(1) The terms "mineral lands," "mineral," "mineral deposits," "deposit," and "mineral right," as used in this chapter, and amendments thereto shall be construed to mean and include all coal, oil, oil shale, gas, phosphate, sodium, asbestos, gold, silver, lead, zinc, copper, antimony, geothermal resources, salable minerals, and all other mineral lands, minerals or deposits of minerals of whatsoever kind or character. (2) Such deposits in lands belonging to the state are hereby reserved to the state and are reserved from sale except upon a rental and royalty basis and except when the surface estate is identified by the state board of land commissioners as having the potential highest and best use for development purposes, such as residential, commercial or industrial purposes. Except for the aforementioned purposes, the purchaser of all other state land shall acquire no right, title or interest in or to such deposits, and the right of such purchaser shall be subject to the reservation of all mineral deposits and to the conditions and limitations prescribed by law providing for the state and persons authorized by it to prospect for, mine, and remove such deposits and to occupy and use so much of the surface of said land as may be required for all purposes reasonably incident to the mining and removal of such deposits therefrom. (3) An exchange of state land consummated by the board under authority of section 58-138 , Idaho Code, shall not be considered a sale of state lands. The transfers of mineral deposits heretofore made in such exchanges are hereby approved.
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