(1) If a lessee/licensee has not grazed domestic sheep on the state tract at any time during the previous 10 years, and if the lessee/licensee requests a change to domestic sheep, then the department shall prepare a Montana Environmental Protection Act (MEPA) document at the appropriate level of review to examine the environmental impacts. In preparing the document, the department shall consult with the department of fish, wildlife and parks and the lessee/licensee and shall seek comments and interface as necessary with surrounding landowners and any interested public groups to design appropriate measures under the law.

(2) The department may allow grazing of domestic sheep on state lands within or adjacent to officially identified bighorn sheep ranges if bighorns are separated by a protective geographic buffer or if other applicable mitigation measures to minimize contact are negotiated and implemented.