When the state board of land commissioners ascertain that what would be, if surveyed, sections 16 and 36, or any part or parts thereof, granted to the state, fall upon any lake or navigable river and that the quantity of land intended to be conveyed as sections 16 and 36 is lost to the state thereby, it shall be the duty of said board to apply to the secretary of the interior for permission to select indemnity lands in lieu of the loss in quantity so sustained by the state.
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