Basalt Mineral Lease – Warren Wagon Road
Overview
The Idaho Department of Lands is evaluating a mineral lease opportunity consisting of approximately 8-acres of surface disturbance on an approximately 41-acre parcel of endowment land along Warren Wagon Road on the west side of Payette Lake in Valley County.
The lease site has been an operating gravel pit for many years and is adjacent to another existing gravel pit operated by Idaho Transportation Department. The mineral lease would allow for the extraction of basalt while generating revenue for the State’s endowment beneficiaries, most prominently public schools.
Competitive Bidding Process
Idaho law and Department procedures provide for a competitive bidding process for mineral leases on endowment land.
The Department advertised and conducted a live public auction on May 28, 2026, in McCall. Five companies registered to participate:
- Seubert Excavators, Inc.
- Falvey’s LLC, the original applicant
- Granite Excavation
- Premier, LLC
- Knife River Corporation
Seubert Excavators, Inc. submitted the high premium bid of $400,000 for Mineral Lease E500077.
The auction results were presented to the State Board of Land Commissioners for consideration. The Land Board elected to postpone a final decision of the lease pending additional information regarding the lease terms and leasing process.
Proposed Lease Terms
The lease considered as part of the May 2026 auction included:
- Lease area: Approximately 8 acres of surface disturbance on a 41 acre endowment parcel
- Mineral: Basalt
- Lease term: 10 years
- Annual rent: $500
- Minimum annual royalty: $3,000
- Royalty rate: $1.75 per short ton of material extracted
- Completion of site reclamation after mining operations cease
Site Operations and Reclamation
Over the full term of the proposed lease, hauling would average about two truckloads per day. However, removal of the material may occur during less than the full lease term, resulting in more loads hauled per day during the actual operating period. A dust abatement plan is in place for the operation, and the required reclamation plan will address the standards to which the site will be reclaimed following mineral extraction.
Land Board Review
The State Board of Land Commissioners, commonly known as the Land Board, oversees the management of Idaho’s endowment lands.
Following the May 28 auction, the Idaho Department of Lands recommended awarding Mineral Lease E500077 to the high bidder. The Department reported that the auction had been conducted in accordance with applicable statutes and procedures and that staff observed no indication of fraud or collusion.
Such leases are subject to Land Board review. At its meeting, the Land Board elected to not make a final determination regarding Mineral Lease E500077 pending additional information regarding the lease terms and leasing process.
Additional Information
About Endowment Land
Idaho’s endowment lands are managed to generate maximum long-term financial returns for designated beneficiaries, including Idaho’s public schools. Mineral leasing is one of the ways endowment lands can generate revenue for beneficiaries. Read more about Understanding Endowment Land.
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