The focus of my efforts as Director of the Office of State Lands & Investments is simple: proactive trust asset management. The reason for this focus is also simple. The Board of Land Commissioners and my office have a fiduciary duty to manage State Trust Land, State Trust Minerals and the State Permanent Land Fund for the benefit of the public schools. I do not believe we can fulfill that duty through passive or reactionary management.

As a first step toward proactive trust asset management, it is essential to educate the public as to the nature and purpose of the Wyoming State Land Trust. Many believe that the Wyoming State Land Trust is comprised solely of the state lands which they hunt, fish and explore. Many also believe that state lands are managed for multiple uses, the same as federal public lands. Neither of these beliefs is true.

The Wyoming State Land Trust consists of three assets: State Trust Land, State Trust Minerals and the State Permanent Land Fund. All three of these assets derive from an original grant to the State at the time of statehood by the federal government of Sections 16 and 36 of every township for the support of the public schools. Though some of those original lands have been sold or exchanged, the state currently owns approximately 3.6 million surface acres and 4.2 million mineral acres. Through the sale and lease of these assets, the State has accumulated over $1 billion in revenue, which makes up the permanent school fund.

The Wyoming State Constitution and the Wyoming State Legislature direct the Board of Land Commissioners, through the Office of State Lands & Investments, to manage these trust assets for two key purposes, consistent with traditional trust principles: (1) long-term growth in value, and (2) optimum, sustainable revenue production. These economic mandates clearly distinguish state trust lands from federal public lands.

Unlike federal public lands, which are managed for multiple uses, with an emphasis on public recreational use, state trust lands are managed to produce revenue for the permanent school fund. Mineral leasing and development provide the greatest revenues from state trust lands – more than $64 million in 2003. Nearly $7 million in additional revenue last year came from grazing leases; special-use leases for wind energy development, outfitters and other non-agricultural uses; temporary use permits; easements; surface impact payments; land sales; and timber sales. The public enjoys the privilege of using legally accessible state lands for casual recreational day uses, so long as the recreational use does not result in damage to the land or the roads or improvements on state lands.

The biggest problem is that we do not have a documented vision of how our Wyoming State Land Trust assets should be managed.

A second, critical step toward proactive trust asset management involves planning. It is my observation that too often agency resources and the Board of Land Commissioners’ attention are spent evaluating sale, exchange and asset management proposals conceived by outside private or public entities and presented to the Office and Board when the outside entity stands to benefit from such proposals. Sometimes such proposals benefit the trust and are pursued. Sometimes they are rejected. To me, the biggest problem with this approach is that we, the State, do not have a documented vision, developed through a structured planning process, with the benefit of public input, of how our Wyoming State Land Trust assets should be managed in order to fulfill the two key purposes of enhancing value and optimizing sustainable revenue production, into the future. Our efforts to address this problem by shifting to a more proactive management approach are two-fold. First, as a result of a productive, full-day working meeting with the Board of Land Commissioners last June, I have begun drafting a Trust Asset Management Plan, which will provide a comprehensive overview of the governing trust principles and our programmatic and policy objectives toward satisfying those principles. My goal is to have a draft plan published and available for public input by June 30, 2004.

Second, in conjunction with the development of the agency-wide Trust Asset Management Plan, I have asked the head of each division of the Office of State Lands & Investments (Minerals, Real Estate, Forestry and Administrative Services) to conduct a comprehensive review of the programs and processes administered within his or her division. This divisional planning initiative will focus on effective, cost-based management. Equally important, it will provide a structured opportunity for the individuals who know the most about the strengths and weaknesses of our present trust asset management tools to help set the course for the future.

The commitment of my staff and the Board of Land Commissioners toward adopting and implementing a proactive mindset is firm, and the energy level is high. When completed, the comprehensive and divisional plans will reflect specific policies, management standards and processes designed to enhance the value of trust assets and optimize revenue for the permanent school fund, with full public disclosure and participation. I am pleased to be able to participate in these important efforts.