A. The Commission may offer for sale, sell and execute oil and gas leases, and other mineral and mining leases, on any of the lands of the state under the control and supervision of the Commission, provided, the development of land for the purpose leased shall not unduly interfere with the purpose for which the land is being used by the state. B. The Commission may promulgate additional rules, as are necessary and for the best interest of the state to facilitate the sale of the leases. The Chair of the Commission shall execute the leases for and on behalf of the Commission, and the Chair shall be liable on the official bond for failure to faithfully discharge such duties. The sale of leases shall be made upon the basis of a retained royalty of not less than one-eighth (1/8) of all oil, gas, casinghead gas, and other minerals produced from the lands covered by the leases and any additional cash bonus procured. Provided, however, if the state owns less than one hundred percent (100%) of the oil, gas, casinghead gas and other minerals covered by any such lease, the royalty retained shall not be less than one-eighth (1/8) of the mineral interest. C. All leases shall contain a provision that in the event of the discovery of natural gas, the gas shall be furnished free of charge to any state institution now or hereafter located upon the lands covered by the lease. Leases shall be sold only after advertisement for a period of three (3) weeks in a legal newspaper published and of general circulation in the county in which the lands are located. A sale shall be made to the highest and best bidder and all bids shall be in sealed envelopes which shall be opened and considered at the same time. The Commission may reject any and all bids and readvertise any leases for sale. D. Revenues derived from the sale of oil and gas leases and other mineral leases shall be dedicated to the improvement of state park facilities and property to include, but not limited to, the conservation, protection, and rehabilitation of state parkland, the preservation of historic properties under the jurisdiction of the Commission, and master planning of state park properties.
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