School and Institutional Trust Lands Administration, 2010 Annual report

8/6/2019 School and Institutional Trust Lands Administration, 2010 Annual report

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State of Utah

School & InstitutionalTrust Lands Administration

(SITLA)Fiscal Year 201016th Annual Report

(July 1, 2009 to June 30, 2010)


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able o Contents

1

Vision/Mission. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4Directors Message. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

Map o rust Lands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6

Fiscal Year 2010 - Financial Summary . . . . . . . . . . . . . . . . . . . . . . . . . . .7

2010 Financial Inormation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9

FY 2010 Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14

More Land or Preservation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15

Sale o Ancestral Puebloan Site in Blu. . . . . . . . . . . . . . . . . . . . . . .16

ooele Scouts Clean Up Gravel Pit. . . . . . . . . . . . . . . . . . . . . . . . . . .17

Coral Canyon Acquisition. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18

Down-Market Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19Range Creek. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20

La Sal Pilot OHV Management Plan. . . . . . . . . . . . . . . . . . . . . . . . .21

rust Lands Stars on the Silver Screen . . . . . . . . . . . . . . . . . . . . . . . .23

Coal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24

Potash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25

Sand and Gravel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26

Oil and Gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27

rust Lands Fundamentals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30

What Is the rust Lands Administration? . . . . . . . . . . . . . . . . . . . . .31

What are rust Lands? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31Where Does the rust Lands Money Come From? . . . . . . . . . . . .34

Te Beneciaries o rust Lands . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35

How Do rust Lands Benet Utahs Schoolchildren? . . . . . . . . . .35

Conservation o rust Lands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35

Our Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36

Board o rustees - Fiscal Year 2010 . . . . . . . . . . . . . . . . . . . . . . . . . .37

Senior Sta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38

Photo Credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38


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While the world economy in FY 2010 was still lagging, the School and Institutional rust Lands Administration (SILA)

had a good year generating more than $115,000,000 in total revenues. Revenues rom coal and other minerals set a

recent record o more than $21,000,000. Oil and gas revenues were almost 50 percent o total revenues at $56,269,400.

In spite o the poor economy, total rust assets on deposit at the end o the scal year were at a record level o

$1,114,000,000. Most o that was in the State Permanent School und more than $940,000,000. Tis resulted in interest

and dividend distributions to our public schools o almost $23,000,000 or the 2010 2011 school year.

My sta and I continue working to generate revenues rom Utahs trust lands, thereby serving the nancial interest o our

rust beneciaries.

4

VisionTe rust is an increasingly signicant source o

unding or Utahs schools.

Missiono administer the trust lands prudently and

protably or Utahs schoolchildren and other

rust beneciaries.

Message From the Director


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State Ownership Map

rust Lands

Forest Service

Private Land

Indian Reservation

Bureau o Land Managment

Military

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Fiscal Year 2010 Financial Summary


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rust Lands otal Assets

FY 2010 Revenues

Revenues by type

otal Revenues Percent

Oil & Gas $56,269,400 48.8%

Coal & Other Minerals 21,116,200 18.3%Surace 7,466,700 6.5%

Development 3,900,900 3.4%

Interest on Agency Operations 2,194,000 1.9%

Interest on Permanent Fund 24,334,200 21.1%

otal $115,281,400 100.0%

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1000

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300

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0

Dollarsinmillions

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


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In spite o poor economic conditions during FY 2010, the amount o total rust assets set a new record o $1,114,470,700. otal rust assets are the

combined assets o all 12 beneciaries including their permanent unds. It is worth noting that total rust assets have grown by almost 12 times since

the ounding o SILA in FY 1994.

Te major component o total trust assets is the State Permanent School Fund o Utahs public schools. At the end o FY 2010, that und stood at $1,026,279,100.

Even though the Permanent Fund is never spent, the interest and dividend earnings are distributed to schools every year. Tereore, the amount and rate

o growth o the Permanent Fund are o paramount importance, both to the trustees and the beneciaries o the trust Utahs public schools.

A share o investment income rom the Permanent Fund is distributed to each public school in the state every year or local academic needs. Te distribution

is primarily based on the number o students at each school.

Here is the history o distributions to Utahs schools since the inception o the program in the 2000 2001 school year.

otal rust Assets

Permanent School Fund

Distributed

School Year To Schools

2000 - 2001 $4,950,000

2001 - 2002 6,000,000

2002 - 2003 7,443,575

2003 - 2004 8,308,001

2004 - 2005 9,701,3032005 - 2006 13,986,147

2006 - 2007 18,424,326

2007 - 2008 25,333,133

2008 - 2009 27,149,617

2009 - 2010 24,445,314

2010 - 2011 22,919,008

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FY 2010 Distributions to Beneciaries

Te bottom line results or the beneciaries are the monies they receive rom SILAs operations. Tese are one o two types o

distributions: (1) money sent to the beneciary and (2) money deposited into their permanent und. Tose monies are summarizedin the ollowing chart.

Beneciary Distributed Deposited o

o Beneciary Te Beneciarys

Permanent Fund

Public Schools $22,919,000 $78,139,100

Miners Hospital 960,000 - 1,181,400*

University o Utah 2,422,700 1,400

Reservoirs 436,200 - 500*School or Blind 371,000 -0-

State Hospital 161,000 -0-

Utah State University 237,200 16,000

Normal Schools 152,000 184,200

School or Dea 167,400 -0-

School o Mines 166,600 -0-

Youth Development Center 86,300 -0-

Public Buildings 4,200 -0-

* Tese numbers are negative because o the benefciaries interest in the repurchase o the Coral Canyon Development

For additional fnancial inormation, visit the rust Lands website at www.trustlands.com .Follow these links: Homepage > Financial Statements and Statistics > FY 2010 (or any year listed).

Tese fnancial reports are not audited. For audited fnancial inormation, contact the Assistant Director/Finance at 801-538-5100

Facing Page Photo: Round Mountain, Castle Valley

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FY 2010 Highlights


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More Land or Preservation

Another 161 acres o trust lands were added to Te Nature Conservancys St. George White Dome Nature Preserve. Te parcel was

purchased by Te Conservancy or conservation o ederally listed at-risk species o endangered plants and animals. Te $535,000purchase price was deposited in Utahs Permanent School Fund.

Located south o the ast-developing city o St. George, the White Dome Nature Preserve provides protection or plants and animals

including the zebra-tailed lizard and loggerhead shrike. It also contains some o the last remaining populations o the threatened siler

pincushion cactus, and the endangered dwar bear claw poppy. Visitors to the area will enjoy public hiking trails and educational signage.

Since the initial purchase in June o 2005, Te Conservancy conducted innovative restoration work improving the areas habitat or the

poppy. Ecologists restored degraded habitat by de-compacting the soils and planting native seeds. SILA acilitated this restoration project

by contributing biological soil crusts rom adjacent lands.

ransactions o this type accomplish two things:

Conservecriticalhabitatforendangeredplantsandanimals

Maintainassetvaluesofourbeneciariesinthiscase,Utahsschoolchildren

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Sale o Ancestral Puebloan Site in Blu

Te agency sold approximately 15 acres o property to the Southwest Heritage Foundation o Blu, Utah. Te property contains the

Blu Pueblo I archaeological site where the intact remains o dozens o linked storage and living rooms dating to the Pueblo I period insouthwestern archaeology (circa A. D. 700-900) can be ound.

Tis site also produced the original type collection o pot shards that would be used to name an important ceramic type in Southwestern

archaeology Blu Black-on-Red. Tis has always been an important site to both SILA and to southwestern archaeology.

Te agency would not have been able to sell such an important archaeological site to just anyone. Te Southwest Heritage Foundation

qualied as a buyer because o its dedicated mission and proven track record or preserving pioneer-era historic sites, ancestral Puebloan

archaeological sites, and open space in and around Blu.

Tis transaction represents the rst sale o SILA-administered lands or the express purpose o preserving a signicant archaeological site

or scientic research. Importantly, the sale also puts a segment o scenic cli-line in the hands o the Foundation, helping preserve the

cultural landscape o Blu, which is an important aspect o its mission.

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ooele Scouts Clean Up Gravel Pit

More than 80 scouts and their leaders rom the ooele District spent a Saturday cleaning up a gravel pit south o Stockton, Utah. On a

Saturday, ater a campout in the pit and competitive games, the scouts used garbage sacks provided by ooele County or the pickup. Tecounty oered to pick up the lled bags and take them to the ooele dump.

Te gravel pit is located on a section o land owned by SILA. Te gravel pit has turned into an illegal shooting range/trash dump

over the past several years. Tousands o shotgun and rie shells litter the ground. Large boxes, bottles, clay pigeons, and the occasional

washing machine serve as targets. Te targets and all o the spent shells are let in the pit.

Te scouts, ages 11 through 14, were rom 14 ooele scout units. Te idea o the cleanup was suggested at a district roundtable meeting.

Te scouts were scheduled to have a campout and games and added this community service to their weekend.

Te scouts were surprised to learn that the land was not public land as some assume, but that the gravel pit was there to make money or

the public schools o Utah by leasing the property to a private gravel company.

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Coral Canyon Acquisition

In May o 2010, SILA acquired SunCor Developments interest in the Coral Canyon master-planned community near St. George. SunCor commenced

development o Coral Canyon under a master development lease with SILA in 1999. Te master plan or the community contemplated 2,000 residential units(more than 1,000 completed and sold as o May 2010), an award-winning gol course, 250 acres o commercial land, and open space.

With the dramatic decline in the real estate market, the Board o rustees or Pinnacle-West, SunCors parent company, made the decision to divest itsel o its

real estate portolio and to get out o the real estate development business. SunCor initiated a nationwide search or developers and/or investors to acquire Coral

Canyon and our other master-planned communities in Arizona, New Mexico, and Idaho. Ater more than a year o searching or a buyer that shared SunCors

long-term vision and its land partners or the respective communities, it became apparent that no acceptable replacement partner to SILA was likely to surace,

resulting in SILAs decision to step in to acquire certain improved SunCor assets and terminate the development lease with SunCor.

o preserve and protect the value o this asset, both or the short term and the long term, SILA paid $3.4 million to terminate the lease and assume SunCors

remaining development interests in Coral Canyon which included 172 ully nished lots, 185 acres o commercial land, and 280 acres o residential land

with related inrastructure, and two commercial ofce buildings. Tis strategic decision allows SILA to control its own destiny or all uture residential andcommercial development, thereby enhancing the long-term protability to the rust and its beneciaries.

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Down-Market Activities

Real estate markets are cyclical. When markets are slow, development companies can choose to sell o their holdings usually at deep discounts or wait until

the market picks up again. SILA has chosen to take the latter course. During this waiting period, SILA is working at positioning its development properties

to take ull advantage o the coming improvement in the real estate market.

We are busy with a variety o development activities such as:

eacquisitionofwaterrights

Participatinginannexationpetitions

Developingaprojectdatabase

Buyingoutweakpartners

Some o the areas in the state that are getting planning activities include:

PropertiesintheSt.GeorgeSouthBlockandnearthenewSt.Georgeairport

EagleMountaininUtahCounty LemonLane,a260-unitmixed-residentialdevelopmentinMoab

Here are some o the activities we have undertaken during FY 2010 in the St. George area to enhance our uture development results:

Completionofthere-alignmentofAtkinvilleWashnearthenewSouthernParkwayhasyieldedalmost55additionaldevelopableacres

Completedthemassgradingofabout327acresofcommercialland,utilityinfrastructure,andaccesstothiscommercialpropertyarealsonished

Approximately1,300acresoftheSouthBlockhavebeenmassgraded

Atwo-milliongallonwatertankwasinstalledbySt.GeorgeCityonSITLAlandnearthenewSt.Georgeairport

eNatureConservancypurchased161acresofconservationlandintheWhiteDome

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Range Creek

Within the avaputs Plateau in eastern Utah is an isolated canyon known as Range Creek Canyon. A small perennial stream Range Creek quietly winds its

way through the canyon. In past years, however, the canyon was a hub o human activity. Te Fremont Indian culture occupied the canyon or hundreds o years,ending around 1200 A.D. A great legacy o the Fremont occupation o Range Creek is the things they let behind the structures in which they lived, arming and

household implements, and the artiacts o their daily lives. Because o the isolation o the Range Creek area, many o these remnants have remained undisturbed.

Tis has preserved the Range Creek area as a marvelous present-day archaeological site.

Te canyon remained essentially unoccupied rom 1200 AD until the late 1800s when it was homesteaded by the Range Valley Cattle Company. Over the next 70

years, a number o ranching operations owned parts o the valley, each utilizing the isolated location and limiting access into the area to minimize outside trafc.

In 1951, Ray Wilcox and his sons acquired part o the valley or their ranching operations. Te sons divided the ranch ollowing the death o their ather. Waldo

Wilcox retained approximately 1,500 acres in Range Creek Canyon, which he jealously protected rom public access. In 2001, Waldo Wilcox sold his ranch to the

United States. In January 2004, the Utah Division o Wildlie Resources (UDWR) acquired the Wilcox Ranch rom the United States. At that time, the spectacular

archaeological resources located in Range Creek became known; and the University o Utah began an extensive research program in the canyon.In December 2006, SILA leased 1,280 acres o trust lands adjacent to the Wilcox property to the University o Utah or archaeological research. Te University o

Utah subsequently asked SILA to acquire the 1,500 acres owned by UDWR with the goal o creating a permanent scientic eld station.

In December o 2009, SILA exchanged 2,590 acres o prime wildlie habitat in Gordon Creek (near Price, Utah) or the 1,500 acres o UDWR land in Range

Creek. Tis exchange consolidated the Wilcox Ranch property with the 1280 acres o existing trust lands into a single property. Because these lands are held by

SILA in the Universitys trust portolio, SILA was able to enter into a no-cost lease with the University o Utah to allow the University through the Utah

Museum o Natural History to manage the Range Creek properties.

Range Creek is now one o the premier archaeological venues in the world with students, scholars, and scientists rom around the world visiting the area. o date, more

than 400 archaeological sites have been located in the canyon. Much more inormation and photos are available on line at http://umnh.utah.edu/rangecreek_home

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La Sal Pilot OHV Management Plan

As the popularity o motorized recreation use has increased substantially over the last decade, SILA has recognized the need to collaborate with various

stakeholders to oster better stewardship and disciplined use o trust lands, as well as mitigate resource damage caused by irresponsible O Highway Vehicle(OHV) use. In order to address these issues, SILA has established a pilot project to develop a comprehensive travel management and recreation plan on two

o SILAs premier land blocks located in the La Sal Mountains in southeastern Utah. Te goal o this plan is to protect resources rom urther degradation, yet

allow diverse public recreation activities to continue.

Following an extensive review o these blocks, SILA observed a 40 percent increase in roads and trails created by undisciplined OHV use since the mid 1990s.

In developing the travel-management plan, SILA considered a set o guiding principles to aid in route evaluation and sought input and recommendations rom

several stakeholders, including representatives o Grand and San Juan Counties, other State and Federal agencies, several recreational user groups, and local property

owners. Te nal travel-management plan designates 134 miles o OHV access routes on the 27,500 acres SILA manages in these two blocks. Te plan also calls

or closure o 36 miles o redundant or resource-sensitive routes and trails.

Te ollowing is the breakdown o miles o designated routes by OHV category: 97milesforfull-sizedvehicles

24milesforATVonly

13milesforsingletrack

In designating the routes, SILA considered the ollowing guiding principles:

Eliminatingdead-endandredundantroutes

Evaluationoftherouteforfuturesustainability

Creationofloopingtrailsystems

Reducingstressonwildlife

Considerationofexistingcountyroadclaims

Inormational kiosks have been constructed at the key entrance points to the blocks. Te kiosks contain maps and inormation or visitors about designated

motorized recreation trails and why it is necessary or users to stay on the trails to protect not only orest resources but also their privilege to ride on trust lands.

Aggressive signing o individual trails and decommissioning o non-designated routes will also be part o the implementation process over the next two years.

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rust Lands Stars on the Silver Screen

Utah has been the co-star o the big and small screens or many

years, and several o those lms or commercials have beenlmed on trust lands in many areas o the state. Te southern

Utah red rock continues to have the most magnetic draw.

Large and open scenery shots can be accomplished without any

visible signs o human habitation, and the actors and crews can

still stay at hotels in the vicinity o the lming sites.

Filming on trust lands requires the production companies

to pay ees or a right-o-entry permit. Te permit allows

commercial use o land on a short-term basis or usually one

year or less.Tis year, a Disney lm was lmed on several trust lands

locations mostly located in southern Utah. Te lming locales

are supposed to simulate Mars.

In FY 2010, SILA earned more than $113,000 rom the lm

industry in right-o-entry permits.

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Coal

Revenues o more than $16,000,000 remained high or FY 2010. Te sustained production levels came rom our mines operating on SILA coal tracts:

eSUFCOMineinSevierCounty

eCottonwoodMineinEmeryCounty

eDugoutCanyonMineinCarbonCounty

eWestRidgeMineinCarbonCounty

Coal prices (slightly above $30/ton) remained stable. Demand or Utah coal is expected to decline in FY 2011 as the demand or out-o-state coal declines.

As the demand or Utah coal slumps, a corresponding drop in leasing o new coal resources is being experienced. Nonetheless, the SILA Mining Group sta

leased coal-bearing lands located in the Emery Coal Field and the Westridge Northern Extension tract.

Eorts o the agency sta to support permitting o the Cottonwood Coal ract in Emery County continued. Tis tract was leased in 2008. A large cash position

in this tract was acquired in the Grand Staircase Escalante Land Exchange. Tis cash position has grown to $18,931,568.00.

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Potash

Demand or potash as ertilizer remains strong. Te worldwide increase in ood production, as well as the use o potash in production o biouels, keeps the

demand high. Revenues rom potash leasing and production increased rom one million dollars in FY 2009 to one and one-hal million dollars in FY 2010. Tebulk o the increase in revenue was a result o leasing o the Crescent Junction land block in Grand County and scattered SILA sections in the Paradox Basin in

San Juan County.

Te Intrepid Potash Company has become the largest producer o potash in the United States. Intrepid produces rom two mines in Utah, one located at

Wendover and the second near Moab. Te operation at Wendover is a lease located on both trust lands and ederal lands. Te Moab mine production is entirely

rom trust lands.

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Sand and Gravel

Revenues rom sand and gravel operations were just over $1 Million or FY 2010, down about 12 percent rom the prior

year. Reduced revenues rom sand and gravel and crushed stone used as aggregate reect the economic slowdown in theconstruction industry as a result o the 2008-2009 recessions.

Production and sales o these materials are directly aected by market demand. SILA has been working to identiy and

develop deposits o these resources to meet a sustained demand in a recovering economy. Interest in acquisition o materials

sites remains high or contractors and material producers working to develop their own resource base in this highly

competitive market.

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Oil and Gas

While a down economy has created many difculties across almost every market, there is a silver lining to be ound in the area o improved efciency o the

energy industry in Utah. SILA has worked with many lessees as they have looked or ways to be more efcient.

One way the energy industry has improved efciency on SILA lands is by expanding the practice o directional drilling. Directional drilling allows

multiple wells to be drilled rom one surace location. A ew years ago, many well pads were our acres in size and home to only one wellbore. It is becoming

commonplace or a pad to be ve acres in size and home to six wellbores.

A variation o the concept o directional drilling is horizontal drilling. In the practice o horizontal drilling, the drill bit is redirected to tunnel horizontally rather

than vertically through the target ormation. Tis means that, instead o being able to produce only rom the vertical thickness o the ormation, production

can come rom the entire portion o the horizontally drilled wellbore. Like directional drilling, horizontal drilling allows or great increases in production, while

decreasing surace disturbance.

Te energy industry and SILA have reduced environmental impact by trying new ways o handling so-called rac water. Many hydrocarbon-bearing

ormations do not allow or the rapid movement o gas into the wellbore. For decades well operators have used water and sand injected at high pressure into awellbore to create ractures in the hydrocarbon-bearing rock. Te new ractures allow gas to ow to the wellbore more easily. Fracturing a well requires thousands

o gallons o water. In the past, rac water has been moved rom one well to another by truck.

Energy companies have come to SILA with new ideas about ways to transport and store rac water. Some operators have installed surace-laid irrigation lines

to pump water rom one well to another as a group o wells is being completed. Other well operators have changed rom trucking water out to remote gas elds

and back to building a centralized bank o water tanks. Te water is used to racture one well, then cleaned and treated and used to racture well ater well. Tese

types o eorts have saved millions o gallons o Utahs precious water resources as well as millions o miles o heavy truck trafc which saves uel and reduces

dust rom trafc over unpaved roads in Utahs rural areas.

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rust Lands Fundamentals


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What Is Te rust Lands Administration?

What Are rust Lands?

Te School and Institutional rust Lands Administration (SILA) is an independent agency o state government. It was created in 1994

by the Utah state legislature to manage lands granted to the state o Utah by the United States or the support o public schools and otherbeneciary institutions. Prudent and protable trust lands management has put needed dollars to work in Utahs schools. As a result,

SILA helps to create a better-educated workorce throughout the state.

When Utah was granted statehood on January 4, 1896, the ederal government gave the new state parcels o land to be managed in trust inorder to provide nancial support or public education and 11 other public institutions. Te institutions that benet rom these lands are

called beneciaries. Te lands are called trust lands and are scattered throughout the state.

From time to time, trust lands are sold. In act, more than one-hal o the original land grant has been sold, much o it during the rst 35

years ollowing statehood. Interestingly, about 30 percent o all private lands in Utah were originally trust lands.

Now, more than 100 years since statehood, the trust o each beneciary consists o two portolios: (1) the real estate portolio which is its

remaining trust land, managed by SILA; and (2) the nancial portolio, which is the money rom the management and sales o that land,

managed by the State reasurer.

Te objective is to successully manage both portolios to provide nancial support or the beneciaries. Successul management o Utahs

trust lands means working as partners with our beneciaries, the governor and the legislature, other state agencies, local communities, andthe public at large.

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Where Does the rust Lands Money Come From?

Money rom the management o trust lands comes rom a variety o dierent sources:

MineralRevenues

Te largest source o revenues rom trust lands is rom the leasing o minerals properties and royalties rom the production o minerals. Mineral production

comes rom many sources, including gas and oil, coal, gold, and sand and gravel.

LeasingSurfaceRights

Property owned by the SILA is leased by a wide variety o users. Leased trust lands are currently used as telecommunications sites, commercial sites, industrial

sites, recreational cabin sites, arm land, timber harvesting and orestry sites, and grazing lands or livestock. It is also used or rights o entry and in leases to

other government entities.

TrustLandSales

Tere are times when the best way to make money or the beneciaries is through the sale o trust lands. SILA land is generally sold in one o two ways: atpublic auction or through a development project. Public auction sales are held twice a year and are becoming more and more popular, as they make more land

available or private ownership in Utah.

Development sales occur when it is determined that prots or the beneciaries could be optimized by adding value to parcels o trust land beore selling them.

Usually, SILA participates with experienced private real estate developers to provide land or residential, commercial, and industrial uses to help Utahs growing

communities get where they want to be.

Te revenues generated by SILA have an increasingly signicant impact on Utah public education and other rust beneciaries while building their permanent

unds. Te ultimate goal o SILA is to make the school lands trust a major source o public school unding.

It should be noted that SILA is entirely sel-unded. A portion o the money generated rom managing the trust lands activity is used to operate SILA. All

expenses and capital costs are paid rom these revenues. No tax money is required.

Facing Page Photo: Drilling site near Moab

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Te Beneciaries o rust Lands

Conservation o rust Lands

How Do rust Lands Benet Utahs Schoolchildren?

At the time o statehood, Congress designated trust land beneciaries in Utah. By ar, the largest percentage o trust lands was granted to public schools or the

benet o Utah schoolchildren.Te other beneciaries now include:

Reservoirs

UtahStateUniversity

UniversityofUtah

SchoolofMines

MinersHospital

NormalSchool(ecurrentbeneciariesofthistrustareeducationdepartmentsatstatecollegesoeringteachingdegrees.)

SchoolfortheDeafandBlind

PublicBuildings StateHospital

YouthDevelopmentCenter

SILA works closely with local communities to build value or Utahs schoolchildren. Cash generated by both trust land operations and trust land sales is

transerred to the permanent state school und. By doing so, the endowment or the public schools grows more and more each year. Investment income (interest

and dividends) rom the permanent und is distributed to the schools each year or local academic needs. Te distribution is primarily based on the number ostudents at each school.

As a cautious and ar-sighted steward o the land, SILA recognizes that certain trust lands have unique scenic, recreational, or environmental characteristics. In

these situations, the organization works to sell the land or conservation purposes or exchange it or other real estate more suitable or development.

35


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Our Mission

It is the mission o the School and Institutional rust Lands Administration to administer school trust lands

prudently and protably or Utahs schoolchildren and the other rust beneciaries.


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Chairman

Michael BrownVice-President, Graymont Western US Inc.

Background: Environmental saety and geology

Kaysville, Utah

erm: expires 6/30/2012

Vice-chairman

Daniel C. Logren

President, Cowboy Partners, Cowboy Properties

Background: Commercial real estate development

Salt Lake City, Utah


Board Member

David J. Lambert

Background: Geological/Oil and gas consultant

Highland, Utah


Board Member

Steven B. Ostler

Chie Executive Ofcer, Te Boyer CompanyBackground: Business operations, asset management,

and strategic planning



Board Member

David UreVice-president, URE Ranches, Inc.

Background: State and local government and agriculture

Kamas, Utah


Board Member

Amanda Smith

Legislative Director o the Governors Ofce

Background: Director o Government Relations

Te Nature Conservancy, natural resources law

erm: Served at the pleasure o the Governor, was appointed

Executive Director o the Utah Department o Environmental Quality

and retired rom the SILA board in March o 2010

Board Member

Michael Mower

Utahs State Planning Coordinator

Background: Sta and policy advisor to state and ederal elected ofcials

erm: serves at the pleasure o the Governor

Board Member Nominee

Louie Cononelos

Chie Advisor, Government & Corporate Relations Americas, Rio into

Background: Mining government and corporate relations, public teaching


erm: Expires June 30, 2016

37

Board o rustees - Fiscal Year 2010


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Page 22 - SILA La Sal Kiosks provided by

Adam Robison o SILAPage 23 Film crew is stock photo

Page 36 Photo o children is stock photo

All other photos by NormaLee McMichael

oSILA

Kevin Carter Director

Lynda Belnap Administrative Assistant to the Director

John Andrews Associate Director and Chie Legal Counsel

Douglas Buchi Assistant Director/Planning & Development

Kim Christy Assistant Director/Surace

LaVonne Garrison Assistant Director/Oil and Gas

om Faddies Assistant Director/Mining

Lisa Schneider Assistant Director/Finance

Je Roe IS Manager

Ron Carlson Audit Manager

Dave Hebertson Public Relations Manager

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Senior Staf Photo Credits


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State of Utah

School & Institutional

Trust Lands Administration

Southwestern Area

2303 North Coral Canyon Boulevard, Suite 100-A, Washington, Utah 84780, Phone: 435-652-2950, Fax: 435-652-2952

Southeastern Area

217 East Center Street, Suite 230, Moab, Utah 84532, Phone: 435-259-7417, Fax: 435-259-7473

Main Ofce

675 East 500 South, Suite 500, Salt Lake City, Utah 84102, Phone: 801-538-5100, Fax: 801-355-0922

Central Area

130 North Main, Richfeld, Utah 84701, Phone: 435-896-6494, Fax: 435-896-6158

For more inormation contact:

Dave [email protected]

NormaLee [email protected]

www.trustlands.com

Front Cover Photo: Fall Aspen on Tabby Mountain

School and Institutional Trust Lands Administration, 2010 Annual report

Documents