2. Authority for establishing these trusts is included in sections 14, 16, and 17 of the Enabling Act of 1889 and in the Morrill Act of 1862 and 1890. University System Original Grant Acreage InstitutionOriginal Grant Acres* Montana Tech (School of Mines) 100,000 State Normal School 100,000 Agricultural College MSU – Morrill Grant 90,000 MSU – Second Grant 50,000 University of Montana 46,080

4. Manage (leadership)the State Trust Lands to produce revenues for the trust beneficiaries (fiduciary), while considering environmental factors and protecting future income- generating capacity of the land (stewardship).

5. MONTANA DEPARTMENT OF NATURAL RESOURCES AND CONSERVATION TRUST LAND MANAGEMENT DIVISION DIVISION ADMINISTRATOR Admin. Officer AGRICULTURE & GRAZING MGMT. AGRICULTURE & GRAZING MGMT. FOREST MGMT. MINERALS MGMT. MINERALS MGMT. REAL ESTATE MGMT. REAL ESTATE MGMT. FIELD OPERATIONS C LO E LO NE LO NW LO SLO SW LO Agricultural Leases Grazing Leases Resource Development Forest Product Sales Resource Management: Soils Hydrology Wildlife Resource Planning & Economics Reforestation Tree Improvement Seed Collection Metallic Mine Leases Nonmetallic Mineral Leases Coal Leases Oil & Gas Leases Underground Storage Leases Geothermal Leases Royalty Audits Beds of Navigable Waterways Commercial Dev. Land Banking Special Leases Secondary Licenses Easements & Right-of- way Recreational Use Exchanges Land Sales Bed of Navigable Waterways

6. Total Acreage University Trusts FY 2007

7. Net Net Distributable Nondistributable Beneficiaries Revenue Revenue University of Montana 221,675 2,471 MSU - Morrill Grant 589,337 52,613 MSU - Second Grant 1,287,709 298,680 Montana Tech 972,927 15,679 State Normal School 621,784 9,589 Total $3,693,432 $379,032

8. ActivityFY2006FY2007 Agriculture & Grazing Management Grazing Leases$306,865$345,962 Agriculture Leases292,439301,953 Recreational Use58,52546,987 Forest Management Timber Sales$1,021,531$723,904 Forest Improvement Fees509,01162,028 Minerals Management Oil & Gas Revenues252,725155,535 Aggregate Minerals and Other33,41310,915 Real Estate Management1,381,3031,347,824 Other Trust and Legacy Interest and Other$1,421,503$1,537,729 TOTALS$5,277,315$4,532,837

9. GrazingAgTotalWheatBarleyHayCRP GrantRevenue Bushels TonsAUMsAcres University of Montana$28,084$57,863$85,94735,0053612023,443124.6 MSU - Morrill Grant117,88046,237164,11723,020 15915,365155.4 MSU - Second Grant20,0432,26122,304660 312,523 Montana Tech80,504134,698215,20270,8021,6941,1419,822352.6 State Normal School99,45160,894160,34534,4971,40031712,950530.0 TOTAL$345,962$301,953$647,915163,9843,4551,85044,1031,162.6 University System FY 2007 Revenues and Production

11. Average Price per Bushel FY 2004 – FY 2008

13. MSU StateMontanaUniv of RevenueSecondMorrillNormalTech MontanaTotal Oil & Gas Leases $21,558$7,722$14,629$5,693$49,602 Non-drilling Penalties 20,1642,55218,9052,29043,911 Mineral LULs120 390 510 Gas Royalties 44,2074,549 48,756 Sand & Gravel Royalties1,4602,513 5,0236599,655 Oil & Gas Bonus Payments 7,1763,210 2,88013,266 In Lieu of Exploration250 500 750 Total$1,830$95,618$18,923$38,557$11,522$166,450 Mineral Revenues by Trust and Activity for FY 2007

16. TrustFY 2005FY 2006FY 2007 University of Montana$20$110$620 MSU - Morrill Grant118,5611,327104,649 MSU - Second Grant1,050,918658,738560,577 Montana Tech101,93256,35813,544 State Normal School728,568304,99844,513 Total$1,999,999$1,021,531$723,903 Timber Revenues FY 2005 – FY 2007

17. TrustFY 2006FY 2007 University of Montana5.004.50 MSU - Morrill Grant56.88266.00 MSU - Second Grant139.002,656.00 Montana Tech360.0654.00 State Normal School139.00173.00 Total699.943,153.50 Timber Volume (mbf) Harvested by Trust for FY 2007

18. Real Estate Management Revenue by Grant FY 2007 GrantLeases/LicensesEasementsTotal University of Montana$32,642$2,183$34,825 MSU - Morrill Grant31,0165,89336,909 MSU - Second Grant450,629341,602792,231 Montana Tech419,12413,007432,131 State Normal School45,2506,47851,728 Total$978,661$369,163$1,347,824

19. TrustFY 2007 University of Montana1 MSU - Morrill Grant2 MSU - Second Grant197 Montana Tech107 State Normal School16 Total323 RESIDENTIAL LEASES BY TRUST