(1) Whenever a part of a parcel of land is to be taken for state highway purposes and the remainder is to be left in such shape or condition as to be of little value to its owner or to give rise to claims or litigation concerning severance or other damage, the department of transportation may acquire by purchase or condemnation the whole parcel; except that the owner of said parcel may, at his option, retain the mineral or gravel interests therein, subject to the right to subsurface support retained by the department of transportation pursuant to section 43-1-209. The owner who retains said mineral or gravel interests shall not disturb the surface of the acquired parcel. The department of transportation may sell or lease the remainder of said parcel or may exchange the same for other property needed for state highway purposes.

(2) The department of transportation may acquire by purchase, exchange, or condemnation excess right-of-way whenever in the opinion of the chief engineer public interest, safety, or convenience will be served by acquiring such excess. In connection with the construction, maintenance, and supervision of the public highways of this state, the department of transportation may also acquire by purchase, exchange, or condemnation strips or parcels of land, or interests therein, adjacent to federal-aid highways necessary for the restoration, preservation, and enhancement of scenic beauty and for the development of rest, recreation, and sanitary areas; but no state funds shall be expended to acquire said strips or parcels of land, or interests therein, necessary for the restoration, preservation, and enhancement of scenic beauty and for the development of rest, recreation, and sanitary areas unless the acquisition and development of land for such purposes is approved by the secretary of transportation to make the state eligible for reimbursement from federal funds.

(3) The department of transportation has the authority to acquire by purchase, exchange, or condemnation rights-of-way for future needs for which rights-of-way have been identified in the current five-year highway program of projects and to lease any lands which are held for state highway purposes and are not presently needed therefor on such terms and conditions as the chief engineer, with the approval of the governor, may fix. When any right-of-way is to be acquired for future needs pursuant to this subsection (3), the department of transportation may obtain possession of such right-of-way pursuant to section 38-1-105 (6)(a), C.R.S., even though construction funds are not available at the time of acquisition, following the approval of an environmental assessment.

(4) All moneys received from sale or rent of lands shall be deposited with the state treasurer to the credit of the state highway fund.

(5) (a) (I) The department of transportation is authorized, subject to approving resolution of the transportation commission, to dispose of any property or interest therein in the manner specified in this section which, in the opinion of the chief engineer, is no longer needed for transportation purposes. Subject to the provisions of this section, any sale or exchange of such property or interest shall be upon the terms and conditions as the commission and chief engineer, with the approval of the governor, may fix. Title to such property shall be transferred by appropriate instruments of conveyance, without warranties, and any moneys received shall be deposited with the state treasurer to the credit of the state highway supplementary fund.

(II) Prior to the disposal of any property or interest therein that the department determines has an approximate value of more than twenty-five thousand dollars, the department shall obtain an appraisal from an appraiser, who is certified as a general appraiser under section 12-61-706, to determine the fair market value of the property or interest.

(III) If the department determines that the property or interest therein is of use only to one abutting owner or, in the case of an easement, to the underlying fee owner, the abutting owner or underlying fee owner shall have first right of refusal to purchase or exchange the property or interest therein upon which disposition is being made at the fair market value.

(IV) (A) If the abutting owner or underlying fee owner refuses to exercise the first right of refusal to purchase or exchange the property or interest therein under subparagraph (III) of this paragraph (a) or if the department determines that such property or interest is of use to more than one owner or potential owner, any political subdivision of this state including but not limited to any state agency, city or town, or county located within the boundaries of the property or interest therein shall have first right of refusal to purchase or exchange such property or interest at the fair market value.

(B) If no political subdivision exercises its right of first refusal to purchase or exchange the property or interest therein pursuant to sub-subparagraph (A) of this subparagraph (IV), the department shall dispose of such property or interest by means of a sale or exchange for not less than its fair market value.

(V) For any property or interest therein subject to disposition that the department determines has an approximate value of twenty-five thousand dollars or less, the department shall dispose of the property or interest by means of a sale or exchange at not less than its fair market value in the manner set forth in this subsection (5); except that, as specified in section 12-61-702 (11)(b)(VI), the department may employ a right-of-way acquisition agent, a real estate appraiser who is licensed or certified pursuant to part 7 of article 61 of title 12, or any other individual who has sufficient understanding of the local real estate market to be qualified to make a waiver valuation to provide an estimate of the fair market value of such property or interest and to determine to whom the property or interest is of use.

(b) (Deleted by amendment, L. 96, p. 1453, § 1, effective June 1, 1996.)

(c) If the department is not able to dispose of the property or interest therein by means of a sale or exchange following a diligent effort for a five-year period, the department shall vacate such property or interest and title to such property or interest shall vest in accordance with the provisions of part 3 of article 2 of this title.

(d) As used in this subsection (5), "exchange" means the transferring of property, including improvements, water rights, land, or interests in land or water rights, by the department to another person in consideration for the transfer to the department of other property, including improvements, water rights, land, or interests in land or water rights, cash, or services or other consideration thereof; except that any cash or services received may not exceed fifty percent of the total value of the consideration. A transaction otherwise qualifying as an exchange shall not be deemed a sale merely because dollar values have been assigned to any property, including improvements, water rights, land, or interests in land or water rights, for the purpose of ensuring that the department will receive adequate compensation.

(6) and (7) Repealed.