The Nevada Checkerboard Challenge is a land exchange opportunity between private landowners and federal agencies, primarily the Bureau of Land Management. Unique in structure and implementation, the Nevada Checkerboard Challenge is a worthwhile endeavor for both private landowners and the Bureau of Land Management (BLM.) Structured as a Congressional Action Land Exchange, the Nevada Checkerboard Challenge offers landowners a more effective nontraditional option to exchange lands and eliminate checkered land ownerships.
Disclaimer
Range Rescue LLC is not a licensed legal or real estate firm but can provide consultation or services from licensed legal or real estate professionals who are knowledgeable about the land exchange process.
Project Statement
Checker boarded land in the West occurred as a result of railroad land grants where railroads would be granted every other section along a rail corridor. These grants, which typically extended 6 to 40 miles from either side of the railroad track, were a subsidy to the railroads. Unlike per-mile subsidies which encouraged fast but shoddy track construction, land grants encouraged higher quality work since the railroads could increase the value of the land by building better track. The government also benefited from the increased value of the remaining public parcels.
Railroad land grants split the land surrounding the area where train tracks were to be laid into a checkerboard pattern. The land was already divided into 640-acre sections according to the Public Land Survey System; odd-numbered plots were given to private railroad companies, and the federal government retained even-numbered plots.
The federal government believed that because the value of land surrounding railroads would increase as much as twofold, granting land to private railroad companies would theoretically pay for itself and also increase the transportation infrastructure throughout the nation. The United States government was not able to sell much of the land that it retained because settlers willing to move west were not financially capable of purchasing land. Most of the wealthiest U. S. citizens remained in the East. The federal government eventually gave away much of this land through the Homestead Acts.
According to Onx Maps, the checkerboard portion of Northern Nevada consists of 4.23 million acres of federal lands checkerboarded with private lands. This presents many problems for landowners, federal land managers and the general public. The solution we present is the Nevada Checkerboard Challenge Land Exchange.
A land exchange is a commonly used tool for managing federal lands. It involves transferring public land administered by a federal agency to another owner in exchange for privately owned lands, through an open and transparent process. When complete, the title to the former federal lands is exchanged for the title to private or state lands that are part of the exchange. Land exchanges may be administrative or legislated through Congressional approval. Exchanges serve the public interest in a variety of ways, including increased values, access, and economic development.
The two primary uses for the land in Northern Nevada are ranching and mining. Both of these industries face management challenges from environmental organizations, the public, and in some cases, government entities. We offer an opportunity to exchange private land with federal land in an effort to establish large blocks of private and public land and eliminate many of the challenges of operating in the checkerboard landscape.
This proposal seeks to compile a sufficient number of private landowners to create a project with enough economy of scale to merit and pursue a Congressional Legislative Exchange. This exchange will require a minimum of 100,000 private acres from landowners in the Nevada Checkerboard to exchange with the Bureau of Land Management (BLM) through a congressional action. This land exchange will be based on value for value agreements. The goal of the land exchange is to eliminate portions of the Nevada Checkerboard land ownership. Landowners will benefit from better management strategies and utilization on larger contiguous parcels verses the checkerboard ownership.
During the initial promotional campaign, we anticipate hosting three presentation dinner socials, one in each of the following Nevada cities: Elko, Winnemucca, and Reno. We have identified over eighty landowners in the Nevada Checkerboard whom we consider large landowners. We will invite these landowners, Governor Lombardo or his representative, county commissioners, BLM officials, U.S. Congressional Senators and Representatives, and local, state, and national news outlets. We will present our proposal to the attendees at these dinner socials, in hopes of securing a minimum of 100,000 acres of private land to exchange with the BLM.
In addition to the presentation dinner socials, Range Rescue LLC will be hosting several public hearings and town hall meetings across Northern Nevada to gain public support.
Landowner Benefits
Methodology Statement
In 1976, the United States Congress enacted the Federal Land Policy and Management Act (FLPMA) to facilitate land exchanges between federal agencies; U.S. Forest Service (USFS) and the BLM and nonfederal landowners including corporations and private landowners. FLPMA provides a statutory basis for land exchanges and includes procedures that federal agencies must adhere to during the land exchange process. The two fundamental requirements that federal agencies must follow are:
1. The estimated values of land to be exchanged must be equal or approximately equal
2.The agency involved must determine that the public interest is well served by the land exchange. (In the case of a Congressional Action Exchange, that public interest must be clearly identified in the legislation.)
The Nevada Checkerboard Challenge Land Exchange is unique in both its objectives and methodology. The stand-alone feature of the Nevada Checkerboard Challenge Land Exchange is the exchange process. This proposal seeks to compile enough private landowners to create a project with enough economy of scale to merit and pursue a Congressional Legislative Exchange. This exchange will require a minimum of 100,000 acres from private landowners in the Nevada Checkerboard corridor to exchange with BLM through a Congressional Action.
There are several reasons why legislated land exchanges occur. In some situations, the BLM is unable or unwilling to respond in a timely manner to local exchange needs. The process of revising a BLM Land Use Plan to designate public land for sale or exchange is commonly a lengthy and potentially controversial process. If an Environmental Impact Statement is required, it will typically take three years or longer to complete. The recently completed Owyhee Land Exchange took twelve years to complete. These uncertainties do not fit well with the business and financial cycle timelines that are needed for the exchange process. Much of the bureaucratic process may be eliminated using a Legislative Exchange enacted by Congress.
Land Values
Land values will be established using a variety of tools including:
Mineral Rights
Due to the complexities of mineral right estates, all lands enrolled in the Nevada Checkerboard Challenge Land Exchange will undergo a comprehensive title history search to qualify the status of mineral rights ownership. Additional expenses may be incurred by participating landowners based on the research requirements to establish title.
The value of mineral interests will be identified using the established BLM criteria:
Followed by the rating based on the amount of development information in the area:
If the mineral estate is owned by either party in total, or the mineral values are similar, we would encourage the parties to exchange the mineral rights with the surface ownership. If the mineral values are significantly different, negotiations will be necessary to determine how the mineral estate will be handled.
The Process
As the process advances, interested participants are identified and legal descriptions will be developed of the private land the participant would want to transfer to the BLM and BLM land the participant would like to acquire. Those areas will be mapped so both parties can review and if necessary, changes discussed. We would encourage participants to identify contiguous blocks of land around farmsteads, irrigated cropland, and land that would work best to make their operation more efficient and sustainable. We would encourage the participants to identify land to transfer to the BLM that has good public access, good recreational values, and lands that have important cultural, wildlife, or other environmental and conservation values.
If the participants identify lands to acquire that have cultural, wildlife or other environmental and conservation values, we will encourage consideration of a conservation easement when the exchange is completed to mitigate any loss of those values in the exchange. For example, if the land is in primary Greater Sage Grouse habitat, we would encourage the participant to agree to a conservation easement funded by the NRCS, which would be specific to the conservation of that species.
In the process of developing potential legal descriptions to be included in the exchange we would strive to identify sufficient alternative parcels to adjust as the process moves forward. When the participants are satisfied with the parcels to be exchanged and the BLM has reviewed the proposal and has provided cursory agreement, the project would move to the next phase. Based on similar land sales in the area values would be attached to the parcels and adjustments made as needed to reach agreement on values.
We anticipate there will be a need to do some preliminary studies and reports to be submitted as part of the Congressional action. These will likely be hazardous material sites on private land, if any, cultural sites on BLM, and possibly a minerals evaluation report on both private and BLM land parcels.
While we will work with local, state, and federal BLM officials during the process, the BLM can only concur and not participate in the Congressional Legislative Action, unless called to testify before Congress and then only to discuss the projects’ pros and cons. Working closely with the BLM through the process will ensure the pros far outweigh the cons.
We will work with Congressional delegations to find sponsors and supporters for the legislation to secure Congressional approval for the exchange. That legislation should include the terms of the exchange, lands to be included, and appropriations to implement the exchange. The appropriations should include funding for the above-mentioned conservation easements. We would anticipate funding of 50% to 75% of the easement value and funding to cover some of the major costs for completing the easements.
We will work with the participants and the NRCS or other easement funders to identify an appropriate conservation easement holder with a good track record in the area. We will facilitate completion of the easements, including completion of the Deed of Conservation Easement, baseline inventories, etc., necessary to ensure easement success.
Congressional Legislation
In an effort to ensure predictable results from the Congressional legislation, Range Rescue LLC facilitators will assist in drafting the legislation and closely monitor the bill associated with the Nevada Checkerboard Challenge to be championed by Nevada and Western States Congressional Delegations. Our plan is to include as much funding as possible associated with the exchange in the initial bill, with the anticipation that some line items will be reduced or eliminated as the Bill moves through the legislative process.
Bipartisan congressional legislation to facilitate the Nevada Checkerboard Challenge Land Exchange will include:
Legal
As landowners who are potential participants in the Nevada Checkerboard Challenge are identified, they will be presented with a letter of intent (LOI). The LOI is a non-binding memorialization of the parties’ current position, to be followed by a final, binding letter of engagement agreement. The LOI serves as an informal request by the landowner to meet with Range Rescue LLC staff to further discuss enrolling in the Nevada Checkerboard Challenge.
A binding letter of engagement signed by a Range Rescue LLC member and landowner, or a representative will be required to participate in the Nevada Checkerboard Challenge Land Exchange. The letter of engagement will include:
Range Rescue LLC will provide facilitators who know the process, have contacts in BLM at the local, state, and federal level, and have experience completing congressional action land exchanges. The structure and scale allow Range Rescue LLC to facilitate the Nevada Checkerboard Challenge Land Exchange for a fraction of the cost of standard land exchanges. All phases of the Nevada Checkerboard Challenge Land Exchange will be conducted in a professional and transparent manner. An effective and open planning process from the initiation of the project and maintaining transparency with participating landowners, BLM, local, county, state and national representatives, the public and adjacent landowners will ensure the project is clearly understood and the benefits to all identified.
Pricing and Deliverables
Range Rescue LLC service fees are based on private acres enrolled in the Nevada Checkerboard Challenge Land Exchange.
640 Acres to 5,000 Acres $8.00 Per Acre
5,001 Acres to 10,000 Acres $7.00 Per Acre
10,001 Acres to 20,000 Acres $6.00 Per Acre
Over 20,000 Acres $5.00 Per Acre
Landowners will be required to make payment installments as the Land Exchange progresses.
To ensure exchange success and protect landowner investments, Range Rescue LLC will meet key thresholds before landowners will be required to deposit 25% of the cost of service for the amount of acreage enrolled in the Nevada Checkerboard Challenge Land Exchange.
Key thresholds Range Rescue LLC must meet:
Range Rescue LLC will invoice $100 per hour, plus expenses against initial landowner deposits. As the process evolves and deposit funds are depleted, landowners will be asked to deposit an additional 25% to offset operating and legal expenses incurred by Range Rescue LLC. The remaining balance will be due at exchange closing.
Phase One Objectives
Phase Two Objectives
Phase Three Objectives
Phase Four Objectives
Phase Five Objectives
There is always potential for unexpected issues to arise during the process. The Range Rescue team has the knowledge and experience to address and resolve unexpected matters. Team members include former federal and state land exchange specialists who have completed hundreds of federal land exchanges and legal counsel with national recognition in federal land management and transactions. The vast experience and knowledge of the Range Rescue staff and consultants will ensure the success of the Nevada Checkerboard Challenge Land Exchange.
Range Rescue LLC
HC 60 Box 51
Wells, NV 89835
Name of Company ________________________________________
Address ________________________________________
City, State, Zip ________________________________________
Point of Contact ________________________________________
Phone Number ________________________________________
Email ________________________________________
Introductory Description
This non-binding Letter of Intent between _________________________________(Company Name) hereafter known as “Landowner” and Range Rescue LLC indicates an interest by the “Landowner” to participate in the Nevada Checkerboard Challenge Land Exchange. This Letter of Intent will be followed by a final and binding Letter of Engagement.
The effective date of this agreement is ________________________________(Todays Date)
Terms of the Transaction
“Landowner” hereby indicates an interest to enroll _____________ private acres in the Nevada Checkerboard Challenge Land Exchange facilitated by Range Rescue LLC to be exchanged for federal lands owned by the Bureau of Land Management through a congressional legislative exchange on a value for value basis.
Service Fees
Range Rescue LLC service fees are based on private acres enrolled in the Nevada Checkerboard Challenge Land Exchange.
640 Acres to 5,000 Acres $8.00 Per Acre
5,001 Acres to 10,000 Acres $7.00 Per Acre
10,001 Acres to 20,000 Acres $6.00 Per Acre
Over 20,000 Acres $5.00 Per Acre
"Landowner" will be required to make payment installments to Range Rescue LLC as the Nevada Checkerboard Challenge Land Exchange progresses.
To ensure exchange success and protect "Landowner" investments, Range Rescue LLC will meet key thresholds before "Landowner" will be required to deposit 25% of the cost of services for acreage enrolled in the Nevada Checkerboard Challenge Land Exchange.
Key thresholds Range Rescue LLC must meet:
Range Rescue LLC will invoice $100 per hour, plus expenses against initial landowner deposits. As the process evolves and deposit are depleted, "Landowner" will be required to deposit an additional 25% to cover operating and legal expenses. The remaining balance will be due at exchange closing.
In addition, "Landowner" will be liable for additional expenses incurred with the facilitation of the Nevada Checkerboard Challenge Land Exchange. Additional expenses may include but are not limited to the following:
"Landowner" can expect to incur up to $10.00 per acre in additional expenses. Some of these expenses may be reimbursed from appropriations included in the Nevada Checkerboard Challenge Land Exchange congressional legislation.
Due Diligence
“Landowner” shall have thirty days from the effective date of this agreement to conduct due diligence. It is hereby agreed to by “Landowner” and Range Rescue LLC to provide information in good faith so each party can accurately assess any risks, liabilities or other matters pertaining to this agreement. At the end of the thirty-day due diligence period “Landowner” will be contacted by Range Rescue LLC, to set a Letter of Engagement meeting.
Covenants and Other Binding Agreements
Inclusions
As part of this agreement, “Landowner” shall include a preliminary and non-binding map which clearly indicates their desired results from participating in the Nevada Checkerboard Challenge Land Exchange. The preliminary map shall include:
During the due diligence period of this agreement, Range Rescue LLC will work to identify and remedy any foreseeable conflicts or complications which may result from the preliminary map submitted by “Landowner”.
Disclaimer
Range Rescue LLC is not a licensed legal or real estate firm but can provide consultation or services from licensed legal or real estate professionals who are knowledgeable about the land exchange process.
________________________
Bryan Runnion Date