SB 1066 — foreign entities; land; legislative approval

BillSenate Number:Engrossed foreign entities;

S.B.land;

legislative approval State of Arizona Senate Fifty-seventh Legislature First Regular Session SENATE BILL 1066 FinchemAN FloorACT AmendmentAMENDING ReferenceTITLE to:33, CHAPTER 4, ARTICLE 4, ARIZONA REVISED STATUTES, BY ADDING SECTION 33-459;

FEDERALISMAMENDING CommitteeSECTIONS amendment37-231 AmendmentAND drafted37-240, by:ARIZONA REVISED STATUTES;

LegRELATING CouncilTO FLOORLAND AMENDMENTSALES. EXPLANATION 1.

Prohibits(TEXT landOF inBILL ArizonaBEGINS fromON beingNEXT conveyedPAGE) to- ai foreign- entityS.B. that is hostile to the United States, rather than conditioning the conveyance on the majority approval of the Legislature.

1066 Be it enacted by the Legislature of the State of Arizona:

Section 1.

Title 33, chapter 4, article 4, Arizona Revised Statutes, is amended by adding section 33-459, to read:

33-459.

Conveyance to foreign entity;

prohibition;

identification;

definition A.

BEGINNING ON THE EFFECTIVE DATE OF THIS SECTION, LAND IN THIS STATE MAY NOT BE CONVEYED TO A FOREIGN ENTITY THAT IS HOSTILE TO THE UNITED STATES.

B.

FOR THE PURPOSES OF THIS SECTION, "FOREIGN ENTITY THAT IS HOSTILE TO THE UNITED STATES" MEANS A COUNTRY THAT IS IDENTIFIED BY THE UNITED STATES DIRECTOR OF NATIONAL INTELLIGENCE AS A COUNTRY THAT POSES A RISK TO THE NATIONAL SECURITY OF THE UNITED STATES IN EACH OF THE THREE MOST RECENT ANNUAL THREAT ASSESSMENTS OF THE UNITED STATES INTELLIGENCE COMMUNITY ISSUED PURSUANT TO SECTION 108B OF THE NATIONAL SECURITY ACT OF 1947 (50 UNITED STATES CODE SECTION 3043(b)).

Sec.

RemovesSection the37-231, identificationArizona submissionRevised requirementsStatutes, tois theamended Arizonato Departmentread: of Real Estate.

37-231.

State lands subject to sale;

rights reserved in lands sold;

state lands not subject to sale;

development agreements A.

All state lands, except as otherwise provided for in this title, including all improvements made or placed on or connected with state lands, shall be subject to appraisal and sale as provided in this title.

B.

Any person over eighteen years of age is entitled to purchase any of the state lands EXCEPT AS PROVIDED IN SECTION 37-240.

C.

All sales, grants, deeds or patents to any state lands sold between July 9, 1954 and March 18, 1968 shall be subject to and shall contain a reservation to the THIS state of an undivided one-sixteenth of all oil, gases and other hydrocarbon substances, coal or stone, metals, minerals, fossils and fertilizer of every name and description, together with all uranium, all thorium, or any other material which THAT is or may be determined by the laws of the THIS state or the United States or decisions of courts to be peculiarly essential to the production of fissionable materials, whether or not of commercial value, subject to the following:

1.

For the purpose of promoting the sale of state lands and the more active cooperation of the owner of the soil, and to facilitate the development of its mineral resources, the state constitutes the purchaser of the land its agent for the purposes specified in this section, and in consideration hereof, relinquishes to and vests in the purchaser of the state land an undivided fifteen-sixteenths of all oil, gas and the value thereof which may be upon ON or within any state land purchased after July 9, 1954 and before March 18, 1968.

- 1 - S.B.

1066 2.

The purchaser of the soil may sell or lease to any person, firm or corporation the oil and gas and other minerals which THAT may be on or in the land, upon ON terms and conditions the purchaser and the owner deem best, subject to the provisions and reservations of this section, but the lessee or purchaser shall pay to the THIS state an undivided one-sixteenth of the mineral produced or the value of the mineral produced at the well or mine as determined by the state land department.

DefinesUpon aON foreigndiscovery entityof thatoil isand hostilegas toin thepaying Unitedquantities Stateson asland aadjoining countrystate thatlands ispurchased identifiedunder by the Unitedauthority States Director of Nationalthis Intelligencesection, asthe apurchaser countryor thatthe posespurchaser's alessee riskshall todrill theand nationalproduce securityall ofwells thenecessary Unitedto Statesprotect in each of the threeland mostso recentpurchased annualfrom threatdrainage assessmentsby ofwells theon Unitedlands Statesin Intelligencewhich Communitythe issuesTHIS pursuantstate tohas sectionno 108Broyalty ofinterest, theor Nationalhas Securitya Actlesser ofroyalty 1947.interest.

If the purchaser or the purchaser's lessee fails to protect against such drainage, the THIS state, acting through the state land department, may, three months after demand therefor in writing by the state land department to such purchaser and the purchaser's lessee, MAY enter upon ON such lands and drill all wells necessary to protect the THIS state against such drainage.

MakesThe conforminginterest changes.reserved by the THIS state in any state lands sold may be committed to a drilling unit or cooperative or unit plans of development and operation of oil and gas pools with the United States, its agencies and its and their lessees and permittees, and with private owners and persons holding oil and gas leases on private lands or on state lands.

AmendmentThe explanationstate preparedland bydepartment Annamay, Nguyeninsofar 02/19/2025as ≤≤the ≥≥interest ≤≤of ≥≥the THIS state may be affected thereby, MAY join in and consent to any such plan on behalf of the THIS state.

Such agreements shall provide for the equitable division on an agreed basis of the oil and gas produced from the unit, but no such agreement shall NOT relieve any operator from the obligation to develop reasonably the lands and leases as a whole committed thereto.

The royalties to which the THIS state is entitled on production from land purchased under this section shall be computed only on that part of the production allocated to such tract.