The office may grant leases for the continuing maintenance of all lawful encroachments upon state lands upon such terms and conditions established as most beneficial to both the state and lessee, in accordance with law. Owners of noncommercial piers and wharves, Class A and Class B encroachments shall not be subject to lease requirements. Any exempt wharf or pier described hereinabove shall be subject to lease if it is determined to unduly interfere with public navigation and fishery or is part of another encroachment or system of encroachments.
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