North Dakota Bill Proposes Land Swap: Trading State Parcels Within Reservations for Federal Land

The North Dakota Trust Lands Completion Act of 2025 lays out a framework for the state to exchange specific state-owned lands, particularly those located within the boundaries of federally recognized Indian reservations, for federal lands situated elsewhere in North Dakota. This process aims to help finalize the land grants originally promised to the state upon statehood under the North Dakota Enabling Act of 1889, potentially consolidating state land holdings.

The Great Land Shuffle: How It Works

Here’s the basic idea: North Dakota can identify state land grant parcels (land given for schools or other purposes when ND became a state) that sit inside an Indian reservation. If the state decides it wants to trade such a parcel, it can select a piece of available federal land, managed by the Bureau of Land Management (BLM), that it deems of similar value (Sec. 3). It's important to note not all federal land is up for grabs; the bill excludes areas like critical environmental zones, conservation lands, specific townships, and land already within reservations or military bases (Sec. 2).

Once the state picks its desired federal parcel, the Secretary of the Interior has 180 days to approve or deny the selection. If approved, the Secretary must start the transfer process within 60 days. The actual swap happens simultaneously: North Dakota gets the title to the federal land while giving up its rights to the original state parcel, ensuring the relinquished land has a clear title (Sec. 3).

Making Sure It's a Fair Trade

Valuation is key here. The bill mandates that the exchanged lands must be of "substantially equal value" (Sec. 4). Appraisals, following specific federal standards, are required to determine these values. If the values aren't perfectly matched, the difference can be made up through a cash payment, called an equalization payment. However, if the state is getting the pricier federal land, its cash payment can't exceed 25% of the federal land's value.

For lower-value properties (under $500,000 and under $500 per acre), a simpler valuation method like a summary appraisal might be used if both sides agree. The bill also allows for a "ledger account" – essentially a running tab to track value differences across multiple exchanges. This account needs to be balanced within three years and fully closed within five years after the last land deal under this act (Sec. 4).

Reservation Lands and Tribal Input

A significant aspect of this bill involves lands within North Dakota's Indian reservations. When the state relinquishes a parcel located inside a reservation, the bill requires both the state and the Secretary of the Interior to consult with the affected Indian Tribe before any conveyance happens (Sec. 3). Furthermore, if the Tribe requests it, the relinquished land within their reservation boundaries must be put into trust by the Secretary for that Tribe (Sec. 3). This offers a potential pathway for Tribes to regain stewardship of lands within their historical territories.

What About Existing Users and Land Conditions?

The bill acknowledges that these lands aren't empty slates. Any land transferred, whether state or federal, remains subject to existing valid rights like leases, permits, and rights-of-way (Sec. 3). For ranchers, existing grazing leases or permits on exchanged land continue for their current term. However, the new landowner (state or federal government) can cancel or modify these grazing rights if the land is later sold or leased for non-grazing purposes (Sec. 5). The bill also ensures that land used as a base property for federal grazing permits continues to qualify as such for the permit's term and any renewals.

Before any exchange, both the state and the federal government must inspect the lands for hazardous materials and provide certifications regarding their findings (Sec. 5). Finally, the act includes a savings clause, stating it won't interfere with any land or mineral rights lawsuits already in progress when the law takes effect (Sec. 6).