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Legislators probe how recreation leases and trails should coexist with long-standing grazing leases

Legislative committee · June 11, 2026
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Summary

Lawmakers and stakeholders pressed the Office of State Lands on reconciling recreation projects with existing grazing leases, payment/compensation mechanisms for impacted lessees, and the policy principle of optimizing rather than simply maximizing short-term revenue from trust lands.

Multiple legislators asked how the office balances new recreation proposals with existing grazing leases and whether leaseholders risk being displaced if a recreation project is proposed for the same parcel. Staca Barry said the office’s standard practice is to require comment from the surface leaseholder (often a grazing lessee) when a special use lease is proposed; negative comments trigger further review and negotiation to find ways for uses to coexist. "If we get a negative comment form from any of those existing surface leases that's where we start to jump in and start asking questions about how can these work together?" she said.

Barry also described compensatory mechanisms: when a recreation lease or other special use would impact grazing use, the grazing lessee may receive a surface-impact payment "that should equate to any loss of their leasehold use," she said. For cases where a party seeks to hold a parcel for recreational rather than agricultural purposes, statute requires that grazing leases be held for "actual and necessary use" (e.g., agricultural commodity production); someone who lacks that demonstrated use may be ineligible for a grazing lease and would need to pursue a special use lease instead.

Stakeholders reinforced the point that grazing lessees have historically served as caretakers of land. Jim McGen of the Wyoming Stock Growers Association urged the committee to protect grazing viability and warned of confusion after recent federal court rulings on corner crossing; he urged careful treatment of any proposal that could undermine grazing-based livelihoods. Karen Clark (Wyoming Farm Bureau) and remote testimony from Sarah (Rocky Mountain Farmers Union) cautioned against making rule changes without thoroughly exploring unintended consequences for agricultural users and local economies.

Committee members and presenters noted practical differences among lease types: special use leases can run up to 75 years and include five-year rent reviews and escalators; temporary permits (minimum $50/day) exist for short events; grazing leases are typically measured in AUMs and are tenured with use requirements. The office affirmed it seeks to "optimize" long-term revenue—balancing near-term receipts with preserving land value and beneficiaries’ long-term interests—rather than simply maximizing immediate income.