(1) By October 31 of each year, the department will establish a rolling geographic location average lease rate for each geographic location, to be used for the next billing cycle that begins January 1 of the following year. For the purposes of ARM 36.25.1016 through ARM 36.25.1021, two types of geographic locations shall exist in the land area administered by each unit office of the department within the northwest, southwest, and central areas of the department, and the land area administered by each area office within the northeast, southern, and eastern areas of the department:
(a) one geographic location for cabinsites which are adjacent to water such as lakes, rivers, and streams; and
(b) one geographic location for cabinsites which lack access to water such as lakes, rivers, and streams.
(2) A minimum of three winning bids are necessary to establish a rolling geographic location average lease rate. The rolling geographic location average lease rates will be determined as follows:
(a) the department will document the bid amounts for every successful cabinsite that is competitively bid;
(b) the rolling geographic location average lease rate for a given billing cycle will be calculated using the competitive bid amounts from cabinsites in that geographic location for the most recent three calendar years, or as of January 1, 2012, if three years have not yet elapsed from the effective date of these rules; and
(c) the winning bid amount for every cabinsite that is successfully bid will be divided by the most recent appraised value from the DOR for that cabinsite. The resulting rates will then be averaged together by geographic location to determine the geographic location rolling average lease rate for the next billing cycle.