"bottom line" value of the proposed exchange does not exist due to the many assumptions required in such an analysis.

    Mr. Terry discussed the recently negotiated agreement to trade trust lands. The United States Department of Interior, the state of Utah, and the School and Institutional Trust Lands Administration all concur that the transaction contemplated by HR 3830 is a fair trade of equally valued assets. He explained that the net loss of 200,000 acres in the combined trade is mostly attributable to Public Law 103-93, which provided for the purchase of trust lands. The trade will generate $50 million in cash upon the signing of the bill. An additional $13 million will be received in cash flows paid from federal coal properties in Carbon and Emery Counties.

    Members of the committee expressed concern that the negotiations were kept confidential and that legislators were not involved.

    Mr. Terry stated that at the request of the Department of Interior the negotiation process was kept confidential. He indicated that if HR 3830 and SB 2146 do not pass, the entire trade will be called off and pending litigation will move forward. He added that an effort is being made to meet with county commissioners of counties affected by the land trade.

    In response to a question about whether the land trade is subject to an environmental impact assessment, Mr. John Andrews, counsel for the School and Institutional Trust Lands Administration, stated that the exchange is exempt from NEPA because of the short time frame. He pointed out that the state specifically requested the exemption.

    Ms. Kimm Harty, Utah Geological Survey, acknowledged that their report to the committee last year indicated there is not enough federal coal to exchange for the coal reserves on school trust lands within the Grand Staircase - Escalante National Monument. She pointed out that the state is trading the coal reserves in the monument for coal lands and other energy lands that are immediately developable. Although the Andalux reserves within the monument could have been developed immediately, other reserves may not be developable until far in the future. It is difficult to determine what the coal will be worth 100 years from now.

    Speaking in support of the trade were Ms. Paula Plant representing the Utah PTA and the Public Education Coalition and Ms. Margaret Bird representing the Utah State Office of Education.

     MOTION: Rep Buttars moved to approve the minutes of May 20, 1998. The motion passed unanimously. Rep. Evans was absent during the vote.

3.    State Water Development Commission - Rep. Olsen explained that when the term of the Bear River Development Task Force expired, the State Water Development Commission was created with representation from all of the major river basins. Some of the responsibilities of the commission include studying statewide water issues and recommending projects to the Legislature and the governor. The commission is scheduled to sunset at the end of the year and has expressed the desire to be reauthorized.

    Ms. Steffen remarked that it is within the purview of the Natural Resources, Agriculture and Environment Interim Committee to develop any legislation that would reauthorize the commission. She briefly reviewed the composition and duties of the commission.

     MOTION: Rep. Johnson moved to direct staff to prepare legislation to reauthorize the State Water Development Commission. The motion passed unanimously. Reps. Evans and Tuttle were absent during the vote.

    Mr. Russ Donoghue, Rural Water Users Association, noted that the large water conservancy districts currently are represented on the commission and requested that there be a representative of the smaller water entities.

4.    Preservation of Open Space - Ms. Steffen reviewed past legislative action regarding open space. She explained that during the 1998 General Session, three measures passed regarding open space. An appropriation of $100,000 was made to the Department of Agriculture and Food to be given to charitable organizations to preserve open space for agricultural production purposes. Another bill passed creating the critical lands trust fund, which is a revolving loan fund to be used to assist local entities or nonprofit associations in preserving open space. The fund was capitalized with a $100,000 appropriation from the General Fund. Another bill appropriated money to the Division of Facilities Construction and Management (DFCM) to survey DFCM-owned land near the state prison and along the Jordan River. It directs the Office of Planning and Budget to work with various entities in determining and making a recommendation to the Legislature and the governor on how much of that land to preserve for open space.

    Ms. Steffen added that the critical lands committee created by the governor is studying open space. The committee has been operating for over a year and has produced two reports. One is a compendium of techniques or tools that can be used to preserve open space. The other report is an account of other state programs. The committee is also inventorying critical land in the state.

    Commissioner Cary Peterson, Department of Agriculture and Food, discussed potential

uses of the money appropriated to the department. He said that any project funded should be consistent with local city and county planning and zoning guidelines. It is his recommendation that priority be given to projects with matching funds.

    Mr. Dez Barker, Chair of Utah for Lands Conservation Association, pointed out that communities have different reasons for preserving open space. The open space movement is not anti-growth -- it is about quality planning. He asserted that the government will never have enough money to buy the land needed for open space.

    Mr. Kim Christy, Utah Farm Bureau, pointed out that the statutes are not clear whether a governmental entity can impose eminent domain where a conservation easement exists in perpetuity.

    Commissioner Peterson stated that a governmental entity may not use eminent domain to obtain a conservation easement. He noted, however, that it would be beneficial for the Legislature to determine whether or not governmental entities can condemn conservation easements that are acquired for a public purpose.

    Rep. Carlson urged the Legislature to take steps to preserve open space. She suggested focusing on issues where there is agreement first.

     MOTION: Rep. Anderson moved to adjourn the meeting at 11:30 a.m. The motion passed unanimously. Reps. Olsen and Wright were absent during the vote.