A federal plan to buy 56,000 acres of state land inside the Boundary Waters Canoe Area Wilderness saw a small but promising bit of progress recently that could help solve a long-standing land ownership dilemma in the wilderness area.

The U.S. Forest Service, searching for millions of dollars to help it buy some of the state land that was locked up in the BWCA when the federal wilderness area was created in 1978, was invited recently to apply for funds from a federal pool of money derived from offshore oil and gas leases.

The final application isn't due until August, but news of a possible funding source comes amid new progress in talks that go back decades.

"The feeling is that we've got some momentum going here," said Kris Reichenbach, public affairs officer for the Superior National Forest.

The land dispute traces its roots back to 1849, when the U.S. government gave Minnesota the first of some 8.3 million acres to pay for schools. Most of the "school trust land" was eventually sold or leased, but 86,000 acres remain inside the BWCA. It has long been a source of friction between conservationists and those who would like to see logging and mining revenue sent to the state.

Various compromises over the years have included a swap of the school trust lands for federal land elsewhere.

A 2012 proposal to do an acre-for-acre swap passed the U.S. House but never got a vote in the U.S. Senate.

A compromise plan has since emerged that would see roughly a third of the school trust lands swapped for federal land, with the federal government purchasing the remaining two-thirds of BWCA school trust land.

The U.S. Forest Service announced in March that it would pursue a 30,000-acre swap of Superior National Forest land for an equal amount of school trust land.

The proposal drew opposition from conservationists, with some 19,236 people signing a Change.org petition to oppose the swap unless it included a plan to permanently protect the remaining school trust land.

"For us the bottom line is we want to preserve the ecological integrity of the area," said Friends of the Boundary Waters Wilderness spokesman Aaron Klemz. "The Boundary Waters is part of an ecosystem, it's not an island."

The specific parcels to be swapped have not been designated, and could lead to further negotiations. Klemz said the Friends group has identified 6,200 acres of the Superior National Forest that should be protected and excluded from any exchange.

Reichenbach said the U.S. Forest Service has applied for money for the deal from the Land and Water Conservation Fund, a federal pool of money derived from offshore drilling leases. Congress created the fund in 1965.

It's not clear yet if the fund would provide enough money for the purchase of all 56,000 acres or if more money would be needed. The sale would generate money for the state school trust fund.

If the Forest Service wins the funding, it would likely be administered over several years, and the process of buying the land could take three to five years.

DNR Assistant Commissioner Barb Naramore said the combined swap-purchase plan makes sense, but it's still early.

"We are very, very excited about the potential for progress. It's well before the fat lady will be singing on [the sale of land], but it's nice to see at least some positive signs that some federal funding for the sale portion might be forthcoming."

Matt McKinney • 612-673-7329