The notion that this land belongs to the state is incorrect. Upon admission to the Union, Nevada, as were other new states, certain unallocated lands in accordance with the Northwest Ordnance of 1787. Instead of receiving the traditional section from each township, Nevada negotiated to accept a certain acreage of their chosing, all of the rest remained federal property. All of that that has not been disposed of in the intervening years remains the property of the federal government. The Constitution, the law, and precedence all agree on this.
This is a good article that draws on information provided by the Heritage Foundation. The fight should not be some baseless argument over who owns the land, but how the federal government is abusing its authority and manipulating legislation to enact policies that the Congress never intended or authorized.