The Wyoming Legislative Committee on Agriculture, State and Public Lands & Water Resources voted Aug. 29 to ask Legislative Services Office (LSO) to draft a bill that would simplify rules for subleasing state grazing leases and create a non-owned-livestock fee as an alternative to formal subleases.

Stacia Berry, director of the Office of State Lands and Investments, told the committee the proposed language would give lessees an option to notify the office when they allow livestock they do not own to graze on their leased state parcels, and to pay a per-head fee instead of completing a formal sublease.

"A lessees lease shall not be subject to cancellation if notice on a form is provided within 30 days of arrival and the lessee pays a fee per head of non-owned livestock established by the board," Berry said, outlining the offices suggested approach.

Why it matters: Wyoming holds about 3.4 million surface acres in grazing leases. The leases generate revenue for K-12 public schools and other trust beneficiaries. The state currently requires formal sublease paperwork and splits any excess rental (payments above the annual lease rent) with the trust. Producers told the committee the older rules were confusing and administratively burdensome.

Key elements of the proposal
- Notice: Lessees would provide notice to the state within 30 days of bringing non-owned livestock onto the leased lands.
- Fee option: In lieu of a sublease, a lessee could pay a non-owned-livestock fee per head established by the Board of Land Commissioners. The office proposed the board could set the fee but capped it so it would not exceed the annual AUM rental rate.
- Common ownership exemption: If the entities that hold the lease and own the livestock have at least 80 percent common ownership, the lessee need not submit a sublease or pay the fee.

Committee action and amendment
Senator Cheri Crago moved that LSO draft the state lands bill and Representative Winter seconded. During the meeting legislators debated the proposed ceiling for the non-owned-livestock fee. Senator Tony McEwen successfully moved to amend the draft to cap the fee at 50 percent of the annual AUM rental, rather than permitting a fee up to the full annual AUM rental rate.

"A lessee of state lands whose lease authorizes grazing on the state lands shall not be required to obtain the approval of the director to allow livestock the lessee does not own to graze on state lands provided notice is given and a fee is paid," Berry told the committee. "The fee would be set by the board and capped by statute so it cannot exceed 50 percent of the AUM rate."

Stakeholder reaction
Ranching and agricultural groups testified in support of the state lands office approach as a simplification. Jim McGagnall of the Wyoming Stockgrowers Association said prior rules were hard to administer: "We've got producers who spent days trying to figure out net gain on a sublease," he said, and supported a streamlined notice-and-fee system.

Brett Moline of the Wyoming Farm Bureau said he favored a structure that kept the fee reasonable while making the process administratively straightforward.

Numbers to note
- The Office of State Lands said it approved 259 sublease agreements in 2024 and 289 so far in 2025.
- The bill draft as discussed would apply only to leases entered or renewed on or after July 1, 2026, per the LSO draft language presented.

Next steps
The committee voted to ask LSO to prepare a formal bill incorporating the offices suggested language and the committee amendment capping the fee at 50 percent of the AUM rental. Members indicated they expect to review the draft and may propose additional changes before the bill is filed.