27-670. Lease of state lands; application; call for bids; publication; withdrawal of lands from leasing

A. Applications for leases shall be in writing addressed to the department and shall contain a description of the lands sufficient to identify them, the name and address of the applicant and shall be accompanied by a filing fee of twenty-five dollars. Each application shall be stamped when received by the department with a stamp showing the day and hour when received.

B. Before offering any state lands for lease the department shall determine the tract or tracts into which the lands shall be divided for leasing purposes. All tracts shall be in reasonably compact form.

C. Upon receipt of an application to lease any state lands, the department shall offer the tract or tracts for lease to the highest and best bidder. The bidding shall be on the basis of highest first year's bonus to be paid to the department at the time of declaration of the highest and best bidder.

D. The department shall publish a call for bids in the same manner provided for the sale of state lands. On or before December 1 each year, the department shall designate by general order the newspaper at the capital in which the publications shall be made during the following calendar year. The successful bidder shall pay the cost of the publication and the reasonable expenses of the sale.

E. The publication shall contain a description of the land proposed to be leased, the time when the bids will be received, the royalty to be demanded which the department shall fix prior to call for bids and an annual rental to be demanded.

F. The publication shall set forth the form of lease which the successful bidder will be required to execute. In lieu of publishing the form of lease in its entirety the publication may specify the form of lease by designating the form number of the lease on file with the department, copies of which shall be furnished any person on request.

G. Each offer for lease shall reserve the right in the department to reject any and all bids and to again offer the tract or tracts for lease if the bids received are not acceptable to the department.

H. No bid may be accepted unless the bidder, or the bidder's disclosed principal, qualifies under the provisions of section 37-240, subsection B.

I. The department may withdraw from leasing any specific area of land if it appears that the withdrawal is in the interest of this state.

J. The department may refuse to lease any state lands for development of geothermal resources and may refuse to sell geothermal resource leases when such refusal is deemed by the department to be in the best interest of the state.

K. The department shall return all checks accompanying rejected bids.