(a) "Low-potential resource real property" means real property that is located:

(A) Inside an urban growth boundary; or

(B) Within an area zoned for residential use on a lot or parcel that is three acres or smaller in size.

(b) "Owner" means:

(A) The record holder of fee title interest in low-potential resource real property; or

(B) The contract purchaser of low-potential resource real property.

(2) The Department of State Lands is declared to be the state agency acting for the state in any transaction respecting mineral and geothermal resource rights in low-potential resource real property.

(3) The department may not reserve mineral and geothermal resource rights in low-potential resource real property sold or exchanged by the state, unless the department determines that a significant mineral or geothermal resource exists in the low-potential resource real property.

(4)(a) An owner may apply at any time to the department for the release and transfer of mineral and geothermal resource rights in low-potential resource real property that were reserved by the state before June 4, 2013.

(b) Upon application by the owner under this subsection, the department shall release and transfer to the owner the reserved rights to mineral and geothermal resources in low-potential resource real property within 60 days after the department receives the completed application, unless the department determines that a significant mineral or geothermal resource exists in the low-potential resource real property.

(5) The department may not:

(a) Require an owner to obtain an appraisal under this section; or

(b) Require an owner to pay the cost of an appraisal conducted at the request of the department under this section.

(6) The department may charge a reasonable fee, not to exceed $150, to process an application under this section.

(7) The department may adopt rules to implement this section. [2003 c.676 §3; 2013 c.256 §2]