Contrary to a running feud between Secretary of State Chuck Gray and Gov. Mark Gordon, Superintendent of Public Instruction Megan Degenfelder has typically sided with Gordon on most issues and hasn’t criticized the governor publicly.
Until Monday.
That’s when Degenfelder sharply criticized the governor for moving forward with the sale of a pristine 640-acre parcel of land in Teton County known as the Kelly Parcel directly to Grand Teton National Park for $100 million.
Degenfelder said she had not been made aware a tentative deal had been struck between the governor’s office and the U.S. Department of Interior until the day before it was posted on the agenda of the State Board of Land Commissioners on Friday.
“This was clearly weeks, if not months, in the making, and I was not notified until the day before it was posted on the agenda of the Board of Land Commissioners,” Degenfelder said in the press release.
Of particular concern for Degenfelder is that she had been leading a task force that includes State Auditor Kristi Racines, Gordon’s policy director Randall Luthi and other officials to identify a BLM-owned, developable area in the Powder River Basin to exchange for the Kelly Parcel.
Degenfelder said the task force had identified more than 100,000 acres that could be acquired in an exchange for the Kelly Parcel and had already begun meeting with BLM State Director Andrew Archuleta and Wyoming’s congressional delegation about it.
Degenfelder told Cowboy State Daily on Monday that the talks showed legitimate promise.
“Everything had been very positive up until now,” she said.
The Board of Land Commissioners had voted to postpone discussion of putting the Kelly Parcel on a public auction until this winter so they could explore options for a land exchange and receive legislative direction, said Michael Pearlman, spokesman for Governor Gordon's Office.
He said that the board could easily take the motion to sell the Kelly Parcel at public auction off the table at Thursday’s meeting, which would then allow the board to decide its next steps.
“Importantly, the governor believes there is some urgency to discuss all options because the funds the Department of Interior has been holding for the potential purchase of the land are likely to be used for something else in the near future,” Pearlman said.
What It's About
On Friday, a consideration to sell the Kelly Parcel for a price of $100 million to the federal government showed up on an agenda for the board’s special meeting scheduled for Thursday.
That consideration will come off a recommendation from the Wyoming Office of State Lands and Investments that Wyoming do the sale.
As part of the deal, the Department of the Interior would pay $62.4 million, representing the price that the parcel was appraised at in 2022. The remaining $37.6 million would be paid by private philanthropy.
“I feel like when we’re talking about something as important as state lands, there’s got to be some pause given, not just doing what’s the best for the quickest deal or the timeline of changing presidential administrations,” Degenfelder said.
Degenfelder told Cowboy State Daily she raised these concerns to the governor when the proposal was brought to her attention but received no direct response. The next day, the topic showed up on the public agenda.
“This opportunity necessitates bold, transparent leadership, not backroom maneuvering,” Degenfelder said in the press release. “The State Board of Land Commissioners should be working together as fiduciaries of state lands. This surprise agenda item sends mixed messages to the BLM about the desire of our state to engage in an exchange.”
OSLI believes the state can get much more revenue from the sale of the lands and future investment of the money than it is now from leasing it for livestock and recreational purposes.
Directives And Approvals
Pearlman also pointed out that proceeds from the sale of the Kelly Parcel could still be used to buy federal lands identified by the task force.
As a result of action taken by the Legislature this year, any agreement to move forward with the sale of the Kelly Parcel would still be conditional upon the governor’s review of the record of decision on the BLM’s Rock Springs Resource Management Plan.
The Legislature also took action stating that the land board shall sell the Kelly Parcel for no less than $100 million directly to the federal government.
Sen. Mike Gierau, D-Jackson, told Cowboy State Daily on Monday he saw this as a clear directive to no longer pursue the exchange option and sell the land directly to the federal government.
“We’re trying to do what they asked us to do,” Gierau said. “It’s a legislative directive to put conditions on.”
Gierau said he was directly involved with coordinating the final conditions between the federal government and Wyoming for the Kelly Parcel, which he said weren’t finalized until Friday.
Gierau commended Degenfelder’s efforts on the Task Force but said they were limited to the Rock Springs RMP after the Legislature took its action.
Exchange vs. Purchase
A land exchange such as the one Degenfelder refers to has been discussed in the past regarding the Kelly Parcel, but nothing ever came of it.
Last year, the land commissioners renewed the conversation when they voted to delay taking any action on the Kelly Parcel until late 2024 to explore possible exchange options for the parcel and to work with the Department of the Interior about a possible trade for mineral rights in other parts of Wyoming.
Some environmental groups have expressed skepticism that such a deal could take place and have advocated for selling the land as soon as possible to the federal government.
Degenfelder told Cowboy State Daily a land exchange would be the only avenue she would support when it comes to selling the Kelly Parcel.
In the press release, she mentions how the federal government owns about 48% of the surface and 65% of minerals within Wyoming’s borders, which she believes results in missed opportunities to develop federal land, particularly for minerals.
Degenfelder said she doesn’t know how the other members of the board will vote on the issue Thursday, but she is a hard no on a direct sale.
“I will not support new net acres for the federal government ever,” she said. “Although this allows for the Park Service to keep public access to the land, it also does so while giving new net acreage to the feds.”
She’s optimistic the exchange discussions can be renewed after Thursday’s meeting, but said until that time she believes these conversations have lost legitimacy because of Gordon's move.
Editor's note: This story has been updated to include input from the governor's office, which wasn't available when this story was first published. Also, to include comment from Sen. Mike Gierau, D-Jackson.
Leo Wolfson can be reached at leo@cowboystatedaily.com.
