(1) The division may issue grazing leases on state lands under terms and conditions established by rule.

(2) Those terms shall be based on the fair market value of the lease.

(3) No lease may be for a term in excess of 15 years.

(4) The division shall determine the number and kind of stock that may be grazed each year on state land, and regulate the number of days that the land may be grazed.

(5) (a) Upon selecting, exchanging, or otherwise acquiring lands of the United States, the division shall honor all leases, permits, contracts, and terms and conditions of user agreements on United States' lands, including permitted stocking rates, grazing fee levels, access rights, and all existing activities that currently or historically have dictated an understanding of usage between the land user and the federal government. (b) Improvements by the permittee or lessee to the land shall be honored by the state in the acquisition of federal lands.

(a) Upon selecting, exchanging, or otherwise acquiring lands of the United States, the division shall honor all leases, permits, contracts, and terms and conditions of user agreements on United States' lands, including permitted stocking rates, grazing fee levels, access rights, and all existing activities that currently or historically have dictated an understanding of usage between the land user and the federal government.

(b) Improvements by the permittee or lessee to the land shall be honored by the state in the acquisition of federal lands.