental adjustment.

 Verify the lease provides for the payment of fair annual rental, made payable on a

regular basis.

 The lessee is obligated to make these payments regardless of whether the lessee

receives advance billing or notice of payment due.

 A schedule of grazing operations for pasture leases must be submitted indicating

number, class, season of use, and type of livestock. This is sometimes referred to as a

management plan. The management plan must not exceed stocking rates for the land(s)

involved.

Step 3: Prepare the draft lease. (See Attachment 12A - Sample Agricultural Lease.)

 Include standard and optional lease provisions in order to maintain the integrity of the

land on behalf of the landowner and uphold the Bureau’s trust responsibilities. (See

Exhibit 6 - Mandatory and Optional Lease Provisions.)

 Ensure NEPA compliance. See Pre-Leasing Activity, Step 2.

 Require a bond to ensure compliance with the terms of the lease.

 Bonds may be waived at the request of a tribe or landowners(s) owning a majority

interest. (See Exhibit 4 - 25 CFR 162.234.)

 Determine the applicable administrative fees.

 In most cases, the fee is 3% of the annual rent.

 Assign identification numbers.

 A contract number is assigned in accordance with instructions for each automated or

manual system. See agency procedures for details.

 A lessee identification number is assigned in accordance with instructions for each

automated or manual system.

 Prepare a change order to establish a TFAS escrow account, if necessary.

 Review the checklist to be sure all necessary requirements are included in the draft.

(See Attachment 13A - Agricultural Leasing Checklist.)

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Step 4: Send draft lease to potential lessor/lessee along with other instructions to

complete the lease package. This may include request for bond, administrative

fees, first year’s rental if it is due, lessee’s signature, etc.

REVIEW

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Effective Date

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Initial Issuance

END OF PROCEDURE

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Leasing and Permitting Chapter 2 – Agricultural Leasing

Lease Preparation from an

Advertised Sale

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LEASE PREPARATION FROM AN ADVERTISED SALE

Purpose

This procedure includes advertisement of available tracts, conduct of a lease sale, and

preparation of a draft lease.

Scope

The activities to prepare new leases will occur in each case of an advertised sale.

NOTE: This procedure applies to leasing of allotted tracts; advertised lease sales of

tribally owned tracts are conducted in accordance with tribal laws, resolutions, and

direction.

Process

Step 1: Advertise available tracts if the landowner does not negotiate a lease within the

allowable 90 days.

 Prepare lease advertisement. (See Attachment 14A - Sample Advertised Sale Notice.)

 Advertisement must address the following items:

 No bidder preference (other than those authorized under the American Indian

Agricultural Resources Management Act (AIARMA))

 25% bid deposit requirement with bid

 Only sealed bids with bid deposit will be accepted

 No ingress/egress guaranteed to the lessee

 Date, time, and place where bids will be accepted and opened

 List of available tracts by tract number and legal description

 A statement of oral auction provision to follow bid opening, if required

 Notification to high bidder

 Right to reject any bid for any reason

 A claim of owner’s use must be made known to the agency at least 24 hours

prior to bid opening

 Bid deposit is forfeited if the high bidder fails to complete the requirements

stated in the award letter

 Total bid plus bid per acre must be submitted

 Notify prospective lessee(s) either by mail or by a public posting of the advertisement for

lease. The bid opening will be within 30 days of the written notification or public posting.

 Publish a revision to the advertisement to remove tracts that become unavailable for bid.

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Leasing and Permitting Chapter 2 – Agricultural Leasing

 If at any time during the 90-day notice period an individual has negotiated a lease

that may be approved, those tracts will not be included in the advertised lease sale.

 If a claim of owner’s use is made known, those tracts will be removed for the lease

sale.

Step 2: Conduct the bid opening.

 Authorized collection officer is in attendance.

 Determine the successful bidder. The successful bidder will normally be the highest

bidder.

 The agency superintendent reserves the right to reject any or all bids and to

disapprove or reject any lease submitted on an accepted bid prior to approval.

Maintain sufficient documentation to defend the bid rejection.

 Reasons a superintendent may reject include:

 Bidder’s history of delinquent or deficient payments

 Bidder’s history of lease violations for unauthorized use

 Bidder’s lease non-compliance

Step 3: Award the successful bidder. (See Attachment 15A - Sample Award Letter.)

 Within 10 days of the receipt of the award letter, the remaining 75% rental and

administrative fees are due.

 A performance bond in an amount equal to 100% of the annual rental may be required.

 An irrigation bond is required, if applicable.

 A schedule of grazing operations for pasture leases must be submitted indicating

number, class, season of use, and type of livestock. This is sometimes referred to as a

management plan. The management plan must not exceed stocking rates for the land(s)

involved.

 Ask the lessee to sign the contract and return by a specified date.

 Lease will not be approved if potential lessee fails to comply with the requirements in the

award letter.

 Bid deposit is forfeited if the potential lessee fails to complete the requirements stated in

the award letter.

Step 4: Deposit the successful bid.

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 See the Interagency Procedures Handbook: Management of Trust Funds Derived from

Assets and Resources in Trust and Restricted Land, Chapter 1, Section 5.8.

 Return bid deposits of unsuccessful bidders after the advertised lease sale is complete.

 Unsuccessful bidders are either refunded their bids in person, if present at the bid

opening, or by mail within 48 hours upon the conclusion of the sale. Refunded bids

are delivered by certified mail with return receipt requested.

Step 5: Prepare abstract of the sale.

 Record all bidders, bid amounts and indicate which tracts bids were made for.

 Record the results of all oral auctions subsequent to the sealed bid opening, if provided.

 Record any withdrawals or modifications to the advertisement authorized and

announced prior to bid opening.

.

Step 6: Prepare the draft lease. (See Attachment 12A - Sample Agricultural Lease.)

 Include standard and optional lease provisions in order to maintain the integrity of the

land on behalf of the landowner and uphold the Bureau’s trust responsibilities. (See

Exhibit 6 - Mandatory and Optional Lease Provisions.)

 Determine the applicable administrative fees.

 In most cases, the fee is 3% of the annual rent.

 Ensure NEPA compliance. See Pre-Leasing Activity, Step 2.

 Require a bond to ensure compliance with the terms of the lease.

 Acceptable bonds can be examined at 25 CFR 162.235.

 Review the checklist to be sure all necessary requirements are included in the draft.

(See Attachment 13A - Agricultural Leasing Checklist.)

 Assign identification numbers.

 A contract number is assigned in accordance with instructions for each automated or

manual system.

 A lessee identification number is assigned in accordance with instructions for each

automated or manual system.

 Prepare a change order to establish a TFAS escrow account, if necessary.

Step 7: Send draft lease to the potential lessee.

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Leasing and Permitting Chapter 2 – Agricultural Leasing

 The draft lease can be mailed with the award letter.

REVIEW

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Effective Date

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Initial Issuance

END OF PROCEDURE

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Leasing and Permitting Chapter 2 – Agricultural Leasing

Lease Issuance

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LEASE ISSUANCE

Purpose

This procedure documents the activities required to issue an approved agricultural lease,

culminating with the approval of the lease and recordation of the encumbrance in the Land

Titles and Records Office (LTRO).

Scope

Realty staff prepares leases.

Process

Step 1: Receive lease package back from the potential lessee.

Step 2: Ensure rental payment, signed lease and other required submittals, such as a

bond, lessee management plan, etc., have been provided by the potential lessee.

 Complete the checklist to ensure all requirements are met. (See Attachment 13A -

Agricultural Leasing Checklist.)

Step 3: Transmit lease package with relevant documents and checklist to the approving

official for his/her signature.

 Issue the recommendation in writing for approval or denial of the lease if required by the

line official.

 The decision to approve or deny a negotiated lease where less than 100% of the trust

landowners have consented is appealable. Therefore, all the trust landowners must be

provided appeal rights pursuant to 25 CFR Part 2.

 The file contains supporting documentation to substantiate the decision.

 If the decision is appealed, no further action can be taken and the Bureau must wait

until the administrative appeal process has been exhausted. See Chapter 1, Section

3.8 Administrative Appeals.

 Receive lease documents back from approving official and, if approved, go to step 4.

 If lease was disapproved or returned for further action, determine the available

remedy to be taken and reprocess the lease.

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Step 4: Forward the approved lease to the designated LTRO for recordation. (See

Attachment 16A - Recordation Form.)

 Encode lease information in the agency leasing system. This system will vary from

region to region but may include IRMS, TAAMS, MAD, and other systems used to track

and administer leases for the agency.

Step 5: Distribute lease copies to lessee. Landowners are provided copies of the lease

upon request.

Step 6: Prepare income allocation.

 Review income distribution from ownership information reported on TSRs or automated

systems that store ownership information. This review may require an adjustment for

life estates, assignments, direct payments, owner’s use, tribal interests, “Youpee”

interests, claims against estate accounts, etc.

 In some cases, a pre-distribution run can help verify if, (a) distribution will balance out

between the interest owners of a tract or unit, (b) all required IIM accounts have been

opened, and (c) the correct tracts have been encumbered. Errors must be corrected

before a distribution file for a payout is finalized. Please refer to the regional policy for

further guidance.

REVIEW

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Initial Issuance

END OF PROCEDURE

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Leasing and Permitting Chapter 2 – Agricultural Leasing

Lease Amendment, Assignment,

and Sublease

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LEASE AMENDMENT, ASSIGNMENT, AND SUBLEASE

Purpose

This procedure includes processing of any subsequent amendments, assignments, subleases,

or other leasehold documents to an agricultural lease. In most instances, the transaction is

requested by the landowner(s) or lessee. BIA review of the transaction ensures the best

interests of the landowner are protected, the trust asset is conserved and the transaction is in

compliance with the existing lease stipulations and all applicable tribal and federal statutes and

regulations. In most instances, approval by the delegated official of the transaction is required.

Scope

Generally, the Realty office administers the lease. All actions must be approved by the

appropriate delegated official and recorded in the LTRO.

Process

Step 1: Review the requested transaction for an existing lease.

 Each lease action needs to be performed within regulatory requirements and policy

guidelines.

 Transactions may not need additional NEPA documentation if environmental

documentation is in place for the original lease and no new environmental impact will

occur as a result of transaction approval.

 The various transactions listed below may or may not occur during the term of the lease

and are not contingent on one another.

Step 1a: Review a proposed lease amendment/modification. (See Attachment 17A -

Sample Agricultural Lease Modification.)

 Ensure the required consent(s) has been obtained from the parties to the lease and any

other sureties.

 Verify the amendment is in the best interest of the landowner(s) using the same

standards as required for approval of the lease.

Step 1b: Review a proposed lease assignment. (See Attachment 18A - Sample

Agricultural Lease Assignment.)

 Ensure the proper consent(s) has been obtained.

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24

Leasing and Permitting Chapter 2 – Agricultural Leasing

 The consent standards are the same as required in the lease, unless the lease

authorizes one or more of the Indian landowners to consent on behalf of all such

owners.

 Consent must be obtained from all sureties.

 Ensure the assignee has bonded its performance.

 Ensure the assignment provides for the assignee to pay fair market rent to the Indian

landowner(s) if the lease was approved at less than fair market rent and the assignee is

not a co-owner or a member of the Indian landowner’s immediate family.

 Ensure the assignee agrees to be bound by the terms of the lease and there is no

compelling reason to withhold approval in order to protect the best interests of the Indian

owners.

 Obtain the signatures of all parties to the assignment.

Step 1c: Review a proposed sublease.

 Unless otherwise specified in the lease, the parties to the lease must consent to a

sublease in the same manner as the initial lease.

 Consent to the sublease must be obtained from any sureties.

 Ensure the lessee remains responsible under the terms and conditions of the lease.

 A sublease must be approved by the delegated authorizing official and there must be a

finding that the sublease is in the best interest of the Indian landowners.

 Ensure the sublessee agrees to be bound by the conservation terms of the lease.

Step 2: Determine the applicable administrative fees.

 Charge an administrative fee each time a lease amendment, assignment, sublease, or

related document is approved. These fees are paid by the lessee or the assignee.

 The minimum administrative fee is $10.00 and the maximum administrative fee is

$500.00. Any administrative fees that have been paid are non-refundable, however,

all or part of these administrative fees may be waived.

Step 3: Send the lease transaction to the delegated authorized official for approval.

 A lease amendment, assignment, or sublease must be approved by the Secretary.

Step 4: Send the lease transaction to the LTRO for recordation.

Issued: March 6, 2006

Leasing and Permitting Chapter 2 – Agricultural Leasing

25

Step 5: Encode the lease transaction in the agency leasing system as applicable.

REVIEW

Revision #

Change

Effective Date

0

Initial Issuance

END OF PROCEDURE

Issued: March 6, 2006

26

Leasing and Permitting Chapter 2 – Agricultural Leasing

Lease Compliance

Issued: March 6, 2006

Leasing and Permitting Chapter 2 – Agricultural Leasing

27

LEASE COMPLIANCE

Purpose

This procedure includes the activities required to monitory leases for financial and land use

compliance. An agricultural lease may be terminated or canceled if any of the provisions of the

lease have been violated. Lease violations may be initiated as a result of site visits by realty

staff to determine compliance with the terms of the lease; a complaint from the landowner(s) or

a neighboring landowner; or non-payment of lease rental. A notice to correct the violation is

normally provided to the lessee, and the Superintendent has the discretion to not terminate the

lease depending on the response from the lessee. The decision to terminate a lease is

appealable pursuant to 25 CFR Part 2.

Note: Not all the following steps may be required nor are the steps sequential.

Scope

The Agency Superintendent is responsible for ensuring all lessees comply with the terms of

their leases. Often, the Realty Office, Land Operations Office, and the Trust Officer may assist

in carrying out this responsibility.

Process

Step 1a: Monitor for timely payment of lease rentals.

 Review agency records, bills for collection, and accounts receivable reports to

determine if rental payments have been made on time and in the correct amounts.

 If required, determine appropriate penalties pursuant to the contract terms for late

rental payments.

 Late payment penalties are determined by regulation or policy.

 See the the Interagency Procedures Handbook for more information.

Step 1b: Monitor for violation of lease terms, including conservation provisions.

 Periodically inspect lease activity on-site. This may be performed by realty or land

operations staff.

 The inspection may include the following specific compliance determinations:

 Are there activities that are not specifically authorized by the terms of the lease?

 Has the lessee maintained the leased property in accordance with lease terms?

Issued: March 6, 2006

28

Leasing and Permitting Chapter 2 – Agricultural Leasing

 Determine if lease violations are due to factors outside the lessee’s control (e.g.,

tornadoes, floods, other Acts of God).

 Record the results of the inspection in the lease file.

 The Lease Compliance Inspection Report is used to document inspections of the

lease premises throughout the duration of the lease term. This report also tracks any

violations that may have been found, resolved, and the amount of funds collected for

the violation. (See Attachment 19A - Lease Inspection Report.)

Step2: Mail a violation notice to the lessee and its sureties within five business days from

the date the violation was discovered. (See Attachment 20A - Sample 10 Day

Show Cause Notice.)

 The notice indicates that within 10 days, the lessee must cure the violation and notify

BIA that it has been corrected; dispute the violation with explanation; and/or request

additional time to cure the violation. If the lessee does not respond, the Agency

Superintendent will proceed with cancellation of the lease. The notice also indicates:

 The terms or provisions of the lease that have been violated

 Any permit/lease stipulations or conservation plan elements that apply

 If the violation is location-specific, a citation of the location

 If the violation involves animals, a description of the animals by kind, class, number,

and ownership marks

 Any other pertinent information that further explains the violation

 Notices of violation are sent by certified mail with return receipt requested, or hand

delivered with acceptance or refusal documented. Return receipts are attached to the

file copy of the notice as a part of the official record. Law enforcement officers and other

Officers of the Court can deliver notices and verify delivery or refusal of the notice. The

Regional Office is informed of any notice refusal, lack of correction, or other negative

response to a notice of violation. The 10 days during which the lessee must show cause

or correct the violation starts when the lessee receives notice.

Step 4: If the violator fails to respond, the Superintendent issues a cancellation decision

letter after the 10 days expire. However, if the violator disputes the alleged

violation or requests more time to remedy the violation, the deciding official has

the discretion to determine the appropriate action. (See Attachment 21A -

Sample Cancellation Letter.)

 The cancellation letter must include the following:

 The reason for cancellation

 Notification of the right to appeal pursuant to 25 CFR Part 2

 The amount of any appeal bond that must be posted

 An order for the lessee to vacate the property within 30 days of the date of

his/her receipt of the cancellation letter, unless the lessee has filed an

appeal

Issued: March 6, 2006

Leasing and Permitting Chapter 2 – Agricultural Leasing

29

A cancellation decision is effective on the 31

st

day after the lessee signs receipt for the

cancellation letter or on the 41

st

day from the date the letter is mailed, whichever is earlier.

 A cancellation decision is stayed, unless it is determined by the official receiving the

appeal that public safety, protection of trust resources, or other public exigency

requires that the decision be made effective immediately.

 If a cancellation decision is stayed, the lessee must continue to pay rent and comply

with the other terms of the lease.

REVIEW

Revision #

Change

Effective Date

0

Initial Issuance

END OF PROCEDURE

Issued: March 6, 2006

30

Leasing and Permitting Chapter 2 – Agricultural Leasing

5.0 ATTACHMENTS

The following samples and forms are an integral part of the operating procedures.

Issued: March 6, 2006

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REQUEST FOR REAL ESTATE APPRAISAL SERVICES

All requests for real estate appraisal services will be made only after an Agency or tribal line

officer has approved an action involving the transfer or encumbrance of interests in real property

or an Office of Hearing and Appeals (OHA) deciding official has requested appraisals for

probate and/or consolidation purposes.

All requests for appraisal services shall be submitted to the respective Office of Appraisal

Services (OAS) regional office on the standardized “Request for Real Estate Appraisal

Services” request form by the Bureau of Indian Affairs and P.L. 93-638 Contract or Self-

Governance Compact tribal realty programs.

It is highly recommended that the requesting office consult with the respective Regional

Supervisory Appraiser (RSA), as needed, to determine the type of appraisal service necessary,

e.g., Appraisal, Appraisal Review, Appraisal Update, and/or Real Property Consultation.

 All approved appraisal requests shall be submitted directly to the appropriate OAS

Regional Appraisal Office.

Attach supporting documentation:

Title status reports (TSR)

Survey Plats & Maps of Definite Location

Partition plan

Tribal resolution

Letter of intent

Letter of Consent

Right of Way Agreement or Application, and Proposed Leases and

Permits

Quantified Water Rights, if any

 Incomplete appraisal requests will not be accepted. An incomplete request will be

returned to the requestor within five working days with a statement providing reasons for

canceling the appraisal request.

 Any appraisal request submitted to OAS to obtain an appraisal intended for

loan/mortgage purposes by a financial institution shall be rejected (in accordance with

the 1989 Financial Institutions Reform, Recovery and Enforcement Act, as amended,

which require financial institutions to obtain appraisals to conduct internal risk

management.)

 For appraisal requests for opinions of value with effective date other than current date,

the requests shall identify whether the opinion of value is prospective or retrospective

and provide the date to be used by the appraiser.

o Prospective Value Opinion – A forecast of the value expected at a specific future

date. A prospective value opinion is most frequently sought in connection with

real estate projects that are proposed, under construction, or under conversion to

a new use, or those that have not achieved sellout or stabilized level of long-term

occupancy at the time the appraisal report is written.

o Retrospective Value Opinion – An opinion of value that is likely to have applied

as of a specified historic date. A retrospective value opinion is most frequently

sought in connection with appraisals for estate tax, condemnation, inheritance

tax, and similar purposes.

Appraisal requests should not be submitted to OAS for real estate transactions that do not

require Secretarial approval, e.g., valuations for landowner personal use & knowledge,

valuations of non-fixed portable classrooms, HUD tribal housing development program’s

subsidized loan originations, etc.

U.S. DEPARTMENT OF THE INTERIOR

OFFICE OF THE SPECIAL TRUSTEE FOR AMERICAN INDIANS

OFFICE OF APPRAISAL SERVICES

REQUEST FOR REAL ESTATE APPRAISAL SERVICES

TO: REGIONAL SUPERVISORY APPRAISER,

REGION

SAMPLE

AGENCY:

AGENCY CASE NO:

RESERVATION:

BIA REGIONAL OFFICE:

APPRAISAL SERVICE: ( ) APPRAISAL ( ) APPRAISAL REVIEW ( ) APPRAISAL UPDATE ( ) REAL PROPERTY

CONSULTATION

GRANTOR/LESSOR: GRANTEE/LESSEE:_________________________________

PURPOSE OF APPRAISAL: ( ) MARKET VALUE ( ) MARKET RENTAL VALUE ( ) JUST COMPENSATION

( ) DAMAGE ESTIMATE ( ) USE FEE ESTIMATE

LEASE TYPE: ( ) Cash Lease ( ) Crop Share Lease ( ) Percentage Lease ( ) Gross Lease

( ) Index Lease ( ) Net lease Lease No.

TRANSACTION TYPE

( ) SALE ( ) LEASEHOLD

( ) ACQUISITION ( ) LEASED FEE

( ) EXCHANGE ( ) RENTAL ADJUSTMENT

( ) EASEMENT/RIGHT OF WAY

( ) PARTITIONMENT

PROPERTY TYPE

( ) AGRICULTURAL

( ) RESIDENTIAL

( ) COMMERCIAL

( ) INDUSTRIAL

( ) RECREATIONAL

( ) OTHER

UTILITIES

( ) PUBLIC WATER OR

( ) DOMESTIC WELL

( ) SEWER OR ( ) SEPTIC

( ) ELECTRICITY

( ) TELEPHONE

( ) GAS

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ATTACHED

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( ) PRODUCTION HISTORY

___ NO. OF FRONT FEET

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C

( ) IRRIGATABLE ACRES AND/OR

ON LAKE/RIVER

AGREEMENT/

( ) FINANCIAL

K

WATER RIGHTS DATA

( ) PURCHASE

CONTRACT

STATEMENTS

L

( ) PURCHASE AGREEMENT/ CONTRACT

AGREEMENT/

( ) PHYSICAL DATA OF

( ) PURCHASE

I

( ) CARRYING CAPACITY (AUM’S)

CONTRACT

STRUCTURE, E.G., AGE,

AGREEMENT/

S

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FLOOR PLAN, ETC.

CONTRACT

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RIGHTS

( ) OWNERSHIP DATA OF

HOME & OTHER

STRUCTURES

( ) FLOOR PLAN

LEGAL DESCRIPTION: (ATTACH SURVEY AND TITLE STATUS REPORT, IF AVAILABLE)

ALLOTMENT NO.(S): CONTAINING ACRES, MORE OR

LESS

IDENTIFY LAND CHARACTER AND/OR IMPROVEMENTS TO BE APPRAISED:

SPECIAL INSTRUCTIONS/REMARKS (INCLUDE DEVELOPMENT, IMPROVEMENT AND RENOVATION COSTS, IF ANY):

THE APPROVING OFFICIAL HAS REVIEWED THE NEED FOR APPRAISAL OF THE DESCRIBED PROPERTY FOR THE PURPOSE INDICATED AND

CERTIFIES THAT THE APPRAISAL IS NEEDED AND REQUESTS THAT IT BE PREPARED ON A: ( ) ROUTINE OR ( ) RUSH PRIORITY BASIS.

DATE REQUESTED SIGNATURE REQUESTING

OFFICIAL

DATE APPROVED SIGNATURE APPROVING

OFFICIAL

FOR REGIONAL OFFICE USE PROJECT NUMBER:

DATE RECEIVED: OPINION OF VALUE: $

DATE ASSIGNED: DATE COMPLETED:

APPRAISER: DATE APPROVED:

REPORT TYPE CODE: TRANSMITTAL DATE:

DATE OF VALUATION: REVIEWER:

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SAMPLE

United States Department of the Interior

BUREAU OF INDIAN AFFAIRS

Blackfeet Agency

531 SE Boundary Street.

Browning, Montana 59417

FINDING OF NO SIGNIFICANT IMPACT FOR

BLACKFEET INDIAN RESERVATION, MONTANA

L-8704 D&E Haynes Farm- FARM/PASTURE LEASE

IN REPLY REFER TO:

NAT RES

ENVIRONMENTAL DOCUMENT

(Tiering Document from Environmental Assessment for Billings Area, Farm or Pasture lease, and

Range Permit BF99-74)

The Bureau of Indian Affairs (BIA) has received a request for the leasing of trust acreage through the

BIA un der an authorized lease(L-8704). This lease is to be issued for Farming/Pasture use in return

for just compensation for the lessor(s).

The alternatives analyzed include no action and utilizing a different farming/pasture area. The project

will not have a significant adverse environmental impact to the environment.

Reasons for the finding of no significant impact include:

1.

Threatened or endangered species would not be adversely affected under any

alternative.

2.

Historical and or archaeological sites will be avoided.

3.

All other resources receive little or no impact. Any minor impact will be of short

duration.

4.

The lease area is within an existing cultivated area. The current project will stay

within the disturbed area boundaries.

5.

No waters of the United States will be impacted.

6.

Environmental Justice: Pursuant to the requirements of Executive Order 12898, an

examination has been conducted to determinate whether the lease will cause a

disproportionately high or adverse human health or environmental risk. No

significant risks to human health or environment will result from this lease. The

temporary safety factors (if needed) associated with this project will be mitigated to

the greatest extent reasonably possible. The project will promote tribal sovereignty

and benefit the general health and welfare of the community.

Determination

Based upon the information contained and referenced in the Environmental Assessment and the

Tiering Document, it is my determination that the preferred alternative analyzed does not constitute a

major Federal action significantly affecting the quality of the human environment.

SUPERINTENDENT ___________________________________DATE__________________

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SAMPLE

EXCEPTION CHECKLIST FOR BIA CATEGORICAL EXCLUSIONS

Project:____________________________________

Nature of Proposed Action:

516 DM 10.5 Exclusion category and number:

Evaluation of Exceptions to use of Categorical Exclusion:

1. This action would have significant adverse

No____ Yes____

effects on public health or safety.

2. This action would have an adverse effect on No____ Yes____

unique geographical features, such as wetlands,

wild or scenic rivers, refuges, floodplains, rivers

placed on nationwide river inventory, or prime

or unique farmlands.

No____ Yes____

3. The action will have highly controversial

environmental effects.

No____ Yes____

4. The action will have highly uncertain

environmental effects or involve unique

or unknown environmental risks.

5. This action will establish a precedent for

No____ Yes____

future actions.

6. This action is related to other actions with

No____ Yes____

individually insignificant, but cumulatively

significant environmental effects.

No____ Yes____

7. This action will affect properties listed or eligible

for listing in the National Register of Historic Places.

8. This action will affect a species listed, or proposed

No____ Yes____

to be listed as endangered or threatened.

9. This action threatens to violate federal, state, local

No____ Yes____

or tribal law or requirements imposed for protection

of the environment.

10. This action will have a disproportionately high

No____ Yes____

and adverse effect on low income or minority populations.

11. This action will limit access to, and ceremonial

No____ Yes____

use of Indian sacred sites on federal lands by Indian

religious practitioners, or significantly adversely affect the

physical integrity of such sacred sites.

12. This action will contribute to the introduction,

No____ Yes____

continued existence, or spread of noxious weeds

or non-native invasive species known to occur in

the area, or may promote the introduction, growth,

or expansion of the range of such species.

Date:____________

A “yes” to any of the above exceptions will require that an EA be prepared.

NEPA Action - - - CE___________ EA____________

Preparer’s Name and Title: _______________________________________________

Regional Archeologist Concurrence with Item 7:_______________________________

Concur:__________________________________________Date:_________________

Regional Director/Superintendent

Concur: _________________________________________Date:__________________

Regional Office/Agency Environmental Coordinator

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LEASING ACTIVITIES TIMELINE

FOR

NATURAL RESOURCES and REAL ESTATE STAFF

ON FARM/PASTURE LEASES

Activities Before Leases Expire

360 DAYS Realty staff generates a list of expiring leases and idle tracts to be leased

and this list is shared with Natural Resources staff.

30-240 DAYS Perform on-site field inspection to determine need for any structural

improvements to land needed under next lease. Determine if existing

management regime (crop rotations, grazing system, etc) is adequate for

the property. As possible, this inspection should be made after or near the

end of the growing season, and prior to the lease advertisement.

30-120 DAYS Finalize all conservation plans for expiring leases, at least, 30 days prior to

the lease expiration date. Where advertisement of tracts which are

included in expiring leases occurs (before lease expiration), conservation

plans should be completed no later than 30 days prior to the advertisement.

Develop plans using acceptable conservation practices (best management

practices) with a planning horizon of not less than 25 years (although the

plan is only for a 5 year term, the land use practices specified should

assure no degradation of the property for at least 25 years). These plans

are then made available to Realty.

30 DAYS As possible, within 30 days prior to the expiration of the lease, a detailed

field inspection should be performed on the property. This inspection is for

the purpose of assuring that the property is in proper condition and that

lessee has fulfilled all his obligations contained in the lease. For larger

reservations with large numbers of leases, this inspection should be

incorporated with the earlier inspection. Tracts requiring additional or later

inspections can be flagged for further field work. If deficiencies are found,

the lessee is informed as well as the bonding entity that deficiencies must

be resolved before the expiration of the lease.

Activities After New Leases Have Been Approved

AS NEEDED -- Each lease should be physically inspected at least once a year to assure that

terms and conditions of the conservation plan are being met (commonly referred to as lease

compliance inspection), and that the plan meets the conservation requirements. Additional

inspections are desirable, especially on tracts with highly erodible soils or other sensitive

resources. Some leases may require two (2) or more yearly inspections. If a lease violation is

discovered during a field inspection, a show cause notice is drafted and sent to the lessee within

five (5) days of the field inspection. This notice spells out the alleged violation and gives the

lessee the chance to take corrective action or show why they are not in violation.

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SAMPLE A

PLAN OF CONSERVATION OPERATIONS, WINNEBAGO RESERVATION

USDI-BIA, WINNEBAGO AGENCY

WINNEBAGO, NE. 68071

ALLOTMENT: 2040 LEGAL DESCRIPTION: West 1/2 Northeast 1/4 SECTION: 14 TOWNSHIP:

26 North RANGE: 8 East 6

TH

PM. APPROXIMATELY: 80 ACRES, OF WHICH 0 MAY BE CULTIVATED.

(SEE MAP BELOW FOR DELINEATION OF FARMABLE LAND.

SPECIAL PRACTICES: (1) LESSEE SHALL CONTROL BRUSH AND VOLUNTEER TREES FOR TERM OF

LEASE. CONSIDERED AS HARMFUL GROWTH. (2) LESSEE SHALL CONTROL ALL NOXIOUS WEEDS FOR

THE FULL TERM OF THIS LEASE. (3) TERRACE REPAIR AND ENLARGEMENT REQUIRED WITHIN THE

FIRST TWO YEARS OF THIS LEASE. (4) STOCKING RATE, IF SPECIFIED, SHALL BE STRICTLY ADHERED TO.

OVERSTOCKING SHALL BE CONSIDERED TO COMPRISE OVERUSE. (5) NO USE SHALL BE MADE OF AREAS

FOR WHICH NO AUTHORIZATION IS GRANTED. ANY USE OF SUCH AREAS SHALL BE GROUNDS FOR

CANCELLATION OF LEASE. (6) Reshape & Reseed cattle trails along entire eastern and northern fence lines

by 12/01/2006. Also Reshape & Reseed cattle trails in waterway 'a' in northeastern corner of pasture by

12/01/2006 (7) Fill in washout in northeastern corner of parcel (near gate), which washes in the field to the

east by 12/01/2006. Also fill in washouts along northern fence line by 12/01/2006. (8) Cut out single trees in

pasture and also along fence line by 12/01/2006 (9) Repair fence as necessary & remove any trees, which are

hanging over the fence by 12/01/2006. (10) If lessee wishes to adjust recommended stocking rate

arrangements must be made prior outlining number of livestock & amount of time.

ABOVE MAP SHOWS LOCATION, ACREAGE, AND LAND USE LIMITATIONS FOR EACH FIELD. SEE FRONT OF SHEET

FOR COMPUTATION OF PENALTIES AND/OR LIQUIDATED DAMAGES ASSOCIATED WITH NON-COMPLIANCE. BELOW

ARE ROTATION REQUIREMENTS BY LAND USE LIMITATIONS AND FIELD NUMBERS.

LAND USE LIMITATIONS

FIELD

NUMBER

ACRES

ROTATION REQUIREMENTS/USE LIMITATIONS

CROPLAND

NONE:

NO LIMITATIONS ON CROP ROTATION. MINIMUM OF 30%

GROUND COVER REQUIRED AFTER PLANTING

CROPLAND

SPEC:

CROPLAND

MODERATE:

CROPLAND

SEVERE

CROPLAND

VERY_SEVERE:

WATERWAYS:

ALL WATERWAYS TO BE MAINTAINED FOR FULL TERM OF

LEASE

WOODLANDS:

NO USE OF WOODLANDS FOR ANY PURPOSE IS AUTHORIZED

UNDER THIS LEASE

HOMESITES AND

ABANDONED

FARMSTEADS(AFS):

NO USE FOR ANY PURPOSE IS AUTHORIZED UNDER THIS LEASE.

ROADS AND TRAILS:

1.0

THE BLOCKING OF ACCESS TRAILS BY LESSEE IS PROHIBITED

UNDER THIS LEASE.

PASTURELAND:

1

79.0

Twenty head of livestock or twenty cow/calf pairs may be grazed from May

1 - October 30. Remove all livestock at any time before Oct 30 that average

grass height has been reduced to three inches.

HAYLAND/PASTURE

LAND:

SAMPLE B

PLAN OF CONSERVATION OPERATIONS, WINNEBAGO RESERVATION

USDI-BIA, WINNEBAGO AGENCY

WINNEBAGO, NE. 68071

ALLOTMENT: L-366 LEGAL DESCRIPTION: Lots 1 & 2 SECTION: 21 TOWNSHIP: 26 North RANGE:

9 East 6

TH

PM. APPROXIMATELY: 17.04 ACRES, OF WHICH 10.6 MAY BE CULTIVATED. (SEE MAP

BELOW FOR DELINEATION OF FARMABLE LAND.

SPECIAL PRACTICES: (1) LESSEE SHALL CONTROL BRUSH AND VOLUNTEER TREES FOR TERM OF

LEASE. CONSIDERED AS HARMFUL GROWTH. (2) LESSEE SHALL CONTROL ALL NOXIOUS WEEDS FOR

THE FULL TERM OF THIS LEASE. (3) TERRACE REPAIR AND ENLARGEMENT REQUIRED WITHIN THE

FIRST TWO YEARS OF THIS LEASE. (4) STOCKING RATE, IF SPECIFIED, SHALL BE STRICTLY ADHERED TO.

OVERSTOCKING SHALL BE CONSIDERED TO COMPRISE OVERUSE. (5) NO USE SHALL BE MADE OF AREAS

FOR WHICH NO AUTHORIZATION IS GRANTED. ANY USE OF SUCH AREAS SHALL BE GROUNDS FOR

CANCELLATION OF LEASE. (6) (7)

ABOVE MAP SHOWS LOCATION, ACREAGE, AND LAND USE LIMITATIONS FOR EACH FIELD. SEE FRONT OF SHEET

FOR COMPUTATION OF PENALTIES AND/OR LIQUIDATED DAMAGES ASSOCIATED WITH NON-COMPLIANCE. BELOW

ARE ROTATION REQUIREMENTS BY LAND USE LIMITATIONS AND FIELD NUMBERS.

ROTATION REQUIREMENTS/USE

LAND USE LIMITATIONS FIELD NUMBER ACRES

LIMITATIONS

CROPLAND

NO LIMITATIONS ON CROP ROTATION.

NONE:

MINIMUM OF 30% GROUND COVER

REQUIRED AFTER PLANTING

CROPLAND

SPEC:

CROPLAND

Corn (ST-40%GC) - Oats (ST-30%GC) - Corn

1 8.6

MODERATE:

(NT) - Oats (ST-30%GC) - Corn (NT)

2 0.5

ST=Spring Till NT=No Till

4 1.5

%GC=Percent Ground Cover after planting

CROPLAND

SEVERE

CROPLAND

VERY_SEVERE:

ALL WATERWAYS TO BE MAINTAINED

WATERWAYS:

FOR FULL TERM OF LEASE

NO USE OF WOODLANDS FOR ANY

WOODLANDS:

PURPOSE IS AUTHORIZED UNDER THIS

0.74

LEASE.

HOMESITES AND ABANDONED 2.0

NO USE FOR ANY PURPOSE IS

FARMSTEADS(AFS): (Residence &

AUTHORIZED UNDER THIS LEASE.

Lots)

ROADS AND TRAILS:

THE BLOCKING OF ACCESS TRAILS BY

2.0

LESSEE IS PROHIBITED UNDER THIS

LEASE.

Grasses & Forbs to be grazed by livestock from

PASTURELAND:

May 1 - Oct 30 as part of adjacent pasture.

3 1.7

Livestock must be removed if average grass

height has been reduced to three inches.

HAYLAND/PASTURELAND:

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a. Lease

b. Conservation Plan

c. Additional Terms and Conditions

LAYOUT OF AN AGRICULTURAL LEASE FOLDER

A six-part Classification Folder should be used for all Leases:

CONTRACT SIDE (Page 1 of form)

1. Contract documents and information that may include .

As indicated in the letter when contract is issued, these are attached to the lease and made a part of it.

2. Performance Bond/Irrevocable Letter of Credit.

3. Modifications. If land is added or subtracted and reduces the acreage of a unit, print a new land

schedule, note which mod the new land schedule is for, initial and date it, file land schedule on the

“PLAT” side. Make sure the plat is marked, if changes need to be made on the plat, do so and initial

w/date. Check the Removable Range Improvements form, the permittee may have claimed

improvements, if land is being removed, a determination may be needed.

If the contract gets cancelled for any reason, wait until all appeal time has expired and you are to the point

of the bid advertisement then move all documents pertaining to this contract number to Side 3 or 4, your

choice. Start with Side 6, Side 5, Side 2 then Side 1, which will have all of the cancelled contract info on

top. Cover with a blank sheet of paper marked “cancelled”, then start your file over again, using the

same folder.

PLAT SIDE (Page 2 of form)

1. Lease checklist worksheet, this

2. Land Schedule, usually run at the beginning of the contract period. If another one is necessary, be

sure to include modification number, initial of preparer and date.

3. Copy of 90 day notices sent and received - This document needs to be protected. If a dispute arises

and copies are requested by other landowners, this document needs to be redacted.

Request for information and release should be in writing and filed here for specific stipulated rates.

4. Removable Improvements.

5. Management Plan Pasture Rotation, especially if cross fencing is involved.

6. Plat, showing lease unit boundary, color of tribal land, allotted land, deeded land, and trade use land.

GIS generated plats are preferred.

Keep numbers 4, 5 and 6 together. The plat should always be on top. IF you have someone in your

office who wants to find out other info, i.e., stipulated rate, they won’t be able to read over your shoulder

and you will be protecting the privacy of the landowner.

NOTE: the only other correspondence you should see on this side is a memo from Regional Director, re:

stocking rate changes. This will generate a new worksheet and need to be kept together.

SPECIAL CASES (Pages 3 and 4 of form)

Sides Three and Four are reserved for specific cases.

1. Appeal Documents.

2. Landowner Disputes (between each other or with permittee).

3. Old Lease Documents. If grazing permit contract gets cancelled, move all info here, either side, your

choice.

These two facing spaces are available.

TRUST FUNDS (Page 5 of form)

All information pertaining to trust funds:

1. Copy of receipt for collected grazing fees and preparation fees.

2. Copy of Tribal Taxes receipts (if required).

3. Copy of public voucher for refund, if permittee has overpaid.

4. Copy of journal voucher used to pay out hay cutting funds.

5. Bid Deposits (receipt to FFS and reversal from FFS to OTFM).

6. Damages from overstocking or un-authorized hay cutting.

CORRESPONDENCE SIDE (Page 6 of form)

All correspondence pertaining to the lease should be here

1. Letter informing permittee the contract period is expiring, if eligible, send document for right of first

renewal.

2. Letter sending new lease.

3. Stock counting record.

4. Trespass letters.

5. Overstocking letters.

6. Memos from Staff “Information to File, Lease # XXX”. Usually regarding a complaint which was

followed up and no action needed to be taken. Or any other situation.

All correspondence is to be kept in chronological order by date.

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FROM:

Please

furnish

this

office

with

a

Title

Status

Report

on

the

following

tract

of

land:

Land

Area

Code

and

Tract

Number:

Allotment

Name:

Legal

Description

and

Acreage:

Priority

(Please

Indicate

in

how

many

days

you

need

this

Title

Status

Report):

(

)

1-10

Days

(

)

10 -20

Days

(

)

21 -30

Days

Urgent

–

No

Later

than:

List

any

new

documents

or

probates

since

last

TSR:

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Signature

Title:

============================================================

(For

Title

Plant

Use

Only)

N e w

T S R

(

)

L o g g e d

I n

:

R e i s s u e

(

)

E x a m i n a t i o n

S t a r t e d

:

N o .

o f

D o c s / P r o b a t e s / M o d s

:

E x a m i n a t i o n

C o m p l e t e d

:

N o .

o f

L i n e s

C h a i n e d

:

T o t a l

T i m e

t o

E x a m i n e

:

M o d i f i c a t i o n s

C r e a t e d

:

S i g n e d

a n d

M a i l e d

:

S

AMPLE

REQUEST FOR TITLE STATUS REPORT

TO: Land Titles & Records Office Date:

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SAMPLE

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__________________________________________ _____________________________________________

_______________________________________________

SAMPLE

INSTRUCTIONS: SHOULD YOU WISH TO HAVE THE SUPERINTENDENT EXECUTE

CERTAIN LEASES/PERMITS ON YOUR BEHALF, PLEASE SIGN AND RETURN THIS

WRITTEN AUTHORITY FROM TO: ______AGENCY.

BUREAU OF INDIAN AFFAIRS

__________ AGENCY

_____________, STATE 00000

PHONE: XXX-XXX-XXXX

202-U-XXXXX

______________________AGENCY

ALLOTTEE

GENERAL DELIVERY

__________AGENCY

ST, XXXXX

WRITTEN AUTHORITY TO EXECUTE FARMING, FARM-PASTURE, AND FARM-GRAZING LEASES

KNOW ALL MEN BY THESE PRESENT:

THAT I, _______________________________________________ DO HEREBY CONSTITUTE AND AUTHORIZE THE

SUPERINTENDENT OF THE ___________________AGENCY, (LOCATION) , TO ACCEPT THIS AUTHORITY TO

EXECUTE A LEASE WITH ANY PROSPECTIVE LESSEES ON A PRESCRIBED FORM, FOR FARMING AND GRAZING

PUPOSES ON LANDS WHICH I HOLD AN INHERTITED, DEVISED, OR PURCHASED INTEREST IN TRUST AS

LISTED IN THE FIRST PART OF THIS NOTICE ON THE _______________INDIAN RESERVATION UNDER 25 CFR

162.2(A) (5), AND AUTHORIZED THE SUPERINTENDENT TO PERFORM EVERY ACT NECESSARY AND

REQUSITE TO THE CONSUMMATION OF SUCH LEASE OR LEASES WITH THE SAME VALIDITY AS IF I WERE

PERSONALLY PRESENT AND EXECUTED THE SAME. PROVIDED, THAT ANY LEASE OR LEASES SHALL BE

MADE THEREUNDER AT A PRICE NOT INCONSISTENT WITH THE FAIR ANNUAL RENTAL FOR EITHER GRAZING

LAND OR FARM LAND, WHICHEVER IS APPLICABLE.

IT IS FURTHER UNDERSTOOD AND AGREED THAT I MAY CANCEL THIS AUTHORITY AT ANY TIME BY WRITTEN

NOTICE THEREOF TO THE SUPERINTENDENT OR OTHER OFFICER IN CHARGE OF THE

________________AGENCY, SAID CANCELLATION TO BE EFFECTIVE UPON THE TERMINATION OF THE LEASE

OR LEASES IN FORCE, IF ANY. THIS AUTHORITY SHALL CONTINUE IN FULL FORCE UNTIL SO REVOKED BY ME

(DATED) (LANDOWNER SIGNATURE)

(SOCIAL SECURITY NO.)

TWO WITNESSES SIGNATURES REQUIRED

___________________________________________ _____________________________________________

___________________________________________

________________________________________________

(SIGNED)

(ADDRESS)

(SIGNED) (ADDRESS)

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SAMPLE A

SCHEDULE OF LAND OWNERS

ALLOTMENT NUMBER _________

DATE: XX/XX/XXXX

INTEREST D-O-B ID-NO NAME AND ADDRESS WITNESSES

0.000001 12/03/1900 201U001234 Jim Brown ___________________

123 Oak Street

Hometown, State

0.000021 02/14/1980 201U003456 Sally Smith __________________

123 Elm Street

Hometown, State

_________________________________ ______________________________________

_________________________________

SAMPLE B

CONSENT OF LESSOR TO LEASE

R

EQUEST NO. ___________________ Allotment No. ______________________

_____________ Indian Reservation Original Allottee _____________________

I, _______________________________ of ___________________________, owner of an

undivided _____________ interest in and to the following described lands:

Comprising of _____________ acres, more or less, hereby give my consent to the leasing of

the above described land to _____________ lessee, of ___________________ for a

consideration of

$ _________per acre for _____________ acres of Irrigated farmland

$ _________ per acre for _____________ acres of Dry farmland, and,

$ _________ per acre for _____________ acres of pasture/Native range.

The term of this lease is to be for a period of _______ years commencing ____________

and expiring on ________________________.

Please sign in the presence of 2 witnesses:

1. _______________________________ ______________________________________

Lessor

Address Date

Address

2. _______________________________ ______________________________________

Address

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SAMPLE

FORM xxx

UNITED STATES

DEPARTMENT OF THE INTERIOR

Bureau of Indian Affairs

Allottee Number:__________________

Allottee:_________________________

Contract Number:_________________

FARMING AND GRAZING LEASE

This contract, made and entered into this ___day of ____200_, by and between the Indian or Indians

named below (the Secretary of the Interior acting for and on behalf of Indians) hereinafter called the

“lessor” and

hereinafter called the “lessee”, in accordance with the provisions of existing law and the regulations (25

CFR 162) which, by reference, are made a part hereof, WITNESSETH: that for and in consideration of the

rents, covenants, and agreements hereinafter provided, the lessor hereby lets and leases unto the lessee

for dry land farming and grazing purposes only, the land and premises described as follows, to wit:

This portion contains the official legal description of the premises that will be

included in the lease. This description should reference a public or private

survey, legal description or other description that is sufficient to describe the leased premises.

containing _______ acres, more or less, of which not to exceed ___________ acres may be cultivated,

for the term of _____________.

Secretary

“Secretary” as used in this Lease means the Secretary of the Interior or his authorized representative.

Authorized representative may be a tribe or tribal organization administrating a specific program or

providing specific services. (See 25 CFR 162.110).

Term

This Lease is for a term of (months/years) , beginning on the (day) day of (month) 200_, to be

used only for

(purpose)

, and

no purpose without prior consent of the LESSOR. The

rent is due

and payable on

a

(monthly/annual)

basis, on

(specific date),

(month/year)

, for the

period of this

Lease.

The rent shall be paid to: (only one of these sentences will apply) OR The rent shall be paid directly to the

Indian landowner(s) with a copy of the payment sent to:

BIA or Tribal Office or

Designated Lockbox Address

Complete Address

In the event of the death of the landowner/lessor during the term of this Lease provided the Lease

premises is in trust or restricted status, all remaining rental will be due and payable to the decedent or

their representative under the provisions of this Lease shall be paid to the authorized representative at

the address listed above. During the term of the Lease provided the Lease premises is in trust or

restricted status, the Secretary maintains the discretion to suspend the direct payment. Upon notice that

direct payment is suspended then all remaining rental will be due and payable to the authorized

representative at the address listed above.

Rent

The LESSEE covenants and agrees, as rental for the PREMISES, to pay to the LESSOR $ , per

(month/year) . Rent is due and payable in advance on (specify date) , of each (month/year) .

(Only one of the following two paragraphs will apply)

This Lease is subject to one or more (specify date) , rental adjustments of fair annual rental by a State

certified real estate appraiser (specify how this appraisal will be determined) . Adjustments will be

effective (specify time or how determined) . In the event the LESSOR and LESSEE are unable or fail to

agree then this dispute will by resolved by (specify type of dispute resolution) . OR

This Lease is not subject to rental adjustments of fair annual rental pursuant to tribal law that supersedes

or modifies the regulations regarding adjustments. (See 25 CFR 162.203)

LATE PAYMENT PENALTY – It is understood and agreed between the parties hereto that in the event

that any annual or semi annual installment of rental is not paid after becoming due, a penalty equal to

__% of the amount unpaid will be assessed every 30 days the amount remains unpaid; or in the event

that any installment of rental for a period other than annual or semi annual is not paid after becoming due,

a penalty equal to ___% of the amount unpaid will be assessed every month the amount remains unpaid.

CARE OF PREMISES – It is understood and agreed that the lessee is to keep the premises covered by

this lease in good repair. He/She shall not commit or permit to be committed any waste whatever on said

premises and shall not remove or tear down any building or other improvement thereon, but shall keep

the same in good repair. He/she shall not destroy or permit to be destroyed any tress, except with the

consent of the landowner(s) and the approval of the Secretary, and shall not allow the premises to

become unsightly. The lessee will be held financially responsible for all unrepaired damaged to building,

fences, improvement or appearance, except for the usual wear and decay.

SUBLEASES AND ASSIGNMENTS – Unless otherwise provided herein, a sublease, assignment or

amendment of this lease may be made only with the approval of the Secretary and the written consent of

the parties to the lease in the same manner the original lease was approved.

RESERVATIONS – It is understood and agreed that the landowner reserves the right to make mineral,

business, signboard, industrial and sand and gravel leases and/or permits, and to grant rights-of-way and

other legal grants on the premises covered by this lease, and that in the event such a lease or grant is

made, the lessee hereunder shall be entitled to damages for the actual loss sustained by him on account

of said lease or grant, and to nothing more. The period for which damages may be claimed by the lessee

is limited to the lease year or growing season on cropland in which the damage occurred. It is further

understood that in the event of a dispute between the lessee hereunder and the lessee, grantee or

permittee under any mineral, business, signboard, industrial, or sand and gravel permit or lease or right-

of-way and other grant, as to the amount of such actual damages, the matter will be referred to the

Secretary who shall be the sole and final judge as to the amount of the said damages incurred.

UNLAWFUL CONDUCT – The lessee agrees that he/she will not use or cause to be used any part of the

leased premises for any unlawful conduct or purpose.

RELINQUISHMENT OF SUPERVISION BY THE SECRETARY – Nothing contained in this lease shall

operate to delay or prevent a termination of Federal trust responsibilities with respect to the Land by the

issuance of a fee patent or otherwise during the term of the lease; however, such termination shall not

serve to abrogate the lease. The landowner(s) and the lessee and his/her surety or sureties shall be

notified by the Secretary of any such change in the status of the land.

IMPROVEMENTS – Unless otherwise specifically provided herein, it is understood and agreed that any

buildings or other improvements placed upon the said land by the lessee become the property of the

landowner(s) is not removed by the lessee within thirty (30) days of the termination or expiration of the

lease.

VIOLATIONS OF LEASE – It is understood and agreed that violations of this lease shall be acted upon in

accordance with the regulations of the Secretary as stated in 25 CFR 162.

ASSENT NOT WAIVER OF FUTURE BREACH OF COVENANTS – No assent, express or implied, to

the breach of any of the lessee’s covenants shall be deemed to be a waiver of any succeeding breach of

covenants.

UPON WHOM BINDING – It is understood and agreed that the covenants and agreements herein before

mentioned shall extend to and be binding upon the heirs, assigns, executors and administrators of the

parties to this lease. While the leased premises are in trust or restricted status, all the lessee’s

obligations under this lease, and the obligations of its sureties, are to the United States, as well as to the

landowner(s).

INTEREST OF MEMBER OF CONGRESS – No Member or Delegate to Congress, or Resident

Commissioner, shall be admitted to any share or part of this contract or to any benefit that may arise here

from; but this provision shall not be construed to extend to this contract if made with a corporation or

company for its general benefit.

INDEMNITY – The lessee agrees to indemnify and hold the United States and the Indian landowner(s)

harmless from loss, liability or damages resulting from the lessee’s use or occupation of the lease

premises. The lessee also agrees to indemnify the United States and the Indian landowner(s) against all

liabilities or costs relating to the use, handling, treatment, removal, storage, transportation or disposal of

hazardous materials, or the release or discharge of any hazardous materials, from the leased premises

that occurs during the lease term, regardless of fault, unless (1) the lessee would be prohibited by law

from making such an agreement; or (2) the interests of the Indian landowner(s) are adequately protected

by insurance.

APPROVAL – It is understood and agreed that this lease shall be valid and binding only after approval by

the Secretary.

ARCHEOLOGICAL CLEARENCES – In the event that archeological or historical remains, burials,

cultural artifacts, or other antiquities not previously reported are encountered during the course of

construction, farming, ranching, or any other activities associated with this contract, all activity in the

immediate vicinity of the remains or artifacts will cease and BIA approving official will be contacted to

determine disposition.

ENTRY OF PREMISES – BIA approving official, his/her representative, or the lessor may enter upon the

premises covered by this contract at such reasonable times as may be desired for inspection or for the

purpose of exercising any of the rights reserved under this contract. Whenever locks are placed on

gates, keys must be furnished to BIA approving official.

COMPLIANCE WITH LEGAL REQUIREMENTS - The Lessee must comply with all applicable laws,

ordinances, rules, regulations, and other legal requirements, including tribal laws and leasing policies.

USE OF LEASED PREMSISES - It is agreed and understood that the Lease must describe the

authorized uses of the land under the term of the Lease. Any use of the Leased premises for an

unauthorized purpose or failure of the LESSEE to maintain continuous operation throughout the lease

term will be treated as a lease violation under 25 CFR 162.251.

BONDS - Unless otherwise provided for by a tribe under 25 CFR 162.203 or waived by us at the request

of the owners of a majority interest in an agricultural lease, the LESSEE must provide a bond to secure

the following: a) the payment of one year’s rental, b)the construction of any required improvements, c) the

performance of any additional lease obligations, including the payment of operation and maintenance

charges under 25 CFR 162.228(b); and d) the restoration and reclamation of the leased premises, to their

condition at the commencement of the lease term or some other specified condition.

INSURANCE - When necessary to protect the Indian land owners an agricultural lease will require the

LESSEE to provide insurance. This insurance may include property, crop, liability and/or casualty. If

required, the insurance must identify both the Indian landowners and the United States as insured parties,

and be in an amount adequate to protect all insurable improvements on the leased premises.

Farming and Grazing Operations

It is agreed and understood that farming and grazing operations will be conducted in accordance with

recognized principles of sustained yield management, integrated resource management planning, sound

conservation practices, and other community goals as expressed in tribal laws, leasing policies, or

agricultural resource management plans. (Appropriate stipulations or conservation plans must be

developed and incorporated in all agricultural leases. Each of these stipulations or conservation plans will

be itemized as specific Lease provisions.)

Description of Improvements

(An agricultural lease must generally describe the type, value, and location of any improvements

to be constructed by the LESSEE.)

Who will Own the Improvements

Upon expiration or termination of this Lease the following improvements constructed by the LESSEE will

remain on the leased premises in a condition satisfactory to the Indian landowners and us.

OR

Upon expiration or termination of the Lease the following improvements constructed by the LESSEE will

be removed within (Specify number of days, weeks, etc. ) at the LESSEES expense. The leased

premises will be restored as close as possible to the condition prior to construction of the improvements.

It is agreed and understood that the Indian landowner maintains the right to waive this provision and take

possession of the improvements if they are not removed within the specified time period. If the landowner

does not choose to exercise this option within 90 days from termination of the lease, we will take

appropriate enforcement action to ensure removal at the LESSEE’s expense.

WITNESS:_____________________________ , Lessor ___________________________________

WITNESS:_____________________________, Lessee ___________________________________

(Current Delegation of authority citation here)

APPROVAL DATE: _____________

BY:______________________________________

SECRETARY OF THE INTERIOR

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SAMPLE

AGRICULTURAL LEASE CHECKLIST

Landowner(s):___________________________________________________________

Lease Number _____________

Allotment Number _________

INIT. DATE YES NO N/A

_____

___

___ ___

A

LL FORMS DATED AND PROPERLY COMPLETED

_____ _____ ___ ___ ___ A

LL REQUIRED SIGNATURES INCLUDING WITNESSES AS APPLICABLE

_____ _____ ___ ___ ___ A

LL 90-DAY NOTICES SHOULD BE ISSUED TO LANDOWNER(S)

_____ _____ ___ ___ ___ B

ONDING REQUIREMENTS OR WAIVER INFORMATION AS APPLICABLE

_____ _____ ___ ___ ___ O

WNERSHIP INFORMATION

_____ _____ ___ ___ ___ L

EASE RENTAL, ADMINISTRATIVE FEES

_____ _____ ___ ___ ___ C

URRENT DELEGATION OF AUTHORITY FOR APPROVAL

_____ _____ ___ ___ ___ A

PPRAISAL INFORMATION

_____ _____ ___ ___ ___ C

ONSERVATION PLAN/FARM PLANS AND STIPULATIONS AND MAPS

_____ _____ ___ ___ ___ B

ILL FOR COLLECTION

_____ _____ ___ ___ ___ P

REPARE JOURNAL VOUCHER AND SUBMIT TO OTFM

_____ _____ ___ ___ ___ L

AND STATUS REPORT (UNCERTIFIED TITLE STATUS REPORT)

_____ _____ ___ ___ ___ R

EVIEW LEASE TO CFR 162.214 REQUIREMENTS IF APPLICABLE

_____ _____ ___ ___ ___ NEPA

DOCUMENTATION (OR CAT. EX. REVIEW SHEET)

_____ _____ ___ ___ ___ P

REPARE A TRANSMITTAL TO AUTHORIZED REPRESENTATIVE

Based on the information listed above, we have determined the approval of this lease is in the best

interest of the landowner(s).

RECOMMENDATION: You may want to consider using colored paper for your CHECKLIST as cover

sheet to differentiate between Negotiated and Advertised Leases. For Example: If you use Blue or Green

paper for a Negotiated Lease Checklist and White paper for the Advertised Lease Checklist the lease

type is immediately recognized by anyone reviewing the file.

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With

the

exception

of

single

land

owners

and

Tribal

tracts,

the

Ihdian

owners

of

tracts

involved

will

not

be

required

to

sign

the

lease,

pursuant

to

Congressional

Authority

granted

to

the

~

Superintendent,

whose

approval

will

adequately

convey

and

lease

the

respective

Indian

owner's

interest.

6.

The

successful

bidder

will

be

required

to

furnish,

within

60

days

of

receipt

of

contract,

a

satisfactory

bond,

i.e.

letter

of

credit,

certificate

of

deposit

or

corporate

surety

in

addition

to

a

speci.al

bonding

fee

for

the

duration

of

the

lease

term.

See

attached

revised

bonding

,

procedure

instructions

dated

March

23,

2001,

or

contact

SMC

Offices

for

copies.

7.

The

successful

bidder

may

be

required

to

provide

insurance

in

an

amount

adequate

to

protect

any

improvements

on

the

leased

premises.

8.

Bids

shall

be

submitted

on

the

attached

forms.

Additional

copies

may

be

made

using

the

attached

form.

9.

No

deposits

will

be

required

with

the

bids.

10.

The

successful

bidder

shall

complete

and

return

the

leases

and

ALL

supporting

documents

within

60

days

of

notification

of

lease

award,

together

with

the

filing

fee.

11.

Prior

to

the

approval

of

any

lease

contract

a

non-refundable

filing

fee

based

on

the

amount

of

annual

rental

will

be

required

on

each

lease.

The

fee

will

be

3%

of

the

annual

rental

payable,

including

any

percentage

based

rent

that

can

be

reasonably

estimated.

The

minium

filing

fee

is

10.00

and

the

maximum

fee

is

$500.00.

12.

Additional

Lease

requirements,

Revised

SMC

Stipulation

Sheet

will

be

executed

and

made a

part

of

the

lease.

Contact

the

applicable

SMC

Unit

Office

for

additional

information.

13.

Ple·ase

note

that

the

following

language

will

be

added

to

each

new

lease:

"In

the

event

that

archeological

or

historic

remains,

burials,

or

other

cultural

remains

not

previously

reported

are

encountered

during

the

course

of

construction,

farming,

and

other

activities

associated

with

the

lease

or

easement,

all

activity

in

the

immediate

vicinity

of

the

remains

will

cease

and

the

BIA

Archeologist

will

be

contacted

to

determine

the

disposition."

14.

RENTALS

ARE

DUE

AND

PAYABLE

TO

THIS.OFFICE

ON

JANUARY

1

OF

EACH

YEAR,

UNLESS

OTHERWISE

PROVIDED

BY

THE

LEASE.

All

leases

approved

under

this

will

be

Agency

pay.

No

personal

checks

will

be

accepted.

NOTE:

Farming

and

Graz.ing

Leases

are

accepted

and

approved

for

specific

purposes.

WITHOUT

PRIOR

CONSENT

OF

THE

PROPERTY

OWNER

AND

APPROVAL

BY

THE

SUPERINTENDENT,

timber

cutting,

hunting,

dumping

of

trash,

subleasing,

etc.,

is

strictly

prohibited.

15.

Tracts/Items

advertised

may

be

excluded

from

bidding

the

day

of

the

auction

due

to

pending

negotiation.

Contact

the

appropriate

SMC

,Unit

office

prior

to

the

bid

sale

concerning

tracts/items

advertised.

ANY

ANNOUNCEMENTS

MADE

THE

DAY

OF

THE

SALE

WILL

SUPERSEDE

ANY

INFORMATION

CONTAINED

IN

THIS

ADVERTISEMENT.

Further

information

concerning

contacting

SnAr.

i

.<1

l i

st,.

extension

257

or

234.

Dated:--...--.--

this

mRv

hP

nh~~~~Qd

by

Realty

Officer,

--

----~-

w~Y~~y,

Realty

•

-·

• •

1,

at

telephone

number:

/1

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141 Smith Cattle Co. 1234 $100.00 $4,000.00 $ 450.00

2* Cardinal Ranch 4567-A $ 10.00 $ 200.00 $ 300.00

3 Cardinal Ranch 5678 $ 15.00 $ 375.00 $ 500.00

SAMPLE

United States Department of the Interior

BUREAU OF INDIAN AFFAIRS

__________ Indian Agency P.O. Box 00

Hometown, State 59022

IN REPLY REFER TO: _______________, 20__

Dear Lessee:

The individual bidders have been awarded the following tract (s) on Farming and Grazing

General Advertisement _______ held ______________:

Item No. Bidder AlIot.# Filing: Fee Rental Bond

Ple

ase return all signed documents with the filing fee (s) and applicable rental and/or irrigation bonds

within ten (10) days from the date of this letter. Bid deposits submitted at the time of the advertisement

will be applied to the rental payments and will not be returned. Please remit the balance of rental.

The ten (10) day time frame to return the lease documents will be enforced. If for any reason you do not

comply, the tract will be awarded to the next bidder.

If you have any further questions, please call Sally Jones, Realty Officer at 555-4400, Ext. 260.

Sincerely,

Realty Officer

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___________________________________

______________________________________

_______________________________________

SAMPLE

UNITED STATES

DEPARTMENT OF THE INTERIOR

BUREAU OF INDIAN AFFAIRS

MODIFICATION

Contract No. ________________ Allotment No. __________________________ It is hereby

agreed by

and between ________________________________________________________ Lessor

and

____________________________________Lessee, covering lands described as:

Containing ___________________ acres, more or less, be modified to reflect:

This modification does not change any of the terms, conditions, or stipulations except as

specifically set forth herein.

(Lessee)

(Lessor)

UNITED STATES DEPARTMENT OF THE INTERIOR

The within modification is hereby approved and declared to be made in accordance with the law

and the rules and regulations prescribed by the Secretary of the Interior thereunder, and now in

force. (25 CFR162)

Date Approved: _______________________

SUPERINDENTENT

Authority delegated in accordance with 209 DM 8, 230 DM 1, and to the Rocky Mountain Regional Director by 3 IAM

4 (release no. 99-03), as amended and to the Superintendent/ Field representative by 10 BIA 23, as amended and

addendum 10 BIAM-4 effective October 1, 1998

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--------------------------------------

SAMPLE

UNITED STATES

DEPARTMENT OF THE INTERIOR

BUREAU OF INDIAN AFFAIRS

___________________ RESERVATION CONTRACT NO._______

ALLOTMENT NO.______

ASSIGNMENT OF AGRICULTURAL OR BUSINESS LEASE

The undersigned lessee of lands described as:

Containing _______ acres, more or less, hereby assigns all rights, title and interests in and to

said lease to:

SIGNED this __________ day of _______

-------------------------------------- Assignor

-------------------------------------- Address

ACCEPTANCE BY ASSIGNEE

THE assignee in the foregoing assignment hereby accepts such assignment and agrees to fulfill

all the obligations, conditions and stipulations in said described indenture of lease, and to

furnish proper bond guaranteeing a faithful compliance with said leas4e and this agreements.

SIGNED this__________ day of _________.

-------------------------------------- Assignor

-------------------------------------- Address

___________________________________ __________________________________

___________________________________ _________________________________

____________________________________ _________________________________

_____________________________________

CONSENT OF LESSORS

The undersigned lessor(s) hereby consent to the assignment and transfer of said lease as

above-described.

Dated this ______Day of ________________, 200___.

LESSORS

Department of the Interior

Bureau of Indian Affairs

Approved in accordance with the existing rules, regulations and delegated authorities

from the Secretary of the Interior.

Date: _____________________

Superintendent

Authority delegated in accordance with 209 DM 8, 230 DM 1, and to the Rocky Mountain Regional Director by 3 IAM

4 (release no. 99-03), as amended and to the Superintendent/ Field representative by 10 BIA 23, as amended and

addendum 10 BIAM-4 effective October 1, 1998

(Note: Bond to be released upon assignee obtaining a new bond. If cash, refund will be made.)

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SAMPLE

UNITED STATES DEPARTMENT OF THE INTERIOR

BUREAU OF INDIAN AFFAIRS

UNITED STATES DEPARTMENT OF THE INTERIOR

BUREAU OF INDIAN AFFAIRS

In Reply Refer to: December 8, 2003

Real Estate Services

(406) 555-1234

CERTIFIED MAIL RECEIPT NUMBER 7000 1670 0000 4613

Mr. Brown

123 Ace Street

Hometown, WY 12345

Dear Mr. Brown:

This is in reference to your lease on the following allotment:

Allotment No. Contract No. Rental Amount Due

0123-A O-12335 $10,000.00

In accordance with the Lease Contract and Code of Federal Regulations 162.251, you are hereby

informed that you have ten (10) business days from your receipt of this letter to show cause as to

why the above lease(s) should not be cancelled. No extensions of time will be granted. Be advised that

penalties will be assessed for late payments in accordance with the terms of the lease contract(s). A copy

of this letter is being forwarded to you by regular mail to insure that you have received it.

You may direct any questions concerning this correspondence to our Realty Estate Services Office at

(406) 555-1234.

Sincerely,

Agency Superintendent

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UNITED STATES

DEPARTMENT OF THE INTERIOR

BUREAU OF INDIAN AFFAIRS

Crow Agency, Montana 59022

IN REPLY REFER TO:

Real Estate Services – T&M February 13, 2004

Code 310

CERTIFIED MAIL – RETURN RECEIPT REQUESTED – NO. 7000 1670 0000 4613 4130

Name

P O Box 666

Lodge Grass, MT 59031

Re: Lease Contract # 0-12345

Dear Mr. Smith:

On October 1, 2003 you were given ten (10) days from the receipt of the letter to pay the

past due rental, due on October 1, 2003 and provide proof of payment , or show cause

why the above listed lease contract should not be cancelled.

In accordance with the Code of Regulations, Title 25, 162 Part 2, you are notified that

lease Contract Number 12345 is hereby CANCELED for non-payment of the lease

rental of the contract. Cancellation of the subject lease does not relieve you of your

obligations to make full payment of the lease rentals due.

The decision may be appealed to the:

Regional Director, Rocky Mountain Regional Office

316 North 26

th

, Street

Billings, MT 59101

In accordance with the regulations in Title 25, Code of Federal Regulation , Part 2 (copy

enclosed), your Notice of Appeal must be filed in this office within 30 days of the date

you receive this decision. The date of filing your Notice of Appeal is the date it is

postmarked or the date it is personally delivered to this office. Your Notice of Appeal

must include your name, address, and telephone number. It should clearly identify the

decision being appealed. If possible, attach a copy of the decision. The Notice of Appeal

must list names and addresses of the interested parties known to you and certify that

you have sent then copies of the notice. You must also send a copy of your notice of

appeal to the:

Regional Director, Rocky Mountain Regional Office

316 North 26

th

, Street

Billings, MT 59101

You must also file a “Statement of Reasons.” This statement may be included in or filed

with the Notice of Appeal. If it is not filed at the time of the Notice of Appeal, it must be

filed within 30 days after the Notice of Appeal was filed. You may request assistance

from this office with the preparation of the appeal.

If no appeal is timely filed, this decision will become final for the Department of the

Interior at the expiration of the appeal period. No extension of time may be granted for

the filing a Notice of Appeal.

If you have any questions, please contact ______________, Realty Specialist at 406-

555-1212 or ________________________ Realty Officer at 405-555-1313.

Sincerely,

Superintendent

Enclosures

91

Leasing and Permitting Chapter 2 – Agricultural Leasing

6.0 ADDITIONAL INFORMATION/GUIDANCE

6.1 Owner Managed Tracts

Reserved

6.2 Agricultural Permits

A permit is a written agreement between an Indian landowner(s) and the applicant for the permit,

also referred to as the permittee, whereby the permittee is granted a revocable privilege to use

Indian land or government land, for a specified purpose. Agricultural permits usually grant

temporary possession for a limited period of time, usually to conserve and protect the trust

resource in an emergency, without landowner consent. Permits are non-exclusive and not

assignable. BIA can only grant permits, not leases, on government lands for agricultural

purposes. Permits must be recorded in the LTRO. See 25 CFR 162.210 for further detail.

6.3 USDA Farm Services Agency Subsidies/CRP and GRP Programs

If subsidies are due the lessee, it is strongly encouraged that the lessee be required to pay the

total annual rental due on the lease per the lease agreement. The lessee can then be reimbursed

by Farm Services according to the terms of the subsidy.

Issued: March 6, 2006