Land office lawyers call AG's claims ludicrous

Attorneys representing the State Land Office say because Land Commissioner Pat Lyons is granted ”complete control over the care, control, and disposition of state trust lands,” the Supreme Court should reject Attorney General Gary King’s premise that four controversial land swaps at Whites Peak were predetermined “shams.”

A month ago, the Supreme Court granted an emergency petition filed by King that effectively halted those swaps. Now justices will have to decide if Lyons’ proposals violate any laws or if they may continue as planned.

Land Office Chief Legal Counsel Robert Stranahan, who directed a team of contract attorneys and filed the Land Office’s response with the court last week, told us that the “SLO is not a public auction house,” and that “the AG is “100 percent wrong on the law.”

“The Attorney General’s Office already has an opinion that says we can do land exchanges,” Stranahan said, referring to an opinion issued by former Attorney General Tom Udall.

“The commissioner is the one that decides what’s in the best interest of the trust – he has a fiduciary duty to the trust, and that’s what he’s exercising,” Stranahan said.

Stranahan said the commissioner’s authority is laid out in the state’s constitution, and “to suggest that we would need somehow to seek some other kind of guidance on how to exercise that authority is just improper.”

The Land Office has proposed trading about 11,000 acres of trust land around Whites Peak for about 9,600 acres of private land in an effort to consolidate the checkerboard area north of Ocate. The office says it is trying to clearly define state and private holdings and help eliminate problems with trespassing and littering on private lands.

Stranahan rejects the AG’s assertion that the bids were steered to predetermined parties.

“To suggest that we had negotiations with private parties is absolutely true. You bet we did. It’s completely within the province of the commissioner to do that,” Stranahan said. “If we are trying to fix this issue we need to go with the people who would potentially be bidders, but that doesn’t preclude someone else from bidding.”

He claims the SLO doesn’t even need to conduct a public auction if the end result of an exchange increases the value of the land.

‘Bidding process was flawed’

Former game commissioner Oscar Simpson, who now works as a campaign coordinator for the New Mexico Wildlife Federation, disagrees.

He told us at a game commission meeting in Santa Fe last week “the bidding process needs to start over.” Simpson is upset because, he said, he doesn’t believe the SLO’s bid process was transparent or fair.

“It was a flawed process,” Simpson said. “The attorney general quite plainly asked the court to intervene because of the process in which the State Land Office proceeded.”

Families in the area, hunters and sportsmen groups have protested the deals. They claim Lyons is giving away pristine wilderness area that has been hunted by generations of New Mexico families, and they fear the land will be closed off to them and the public by the private ranchers.

“Every aspect of what they did to inform the public and the game commission was devious,” Simpson said. “The attorney general looked at all the records and said it wasn’t a public process – that it was an inside deal. By the time anyone else found out it was too late.”

He told us he thinks Lyons is “trying to get these land swaps pushed through” because it’s his final year in the land office.

“This is his last-ditch effort to appease his friends and political contributors,” Simpson said. “He’s certainly giving private ranchers a primo deal as far as big game parks, ranches and their land.”

'The public hasn't really benefited'

Simpson said he thinks state laws that regulate land exchanges are antiquated, and the “process of public auctions has basically been prostituted.”

“In the past, we’ve lost about four or five million acres of state land. A lot of this has been under the cover, and the public hasn’t really benefited – especially all the trustees and beneficiaries.”

Hunting guide Albert Goake agrees.

“This land swap has nothing to do with boundaries, vandalism or poaching. It’s all about the money,” Goake said. “Those ranchers are going to make millions of dollars selling trespasser fees for the elk permits.”

Simpson claims big land owners are coming in from out of state and buying up ranches because of the value of wildlife, “especially where you have a lot of big game and bull elk.”

“The big game hunts, that run anywhere from $8,000 to $15,000, are worth a lot of money, and are worth a helluva of a lot more than cattle grazing, and this basically augments the value of the ranch, because you can get so many elk tags, and the resale value is tremendous,” Simpson said.

Land worth more

On the same day that the SLO attorneys filed their response with the court, the League of United Latin American Citizens (LULAC) filed a brief in support of the Attorney General’s efforts. LULAC wants the justices to consider historic land grants given to Spanish settlers in the Whites Peak area.

In its brief, LULAC said, “The Whites Peak land and other land at issue here is highly likely to have originally been land held within community land grants.”

They claim land involved in the proposed exchange “is worth far more than the Land Commissioner asserts when its cultural and historic value is adequately taken into consideration.”

Attorney General spokesman Phil Sisneros told us that the attorney general’s office is still reviewing the response filed with the Supreme Court by the SLO.

Vassilopoulos launches campaign for land office

Oilman and geologist Spiro Vassilopoulos announced today that he will enter the Republican primary for land commissioner.

“As a certified petroleum geologist and independent oil and gas producer, my domestic and international experience gives me considerable advantage over those with no such expertise,” Vassilopoulous wrote in an e-mail received by NMPolitics.net.

In 2008, Vassilopoulos, a political newcomer, campaigned briefly for Sen. Pete Domenici's seat after the six-term senator announced his retirement, but dropped out of the race after then Rep. Steve Pearce entered the race.

Vassilopoulos has hired Daniel Garza has his campaign manager, and Max Sanchez to be his treasurer.

Vassilopoulos said he's confident he will have enough petition signatures and will file with the secretary of state's office on February 9th.

In the Republican pre-primary race, Vassilopoulos will face Jim Jackson, who took a leave of absence from the state land office to campaign for the post, cattle rancher Matt Rush, retired law-enforcement officer Errol Chavez, and GOP activist Bob Cornelius in the state's pre-primary nominating convention on March 13 in Albuquerque.

Four candidates have entered the Democratic primary, including Santa Fe County Commissioners Harry Montoya and Mike Anaya, PRC Commissioner Sandy Jones, and former commissioner of public lands Ray Powell.

Ranchers paid for Whites Peak land swap appraisals

Deputy Attorney General Albert Lama warns the State Land Office: We have serious concerns about the propriety of the disposition of state trust lands ... The appraisal lacks sufficient data to support its conclusion.

By Peter St. Cyr

The state’s attorney general’s office, which has been investigating a series of proposed land exchanges, in the Whites Peak area, between private ranchers and the NM State Land Office, has notified Land Commissioner Patrick Lyons that it has found “significant defects” in the land appraisals being used to support the swaps.

In this letter (written just two days before Christmas), Chief Deputy Attorney General Albert Lama requests none of the land deals proceed until “we can verify that adequate appraisals have been done.”

Quoting the Enabling Act, which governs the management and disposition of New Mexico State Trust Lands, Lama points out that the lands must “be appraised at their true value prior to any sale or disposition,” and that after consultation with an independent appraiser the attorney general’s office has identified problems which “appear to run afoul of the Uniform Standard of Appraisal Practice,” including assumptions the land office’s appraiser made.

And the state land office now admits the appraisals done by John T. Widdoss, for the land office, were paid for by the ranchers who are submitting bids, but would not say that alone is a conflict.

Lama indicates the AG’s independent appraiser has determined Widdoss’ “key” assumptions “lacks any substantiation,” and so on “this basis alone, the appraisal lacks sufficient data to support its conclusion.”

Under the proposed Express UU Bar Ranches, LLC swap, which the independent appraiser uses as his example, the ranch would receive New Mexico trust land appraised at nearly $5.5 million, which is more than twice the $2.4 million appraised value of the land the ranch would turn over to the state.

Additionally, Lama wrote “the revenue-generating potential of the property the state would receive may be significantly less than the revenue-generating potential of the land the state is offering.”

But Lyons disagrees. In fact, he wrote a letter to sportsmen, in November, stating the private acreage involved in the exchange "may be fewer in number, but they have a higher appraised value and a higher earning potential than the current trust land."

"In the interest of earning the highest possible revenue for the trust this exchange is highly advantageous," Lyons wrote. "It will consolidate trust land holdings to one large parcel of land rather than a checkerboard of holdings dispersed with private land. This will be more manageable than dispersed land and more profitable as a larger piece has more applicable uses. This exchange will improve land management capabilities for a healthy and productive ecosystem that not only improves hunting opportunities, but the overall health and vigor of the forest."

‘This is more of a sale than it is a swap’

In his letter, Lama indicates the land swap transaction is more like “a hybrid of a sale and exchange, though the majority of this transaction would be a sale."

“If this is the case, we have serious concerns about the propriety of the disposition of state trust lands in this manner,” Lama wrote.

And it’s the “additional cash bonus” being offered by UU Bar’s owners that has raised the ire of State Rep. Brian Egolf, D-Santa Fe, who said that “raises serious concerns about the propriety of the disposition of State Trust Lands in this manner.”

“More than half of the value is being paid by UU Bar in cash, which means this is more of a sale than it is a swap, and the procedures that are required for a land sale were not followed,” Egolf said.

While the land office did not respond to our inquiries about the letter or John T. Widdoss’ appraisals, it’s chief counsel Robert Stranahan told the Associated Press he’s “happy to stand behind his work,” and said “some concerns were misunderstandings of the process.”

“At the end of the day, the appraised value we are getting is more than we are giving up,” he told the AP.

Stranahan said a meeting is scheduled for next Thursday to discuss the appraisals.

While the state land office did not return our request for an interview, we did receive a statement from Gov. Bill Richardson who has consistently stated he does not want the deals to be closed.

“With all of the unanswered questions about the proposed White’s Peak land swaps, the State Land Office should not close the deals,” Richardson is quoted. “I remain very concerned about the potential loss of prime public hunting and other outdoor opportunities as well as the secretive process used to determine the terms and comparable valuation of the exchange.”

Egolf, who requested both the attorney general and state auditor, investigate the land swaps, says Lama’s letter is a good first step.

“Hopefully the next step the land commissioner takes is to suspend these transactions until the attorney general and the legislature are satisfied that the transactions are in the best interest of the beneficiaries,” Egolf said.

The state auditor is expected to provide the results of his office’s investigation before the start of the legislative session on January 19th.

Gov. Bill Richardson expressed concern last month, saying the plan “would mean a net loss to the state of almost 4,000 acres of alpine meadows and pristine forest.” At the time Richardson said he’d heard from citizens, state lawmakers and New Mexico’s congressional delegation about the deal.

Egolf said he hopes the attorney general is able to persuade the land commissioner “to do the right thing” and “suspend these deals.”

“Let’s make sure all the parties, including the attorney general and the legislature have a chance to really understand what this deal is all about, to make sure that its being done properly, and to make sure it’s the best interests of the beneficiaries of the state trust,” Egolf said.

State Trust Land Access vs Hunting Opportunities

Just before Thanksgiving, two weeks before the first bid was accepted from Stanley Ranches, Lyons told 770KKOB News that the land swap includes four different exchanges, and said his detractors shouldn’t analyze just one. He insisted the four deals need to be looked at as a group.

“One thing, it’s been very controversial area for about 50 years because it’s all checker-boarded,” Lyons said. “It has private land mingled in with state land, and state land mingled in with private land. So it’s always been a contention of private property rights versus access.”

Lyons has said the exchanges in the White Peak area would reduce conflicts among landowners, sportsmen and the state by better consolidating trust land and cited cited trespassing and vandalism as a reason it’s working with ranchers on the exchange.

That has sportsmen groups and the NM Wildlife Federation “outraged,” and the NMWF is asking its supporters to write letters to Lyons urging him to stop the deals because “they clearly hurt hunting deals.”

“They also will be bad for the public at large and for public schools that earn income from state lands,” the NMWF website states. “The State Land Office has repeatedly said the trades are necessary to resolve conflicts between the public and private landowners in the Whites Peak area, but has never said how the trade will benefit public education, which is its primary mission.”

NMWF claims the public will lose some 3,700 acres of state trust land if the first two trades go through.

“Even worse for sportsmen, the lands lost are much higher quality in habitat, featuring ponderosa pines, small lakes and streams and abundant wildlife,” the website claims. ”A substantial portion of the lands the state would receive in return from these trades would be in a single parcel of treeless grazing land strung out along State Highway 120.”

Lyons said after the deal is completed, “it’s going to be continuous acres of 25,000 acres on one side and 18,000 acres on the other side with the state land being in the middle — and that way we’ll know where the definite boundaries are.”

Last May, Lyons announced that he’ll run for a seat on the Public Regulation Commission next year, when term limits oust him from his current job at the State Land Office.

City may defer building swap with Eclipse Aerospace

In September 2008, weeds and an empty parking eclipsed the former
pilot training center adjacent to Double Eagle Airport.

The City of Albuquerque and Eclipse Aerospace still haven't worked out a deal on a proposed barter agreement to keep the company operating.

That deal involves swapping an empty pilot-training building the company owns on the west side, in exchange for two rent-free hangar buildings at the Sunport.

While that swap is on tonight's City Council agenda, it is now expected to be deferred.

And, that's partially because Council President Ken Sanchez says it may be a while before Eclipse Aerospace starts making jets again.

"They say they're willing to start right now," Sanchez said, "but looking at the economic climate across America, I just don't foresee that happening. I think that we're still going through tough and difficult times."

Eclipse Aerospace reopened September 4 -- after a Federal Bankruptcy judge accepted their bid to buy the original company's assets.

Sanchez says he still questions the worth of the west side training facility.

The land it sits on what was part of a three-way land exchange between with the New Mexico State Land Office, city and a private rancher -- who has the right to have the land returned to him if manufacturing fails to start on the land, which sits adjacent to Double Eagle Airport II.

Sanchez says he believes Eclipse Aerospace's goal of bringing 435 jobs to the area is a "little optimistic."

"We, now with our own budget crisis, don't have the money to cover those folks even though there's a very handsome three to one federal match we just don't have the $85 million dollars that we would need to continue that program," Sanchez said.

Currently, the group has 60 employees, and group President Mason Holland is telling customers, "We continue to add engineering and mechanic talent needed to support the fleet. Mechanics are being hired to ramp upgrade completions as quickly as possible. Engineering talent is being added to support the upgrades, complete the final design changes, and for continued aircraft improvements."

In a customer communique -- posted on the company's website today -- Holland wrote, "Our ABQ Service Center is now operational and 8 planes are undergoing upgrades including our first to incorporate the EASA configuration changes."

Holland also stated the group's Chicago Service Center "is now delivering the first group of upgraded aircraft."

Updated 8pm

As expected, on an unanimous vote, the city council deferred discussion on a city rental deal to a meeting in January.