FAQs
FAQ |
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| What is a Trust? What are Trust Lands? Why were the Trust Lands created? Who gets the money? Who manages Utah trust lands? Who oversees the Trust Lands Administration? Who pays for the Trust Lands Administration? Where are the trust lands? Why were these particular parcels chosen? How many acres of Trust Lands are there? How is money made from the Trust Lands? How is it determined when a property is for sale? How can individuals buy the Trust Land? Why do you exchange lands? How do you make money from land you don't sell? How much money comes from each type of activity? How is a Trust Land lease procured for minerals, gas, oil or farmland? What is a Trust?A right of property, real or personal, held by one party for the benefit of another. What are Trust Lands?In connection with Utah's statehood on January 4, 1896, the United States of America transferred ownership to more than seven million acres of federal land in Utah to the state of Utah. This land was to be administered by the state as a trust for 12 beneficiaries specified by the federal government. Each beneficiary institution received distinct lands for their trust. The 12 beneficiaries are:
Why were the Trust Lands created?The State of Utah is required to manage these trust lands with the singular purpose of providing financial support for the 12 institutions listed as beneficiaries in the Utah Enabling Act. The Utah Enabling Act was a federal law allowing Utah to form a constitution and state government and to recognize Utah's admission into the Union. The beneficiaries of Utah trust lands do not include other governmental institutions or agencies, the public at large, or the general welfare of the state. Trust Lands Administration's objective is directing the real estate portfolio into providing financial support for the beneficiaries. Successful management of Utah's trust lands means working for our beneficiaries and in cooperation with the governor and the legislature, other state agencies, local communities and the public at large. Who gets the money?The largest share of the revenues generated on trust lands belongs to Utah's public schools. That's because they own the bulk of the lands. State law requires that all net revenues from the public school's trust lands be put into the school's permanent fund. There it is invested in stocks and bonds. The interest and dividends earned from the investments are then distributed to the schools. The revenues generated by operations on the lands of the other 11 beneficiaries are split into two categories. Revenues from the sale of their lands is put into their individual permanent funds. Revenues from day-to-day activities on their lands are distributed directly to them. Who manages Utah trust lands?At statehood in 1894, Utah trust lands were managed by a board of elected officials including the Governor, the Secretary of State, the Attorney General and two resident commissioners appointed by the Governor. In 1931, the form of management was changed to three gubernatorial appointed citizen land commissioners. Over time, the board was expanded to include representatives of various user groups. By 1988, the board had 11 members including one beneficiary representative. As of the early 1990's, the historic performance of the Trust was unimpressive with Total Trust Assets among the lowest of all western states owning trust lands. At that time, a coalition of educational groups challenged the state to do a better job. After much effort, in 1994, the legislature created a new independent agency to manage trust lands - the School and Institutional Trust Lands Administration. The new organization was instructed to run trust lands as a profitable business, in compliance with generally accepted trust principles including undivided loyalty to the beneficiaries. The Trust Lands Administration has been managing trust lands since then. Since 1994, total trust assets increased from $94.8 million to more than $400 million at present. Who oversees the Trust Lands Administration?A seven-member Board of Trustees appointed by the governor governs the Trust Lands Administration. Who pays for the Trust Lands Administration?No tax money is used to operate Trust Lands. The Trust Lands Administration is self-funded - a portion of the money generated from managing trust land activity is used for business operations and covers all administrative expenses and capital costs. Even so, the Board of Trustees, the governor and the legislature have oversight of expenditures. Where are the trust lands?The Trust Lands Administration currently manages 3.5 million acres of trust lands scattered throughout the state of Utah. A checkerboard pattern of trust lands within the state is the result of the federal government's grant of sections 2, 16, 32, and 36 of each township. Click Here to See a Map. Why were these particular parcels chosen?There are more than 2300 surveyed townships within the state of Utah. Each Township is 36 square miles and is divided into 36 sections (there are 640 acres to a section). Before Utah became a state, the federal government granted other western states two sections (section 16 and section 36) from each township for the support or their common schools. In the case of Arizona, New Mexico and Utah, the federal government granted the four sections in each township. Sections 2 and 32 were granted in addition to sections 16 and 36 for the support of their common schools. Where one of these sections was already occupied before, the state was given the right to select other lands instead of the standard, but occupied sections. These selected lands are known as "in lieu" lands. In Utah, the other 11 beneficiaries were not given specific surveyed sections but were given an express number of acres which they could select from other federal lands in the state. These were called quantity grants. For example, Utah State University was given a quantity grant of 200,000 acres. How many acres of Trust Lands are there?Currently there are 3,484,066 acres of surface ownership. In addition to the surface estate, there is another 1 million acres of subsurface lands for a total of more than 4.4 million acres of mineral ownership. How is money made from the Trust Lands?Money is made in two ways:
Are Trust Lands Sold?Yes, there are two categories of land sales:
Undeveloped land is usually sold at public auction with the sale going to the highest bidder. The law mandates that the minimum acceptable bid must be at least fair-market value. Development activities results in land which increases in value for the financial gain of the beneficiaries. Development parcels may then be sold, rented or both. This could include, for example, turning raw lands into ready-to-build residential lots for sale or building commercial sites to rent to businesses. How is it determined when a property is for sale?The agency considers a number of factors when deciding to sell a particular property including these:
How can individuals buy the Trust Land?Public auctions are held twice a year, and are becoming increasingly popular, as they make more land available for private ownership in Utah. Development occurs when it is determined that profits for the beneficiaries could be improved by developing parcels of trust land before selling them. Usually, the Trust Lands Administration participates with experienced private real estate developers to develop land for residential, commercial and industrial uses to help Utah's growing communities get where they want to be. At the current rate, trust land will be available for sale for hundreds of years. For more information about trust land sales, or to be put on our mailing list for the next land auction, contact us at 1-877-LAND SALE (1-877-526-3725), or go to our homepage at www.trustlands.com, click on the "Land Auction" link under "Surface." Why do you exchange lands?Much of Utah's trust land is in isolated parcels, scattered across unpopulated areas of the state. Further, some of these lands have rare scenic, recreational or conservation characteristics. As such, the economic potential of these parcels may be difficult to secure. The Trust Lands Administration works to exchange these pieces for real estate which has greater economic potential for the beneficiaries. How do you make money from land you don't sell?Trust Lands can be leased for the production of oil, gas and minerals. Mineral revenue provides the largest share of funds for Trust Lands, generating more than 50 percent of all revenue in recent years. Mineral production comes from many sources, including gas and oil, coal, gold, and sand and gravel. Additional surface income includes leasing farmland, telecommunication sites, commercial land and industrial sites. Land for grazing and forestry revenue totals 250,000 acres. Here are some examples of how revenues are generated from Trust Lands:
How much money comes from each type of activity?In Fiscal Year 2001, Trust Lands Administration operations posted record revenues of $54.8 million from the various activities on trust lands. These activities are grouped into five categories of trust operations. The following table shows the contribution of each category to total revenues:
*Both Surface and Development activities contribute to land sales revenues. In FY 2001, the total land sold by the agency was 18,000 acres - a total of about $7,000,000 How is a Trust Land lease procured for minerals, gas, oil or farmland?For further information about leasing trust lands, contact us at 801-538-5100. Tell the receptionist the type of lease in which you are interested. Your call will be directed to the appropriate person. Additionally some of our current opportunities are shown on this web site. When you are ready, go to our homepage and follow the links from there. Trust Land leasing opportunities vary from time to time. You might find it useful to visit this web site frequently. |
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