Study: Federal lands transfer for Utah could be profitable

A study commissioned by the state and performed by economists from a trio of Utah universities says the transfer of federal lands to Utah control could be profitable and revenues would cover the costs of managing the lands. The 784-page report was mandated after the 2012 passage of the Transfer of Public Lands Act and was carried out by the University of Utah’s Bureau of Economic and Business Research, Utah State University and Weber State University. Utah Gov. Gary Herbert said lawmakers and the public will be well-served by the report. “It is important to make decisions based upon a thorough review of accurate, relevant information,” Herbert said, adding that the analysis will provide policymakers with a sound platform to assess both the risks and challenges associated with the move. While conceding the transfer of 31.2 million acres of land managed by the federal government would pose a major shift in the "economic structure" of the state, the report goes on to say that the land transfer could actually be profitable for the state if oil and gas prices remain high and if Utah aggressively manages its mineral lease program. The study said the biggest infusion of money into Utah coffers would be the elimination of revenue royalty sharing with the federal government. Utah would go from getting 50 percent of the proceeds under the current mineral lease program to getting 100 percent of the proceeds. That new money, the researchers added, would eclipse increasing taxes on any new production that came online or ramping up the number of oil and gas wells by 15 percent...more