Download rtf •641. Commissioners of Land Office Personnel. The Governor, Lieutenant Governor, State Auditor and Inspector, Superintendent of Public Instruction, and the President of the Board of Agriculture, shall constitute the Commissioners of the Land Office, who shall have charge of the sale, rental, disposal, and managing of the school lands and other public lands of the state, and of the funds and proceeds derived therefrom, under the rules and regulations prescribed by the Legislature. Laws 1933, c. 91, p. 162, • 2; Laws 1979, c. 30, • 36, emerg. eff. April 6, 1979. •641.1. Administration of state school lands Powers and duties. In order that the state school lands may be administered in a manner to assure their preservation as well as the appreciation of the trust estate and the maximum return from the use of state school lands for the support and maintenance of the common schools of the state, the Commissioners of the Land Office, as trustees of the state school lands, are hereby authorized and empowered: 1. To categorize the state school lands as agricultural or commercial according to the use which the Commissioners of the Land Office determine from time to time to be most beneficial to the interest of the present and future beneficiaries of the state. In making such a determination, the Commissioners of the Land Office may take into account the potential of such lands in creating job opportunities through development as economic development parks as set forth in Section 11 of this title; 2. To sell, at public auction after appraisement, the surface interest in any state school land categorized by the Commissioners of the Land Office to be excess; and 3. To institute projects to develop and improve those state school lands which are categorized as commercial lands. Provided however, no funds under the control or jurisdiction of the Commissioners shall be spent on such projects unless approved by the Legislature. Added by Laws 1985, c. 196, • 13, emerg. eff. June 26, 1985. Amended by Laws 1986, c. 64, • 1, emerg. eff. April 1, 1986; Laws 1989, c. 173, • 1, operative July 1, 1989. •641.2. Administration of public lands Powers and duties. A. In order that the public lands of this state are administered in a manner to assure that said lands are utilized in such a manner to produce the maximum benefit to the citizens of this state, the Commissioners of the Land Office, as trustees of said public lands, are hereby authorized and empowered to categorize public lands which would be suitable for consideration for development of economic development parks. B. Land owned by political subdivisions of this state or Indian lands located within the state may be nominated to the Commissioners of the Land Office for consideration for development of such economic development parks. If such nominated land was suitable for such development, designation as an economic development park would be contingent upon the sale of such land to the State of Oklahoma. C. When such public land is interspersed with privately owned land, the Commissioners of the Land Office may exchange parcels of public land for parcels of privately owned land which has at least an equivalent value of such public land exchanged for. Added by Laws 1986, c. 64, • 2, emerg. eff. April 1, 1986. Amended by Laws 1989, c. 173, • 5, operative July 1, 1989. •641.3. Trust lands Commercial leases. A. The Commissioners of the Land Office may acquire by exchange, gift, or grant all property necessary for the purposes of utilizing trust lands for the development of commercial leases to maximize trust income. B. The Commissioners of the Land Office may exchange any real property of the trust for any other real property of equal or greater value, in accordance with and under the safeguards of trust requirements and to maximize income. Added by Laws 1989, c. 173, • 2, operative July 1, 1989. Amended by Laws 2004, c. 433, • 1, eff. July 1, 2004. •64-1.4. Public project and programs using federal, state or local funds, nonprofit rural water districts and certain rural water districts - Easements. A. The Commissioners of the Land Office may grant easements to entities with power of eminent domain pursuant to the policies of Section 13 of Title 27 of the Oklahoma Statutes. B. The Commissioners shall, upon written application, grant easements to: 1. Nonprofit rural water districts organized pursuant to Section 863 of Title 18 of the Oklahoma Statutes; 2. Rural water districts organized pursuant to the Rural Water, Sewer, Gas and Solid Waste Management Districts Act; or 3. Rural electric cooperatives organized pursuant to Section 437 of Title 18 of the Oklahoma Statutes, for the purpose of laying a water or power line upon the property. C. Prior to the granting of such easement, an appraisal shall be conducted to determine the fair market value of the easement. The district or cooperative requesting the easement shall petition the District Court in the county in which the easement is located to determine the fair market value of the easement. The court shall appoint three disinterested persons who are residents of that county who shall first take an oath to fairly and impartially appraise the value of the easement. The appraisers shall meet and determine the fair market value of the easement, in writing, and return the same under their signatures to the court. Said appraisal shall show the fair market value of the easement. Appraiser's fees shall be set by the court and charged to the requesting district or cooperative as costs. The district or cooperative shall enclose a certified copy of the appraisal and payment in the amount of the appraised value with its written request for easement to the Commissioners of the Land Office. Except for the amount received for the granting of an easement, no additional fees or other charges shall be assessed by Commissioners of the Land Office for the granting of such easement. D. The granting of easements pursuant to this section shall be timely and shall not exceed sixty (60) days from date that the appraisal is submitted to the district court. E. Easements shall run concurrently with the life of the facilities installed. Added by Laws 1989, c. 173, • 3, operative July 1, 1989. Amended by Laws 1992, c. 244, • 1, eff. Sept. 1, 1992; Laws 1994, c. 339, • 4, emerg. eff. June 8, 1994. •64-1.5. Retention of realtors to secure tenants in commercial leasing trust property. The Commissioners of the Land Office may retain realtors for the purpose of securing tenants in the commercial leasing of trust property. Realtors shall be chosen by a solicitation of proposals on a competitive bid basis pursuant to standards set by the Commissioners. The process of selecting realtors shall be exempt from the Oklahoma Central Purchasing Act. The Commission may pay realtors retained to secure tenants for trust property on a commission basis. Added by Laws 2004, c. 433, • 2, eff. July 1, 2004. •642. Commissioners of Land Office - Secretary - Duties. The Department of the Commissioners of the Land Office shall be administered under the supervision of the Commissioners of the Land Office by the Secretary who shall be appointed by the Governor with the advice and consent of the Commissioners of the Land Office. It shall be the duty of the Secretary to execute, under the supervision of the Commissioners of the Land Office, all laws pertaining to the Department of the Commissioners of the Land Office and to carry into execution the will of the Commissioners of the Land Office not in conflict with such laws. Laws 1935, p. 108, • 1, emerg. eff. May 14, 1935. •643. Commissioners of Land Office - Secretary - Employees. The Land Office shall be administered under the supervision of the Commissioners of the Land Office, by the Secretary of the Commission, who shall be appointed by the Governor. Providing that the Governor of the State of Oklahoma shall be designated as chairman ex officio, and the Commissioners shall elect from their body a vicechairman whose duty it shall be to act as chairman in the absence of the chairman or in case of his failure, neglect, or refusal to act as chairman. The Secretary shall select such employees as may be deemed necessary properly to operate the Land Office under the terms of this act, except the attorneys and appraisers, who shall be selected by a majority of the Commission; provided further, that the Commissioners of the Land Office shall appoint not exceeding seven (7) appraisers to make appraisements for loans provided herein and assist in the collection of loans and interest thereon, and the rents from agricultural and grazing lands belonging to the Department, and such other duties as may be assigned to them by the Secretary of the Commission, who shall direct in each case their services; provided further that the Commissioners of the Land Office shall appoint one Title Examiner and not more than two Assistant Title Examiners to attend to any legal matters which the School Land Commission is charged to administer and enforce, and such other duties as may be assigned to them by the Secretary of the Commission, who shall direct in each case their services. The employees of the Land Office whose duties require them to handle funds, or securities, of the Department, shall be required to give bond in an amount sufficient to protect the Department against loss by reason of their negligence or willful misappropriation of such funds and securities. The Commissioners, by a majority vote, may remove the Secretary or any appraiser, or any attorney, of the Land Office, and the Secretary may discharge and remove any employee, selected by him. Laws 1933, c. 91, p. 168, • 13; Laws 1933, c. 184, p. 406, • 2. •64-4. Repealed by Laws 1941, p. 464, • 7. •64-5. Repealed by Laws 1975, c. 163, • 1, emerg. eff. May 20, 1975. •646. Supervision of division heads. The head of each division in the Department of the Commissioners of the Land Office shall be under the immediate supervision and command, in the administration of their divisions, of the Secretary. Laws 1935, p. 108, • 3, emerg. eff. May 14, 1935. •64-7. Repealed by Laws 1941, p. 466, • 16. •64-8. Repealed by Laws 1941, p. 466, • 16. •649. Employees - Bonds. All employees in the office of the Commissioners of the Land Office whose duties require them to handle funds or securities shall be required to give a bond in an amount sufficient to protect the Department against loss by reason of their negligence or willful misappropriation of such funds and securities. Laws 1935, p. 109, • 6, emerg. eff. May 14, 1935. •6410. Accounting system. It is hereby made the mandatory duty of the Secretary and the Auditor for the Commissioners of the Land Office, to install modern forms and equipment for a system of accounting to properly protect, preserve and account for all transactions made by the Department of the Commissioners of the Land Office; the installation of all forms and equipment shall be under the supervision of the State Banking Department, which shall prescribe all records, forms and equipment to be installed and the Commissioners of the Land Office are hereby authorized and directed to approve such records, forms and equipment as may be prescribed by the State Banking Department. All books, forms and other necessary equipment and supplies for the installation and maintaining a proper system of accounting shall be paid for from the revolving fund for the Commissioners of the Land Office. Laws 1935, p. 109, • 7, emerg. eff. May 14, 1935. •6411. Evaluating public and school lands as sites for economic development parks. For purposes of identifying school and public lands as potential sites for development as economic development parks, such land should be evaluated on the basis of suitability of locating the following types of parks on such land: 1. Regional industrial parks Such parks would provide a network of major industrial sites throughout the state but would be limited to a maximum of twenty such parks. Characteristics to be considered for suitability would include transportation access, industrial and solid waste disposal capabilities, percolation rates of soils, access to water resources, topography, geology and proximity to other regional industrial park sites. 2. Recreational theme parks Such parks would have the potential to attract major private sector investments for such purposes due to factors such as location, uniqueness of setting, traffic patterns and proximity to other recreational attractions. 3. Regional commercial parks Such parks would provide a network of major commercial sites throughout the state. Characteristics to be considered for suitability would include location, traffic patterns and proximity to other regional commercial parks. Added by Laws 1986, c. 64, • 3, emerg. eff. April 1, 1986. •6412. Categorization of school lands Report. A. The Commissioners of the Land Office shall complete the categorization of school lands, as authorized by paragraphs 1 and 3 of Section 1.1 of Title 64 of the Oklahoma Statutes, and of public lands, as authorized by Section 2 of this act, and shall submit a written report by July 1, 1987, to the Speaker of the House of Representatives and the President Pro Tempore of the Senate detailing the categorization of school lands and public lands of this state. B. In order to fulfill the requirements of subsection A of this section, the Commissioners of the Land Office may utilize employees of other state agencies who are specially skilled in evaluating the potential uses of land pursuant to the State Personnel Interchange Program. Added by Laws 1986, c. 64, • 4, emerg. eff. April 1, 1986. •6413. Retention of mineral interests in school and public lands. The Commissioners of the Land Office shall retain all mineral interests to any school lands or public lands which are designated as economic development parks as provided for by law and which are leased for such purposes. Added by Laws 1986, c. 64, • 5, emerg. eff. April 1, 1986. •64-14. Abolition of Depletion, Management and Sale Fund - Transfer and deposit of balance. A. The Depletion, Management and Sale Fund is hereby abolished. B. All unencumbered balances contained in the Depletion, Management and Sale Fund as of July 1, 1992, shall be deposited to the credit of the Commissioners of the Land Office Fund. The Director of State Finance shall be authorized to transfer the unencumbered balance described by this subsection to the Commissioners of the Land Office Fund. C. Any unexpended balance contained in the Depletion, Management and Sale Fund as of November 15, 1992, shall be transferred and deposited to the credit of the Commissioners of the Land Office Fund. The Director of State Finance shall be authorized to transfer the unexpended balance described by this subsection to the Commissioners of the Land Office Fund. Added by Laws 1992, c. 324, • 1, eff. July 1, 1992. •64-15. Commissioners of the Land Office Fund - Deposit of funds - Use of funds. A. There is hereby created in the State Treasury a fund to be designated the Commissioners of the Land Office Fund. The fund shall be subject to legislative appropriations and certification by the Board of Equalization. The fund shall consist of revenues deposited to the fund pursuant to subsection B of this section and other revenues deposited to the fund by law. The fund shall be a continuing fund, not subject to fiscal year limitations. B. Beginning July 1, 1992, the Commissioners of the Land Office shall deposit six percent (6%) of the revenue generated from the Common School Fund, the Education Institutions Fund, the University of Oklahoma Fund, the University Preparatory School Fund, the Oklahoma State University Fund, the Normal Schools Fund, the Langston University Fund, the Public Building Fund, and the Greer 33 Fund to the credit of the Commissioners of the Land Office Fund. C. Funds in the Commissioners of the Land Office Fund shall be used exclusively for carrying out the duties of the Commissioners of the Land Office as the law may prescribe. Added by Laws 1992, c. 324, • 2, eff. July 1, 1992. Amended by Laws 1997, c. 118, • 1, eff. July 1, 1997. •64-16. Employee real estate appraiser license - Payment of fee. The Commissioners of the Land Office shall be responsible for and pay the fee for obtaining a real estate appraiser license for any employee who is required to obtain such license to perform job duties. Added by Laws 2003, c. 205, • 3, eff. July 1, 2003. •64-31. Repealed by Laws 1941, p. 464, • 4. •64-31a. Repealed by Laws 1941, p. 467, • 18. •64-31b. Repealed by Laws 1975, c. 163, • 1, emerg. eff. May 20, 1975. •64-32. Repealed by Laws 1941, p. 464, • 4. •64-33. Repealed by Laws 1941, p. 464, • 4. •64-34. Repealed by Laws 1941, p. 464, • 4. •6441. Revolving fund created Payments into fund Payments from fund. There is hereby created a revolving fund for the Department of the Commissioners of the Land Office, into which fund shall be paid by the Secretary to the Commissioners of the Land Office all fees that may be collected by the Commissioners of the Land Office, from which shall be made the payment for all books, forms, and other necessary equipment and supplies for the installation and maintenance of a modern system of accounting; provided however, no patented accounting system wherein copyrighted or patented forms or books are used shall be bought, installed, or used, and from which fund shall also be paid the expense of all necessary printing, foreclosure abstracts, and other expenses incidental to foreclosure and the acceptance of warranty deeds, and from which fund shall also be paid necessary communication and traveling expenses incurred by the employees of the Department of the Commissioners of the Land Office. Provided further, that the Commissioners of the Land Office are also authorized to incur out of said revolving fund any expenses of the Land Office for personal services, including old-age and survivor insurance, operating expenses and the purchase of equipment necessary to carry out the function of the Land Office. The Commissioners of the Land Office are prohibited from expending any funds for rental, lease, or use of any building, office, or space. Laws 1935, p. 109, • 8, emerg. eff. May 14, 1935; Laws 1937, p. 125, • 1, emerg. eff. March 29, 1937; Laws 1961, p. 490, • 1, emerg. eff. July 12, 1961; Laws 1961, p. 649, • 4, emerg. eff. July 31, 1961; Laws 1989, c. 353, • 14, emerg. eff. June 3, 1989. •64-42. Repealed by Laws 1941, p. 465, • 11. •6443. Fees. The Commissioners of the Land Office, by formal resolution adopted by a majority vote of the members of said Commission, shall fix a schedule of fees to be charged for services rendered by the Department and except as otherwise provided by law, said fees shall be collected and deposited in the revolving fund for the Department of the Commissioners of the Land Office. Transfer of all fees earned and collected each month shall be made on or before the tenth day of the succeeding month. Laws 1935, p. 109, • 9, emerg. eff. May 14, 1935. •64-44. Repealed by Laws 1941, p. 464, • 6. •64-51. Investment of permanent school funds and other educational funds. A. 1. The permanent school funds and other educational funds may be invested in first mortgages upon good and improved farm lands within the state (and in no case shall more than fifty percent (50%) of the reasonable value of the lands, without improvements, be loaned upon any tract). 2. Sufficient monies shall be kept on hand at all times by the Commissioners of the Land Office to close all approved applications for first mortgage loans, as may be approved from time to time by the Commissioners of the Land Office. B. 1. The Commissioners of the Land Office shall be responsible for the investment of the permanent school funds, other educational funds and public building funds solely in the best interests of the beneficiaries. The Commissioners of the Land Office shall make such investments: a. for the exclusive purpose of: (1) providing maximum benefits to current and future beneficiaries, and (2) defraying reasonable expenses of administering the trust funds, b. with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in a like enterprise of a like character and with like aims would use, and c. by diversifying the investments of the trust funds so as to minimize the risk of large losses. 2. The permanent school fund and other educational funds may only be invested in bonds issued in the United States and United States dollar denominated or other investments settled in United States dollars or traded on the United States exchange markets. Until July 1, 2001, the Commissioners of the Land Office shall not invest more than fifty percent (50%) of the permanent common school fund, other educational funds and public building funds in equity securities. On and after July 1, 2001, the investment in equity securities may be increased by five percent (5%) each year until the investment in equity securities reaches a maximum of sixty percent (60%). 3. The Commissioners shall establish an investment committee. The investment committee shall be composed of not more than three (3) members of the Commissioners of the Land Office or their designee. The committee shall make recommendations to the Commissioners of the Land Office on all matters related to the choice of managers of the assets of the funds, on the establishment of investment and fund management guidelines, and in planning future investment policy. The committee shall have no authority to act on behalf of the Commissioners of the Land Office in any circumstances whatsoever. No recommendations of the committee shall have effect as an action of the Commissioners of the Land Office or take effect without the approval of the Commissioners as provided by law. The Commissioners shall promulgate and adopt on an annual basis an investment plan. The investment plan shall state the criteria for selecting investment managers, the allocation of assets among investment managers, and established standards of investment and fund management. 4. The Commissioners shall retain qualified investment managers to provide for investment of the fund monies pursuant to the investment plan. Investment managers shall be chosen by a solicitation of proposals on a competitive bid basis pursuant to standards set by the Commissioners. Subject to the investment plan, each investment manager shall have full discretion in the management of the funds allocated to said investment managers. The funds allocated to investment managers shall be actively managed by them, which may include selling investments and realizing losses if such action is considered advantageous to longer term return maximization. Because of the total return objective, no distinction shall be made for management and performance evaluation purposes between realized and unrealized capital gains and losses. 5. The Commissioners shall take such measures as they deem appropriate to safeguard custody of securities and other assets of the Trusts. 6. By August 1 of each year, the Commissioners shall develop a written investment plan for the trust funds. 7. The Commissioners shall compile a quarterly financial report showing the performance of all the combined funds under their control on a fiscal year basis. The report shall contain a list of all investments made by the Commissioners and a list of any commissions, fees or payments made for services regarding such investments for that reporting period. The report shall be based on market values and shall be compiled pursuant to uniform reporting standards prescribed by the Oklahoma State Pension Commission for all state retirement systems. The report shall be distributed to the Oklahoma State Pension Commission, the Cash Management and Investment Oversight Commission, and the Legislative Service Bureau. 8. Before October 1 of each year, the Commissioners shall publish an annual report of all Trust operations, presented in a simple and easily understood manner to the extent possible. The report shall be submitted to the Governor, the Speaker of the House of Representatives, the President Pro Tempore of the Senate, the State Department of Education and each higher education beneficiary. The annual report shall cover the operation of the Trusts during the past fiscal year, including income, disbursements and the financial condition of the Trusts at the end of each fiscal year on a cash basis. The annual report shall also contain a summary of each Trust's assets and current market value as of the report date. 9. The Cash Management and Investment Oversight Commission shall review reports prepared by the Commissioners of the Land Office pursuant to this subsection and shall make such recommendations regarding the investment strategies and practices, the development of internal auditing procedures and practices and such other matters as determined necessary and applicable. 10. The Commissioners of the Land Office shall select one custodial bank to settle transactions involving the investment of the funds under the control of the Commissioners of the Land Office. The Commissioners of the Land Office shall review the performance of the custodial bank at least once every year. The Commissioners of the Land Office shall require a written competitive bid every five (5) years. The custodial bank shall have a minimum of Five Hundred Million Dollars ($500,000,000.00) in assets to be eligible for selection. Any out-of-state custodial bank shall have a service agent in the State of Oklahoma so that service of summons or legal notice may be had on such designated agent as is now or may hereafter be provided by law. In order to be eligible for selection, the custodial bank shall allow electronic access to all transaction and portfolio reports maintained by the custodial bank involving the investment of state funds under control of the Commissioners of the Land Office and to the Cash Management and Investment Oversight Commission. The requirement for electronic access shall be incorporated into any contract between the Commissioners of the Land Office and the custodial bank. Neither the Commissioners of the Land Office nor the custodial bank shall permit any of the funds under the control of the Commissioners of the Land Office or any of the documents, instruments, securities or other evidence of a right to be paid money to be located in any place other than within a jurisdiction or territory under the control or regulatory power of the United States government. Added by Laws 1963, c. 90, • 1, emerg. eff. May 22, 1963. Amended by Laws 1968, c. 308, • 1, emerg. eff. May 7, 1968; Laws 1969, c. 186, • 1, emerg. eff. April 17, 1969; Laws 1986, c. 64, • 6, emerg. eff. April 1, 1986; Laws 1987, c. 21, • 1, emerg. eff. April 14, 1987; Laws 1994, c. 347, • 1, eff. Sept. 1, 1995; Laws 1995, c. 26, • 1, eff. Nov. 1, 1995; Laws 1995, c. 212, • 3, eff. July 1, 1995; Laws 1999, c. 116, • 1, eff. July 1, 1999; Laws 2001, c. 96, • 1, eff. July 1, 2001. •64-51.1. Investment of permanent school funds in real property owned or acquired by state or Tourism and Recreation Department and under jurisdiction of Tourism and Recreation Commission. A. The Commissioners of the Land Office may invest the permanent school funds in real property owned or acquired by the State of Oklahoma or the Oklahoma Tourism and Recreation Department and under the jurisdiction of the Oklahoma Tourism and Recreation Commission. The Commissioners of the Land Office shall not invest more than three percent (3%) of the total value of the permanent school funds in connection with this investment. B. The Commissioners of the Land Office are authorized to acquire, exchange, and grant any real property under its jurisdiction as is necessary to carry out the investment in the real property. C. The Commissioners of the Land Office may carry out the investment as authorized in this section only if the investment complies with all provisions of the Oklahoma Constitution related to preservation and use of the permanent school fund and with all other trust requirements under law related to investment of the fund. D. Any investment in or acquisition, exchange or grant of any real property by the Commissioners of the Land Office relating to the Texoma State Park, Lake Texoma Lodge or any real property in the area owned by the Oklahoma Tourism and Recreation Department shall be subject to the following provisions: 1. Employees at Texoma State Park and/or Lake Texoma Lodge who have a minimum of two (2) years’ continuous service with the Oklahoma Tourism and Recreation Department at Texoma State Park and/or Lake Texoma Lodge on the date of the facilities’ closure shall have the opportunity to obtain employment with any successor operator of a resort or park facility located on the lands held by the Oklahoma Tourism and Recreation Department on the effective date of this act, provided such employees are qualified and eligible for any such employment. Further, the Oklahoma Tourism and Recreation Department is hereby directed to develop a severance package for all such employees affected by any closure of facilities as provided for in this section; 2. Any investment in or acquisition, exchange or grant of real property authorized by this section shall ensure a fair return to the Oklahoma Tourism and Recreation Department to be distributed as provided for in paragraph 3 of this subsection; 3. All proceeds to the Oklahoma Tourism and Recreation Department from any such investment in or acquisition, exchange or grant of state property in the park shall be reinvested in the Texoma area in projects that enhance the visitor experience or augment the public facilities available to visitors as provided for in Section 1852.3 of Title 74 of the Oklahoma Statutes; 4. Any such investment in or acquisition, exchange or grant of state property must lead to the highest and best use of the property; 5. Existing concessionaires in and around the park shall be consulted and given opportunities to participate in any and all business opportunities and improvements resulting from such investment in or acquisition, exchange or grant of real property. The private investments of existing concessionaires in and around the park shall be given due consideration by any state agency that is a party to any investment in or acquisition, exchange or grant of real property authorized by this act; and 6. Any such investment in or acquisition, exchange or grant of any real property shall include a provision to ensure the Oklahoma Department of Tourism and Recreation grants to the Lake Texoma Association the real property that includes the association’s headquarters and that the association be allowed to remain at its current location. Added by Laws 2004, c. 394, • 1, emerg. eff. June 3, 2004. •64-51.2. Appraisals and determining fair market value. The Commissioners of the Land Office shall utilize the procedures set forth in Section 129.4 of Title 74 of the Oklahoma Statutes that are applicable for purposes of obtaining appraisals and determining fair market value whenever the Commissioners acquire real property from any department, board, commission, institution or agency of this state. For purposes of this section, fair market value shall be either the average or the median of the appraisals, whichever is lower. Added by Laws 2007, c. 190, • 1, eff. July 1, 2007. •6452. Investments in farm mortgages Rules and regulations. Investments of the permanent funds and other educational funds in farm mortgages shall be made under the following rules and regulations: (a) Such investments shall be made in first mortgages upon good and improved farm lands located within the State of Oklahoma, the cash value of which, disregarding all improvements, is at least double the amount of the loan, and the fair rental value of which is equal to the annual payments which are to be made by the borrower, and not to exceed One Hundred Fifty Thousand Dollars ($150,000.00), shall be loaned to any individual or family. (b) Persons to be eligible for a new loan from funds held by the Commissioners of the Land Office shall be citizens of the State of Oklahoma and shall be the owners of legal or equitable title, as determined by the Marketable Record Title Act, to the land offered as security for such loan on the date of filing application for said loan. The provisions of this act shall not prohibit the Commissioners of the Land Office from renewing or increasing existing loans at the current rate of interest in cases where the applicant offers adequate security to justify a renewal. (c) All farm loans made by the Commissioners of the Land Office of the State of Oklahoma from the trust funds under their jurisdiction and control, as otherwise provided by the laws of this state, shall bear interest at the rate of eight and onehalf percent (8 1/2%) per annum, payable annually or semiannually, until paid. All delinquent installments, both principal and interest, shall bear interest at a rate of ten percent (10%) per annum until paid. All such loans shall be paid in the manner and within such period of time as may be required by the Commissioners of the Land Office; provided, the entire amount of any loan shall be paid within a period of not to exceed thirtythree (33) years from the date of the loan. Provided, further, that persons receiving fifty percent (50%) or more of their total annual income from the operation of a farm shall be given preference by the Commissioners in approval of any loans made under the provisions of this act. (d) The Commissioners of the Land Office shall prepare applications for loans, appraisers' reports, notes and mortgages in conformity with these rules and regulations for use in making such loans. No application shall be accepted unless the Commission has funds available for timely closing of such loans. The necessary services incident to the making and closing of loans shall be rendered as nearly as practicable in the order in which applications are filed. (e) No loan shall be made until the applicant furnishes a duly certified abstract of title, showing that he is the owner of title to the security offered, and before any loan is paid out to a borrower a final certificate of the title examiner of the Commissioners shall be made approving the title. Before any loan can be closed, the records held by the loan division must show that state's mortgage is a first and superior lien on the lands described therein and that all prior liens have been subordinated or released of record. All abstracts furnished may be retained and filed in the Department or returned to the borrower when said loan is completed. In case of default and foreclosure the abstract shall be forfeited to and become the property of the School Land Department. (f) When an application for a loan is filed and a deposit made of the required fees, the application shall be referred to an appraiser who shall view and appraise the land and improvements thereon and make his report to the Commissioners, setting forth the value of the security offered, together with his estimate of the annual rental value thereof, and his recommendations as to the necessary steps that should be taken to protect said land from erosion, wastage, and depletion, and such additional information as the Commissioners may require. If the report shows the security to be of sufficient value, said report shall be considered by the Commissioners at their next meeting following the filing of said report, and they shall either approve or reject said application; provided an applicant shall pay a loan fee on the basis of the amount of loan actually disbursed. The Commissioners are hereby given authority to, and shall, before completing any approved application, require the applicant to take any steps found necessary to properly conserve and protect the land from erosion, wastage, or depletion. After the Commissioners approve any application for a loan, the abstract of title shall be presented to the title examiners for examination. The title examiners of the School Land Commission shall recognize and be bound by the title examination standards of the Oklahoma Bar Association, and the applicable curative statutes, in making title examinations for loan purposes. Provided, further, that, in lieu of furnishing a duly certified abstract of title showing that he is the owner of title to the security offered, any such applicant for loan from the Commissioners of the Land Office may furnish, at his cost, mortgage guaranty of title or mortgage title insurance. The instruments of guaranty or insurance shall be on forms approved by the Commissioners of the Land Office and issued by a title insurance company or title guaranty company authorized to transact title guaranty or title insurance business in the State of Oklahoma and approved by the Commissioners of the Land Office. The guarantor or insurer shall be liable to the state for any and all damages or losses of the loan which the state may sustain by reason of any defect or irregularity in the chain of title to the subject land or encumbrance against said land covered by the state's mortgage, unless such defect or irregularity is shown as an exception in the guaranty or policy. All instruments of guaranty or insurance in connection with any loan shall be retained by the Commissioners of the Land Office until such loan is liquidated. The abstracts used to write the title guaranty or insurance shall be retained by the title underwriter until possession thereof is required by the Commissioners of the Land Office. (g) No loans shall be made to any state official, either legislative, executive, or judicial, whether elected or appointed, during his or her term of office or during his or her candidacy for an elective office; provided, that this rule and regulation shall not affect existing loans, nor hereafter to loans made to persons eligible therefor and who are elected after securing said loans. (h) No loan shall be made on a tract of land of less than twenty (20) acres and in no case shall more than an average of Three Hundred Fifty Dollars ($350.00) per acre be loaned, regardless of value. (i) The Commissioners shall permit payment of a loan in part or in whole at any time, provided, the borrower shall have the right at any time to pay all or any part of delinquent payments. The cashier in all cases, upon receipt of any payments of whatever nature, shall issue a receipt to the payer at the time said payment is made. Diligent effort shall be made to collect all matured installments of both interest and principal. When a loan is liquidated, the Commissioners of the Land Office shall issue a release of their mortgage to be filed and recorded in the office of the county clerk, at the expense of the mortgagors. No settlement shall be made by the Commissioners of the Land Office or any employee with any borrower for less than the amount due upon his obligation; provided, that in all cases where the Commissioners have heretofore accepted deeds to land in satisfaction of loans, such transactions are hereby confirmed and title in and to said lands is hereby validated and confirmed. (j) It shall be the duty of the Commissioners of the Land Office to authorize and approve all loans made and see to it that same are made in strict conformity to this act, and to authorize and approve all investments made from funds under their management and control. (k) The duties of the officers comprising the Commissioners of the Land Office when acting as such Commissioners shall be deemed to be a part of the official duties of the several offices to which they are elected and by reason whereof they are members of said Commission. If any Commissioner or employee of the School Land Department knowingly permits, consents to, or participates in any act or transaction which is in violation of these rules, he shall be deemed guilty of a misdemeanor and shall be subject to removal from office, and shall be liable on his bond for any loss occasioned thereby. (1) The terms and provisions of this act providing for making of loans shall not prevent or prohibit the Commissioners of the Land Office from making loans which are approved prior to the date this act becomes effective under the rules and regulations prescribed by the Legislature as existed on the date said loans were approved. Laws 1963, c. 90, • 2, emerg. eff. May 22, 1963; Laws 1965, c. 402, • 1, emerg. eff. July 5, 1965; Laws 1968, c. 308, • 2, emerg. eff. May 7, 1968; Laws 1969, c. 340, • 1; Laws 1974, c. 268, • 2; Laws 1978, c. 255, • 1; Laws 1979, c. 228, • 1, eff. Oct. 1, 1979. •64-53. Repealed by Laws 1937, p. 133, • 13. •64-54. Repealed by Laws 1963, c. 90, • 3, eff. May 22, 1963. •64-55. Repealed by Laws 1963, c. 90, • 3, eff. May 22, 1963. •6456. Lien on crops Release of premises on payment. The Commissioners of the Land Office shall have a first lien on all crops grown on the premises mortgaged to the state to secure the principal and interest installments delinquent at the time of the planting of the crops on said premises. When satisfaction of said delinquent interest and principal payments have been made said premises shall be, by the terms and provisions of this act, automatically released. Laws 1935, p. 112, • 14, emerg. eff. May 14, 1935. •6457. Maturity of installments. All new loans and present loans which may be rewritten by the Commissioners of the Land Office shall be written so as to mature principal and interest installments at the time most suitable for the borrower or owner, in each instance, to meet such installments. Laws 1935, p. 112, • 15, emerg. eff. May 14, 1935. •64-58. Repealed by Laws 1941, p. 295, • 6. •6458.1. Receivership in case of default Payment of costs and expenses. In case of default in payment of any item due on any mortgage contract made with the Commissioners of the Land Office, or upon the failure of the mortgagor or his assigns to comply with any of the terms or conditions of any such mortgage agreement, it shall be the duty of any court of competent jurisdiction, upon verified application made therefor by the Commissioners of the Land Office in any pending foreclosure action, to appoint a receiver to take charge of the real estate covered by the said mortgage, except as to homesteads actually occupied by the fee simple owner thereof, in which latter event the appointment of a receiver shall be discretionary with the court, and said receiver shall be authorized to assume full dominion, possession and control of said premises, pending the final determination of any such foreclosure action as may be instituted by the Commissioners of the Land Office. Out of any funds which may be collected by such receivers, the district court, wherein such foreclosure action is pending, shall direct the receiver to pay all court costs incurred in such foreclosure action, including publication fees, mileage fees incurred by the sheriff actually and necessarily traveled, and docketing fees of the court clerk, premiums on receivers' bonds and the expense of securing such supplemental abstracts as may be required by the necessity of instituting the foreclosure action. Laws 1941, p. 295, • 5, emerg. eff. April 17, 1941; Laws 1979, c. 221, • 15, emerg. eff. May 30, 1979. •6459. Collection of loans Rewriting of delinquent loans Foreclosure Acceptance of warranty deeds. Upon the passage and approval of this act, the Service Department shall take charge of collections on all loans made by the Commissioners of the Land Office; and shall have authority to make collection thereon in accordance with the terms and provisions of such mortgage agreements. The Service Division is hereby authorized to cause the appraisement of the security of all delinquent loans, and to appraise additional securities offered by the borrower or owner, with the view and for the purpose of rewriting said delinquent loans into the form of the twentyyear or thirtythreeyear amortized loan plan as herein provided. In the event a borrower or owner can give a valid first lien to the Commissioners of the Land Office, upon any property, either now securing a loan or offered in addition to the present security thereof, which property upon appraisement is valued at not less than double the amount due on such delinquent loan, then said loan shall be rewritten into the form of the twentyyear or thirtythreeyear amortized loan plan. In the event the borrower or owner does not have adequate security to justify such rewriting of the indebtedness, the Service Division may, and it is hereby authorized to accept both chattel and real estate collateral in consideration of giving a borrower or owner reasonable extensions of time in which to reduce the indebtedness to the point that would justify the rewriting thereof. In cases where the Service Division deems that no redemption is possible, the Commissioners of the Land Office are hereby authorized to cause the immediate foreclosure of such mortgages; provided, however, that in such cases the Commissioners of the Land Office are authorized to accept warranty deeds in settlement of such mortgage indebtedness, unless a foreclosure is necessary to clear the title to the lands securing such indebtedness. Laws 1935, p. 112, • 17, emerg. eff. May 14, 1935. •64-60. Repealed by Laws 1943, p. 153, • 1. •6461. Appraisers Duty - Prohibited activities - Violations. A. The appraiser for the Commissioners of the Land Office shall not appraise any land for loan purposes until after the application for the loan, together with the required fees have been received and filed in the Land Office. It shall be his duty in appraising land to personally inspect and go over each and every subdivision of every tract offered as security for the loan. The appraiser shall not at any time disclose to the applicant his valuation placed upon the land until after his appraisement is filed with the Commissioners of the Land Office. B. No appraiser for the Commissioners of the Land Office shall: 1. Directly or indirectly solicit or accept any compensation, gift, loan, entertainment, favor or service given for the purpose of influencing such appraiser in the discharge of his official duties; 2. Use his official position to solicit or secure special privileges or exemptions for himself or others, except as may be provided by law; 3. Disclose or offer to disclose confidential information acquired by reason of his official position to any person, group or others not entitled to receive such confidential information, nor shall he use such information for his personal gain or benefit; 4. Receive or solicit any compensation that would impair his independence of judgment for his services as an appraiser for the Commissioners of the Land Office, from any source other than the Commissioners, unless otherwise provided by law; or 5. Accept or solicit other employment which would impair his efficiency or independence of judgment in the performance of his public duties. Any appraiser violating this section shall be deemed guilty of a misdemeanor. Laws 1933, c. 187, p. 410, • 2, emerg. eff. July 21, 1933; Laws 1979, c. 228, • 2. •64-62. Repealed by Laws 1970, c. 238, • 1. •6463. Approval of loans. Before any loan shall be finally approved by the Commissioners of the Land Office, they shall have before them the information furnished by the departmental appraiser; but, in no case shall more than fifty percent (50%) of the value of the land as appraised by the appraiser of the Commissioners of the Land Office be loaned thereon. Laws 1933, c. 187, p. 411, • 4, emerg. eff. July 21, 1933; Laws 1943, p. 153, • 2, emerg. eff. April 13, 1941; Laws 1970, c. 238, • 2. •64-64. False statements or affidavits - Perjury. Any person who shall execute or make any sworn statement or affidavit containing false information in connection with any loan to be made from the funds held by the Commissioners of the Land Office shall be guilty of the felony of perjury and, upon conviction thereof, shall be punished by imprisonment in the State Penitentiary for a term not to exceed one (1) year. Added by Laws 1933, c. 187, p. 411, • 5, emerg. eff. July 20, 1933. Amended by Laws 1997, c. 133, • 537, eff. July 1, 1999; Laws 1999, 1st Ex.Sess., c. 5, • 388, eff. July 1, 1999. NOTE: Laws 1998, 1st Ex.Sess., c. 2, • 23 amended the effective date of Laws 1997, c. 133, • 537 from July 1, 1998, to July 1, 1999. •6465. Loans to state officers or employees Collections. In transactions where state officers and/or state employees are delinquent on obligations arising out of a loan of trust funds under the control and management of the Commissioners of the Land Office, the Commissioners of the Land Office shall, without first exhausting their remedy against mortgaged security, be entitled to proceed to require the Director of State Finance to issue them warrants in an amount not greater than twentyfive percent (25%) of the monthly salary, as said salary accrues, of any state officer or state employee who is in arrears with his interest or other obligation to the Commissioners of the Land Office, arising out of a loan of trust funds under the control and management of the Commissioners of the Land Office; the procedure to require such payment shall be as follows, to wit: (a) Upon resolution adopted by the Commissioners of the Land Office, the Secretary to the Commissioners of the Land Office shall file an affidavit with the Director of State Finance showing the amount of delinquent interest, the length of time said interest has been delinquent, or any other delinquency and the length of time any such other delinquency has been in arrears, on any obligation due from any state officer or state employee to the Commissioners of the Land Office arising out of a loan of trust funds under the control and management of the Commissioners of the Land Office. (b) Upon the filing of the affidavit required under subdivision (a) of Section 1 of this act, the Director of State Finance shall cause a notice to be served by registered mail upon the state officer or state employee who is affected by the affidavit of the Secretary to the Commissioners of the Land Office, and shall state in said notice that if the delinquent interest, or other delinquency arising out of a loan of trust funds under the control and management of the Commissioners of the Land Office, is not paid before the first day of the month following service of such notice that twentyfive percent (25%) of all of his or her future monthly salary warrants shall be issued to the Commissioners of the Land Office and credited by the Commissioners of the Land Office upon the account of such defaulting state officer or state employee, until such delinquent interest or other delinquency is satisfied in full. Laws 1933, c. 188, p. 411, • 1, emerg. eff. July 20, 1933; Laws 1979, c. 47, • 67, emerg. eff. April 9, 1979. •6466. Notice Service. The notice by registered mail required under Section 1 of this act shall be served not less than ten (10) days before the first day of the month following such service. Laws 1933, c. 188, p. 412, • 2, emerg. eff. July 20, 1933. •6467. Legal cause against collection. Any state officer or state employee who is affected by the affidavit filed by the Secretary to the Commissioners of the Land Office, shall have the right to show any legal cause to the Director of State Finance as to why twentyfive percent (25%) of all his future monthly salary warrants should not, as they accrue, be applied to the payment or satisfaction of his delinquent interest account or other delinquency due from him or her to the Commissioners of the Land Office, on any obligation arising out of a loan of trust funds under the control and management of the Commissioners of the Land Office, until such time when said delinquent interest or other delinquency is satisfied in full, provided that no exemptions of any nature shall be a defense against payment to the Commissioners of the Land Office. Laws 1933, c. 188, p. 412, • 3, emerg. eff. July 20, 1933; Laws 1979, c. 47, • 68, emerg. eff. April 9, 1979. •6468. Order requiring payment or to show cause for nonpayment. The Director of State Finance shall, on or before the first day of the month following the registered mail notice required under Section 1 of this act, either make an order requiring the payment of twentyfive percent (25%) of the salary, as said salary accrues, of any state officer or state employee to the delinquent interest account or other delinquency owing from such state officer or state employee on any obligation arising out of a loan of trust funds under the control and management of the Commissioners of the Land Office, or shall make an order showing legal cause as to why such payment can not or should not be made. Laws 1933, c. 188, p. 413, • 4, emerg. eff. July 20, 1933; Laws 1979, c. 47, • 69, emerg. eff. April 9, 1979. •6469. Appeal from order Bond required. Upon the filing with the Director of State Finance of a bond equal in amount to the delinquency shown by the affidavit of the Secretary to the Commissioners of the Land Office, to be due from any state officer or state employee who is affected by this act, an appeal shall lie in favor of any party who is aggrieved by the order made by the Director of State Finance to the district court of the county in which the mortgage securing the obligation of such state officer or state employee is recorded. Laws 1933, c. 188, p. 413, • 5, emerg. eff. July 20, 1933; Laws 1979, c. 47, • 70, emerg. eff. April 9, 1979. •6470. Real estate loans to executors, administrators and guardians. The Commissioners of the Land Office of the State of Oklahoma are hereby authorized to make real estate loans to administrators, executors and guardians to the same extent as to individuals, provided all other legal requirements are met where the titles to such real estate are otherwise merchantable. Laws 1937, p. 133, • 1, emerg. eff. April 29, 1937. •6471. Refinancing unpaid balance on certificate of purchase. That the Commissioners of the Land Office of the State of Oklahoma be, and they are hereby authorized and empowered to refinance, through real estate loans out of funds under their management and control, the balance remaining unpaid upon any certificate of purchase covering original grant lands, and any person or individual who is occupying any of such lands as a homestead, or who has been the owner and holder of a valid and enforceable certificate of purchase thereon for a period of one (1) year, shall be eligible to apply for and to receive a loan on such lands, for the purpose of refinancing the balance remaining unpaid of the certificate or certificates of purchase. Any application for a loan, filed under authority herein given, must seek only to refinance the balance due on the certificate or certificates of purchase and shall be governed by the rules, regulations, limitations and restrictions as set out in Article 1, Chapter 28, Session Laws of Oklahoma, 1937, as pertaining to the making of renewal loans. In no event shall any loan be made under the provisions of this act unless the cash value of the lands covered by such certificate or certificates of purchase which are sought to be refinanced, disregarding all improvements, is at least double the amount of the loan granted. No owner and holder of a valid certificate of purchase, otherwise eligible to receive a loan hereunder, shall be disqualified from receiving the benefits of this enactment, because of the fact that he might already have a loan with the Commissioners of the Land Office on deeded land or because of the fact that a sum in excess of Ten Thousand Dollars ($10,000.00) may be required to refinance the balance due on his certificate or certificates of purchase. Under no circumstances shall the Commissioners of the Land Office, acting under authority herein given, authorize or grant a loan in excess of the amount necessary to refinance the balance remaining unpaid on such certificate or certificates of purchase. The limitation that not more than Ten Thousand Dollars ($10,000.00) shall be loaned to any individual or family, as set out in Article 1, Chapter 28, Session Laws of Oklahoma, 1937, shall not apply to any application for loan filed under the provisions of this enactment, and if the value of the land offered as security be sufficient, under the limitation as above set out, the Commissioners of the Land Office at their discretion are authorized to grant a loan in an amount that will be sufficient to refinance the balance remaining unpaid on such certificate or certificates of purchase, even though such amount may be in excess of Ten Thousand Dollars ($10,000.00), provided that any certificate of purchase, even though canceled, but upon which the fouryear period of redemption has not expired, shall be considered as a valid and enforcible certificate, under the provisions of this act. Laws 1941, p. 293, • 1, emerg. eff. Feb. 19, 1941. •6472. Payment - Issuance of patent. In closing any loans that the Commissioners of the Land Office may make, under authority herein granted, the full proceeds thereof shall be paid to the proper fund in the office of the Commissioners of the Land Office in payment of balance remaining unpaid on the certificate or certificates of purchase being refinanced, and thereupon the Commissioners of the Land Office shall issue patent or patents covering the same. Laws 1941, p. 293, • 2, emerg. eff. Feb. 19, 1941. •6473. Lands to which statute inapplicable. The provisions of this enactment shall not apply to any lands acquired by the state through foreclosure proceedings, or by the acceptance of warranty deeds in lieu thereof, and which may have thereafter been sold by the Commissioners of the Land Office under certificates of purchase. Laws 1941, p. 293, • 3, emerg. eff. Feb. 19, 1941. •6474. Making of farm loans on deeded lands not affected. The provisions of this enactment are not intended, in any wise, to amend or repeal any existing statutory regulations of the State of Oklahoma governing the Commissioners of the Land Office in the making of farm loans upon deeded lands, it being the legislative intent herein that this act shall be cumulative and shall apply only to the making of loans upon original grant land which has heretofore been sold by the Commissioners of the Land Office, upon contracts of sale, denominated as certificates of purchase, in order that the holder of such certificates of purchase by refinancing the balance remaining unpaid thereon may secure the benefits of the lower interest rate as now provided for loans made by the Commissioners of the Land Office. Laws 1941, p. 294, • 4, emerg. eff. Feb. 19, 1941. •6475. Patents upon land mortgaged to state. In order to protect the assets of the permanent school funds under their management and control, the Commissioners of the Land Office be, and they are hereby authorized, empowered and directed to proceed to purchase and obtain patents, in the name of the record owner as of March 17, 1930, upon any and all lands covered by unpaid mortgages held by the Commissioners of the Land Office, and located along the 100th degree of West Longitude and formerly claimed by Oklahoma but found to be located in the State of Texas by the Supreme Court of the United States, by decree entered on March 17, 1930 in the case of the State of Oklahoma vs. the State of Texas, United States of America, Intervenor, such purchase to be made by the Commissioners of the Land Office in accordance with, and under the provisions of Article 5330A, Revised Civil Statutes of Texas (Acts 1931, 42nd Legislature, Page 311, Chapter 185) as supplemented by Senate Bill No. 373 as enacted by the regular session of the 46th Legislature of the State of Texas, and in accordance with any rules and regulations as may have been heretofore or as may be hereafter promulgated by the special land board created by said enactments. In purchasing such land and securing such patents the Commissioners of the Land Office are authorized and directed to pay the necessary fees and expenses as provided by the above enactments of the Texas Legislature and by any proclamation of the special land board that may be issued in pursuance thereto, and the Commissioners of the Land Office are authorized and directed to cooperate with said special land board to the end that the mortgage investments of the Commissioners of the Land Office, as secured by mortgages upon lands now found to be located in the State of Texas, may be fully protected. Laws 1941, p. 301, • 1, emerg. eff. Feb. 7, 1941. •6476. Lands to which statute applicable Amount expended added to indebtedness. The provisions of this enactment shall apply to all of such lands as are mentioned and described in Section 1 herein, as may be covered by unpaid mortgages held by the Commissioners of the Land Office, and for which the record owner as of March 17, 1930, his assignee, or successor in title, has failed, neglected and refused, within the time prescribed by the State of Texas, to make application to purchase and secure patent; and any monies expended by the Commissioners of the Land Office under this enactment, in order to purchase and secure any patent, shall be added to and become a part of the total amount of the indebtedness owing the Commissioners of the Land Office and secured by their mortgage lien upon such land so patented. Laws 1941, p. 302, • 2, emerg. eff. Feb. 7, 1941. •6477. Warranty deeds in settlement of indebtedness Foreclosure actions. The Commissioners of the Land Office are hereby authorized and empowered, under the present and existing statutes pertaining thereto, to accept warranty deeds in settlement of their mortgage indebtedness upon any of such lands as may be now located in the State of Texas, after patent thereto has been obtained, and are also authorized to bring and prosecute proper foreclosure action upon any such mortgage indebtedness, in a court of competent jurisdiction of the State of Texas or of the United States of America at the discretion of the Commissioners of the Land Office. Laws 1941, p. 302, • 3, emerg. eff. Feb. 7, 1941. •6478. Lands in Texas - Authority to sell. In view of the inconvenience of handling, managing and renting any lands located in the State of Texas which the Commissioners of the Land Office, acting for and on behalf of the State of Oklahoma, may acquire hereunder, the Commissioners of the Land Office are hereby authorized, empowered and directed to sell and dispose of all of such lands as early as practicable, such sale to be held in accordance with the present statutes of the State of Oklahoma governing the sale of foreclosed lands, with the exception that all such land as may be acquired by the Commissioners of the Land Office hereunder, and located in the State of Texas, when offered for sale and disposed of, shall be sold for cash at the time of sale and without reserving any of the mineral rights unto the State of Oklahoma. Laws 1941, p. 302, • 4, emerg. eff. Feb. 7, 1941. •6479. Acceptance of provisions of Texas statute Purpose of act. In view of the fact that Article 5330A, Revised Civil Statutes of Texas (Acts 1931, 42nd Legislature, Page 311, Chapter 185) as supplemented by Senate Bill No. 373, as enacted by the regular session of the 46th Legislature of the State of Texas, is fair, liberal and generous to all persons and parties interested in the lands located along the 100th degree of West Longitude and formerly claimed by Oklahoma but now found to be in the State of Texas, the State of Oklahoma hereby accepts the provisions of said enactments as adopted by the Legislature of the State of Texas, and this act is passed by the Legislature of the State of Oklahoma for the express purpose of enabling the Commissioners of the Land Office, under the rules and regulations as prescribed in said acts, to protect the mortgage investments of the State of Oklahoma in such lands. Laws 1941, p. 302, • 5, emerg. eff. Feb. 7, 1941. •6480.1. Bonds owned or held by Commissioners of Land Office. All bonds now or hereafter owned or held by the Commissioners of the Land Office by reason of the investment of any funds under their management and control shall be deposited with the State Treasurer by the Secretary of the Commissioners of the Land Office, who shall take from the Treasurer a receipt therefor. Laws 1943, p. 251, • 1, emerg. eff. March 18, 1943. •6480.2. Duties of State Treasurer Liability on official bond of State Treasurer. It shall be the duty of the State Treasurer to safely keep all bonds deposited with him by the Secretary of the Commissioners of the Land Office and, under the direction of the Commissioners of the Land Office, to collect and promptly report to said agency all interest and principal maturing on any such bonds. All money collected by the Treasurer as interest or principal shall be deposited by him in the depository account of the Commissioners of the Land Office for transfer to the proper fund. The official bond of the State Treasurer, as Treasurer and depository for the Commissioners of the Land Office, shall be liable for the faithful performance of the duties imposed upon the Treasurer by the provisions of this act. Laws 1943, p. 251, • 2, emerg. eff. March 18, 1943. •6480.3. School clerk to assist in making application for loan Fee. The clerk of any school board or school district of the State of Oklahoma is hereby authorized to and may at his discretion, aid and assist any applicant for a loan from the funds under the jurisdiction and control of the Commissioners of the Land Office, in filling out an application for such loan; and said clerk may charge the applicant an amount not to exceed One Dollar ($1.00) for services rendered in connection with each application, which fee shall be the property of such clerk, and shall constitute no part of the funds of the school board or school district. Laws 1943, p. 153, • 1, emerg. eff. April 13, 1943. •6480.4. Subscription, oath and certificate. When the clerk of any school board or school district has aided and assisted in filling out an application as authorized by this act the application must be subscribed and sworn to by the applicant before said clerk who shall attach his certificate under the title and seal of his office to that effect and said certificate shall have the same legal force and effect as if made and executed by a notary public. Any clerk who aids and assists in filling out an application for a loan as provided herein is hereby authorized to administer the oath, without additional charge, to the applicant executing such application. Laws 1943, p. 153, • 2, emerg. eff. April 13, 1943. •64-80.5. Repealed by Laws 1963, c. 90, • 3, eff. May 22, 1963. •64-80.6. Repealed by Laws 1963, c. 90, • 3, eff. May 22, 1963. •6481. Collection of rents and royalty payments Other collections. Upon the passage and approval of this act, the Service Division shall take charge of all collections; on all real estate rental agreements, and shall proceed to collect the same according to the terms and provisions of such agreements; on all oil and gas lease rentals which are now delinquent or which may hereafter become delinquent; on all royalty payments delinquent or to hereafter become delinquent under any oil and gas lease agreement or other mineral lease made between the Commissioners of the Land Office and any corporation, association, or individual; and of all other collections of whatsoever nature. Laws 1935, p. 113, • 18, emerg. eff. May 14, 1935. •64-82. Manner of disposal of lands - Collection of deficiency judgments. All lands acquired by foreclosure of mortgages or the acceptance of deeds and all lands heretofore sold under a certificate of purchase contract where said certificate of purchase has been canceled, and all deficiency judgments owned by the Commissioners of the Land Office, shall be disposed of in the following manner. (a) Upon resolution adopted by the Commissioners of the Land Office, any or all lands acquired by foreclosure of mortgage or the acceptance of deeds or lands heretofore sold under certificate of purchase contract, where said certificate of purchase has been canceled, or all land acquired by original grant, except original grant land which can be used for grazing purposes only, may be sold by the Commissioners of the Land Office for cash or on sales contracts to be denominated, "Certificates of Purchase", providing for an initial payment of not less than ten percent (10%) of the total purchase price, at the discretion of the Commissioners, the balance to be paid in not more than forty equal annual payments with deferred payments drawing interest at the rate of three percent (3%) per annum. Notice of the sale of such lands as may be offered for sale shall be published in five consecutive issues in at least one weekly newspaper of general circulation in the county in which such tract or tracts of land are situated. Such notice shall give a brief description of the lands and improvements located thereon and the appraised value of both such lands and improvements, the time, place and terms of sale. Said lands shall be sold to the highest responsible bidder at public auction. No tract shall be sold for less than ninety percent (90%) of the appraised value thereof, and the same shall be appraised prior to sale by three duly authorized appraisers of the Commissioners of the Land Office. In all cases the Commissioners of the Land Office shall have the right to reject any and all bids. Said Commissioners are hereby authorized to pay for the cost of conducting said sales from the proceeds thereof. (b) The state shall have first lien upon all lands sold, together with all improvements and appurtenances thereunto belonging, until all payments, being both principal and interest, are made thereon; and upon such payments being made, the Commissioners of the Land Office shall in forms of law, execute to each purchaser, as in this article provided, a patent in fee simple; provided, that a certificate of purchase reciting the conditions of such purchase shall be issued to every purchaser under this article immediately upon execution of the contract of purchase, and such certificate of purchase shall be entitled to record, as evidence of the same, under the provisions of the law of conveyance. Provided, that it shall be the duty of the tax assessor of each county wherein said lands are situated to place on the tax rolls all lands held under said certificate of purchase; said taxes to be paid by the purchaser named in said certificate of purchase or the assignee of said purchaser. (c) The Commissioners of the Land Office are hereby authorized to subdivide any tract or tracts of land, or to combine any tracts of land, subject to sale under the provisions of this act, when in their discretion it is deemed that such subdivision or combination would induce more purchasers for such sales. (d) The Commissioners of the Land Office shall reserve and retain forever the title to all the oil, gas and other mineral rights in and under all lands to be sold; provided further, that the Commissioners of the Land Office are empowered to join in the execution of any oil, gas or mineral lease on school lands, which have been sold and in which they have retained mineral interest, at their own discretion and without the necessity of advertising as required on state-owned lands. Such reservation is to be set out and included in all certificates of purchase and patents issued to cover lands hereafter sold by the Commissioners of the Land Office. Provided, that the provisions of this section shall not apply to any state-owned lands which the Commissioners of the Land Office may, by resolution duly adopted, find to be suitably situated for townsite developmental purposes. Any such land may be by the Commissioners of the Land Office, platted and sold in separate town lots or in entire tracts at the discretion of the Commissioners, without reservation as to the mineral rights, and patent conveying the full fee simple title may be given the purchaser upon full payment of the purchase price. Provided that the provisions hereof, with reference to the reservation and retention of all or part of the oil, gas and mineral rights in and under state lands, shall not apply to any stateowned lands which may be sold by the Commissioners of the Land Office, at any voluntary sale, to any public or municipal corporation, board, commission, department, agency or instrumentality for the construction, development and operation of any hydroelectric power, flood control, reclamation or irrigation project; for any needful public buildings, or for any other public use or purpose. Provided however, that in the case of any lands being sold without the reservation of any mineral rights thereto, such sale shall be held only upon resolution adopted by a unanimous vote of the Commission, following thirty (30) days' notice in writing to the Governor of the State of Oklahoma, of the meeting of said Commission at which such resolution is to be considered, and any such conveyance shall be made only with the written consent of the Governor endorsed thereon. (e) When the lands, mortgaged to the state as security for a loan, have been acquired through foreclosure proceedings, or by deeds thereto accepted by the Commissioners of the Land Office and sold, the amount for which same is sold shall be applied as follows: Any payment received at the time of the sale and all unpaid balance shall, when and as collected, be apportioned as follows: 1st, the entire balance of the principal of the loan shall be transferred into the fund from which the loan is made; 2nd, interest; 3rd, cost; 4th, fees earned, and the remainder, if any, shall be paid into and become a part of the fund from which the loan was made. (f) Diligent effort shall be made by the Commissioners of the Land Office to collect all deficiency judgments now held by the state or which may hereafter be rendered in favor of the state, and immediately after the passage and approval of this act, and after procuring any deficiency judgment, they shall cause execution to be issued thereon and placed in the hands of the sheriff of the proper county for service. In addition to the return of such execution now required by law, the sheriff shall mail to the Commissioners of the Land Office a duplicate of his return of such execution. (g) From any monies collected upon a deficiency judgment there shall be paid: 1st, any balance of the principal, included therein; 2nd, interest; 3rd, costs; 4th, fees earned, and the remainder, if any, shall be paid into and become a part of the fund from which the loan was made. (h) Upon the death of any judgment debtor, if his estate be administered, the Commissioners shall cause proper claim to be made in the probate court for the amount due the state upon the deficiency judgment against said debtor and any sum collected shall be applied as provided for collections hereinabove. Should all the judgment debtors in any deficiency judgment die without estate, the deficiency judgment shall be charged off and no longer carried as an asset in the department. Such death shall be noted upon the record of judgments in the office and the transaction closed. The same procedure shall be followed in cases where administrations are had and judgment cannot be collected from the estate. (i) When executions are returned, "no property found", or the property of the defendant is exhausted and the balance of the judgment unsatisfied, the judgment may, at the discretion of the Commissioners of the Land Office, be advertised in the county wherein such judgment was obtained, and sold at public outcry to the highest and best bidder for cash. In case of a sale of any such judgment, the Commissioners of the Land Office shall cause notice of such sale, such notice to contain the pertinent facts, to be published in three consecutive issues of a newspaper of general circulation in the county wherein such judgment was obtained, and will be sold, such sale to be held at a specified hour at the front door of the court house in such county. At any such judgment sale, the Commissioners of the Land Office shall reserve the right to reject any and all bids. Any judgment that may be sold hereunder shall be assigned to the purchaser, without recourse, by the Commissioners of the Land Office, and any deficiency existing thereon shall be charged off and no longer carried as an asset of the Department. (j) Rules and regulations governing the sale of any lands to be sold under the terms and provisions of this act, not inconsistent herewith, may be made by the Commissioners of the Land Office. Laws 1935, p. 113, • 19, emerg. eff. May 14, 1935; Laws 1937, p. 128, • 6, emerg. eff. March 29, 1937; Laws 1939, p. 133, • 1; Laws 1999, c. 116, • 2, eff. July 1, 1999. •6482.1. Lien of deficiency judgment Action to determine. The owner of any property which appears to be subject to the lien of a deficiency judgment in favor of the Commissioners of the Land Office may institute an action against the Commissioners of the Land Office in the county where the land is situated to determine whether such deficiency judgment is a lien against such property. Jurisdiction of the Commissioner of the Land Office may be obtained in such an action by service of a summons upon the Secretary of said Commissioners. In such cases it shall be the duty of the Commissioners of the Land Office to cause such action to be defended in their behalf. Laws 1945, p. 249, • 1, emerg. eff. April 28, 1945. •6482.2. Release of deficiency judgments. The Commissioners of the Land Office of the State of Oklahoma are hereby authorized, empowered and directed to release all deficiency judgments obtained by the State of Oklahoma, resulting from the foreclosure and judicial sale of lands encumbered by mortgages, wherein the State of Oklahoma was mortgagee, upon payment by the judgment debtor, or debtors, of the amount of the judgment rendered, less all credits due on said judgment by reason of the judicial sale of the land, plus interest thereon at the rate of five percent (5%) per annum from the date of the aforesaid judgment, provided however the interest shall never exceed the principal and the costs of the action whereby said judgment was obtained, and the amount of attorney's fees provided in the note or mortgage, regardless of whether or not judgment was obtained for interest in excess of five percent (5%). Laws 1953, p. 513, • 1. •6483. Patent on last payment Refinancing with trust funds prohibited. Upon the last payment of principal and interest due under certificates of purchase issued hereunder, the Commissioners of the Land Office shall issue a patent conveying title to the lands covered by such certificates of purchase. The Commissioners of the Land Office are hereby prohibited from refinancing with trust funds under their control and supervision any certificate of purchase issued hereunder. Laws 1935, p. 114, • 20, emerg. eff. May 14, 1935. •6484. Right to make payment at any time. The purchaser of any land sold by the Commissioners of the Land Office of the State of Oklahoma shall have the privilege, at the time of purchase or at any time thereafter, to pay any or all deferred payments, both principal and accrued interest, to the Commissioners of the Land Office of the State of Oklahoma. Laws 1935, p. 115, • 21, emerg. eff. May 14, 1935. •64-85. Repealed by Laws 1941, p. 466, • 15. •6486. Leases of nonpreference right lands Preference right leases Payment for improvements. Nonpreference right lease lands may be leased by the Commissioners of the Land Office for a period not to exceed five (5) years. In the event it becomes necessary to repair existing improvements or construct additional or new improvements on nonpreference right lease lands in order to obtain more desirable tenants the Commissioners of the Land Office may, in their discretion, grant a preference right lease on such lands in favor of the tenant who makes such repairs or improvements; provided, however, in all cases, if the nonpreference right lease lands are improved, such tenant shall be required to make payment in cash to the Commissioners of the Land Office for the appraised value of such improvements before a preference right lease can be issued. Laws 1935, p. 115, • 22, emerg. eff. May 14, 1935. •6486.1. Leasing preference right lands. The Commissioners of the Land Office when leasing or releasing preference right lands shall charge and collect therefor an annual rental equal to three percent (3%) of the fair cash market value thereof, exclusive of improvements, as determined and fixed by the appraisal of such lands under the provisions of Section 86, Title 64, Oklahoma Statutes, 1951, provided that the Commissioners of the Land Office may, whenever the market value of the land is greater than its market value for the purpose for which it is being leased, charge and collect an annual rental of not less than three percent (3%) of the value of the land for the purpose to which it is or may be devoted under the terms of the lease. Every lease shall specify and limit the purpose for which the land shall be used, and no improvements or structures not necessary for the use of such land for agricultural or grazing purposes shall be placed thereon. No lease authorizing the use of such land for purposes other than agriculture and grazing shall operate to ratify the previous action of any lessee who may have erected structures and improvements for purposes other than agriculture and grazing, and no such lease shall extend for a term of more than two (2) years. Laws 1943, p. 153, • 1, emerg. eff. April 13, 1943. •64-87. Repealed by Laws 1941, p. 300, • 2. •64-87a. Repealed by Laws 1992, c. 324, • 28, eff. July 1, 1992. •64-87b. Repealed by Laws 1992, c. 324, • 28, eff. July 1, 1992. •6487c. Division of Examinations and Inspections Expenses Audit of accounts Special audit report Investigation and reports by State Auditor and Inspector. Out of the Commissioners of the Land Office Fund, as established by this act within the definition of "management" of the rentals, leases, recoveries, commitments, profits, and controls of properties, funds, and accounts of the Common School Fund and Public Building Fund as accomplished by the agents and agencies of the Commissioners of the Land Offices in compliance with the rules, regulations, and directives of said Commissioners, and in vitalization of Section 30, Article 10 of the Constitution of the State of Oklahoma, through the State Auditor and Inspector as an independent but State Authority under said Constitution, there is hereby set up and established a Division of Examinations and Inspections within said Fund. The State Auditor and Inspector is hereby authorized, directed and required through his duly authorized deputies to institute and maintain a continuous audit of the accounts of the Commissioners of the Land Office, and in particular with relation to the management of funds, accounts, and properties of the said Commissioners as accomplished by the employees, agents and agencies of said Commissioners in compliance with their rules, regulations and directives, and with statute, and including the accounts of receivers of properties under foreclosure procedure in the district courts of the state brought about by the Commissioners of the Land Office in enforcement of obligations due them. The actual and necessary expenses incurred by the Office of the State Auditor and Inspector in performing said audit shall be paid by the Commissioners of the Land Office from the Commissioners of the Land Office Fund. The State Auditor and Inspector shall inform the Commissioners, by special audit report, on any particular instance they may, by resolution, request; and he shall prepare a consolidated report as to such management and resultant condition, for the biennium ending June 30 preceding each regular legislative session, and file a copy thereof with the Governor, the Speaker of the House, the President of the Senate, and with the Secretary of the Commissioners of the Land Office not later than January 2 of such legislative year, and shall, at the request of either the Senate or House of Representatives, prepare such special report as it may require, within time and means available. For purpose of this subsection, said State Auditor and Inspector is hereby authorized to invoke any of the provisions of Section 215 of Title 74 of the Oklahoma Statutes, not only as to public officers but also as to all persons, firms or corporations who have or have had, within inquiry period, accounts with or in relation to any agent, receiver, or debtor of the Commissioners of the Land Office. Further, if, in any instance the State Auditor and Inspector ascertains that any sum of money is due the state in relation to any tract of land which the Commissioners of the Land Office now own, or have owned, or any sum of money is due from any employee of the Commissioners of the Land Office, or from any receiver appointed by any court after sale of the property over which he was such receiver, then the State Auditor and Inspector shall file a report of such findings in relation thereto, with the Commissioners of the Land Office and the Attorney General, and, where criminal action appears warranted by such disclosures, with the district attorney of such county, and it shall be the immediate duty of the Commissioners of the Land Office, in civil matters, to take immediate action to recover any such sums found to be due, and it shall be the mandatory duty of such district attorney to diligently prosecute such criminal action as may be warranted against any person or persons charged with the wrongful withholding of any such sums. Thereafter, if such action be not instituted within ninety (90) days after the filing of such report, whether by the one or the other, or both, it shall be, and is hereby made, the duty of the Attorney General of the State of Oklahoma to institute forthwith, in the name of the State of Oklahoma, over his own official title, in lieu of those officers theretofore charged with such duty, such action or actions as may be warranted in the premises, and to prosecute diligently the same in his own official capacity and with all the rights, powers and privileges theretofore belonging to the officer or officers first charged with such duties, had the action, whether civil or criminal, been timely brought. The State Auditor and Inspector is further authorized to designate deputies from the Division of Examinations and Inspections as persons with all of the powers and authorities of peace officers of this state with full investigative, arrest, search and seizure power permissible under the laws of this state, to be exercised in the protection of property on, and recovery of property removed from, lands and appurtenances administered by the Commissioners of the Land Office, as provided in this title, such property to include, but not limited to, timber, oil, gravel, sand, minerals of any type and things of any nature beneath or on the surface of said land. Designation of deputies as peace officers shall constitute temporary appointments effective for one (1) year or until the appointee completes the basic police course provided by the Council on Law Enforcement Education and Training as provided in Section 3311 of Title 70 of the Oklahoma Statutes, at which time the appointment shall become permanent. Laws 1947, p. 410, • 1; Laws 1973, c. 141, • 1, emerg. eff. May 10, 1973; Laws 1979, c. 30, • 106, emerg. eff. April 6, 1979; Laws 1987, c. 203, • 21, operative July 1, 1987; Laws 1992, c. 324, • 3, eff. July 1, 1992. •64-87d. Repealed by Laws 1979, c. 30, • 164, emerg. eff. April 6, 1979. •64-87e. Repealed by Laws 1992, c. 324, • 28, eff. July 1, 1992. •64-88. Destruction of timber or improvements - Unlawful entry. Any person who hereafter, without written authority from the Commissioners of the Land Office, cuts timber, injures or destroys improvements, removes anything of value, assumes possession without a lease, or who refuses to surrender possession at the expiration of his lease term, or upon cancellation of a certificate of purchase on stateowned lands, shall be deemed guilty of a felony, and upon conviction thereof shall be punished by a fine of not less than One Hundred Dollars ($100.00), nor more than One Thousand Dollars ($1,000.00), or by imprisonment in the State Penitentiary for not less than one (1) year nor more than five (5) years, or by both such fine and imprisonment. The Commissioners of the Land Office are hereby given authority to issue a writ of ouster, after hearing upon ten (10) days' notice by registered mail to the occupant, over the signature of the Chairman or Vice Chairman and under the Seal of the Secretary, directed to the sheriff to oust and dispossess any such person or persons so unlawfully using or possessing any such stateowned lands. Added by Laws 1935, p. 115, • 24, emerg. eff. May 14, 1935. Amended by Laws 1937, p. 131, • 8, emerg. eff. March 29, 1937; Laws 1997, c. 133, • 538, eff. July 1, 1999; Laws 1999, 1st Ex.Sess., c. 5, • 389, eff. July 1, 1999. NOTE: Laws 1998, 1st Ex.Sess., c. 2, • 23 amended the effective date of Laws 1997, c. 133, • 538 from July 1, 1998, to July 1, 1999. •6489. Preference right leases. Preference right lease lands shall be rented by the Commissioners of the Land Office for terms of five (5) years at an annual rental of four percent (4%) of the appraised value of such lands exclusive of improvements. Provided, however, if in the opinion of the Commissioners of the Land Office, four percent (4%) is too high, then, on proper showing the rental may be reduced to not less than two percent (2%) by the Commissioners of the Land Office. The land departmental appraisement of such lands shall be the basis of rental and including the year 1935, or until said lands be appraised again, which the Commissioners of the Land Office are directed to do during the year 1935, and in no event later than the month of September, 1936. Laws 1935, p. 116, • 25, emerg. eff. May 14, 1935. •6490. Lien on crops to secure rentals. The Commissioners of the Land Office shall have a first lien upon all crops produced on stateowned lands, either preference right or nonpreference right, to secure rentals payable for the use of said lands. Laws 1935, p. 116, • 26, emerg. eff. May 14, 1935. •6491. Reinstatement of contracts and preference right leases. The Commissioners of the Land Office may reinstate any certificate of purchase contract or preference right lease subject to valid intervening interests, upon the request of the holder of any such certificate of purchase or preference right lease and upon payment of all delinquencies due thereon, provided, that all reinstatements herein authorized shall be made within four (4) years from date of the cancellation of such certificate of purchase or preference right lease; provided further, that said lands are still held by the Commissioners of the Land Office. The Administrator or the heirsatlaw of the estate of any holder of a certificate of purchase or preference right lease, whose certificate or lease has been canceled, and who dies during the fouryear period of redemption above specified, shall have the right to redeem such certificate of purchase or preference right lease upon the conditions above set out, at any time within fourteen (14) months from the date of the death of such person who had the right to redeem such certificate or preference right lease. Laws 1935, p. 116, • 27, emerg. eff. May 14, 1935; Laws 1936, Ex. Sess., p. 25, • 2, emerg. eff. Dec. 30, 1936; Laws 1937, p. 131, • 9, emerg. eff. March 29, 1937. •64-92. Sale of oil, gas or mineral leases. The Commissioners of the Land Office are hereby authorized to sell oil and gas or other mineral leases on any of the public lands under their control and supervision whether the same was acquired by federal grant, donation, foreclosure or otherwise. The Commissioners of the Land Office shall publish notice of the lease sale one time not less than thirty (30) days prior to the lease sale date in two newspapers authorized by law to publish legal notices. One of the newspapers shall be published in the county where the land is located or other newspaper as authorized by Section 106 of Title 25 of the Oklahoma Statutes. The other shall be a newspaper of general circulation in this state. The leasing shall require and the advertisement shall specify in each case a fixed royalty to be paid by the successful bidder, in addition to any bonus offered for the lease, and all proceeds from leases shall be covered into the fund to which that shall properly belong, and no transfer or assignment of any lease shall be valid or confer any right in the assignee without the consent of the Commissioners of the Land Office in writing; provided, however, that agricultural lessees in possession of such lands shall be reimbursed by the mining lessees for all damage done to said agricultural lessees' interest therein by reason of such mining operations. The Commissioners of the Land Office have the right to reject any and all bids for such leases. The Commissioners of the Land Office shall provide any other notice of oil and gas lease sales to all interested parties by any means it determines is needed to attract the best competition. Added by Laws 1935, p. 116, • 28, emerg. eff. May 14, 1935. Amended by Laws 2003, c. 205, • 1, eff. July 1, 2003. •6492a. Fee on natural gas sold to state or political subdivision. The Commissioners of the Land Office are hereby authorized to charge a fee on natural gas sold to the state or political subdivisions thereof. Said fee shall be for the purpose of funding the administrative costs of the Commissioners of the Land Office for selling and marketing the gas. For the fiscal year 1990 the total amount charged pursuant to the provisions of this section shall not exceed One Hundred Fortynine Thousand Seven Hundred Fifty Dollars ($149,750.00). Laws 1989, c. 294, • 10, emerg. eff. May 24, 1989. •64-92b. Reservation and retention of oil, gas and other minerals under certain lands. The Commissioners of the Land Office shall reserve and retain one hundred percent (100%) of all oil, gas and other minerals under any school lands designated as grazing lands pursuant to Section 99 of Title 64 of the Oklahoma Statutes, economic development parks pursuant to Section 13 of Title 64 of the Oklahoma Statutes, except as otherwise provided for in this section, lands acquired by deficiency judgements pursuant to Section 82 of Title 64 of the Oklahoma Statutes, lands sold on sales contract denominated as Certificate of Purchase pursuant to Section 96 of Title 64 of the Oklahoma Statutes, or any other designated tracts of land under the jurisdiction or authority of the Commissioners of the Land Office. Except for school land sold for homesites or tracts of nonproducing foreclosed lands, the Commissioners of the Land Office shall reserve and retain one hundred percent (100%) of all oil, gas and other minerals under any designated tract of school land that is sold for any purpose. The Commissioners of the Land Office shall reserve and retain one hundred percent (100%) of all oil, gas and other mineral interest under the jurisdiction or authority of the Commissioners that is located beneath surface acreages not under the jurisdiction or authority of the Commissioners. Except as otherwise provided for in this section, the Commissioners of the Land Office shall not sell any oil, gas or other mineral interest under the authority or jurisdiction of the Commissioners without prior approval of the Oklahoma Legislature. Added by Laws 1999, c. 116, • 3, eff. July 1, 1999. •6493. Appraisal of lands. That the Commissioners of the Land Office are hereby authorized in their discretion to make a new and complete appraisal of such lands acquired by foreclosure of mortgages and the acceptance of warranty deeds, when such appraisal is necessary to carry out the provisions of this act. Such appraisals shall be made by two duly appointed appraisers in order that the following points of information may be ascertained: 1. The present fair value of all such lands. 2. The present value of the improvements thereon. 3. The actual condition of the improvements thereon. 4. The type of soil on each farm, and crops for which it is best adapted. 5. Recommendations of said appraisers as to what should be done to make said farms saleable or to increase their value fairly and economically to the state, and to make them more productive through proper soil conservation practices and improvement methods. The cost of such appraisement, together with other necessary expenses incurred under this act, shall be paid from the funds of the Commissioners of the Land Office now available for the care of these farms and known as the Depletion and Management Fund. Laws 1939, p. 136, • 1, emerg. eff. May 9, 1939. •6494. Sale of lands. That the Commissioners of the Land Office be requested and are hereby authorized by the Legislature to offer for sale and sell all lands acquired by foreclosure of mortgages and by acceptance of warranty deeds under the rules and regulations hereinafter set out. Laws 1939, p. 137, • 2, emerg. eff. May 9, 1939. •6495. Manner of sale. All sales of real property so had, under the provisions of this act shall be made pursuant to notice by publication in a newspaper of general circulation in the county wherein the land lies, such notice shall be published in three successive issues immediately before the date of such sale; which notice shall contain the legal description of each tract to be offered for sale, and the appraised value thereof, and shall advertise that same will be sold at auction to the highest and best bidder at the front door of the courthouse; provided, however, that no tract may be sold for less than ninety percent (90%) of the appraised value, at a date and time fixed therein. The purchaser at such sale shall be required to make a down payment of not less than ten percent (10%) of the total purchase price bid; provided, further, that such purchaser must agree personally to farm and till the soil of the farm purchased under this act for not less than five (5) years following the issuance of the certificate of purchase. (a) All such notices and sales of land shall be conducted on geographical basis of counties. Laws 1939, p. 137, • 3, emerg. eff. May 9, 1939; Laws 1943, p. 156, • 1, emerg. eff. April 13, 1943. •64-96. Sales contract - Certificate of purchase - Terms - Patent. Such land shall be sold by the Commissioners of the Land Office on sales contract, to be denominated Certificate of Purchase, providing for initial payment of at least ten percent (10%) of the total purchase price, or in a greater sum as may be fixed by the Commissioners under the provisions of Section 1 hereof, the balance to be paid over a period of twentyfive (25) years on the amortized plan, with interest at the rate of three percent (3%) per annum, and which provides for the payment of twentyfive equal annual principal and interest installments so as to liquidate such sales contract in full at maturity. Provided, however, that veterans who have been honorably discharged from the Armed Forces of the United States shall be permitted to purchase such land upon a basis of an initial payment of five percent (5%) of the total purchase price, the balance to be paid as above provided. (a) All certificates of purchase issued under this act shall include an agreement by the purchaser that he will follow such suggestions for better agricultural production and soil conservation as may be made by the Soil Conservation Division of the Commissioners of the Land Office. All lands sold upon certificate of purchase under the provisions of this act shall be subject to taxation, and it shall be the duty of the county assessor of each county wherein said lands are situated to place all lands so sold upon the tax rolls, such taxes to be paid by the holder of the certificate of purchase. (b) No certificate of purchase issued under the provisions of this act shall be transferred or assigned for a period of five (5) years after the date of the issuance thereof without the written consent of the Commissioners of the Land Office, except any transfer or assignment that might be caused by inheritance or caused by devise under will or by the laws of descent and distribution. After such fiveyear period, no transfer or assignment of any certificate of purchase shall be valid until the Commissioners of the Land Office approve the same. (c) Upon the full payment of the purchase price of any tract of land sold under the provisions of this act, the Commissioners of the Land Office shall immediately execute and deliver to the purchaser thereof a patent thereto in fee simple; provided, however, the Commissioners of the Land Office shall, in all cases, reserve and retain forever title to all the oil, gas and other mineral rights in and under all lands so sold. Laws 1939, p. 137, • 4, emerg. eff. May 9, 1939; Laws 1943, p. 156, • 2, emerg. eff. April 13, 1943; Laws 1951, p. 181, • 1, emerg. eff. May 26, 1951; Laws 1999, c. 116, • 4, eff. July 1, 1999. •6497. Subdivision or combination of tracts. The Commissioners of the Land Office are hereby authorized to subdivide any tract or tracts of lands, or to combine any tract or tracts of land, subject to appraisement and sale under the provisions of this act, when, in their discretion, it is deemed that such combination of any tract or tracts of land is necessary to provide a farm of sufficient size and fertility to return a livelihood to the purchaser and his family over and above his obligations to the state. Laws 1939, p. 138, • 5, emerg. eff. May 9, 1939. •64-98. Repealed by Laws 1943, p. 159, • 9. •6499. Grazing lands Authorization to sell Retention of mineral rights. The Commissioners of the Land Office of the State of Oklahoma are hereby authorized to sell all lands known or designated as grazing lands under their jurisdiction and control or hereafter coming under their control. All sales shall be made under the rules and regulations and procedures otherwise provided by law for the sale of other lands under their jurisdiction and control; provided, however, that the Commissioners of the Land Office of the State of Oklahoma shall reserve and retain all oil, gas and minerals under said lands. Laws 1963, c. 289, • 1, emerg. eff. June 12, 1963. •64100. Interest rates. The balance of the purchase price of any and all lands sold by the Commissioners of the Land Office after the effective date of this act under sales contract shall bear interest at the rate of seven and onehalf percent (7 1/2%) per annum. All delinquent installments, both principal and interest, shall bear interest at the rate of ten percent (10%) per annum until paid. Laws 1963, c. 289, • 2, emerg. eff. June 12, 1963; Laws 1968, c. 310, • 1, emerg. eff. May 7, 1968; Laws 1969, c. 248, • 1; Laws 1974, c. 268, • 1. •64101. Trust property Commercial, agricultural and mineral leases. A. The Commissioners of the Land Office are authorized to grant commercial leases and agricultural leases in trust property. Commercial leases shall not exceed fiftyfive (55) years. The granting of any commercial lease in excess of three (3) years shall be by public bidding at not less than fair market value. All commercial leases shall provide for fair market value throughout the term of the lease. Agricultural leases of trust property shall be limited to a maximum of five (5) years and shall be by public bidding at not less than fair market value. The granting of any interest in trust property at less than fair market value or not in compliance with this section is void. Any permanent improvement made on commercial trust property from and after the passage of this act shall revert to the trust at the end of the lease. B. In connection with any such leases, the Commissioners of the Land Office shall, unless otherwise exempted by the Constitution or laws of Oklahoma: 1. Require payment of ad valorem property taxes on any improvements and structures on state school land, which would otherwise be subject to ad valorem property taxation if constructed on privately owned land; and 2. Indemnify and hold harmless the Commissioners of the Land Office from any financial obligation related to land, financing or operation. C. The Commissioners of the Land Office shall refuse to accept any bid or lease on a commercial, agricultural or mineral lease where the party placing the bid is in default of any annual installment due or in violation of any provisions contained in a prior lease contract. Added by Laws 1989, c. 173, • 4, operative July 1, 1989. •64-111. Appraisers - Employees - Taking commission. Any appraiser or other employee of the Commissioners of the Land Office who shall either directly or indirectly receive a commission, or take property (either real or personal), or accept a bribe for the recommendation of any loan to be made by the Commissioners of the Land Office, or who shall directly or indirectly receive any part of the proceeds of any loan made by the Commissioners of the Land Office, or who shall willfully place a false estimate of value upon property offered to the Commissioners of the Land Office as security for a loan, with the intent to defraud the state, shall be deemed guilty of a felony, and upon conviction shall be punished by imprisonment in the State Penitentiary not exceeding five (5) years, or by a fine not exceeding Three Thousand Dollars ($3,000.00) and imprisonment in jail not exceeding one (1) year. Added by Laws 1933, c. 186, p. 409, • 1, emerg. eff. July 21, 1933. Amended by Laws 1997, c. 133, • 539, eff. July 1, 1999; Laws 1999, 1st Ex.Sess., c. 5, • 390, eff. July 1, 1999. NOTE: Laws 1998, 1st Ex.Sess., c. 2, • 23 amended the effective date of Laws 1997, c. 133, • 539 from July 1, 1998, to July 1, 1999. •64-112. Offering commissions or bribes - Felony. Any person who shall offer to pay a commission, or to convey property (either real or personal), or to pay any part of the proceeds of any loan made by the Commissioners of the Land Office, or to pay a bribe to any appraiser or other employee of the Commissioners of the Land Office for the making or recommendation of a loan to be made by the Commissioners of the Land Office, shall be deemed guilty of a felony and, upon conviction, shall be punished by imprisonment in the State Penitentiary not exceeding five (5) years, or by a fine not exceeding Three Thousand Dollars ($3,000.00) and imprisonment in jail not exceeding one (1) year. Added by Laws 1933, c. 186, p. 409, • 2, emerg. eff. July 21, 1933. Amended by Laws 1997, c. 133, • 540, eff. July 1, 1999; Laws 1999, 1st Ex.Sess., c. 5, • 391, eff. July 1, 1999. NOTE: Laws 1998, 1st Ex.Sess., c. 2, • 23 amended the effective date of Laws 1997, c. 133, • 540 from July 1, 1998, to July 1, 1999. •64113. Bribes Duty to report Discharge for failure to report. It is hereby made the mandatory duty of any appraiser or other employee of the Commissioners of the Land Office who is offered a bribe, commission, or property (either real or personal), or a part of the proceeds of any loan made by the Commissioners of the Land Office, to report such offer or offers to the proper authorities for prosecution of crimes and to the Commissioners of the Land Office; it is hereby made the mandatory duty of the Commissioners of the Land Office to immediately discharge any appraiser or other employee who fails to make the report required under this section. Laws 1933, c. 186, p. 409, • 3, emerg. eff. July 21, 1933. •64-114. Embezzlement - Discharge upon conviction. The Commissioners of the Land Office shall immediately discharge any employee who shall be convicted of embezzlement of any of the funds or monies of the Land Office. Added by Laws 1933, c. 186, p. 409, • 4, emerg. eff. July 21, 1933. Amended by Laws 1997, c. 133, • 541, eff. July 1, 1999; Laws 1999, 1st Ex.Sess., c. 5, • 392, eff. July 1, 1999; Laws 2002, c. 460, • 37, eff. Nov. 1, 2002. NOTE: Laws 1998, 1st Ex.Sess., c. 2, • 23 amended the effective date of Laws 1997, c. 133, • 541 from July 1, 1998, to July 1, 1999. •64-115. Records - Destroying or forging a felony. Any employee of the Commissioners of the Land Office who shall destroy, forge, falsify, steal, mutilate, hide or intentionally misplace any of the records of the Commissioners of the Land Office, or who permits or causes such destruction, forgery, falsifying, stealing, mutilating, hiding or intentional misplacing of any of such records of the Commissioners of the Land Office, shall be deemed guilty of a felony, and upon conviction shall be punished by imprisonment in the State Penitentiary not exceeding five (5) years and in addition thereto shall be immediately discharged by the Commissioners of the Land Office upon the discovery of such acts. Added by Laws 1933, c. 186, p. 409, • 5, emerg. eff. July 21, 1933. Amended by Laws 1997, c. 133, • 542, eff. July 1, 1999; Laws 1999, 1st Ex.Sess., c. 5, • 393, eff. July 1, 1999. NOTE: Laws 1998, 1st Ex.Sess., c. 2, • 23 amended the effective date of Laws 1997, c. 133, • 542 from July 1, 1998, to July 1, 1999. •64116. Statutes of limitation - Prosecutions. The prosecution for any of the felonies or offenses defined in this act shall not be barred by the statutes of limitations until three (3) years after the discovery of the act. Laws 1933, c. 186, p. 409, • 4, emerg. eff. July 21, 1933. •64121. Books required Manner of keeping. The Commissioners of the Land Office of the State of Oklahoma shall cause to be kept in the office of said Commission the followingstyled books: "Cash Journal", "General Journal" and "General Ledger", said books to be on forms prescribed by the State Auditor and Inspector and said Cash Journal shall be kept daily by the cashier or his assistant. The Cash Journal shall carry a detailed statement of each day's business and shall be divided into two separate classifications to be designated as follows: Cash collections, which must show the amount of all monies received, name of payer, address, purpose and the number given the transaction by the Department, and the fund for which collected. Cash disbursements, which must show the amount of the check issued, name of payee, address, purpose, the number of the transaction given by the Department, and the fund against which said check is drawn; also, the amount deposited with the State Treasurer, together with other information as may be required by the State Auditor and Inspector. The Cash Journal shall be balanced daily. The General Journal shall contain adjusting entries affecting auxiliary books or accounts carried in the General Ledger and transfer entries from said auxiliary books to the General Ledger; and, a detailed statement must be given each entry made therein. The General Ledger is hereby classified as a control book and shall show a brief and concise statement of each account carried therein, and said accounts shall be balanced with the close of each month and said account shall include the total amount of loans outstanding; the amount invested in bonds, and the cash balance which must agree with that balance reflected by the Cash Journal and the balance credited to the Commissioners of the Land Office as shown by the Office of the State Treasurer. No change in the form or method of keeping a record of such collection or disbursement, the General Journal and General Ledger shall be made without the written consent of the State Auditor and Inspector. It is the purpose of this act that every transaction involving the collections and disbursements of the School Land Department shall be made a matter of daily record to be summarized at least once each month or as often as may be required by the Commissioners or the Secretary. Said order or orders so prescribed by the State Auditor and Inspector shall be spread of record in the minutes of the Commissioners of the Land Office. Laws 1933, c. 189, p. 413, • 1, emerg. eff. July 21, 1933; Laws 1979, c. 30, • 107, emerg. eff. April 6, 1979. •64122. Loans and investments - Office number. Each loan and investment, and other transactions, except interdepartmental transactions, made by the School Land Department shall be given an office number. Laws 1933, c. 189, p. 414, • 2, emerg. eff. July 21, 1933. •64-123. Cash Journal - Checks and drafts - Endorsement - Penalty. The Cash Journal shall be balanced daily and the total of each day's receipts shall be deposited with the State Treasurer as now required by the State Depository Law. It shall be the duty of the Commissioners of the Land Office to notify each debtor to make their checks, drafts, or other transfer of monies payable to the order of the Commissioners of the Land Office. No person shall have authority to endorse such checks, drafts or orders for monies unless specifically authorized by a resolution of a majority of the Commissioners. The endorsements on the checks, drafts or other evidence of transfers of monies shall be in the following words: “Pay to the order of the Treasury of the State of Oklahoma, for credit only to the Commissioners of the Land Office”, and shall be signed by the person so designated by the Commissioners of the Land Office for such purpose. No person, firm or corporation shall cash or pay out on any such check, voucher, draft, money order or other evidence of transfers of money, or its equivalent, without said endorsements, and the endorsement of the State Treasurer appearing thereon. Any person, firm or corporation violating this provision shall be guilty of a felony and, upon conviction, shall be punished by a fine of not less than One Hundred Dollars ($100.00) nor more than One Thousand Dollars ($1,000.00), or by imprisonment in the State Penitentiary for a term of not more than three (3) years or both such fine and imprisonment; and shall be civilly liable to the State of Oklahoma, for the use and benefit of the fund which has sustained such loss in double the amount of the check, voucher, money order, draft or other evidence of transfer of money, so cashed or paid. All checks or vouchers drawn against any Special Agency Account by the Commissioners of the Land Office shall be issued only by the principal fiscal officer upon written application of the head of the division of the School Land Department, said check or voucher shall be signed in the name of the Commissioners of the Land Office by the Secretary or in his absence by the Assistant Secretary and shall be countersigned by the principal fiscal officer. The form of check or voucher shall be prescribed by the State Treasurer and shall indicate on its face the purpose for which drawn, the amount and the account to which chargeable; and, no check shall leave the office until protected by some suitable protectograph. The checks shall be issued in triplicate, the original to be given to the payee, the duplicate to be delivered to the head of the division who made application for said check, and the triplicate shall remain in the files in the office of the principal fiscal officer to become a part of the permanent records. Added by Laws 1933, c. 189, p. 414, • 3, emerg. eff. July 21, 1933. Amended by Laws 1979, c. 30, • 108, emerg. eff. April 6, 1979; Laws 1997, c. 133, • 543, eff. July 1, 1999; Laws 1999, 1st Ex.Sess., c. 5, • 394, eff. July 1, 1999. NOTE: Laws 1998, 1st Ex.Sess., c. 2, • 23 amended the effective date of Laws 1997, c. 133, • 543 from July 1, 1998, to July 1, 1999. •64124. Receipts Form. The cashier and/or his assistants shall issue individual receipts for all checks, drafts, money orders and monies, or the equivalent thereof, received by the Department. The form of the receipt shall be prescribed by the State Auditor and Inspector and shall be in triplicate, the original thereof to go to the payer of the monies, the duplicate shall be delivered to the head of the Department for which the funds covered by the receipt were collected, and the triplicate shall remain in the office of the cashier to be made a part of the permanent records. The receipt shall specifically state the purpose for which the monies were received. Laws 1933, c. 189, p. 415, • 4, emerg. eff. July 21, 1933; Laws 1979, c. 30, • 109, emerg. eff. April 6, 1979. •64125. Record books of divisions. It shall be the duty of each and every head of the several divisions of the Department to keep in record book, the forms of which shall be prescribed by the State Auditor and Inspector, a correct record of the business transactions of the division over which he or she has charge. Laws 1933, c. 189, p. 416, • 5, emerg. eff. July 21, 1933; Laws 1979, c. 30, • 110, emerg. eff. April 6, 1979. •64126. Handling of mail Entry on reception record Disposition of checks, drafts and money Earnest money checks. The Secretary to the School Land Commission shall cause all mail received by the Department to be opened by some employee designated by the Secretary in writing, assisted by two other employees not connected with the cashier's office whose duty shall be to examine all incoming mail and make a proper duplicate record of all monies therein received; the original copy to be delivered to the Secretary and the duplicate delivered to the cashier. The entries on such reception record shall be made at the time of the opening of the letters and when completed shall be signed by the maker and witnessed by the employees assisting, who must also sign. All checks, drafts, money orders and monies or the equivalent thereof, together with duplicate reception record, shall be immediately and forthwith delivered to the cashier who shall give his receipt therefor by signing the original copy of the reception record, and shall make proper entries on the record as provided above. No checks, drafts, or vouchers shall be cashed out of any funds held by the Commissioners of the Land Office. The Secretary to the Commissioners of the Land Office and the cashier are charged jointly and severally with the proper keeping and it is hereby made their duty to see that the above and foregoing reception records are correctly kept. The provisions of this section shall not apply to checks tendered as earnest money with sealed bids. Sealed bids shall not be opened until hour and date designated for such bid opening. Checks tendered as earnest money shall not be deposited unless accepted by the Commissioners. Laws 1933, c. 189, p. 416, • 6, emerg. eff. July 21, 1933; Laws 1972, c. 168, • 1, emerg. eff. April 7, 1972. •64127. Mail - Duty of person receiving. Any person receiving mail pertaining to the affairs of the Commissioners of the Land Office shall immediately upon its receipt deliver the same to the Secretary or the proper person designated by him as provided in Section 6. Laws 1933, c. 189, p. 416, • 7, emerg. eff. July 21, 1933. •64128. Double entry set of books. It is the intention and purpose of this act to set up within the School Land Department a double entry set of books which will intercheck with each other and provide an internal check on the transactions of the Department, and the State Auditor and Inspector is hereby required and it is hereby made his mandatory duty to prescribe the proper forms of double entry system of books herein designated, which shall be installed by the Commissioners of the Land Office. Laws 1933, c. 189, p. 416, • 8, emerg. eff. July 21, 1933; Laws 1979, c. 30, • 111, emerg. eff. April 6, 1979. •64129. Auditor of the Commissioners of the Land Office - Duty. It is hereby made the mandatory duty of the Auditor of the Commissioners of the Land Office, whose office is hereinafter created, to present to the Commissioners of the Land Office at their regular meeting a summarized statement of all cash transactions for the period of time beginning at the close of the day prior to the last meeting date and ending at the close of the day next preceding the meeting of the said Commissioners of the Land Office, or any other day's business that the Commission may require. The Auditor shall assist and supervise other employees of the Department in the keeping of all subsidiary or auxiliary books of original entry and shall make all transfers of entries through the General Journal to the General Ledger at the close of each month. When the books of original entries have been posted to the General Ledger at the close of each month, the Auditor is required to balance the General Ledger and submit his report to the Commissioners of the Land Office at their first meeting to be held the following month, showing the status of each and every account carried in the General Ledger. At the close of each fiscal year ending June 30th, said Auditor shall render his report to the Commissioners of the Land Office after the books have been balanced for said fiscal year, showing the total amount of assets and liabilities held by the Department, and showing a revenue statement reflecting all receipts and disbursements together with losses and gains for said fiscal year; also, a statement of analysis of all lands, loans, bonds and coupons, contracts and judgments held by the Department. It shall also be the duty of said Auditor to at least once each fiscal year check or make an audit of the bond and investment registry to be kept by the Commission and compare the transactions shown therein with the cash transactions shown in the Cash Journal to ascertain whether or not the proper amount of monies covering maturity of both interest and principal has been collected and deposited. It shall also be his duty by physical count to compare the bonds and coupons and such other securities, if any, held by the School Land Department with the entries recorded in said bond investment registry; and, shall furnish the Commission a schedule of such bonds and other securities held in the form of an investment showing the fund to which said bonds or securities are credited. Laws 1933, c. 189, p. 416, • 9, emerg. eff. July 21, 1933. •64130. Auditor - Qualifications - Salary. For the purpose of enabling the Commissioners of the Land Office to keep a correct and accurate system of accounting at all times, the Commissioners of the Land Office shall employ an Auditor at a salary not to exceed Three Thousand Six Hundred Dollars ($3,600.00) per annum. Said Auditor must be a competent, qualified and experienced accountant, and must have had special training and experience in either county or state auditing, or be thoroughly familiar with the system of accounting established in state departments. Laws 1933, c. 189, p. 417, • 10, emerg. eff. July 21, 1933; Laws 1937, p. 132, • 11, emerg. eff. March 29, 1937. •64131. Bond - Contents of. The said Auditor shall execute a good and sufficient bond in a sum not less than Ten Thousand Dollars ($10,000.00), signed by some surety company authorized to do business in the State of Oklahoma and to be approved by the Commissioners of the Land Office. Said bond shall be in the name of the State of Oklahoma and for the use and benefit of the Commissioners of the Land Office, an additional bond may be required by the Commissioners of the Land Office as shall be deemed necessary to protect said office against any losses which may be sustained by reason of the negligence or any failure on the part of said auditor to perform any of the duties of his office, and for any misappropriations or misapplication of any funds or securities or thing of value belonging to said Commissioners of the Land Office. Laws 1933, c. 189, p. 417, • 11, emerg. eff. July 21, 1933. •64-132. Failure to comply with act - Punishment. This act shall be strictly complied with and if any official or employee of the Commissioners of the Land Office fails or neglects to comply with the provisions herein, or if any official or employee transacts any business of the Department contrary to the provisions herein, he shall be deemed guilty of a felony and, upon conviction, shall be punished by a fine of not less than One Hundred Dollars ($100.00) nor more than One Thousand Dollars ($1,000.00) and by imprisonment in the State Penitentiary for a term of not less than three (3) years nor more than ten (10) years or by both such fine and imprisonment. Added by Laws 1933, c. 189, p. 418, • 13, emerg. eff. July 21, 1933. Amended by Laws 1997, c. 133, • 544, eff. July 1, 1999; Laws 1999, 1st Ex.Sess., c. 5, • 395, eff. July 1, 1999. NOTE: Laws 1998, 1st Ex.Sess., c. 2, • 23 amended the effective date of Laws 1997, c. 133, • 544 from July 1, 1998, to July 1, 1999. •64151. Acquisition of title by Land Office Removal from tax rolls - Duties of county treasurers. Upon the acquirement of the legal title of any lands by the Commissioners of the Land Office, either by cancellation of the certificate of purchase, foreclosure of mortgage, warranty deeds, or otherwise, the Secretary to the Commissioners of the Land Office shall certify such fact to the county treasurer of the county in which such lands are situated, and upon such certification it shall be the mandatory duty of the county treasurer of such county to remove said lands from the taxable property list, and to strike from the record or make proper notation upon the books and records of such county treasurer that all delinquent taxes assessed and charged against said lands, and all tax certificates and tax deeds based upon such delinquent taxes, are canceled and nullified. Any county treasurer of this state who fails and refuses to comply with the requirements and provisions of such certification by the Secretary, and of this section, shall render himself subject to ouster from office and shall be liable upon his official bond for any damage that may be caused by the state by his neglect and omission. The recordation in the office of the proper county clerk of any sheriff's deed to the State of Oklahoma as grantee or of any warranty deed given to the State of Oklahoma in settlement of mortgage indebtedness, or the cancellation of any certificate of purchase, when certified by the Secretary to the Commissioners of the Land Office to the proper county treasurer, shall ipso facto cancel all delinquent taxes on the real estate involved, and shall likewise cancel all outstanding tax certificates or tax deeds based upon taxes levied subsequent to the recordation of the mortgage to the Commissioners of the Land Office, or subsequent to the issuance of the canceled certificate of purchase by the Commissioners of the Land Office. Laws 1935, p. 116, • 29, emerg. eff. May 14, 1935; Laws 1937, p. 132, • 10, emerg. eff. March 29, 1937. •64-152. Repealed by Laws 1965, c. 418, • 2, eff. July 7, 1965. •64-153. Repealed by Laws 1965, c. 418, • 2, eff. July 7, 1965. •64153.1. Recordation of instruments Fees. All instruments, except mortgages, vesting any right, title or interest in lands or minerals and mineral rights, in the Commissioners of the Land Office, and all instruments to adjust any defect or irregularity in or to remove any cloud on the title to such lands or minerals or mineral rights owned by the state, and all notices and orders issued by the Commissioners of the Land Office and proofs of publication thereof shall be filed and recorded by the proper officers of all counties of the State of Oklahoma at the request of the Commissioners of the Land Office without any filing or recording fee being charged therefor. Laws 1965, c. 418, • 1, emerg. eff. July 7, 1965. •64154. Record of proceedings Approval Certification of validity of proceedings Number of concurring members required. A permanent minute record shall be kept of all proceedings had by the Commissioners of the Land Office. No action of the Commissioners of the Land Office shall be valid unless voted by at least three members. No action heretofore taken, or which may hereafter be taken by the Commissioners of the Land Office, may be rescinded except by a threefifths (3/5) vote of the full membership of the Board of Commissioners of the Land Office. The Commissioners of the Land Office shall approve the minutes of each Board meeting at the next succeeding meeting, and the attorney for the Department shall prior to each Board meeting certify to the validity of the proceedings taken by the Commissioners of the Land Office at their last preceding meeting. Laws 1935, p. 117, • 31, emerg. eff. May 14, 1935; Laws 1976, c. 84, • 1, emerg. eff. May 3, 1976. •64155. Auditor - Duties - Financial statement. It is hereby made the mandatory duty of the Auditor of the Commissioners of the Land Office to submit to the Commissioners of the Land Office at the close of each month, a statement of all assets and liabilities owned by the Department and at the close of each fiscal year ending June 30th, submit a detailed financial statement, together with a schedule of all assets owned and held by the Department. The Secretary shall, not later than the fifth day of each regular session of the Legislature, submit a detailed financial statement to the Governor and to the Legislature for the biennium ending June 30th, preceding such regular session of the Legislature, reflecting all assets and liabilities owned and held by the Department. The Secretary shall, not later than the fifth day of each regular session of the Legislature submit a detailed financial statement to the Governor and to the Legislature for the biennium ending June 30th, preceding each regular session of the Legislature, reflecting all assets and liabilities owned and held by the Department at the close of said period, profits made and losses sustained, together with a detailed schedule of all lands, loans, bonds, and coupons, contracts and judgments owned and held by the Department. Laws 1935, p. 117, • 32, emerg. eff. May 14, 1935. •64156. School Land Department Audit. The accounts and records of the State School Land Department shall be audited annually by an Oklahoma certified public accountant. The audit and the return thereof shall contain a statement of inventory of all property owned by the State School Land Department, together with the appraised value thereof. A commission consisting of the Governor, the President Pro Tempore of the Senate, and the Speaker of the House is hereby authorized to contract for such audits. Copies of the audits shall be filed with the Governor, the Commissioners of the Land Office, the State Senate, and the House of Representatives, in accordance with the requirements set forth for financial statement audits in Section 212A of Title 74 of the Oklahoma Statutes. Added by Laws 1933, c. 91, p. 168, • 12. Amended by Laws 1937, p. 133, • 1, emerg. eff. May 14, 1937; Laws 1996, c. 290, • 11, eff. July 1, 1996. •64-157. False statements or affidavits - Perjury. Any person who shall execute or make any sworn statement or affidavit containing false information in connection with any loan, lease, sale or contract made or to be made by the Commissioners of the Land Office shall be guilty of the felony of perjury and upon conviction thereof in a court of competent jurisdiction shall be punished by a fine not to exceed Three Thousand Dollars ($3,000.00) or by imprisonment in the State Penitentiary not exceeding five (5) years or by both such fine and imprisonment. Added by Laws 1935, p. 117, • 33, emerg. eff. May 14, 1935. Amended by Laws 1997, c. 133, • 545, eff. July 1, 1999; Laws 1999, 1st Ex.Sess., c. 5, • 396, eff. July 1, 1999. NOTE: Laws 1998, 1st Ex.Sess., c. 2, • 23 amended the effective date of Laws 1997, c. 133, • 545 from July 1, 1998, to July 1, 1999. •64158. Construction of act. The provisions of this act are severable, and if any section, part or portion hereof shall be held unconstitutional, void, invalid or inoperative the invalidity of such section, part or portion shall not affect or impair any of the remaining sections, parts or portions thereof. Laws 1935, p. 117, • 34, emerg. eff. May 14, 1935. •64159. Orders of Commissioners How enforced. In all actions wherein an order of the Commissioners of the Land Office shall become final, and thereafter, when said order is certified by the Secretary to the Commissioners, to the sheriff of the county in which the land involved is situated, it shall be the duty of said sheriff to enforce said order in the same manner as orders from the district court are enforced. Laws 191011, c. 44, p. 88, • 3, emerg. eff. March 4, 1911. •64160. Suits. The Commissioners of the Land Office are hereby authorized and empowered to bring or defend suits in the name and on behalf of the State of Oklahoma in all matters affecting the public lands of the state, and in all matters affecting the loaning, investing or collecting of school land and state land monies, of, and belonging to the state; and it shall be the duty of the Attorney General of the state to represent the Commissioners of the Land Office, and the state in the prosecution or defense of any suit or action so instituted, brought or defended; provided, this act shall not abolish the office of Law and Executive Clerk of the Commissioners of the Land Office, which was created by Chapter 211, of the Session Laws of 1919. Laws 191011, c. 44, p. 88, • 4, emerg. eff. March 4, 1911; Laws 1923, c. 27, p. 38, • 1, emerg. eff. March 28, 1923. •64161. Style of act. The style and legal title of this act shall be: Rules for administration and management of the lands, funds and assets held in trust by the Commissioners of the Land Office. Laws 1933, c. 91, p. 162, • 1. •64162. Lands purchased under mortgage foreclosure Report to Governor. The Secretary to the Commissioners of the Land Office shall, at the close of each year, report to the Governor the legal descriptions and the number of acres of all lands purchased by the state under and by reason of mortgage foreclosures, including the amount of the original loan on each of said tracts, the earnings from said lands, and the amount sold for. Laws 1915, c. 93, p. 146, • 6. •64162.1. Checks, warrants or vouchers - Remaining unpaid for 3 years. All checks, vouchers or warrants heretofore or hereafter issued by the Commissioners of the Land Office in payment of any obligation of the state which shall for any cause remain unpaid and outstanding for a period of three (3) years shall be canceled. Where the identity of the account originally charged cannot now be ascertained, the amount of such cancellation shall revert to and be credited to the common school fund of the state. Where the account originally charged can be identified the cancellation shall have the effect of restoring to the account the amount theretofore charged. Laws 1949, p. 437, • 1, emerg. eff. June 2, 1949. •64162.2. Rental, lease or use of any building, office or space authorized. The Commissioners of the Land Office may expend funds for rental, lease, or use of any building, office, or space. Laws 1961, p. 649, • 3; Laws 1970, c. 270, • 1. •64-162.3. Renumbered as • 12 of Title 80. •64-162.4. Renumbered as • 13 of Title 80. •64163. Borrowers Payment of taxes. All borrowers in real estate mortgages made by the Commissioners of the Land Office after the effective date of this act shall be required, by the Commissioners of the Land Office, to pay all real estate taxes upon the lands mortgaged to said department within two (2) years from the date that such taxes may become due, and shall also be required to pay within such time all personal taxes that may be levied and assessed against them within the county where the land covered by such mortgage, is situated. In the event that any such borrower shall become delinquent as much as two (2) years in the payment of such real or personal taxes, then it is hereby made the mandatory duty of the Commissioners of the Land Office to order and direct the foreclosure of such mortgage. Provided that the provisions of this section shall apply only to three percent (3%) amortization loans as may be made by the Commissioners of the Land Office after the effective date of this act. Laws 1941, p. 294, • 1, emerg. eff. April 17, 1941. •64164. Extensions - Not granted unless taxes paid. The Commissioners of the Land Office are hereby prohibited from granting an extension to any borrower upon any three percent (3%) amortization loan upon consideration of an assignment of rents, unless and until such borrower furnishes a certificate from the county treasurer of the county wherein the mortgaged land lies, showing that the real estate taxes assessed against the security of the state, as well as the personal taxes of the borrower, are paid up to the date of granting such extension. Laws 1941, p. 294, • 2, emerg. eff. April 17, 1941. •64165. Report of status of taxes. It is hereby made the duty of all borrowers of the School Land Department, both under three percent (3%) and five percent (5%) loans, to report to the Commissioners of the Land Office before the 15th day of April in each calendar year the status of the taxes upon the lands mortgaged to the School Land Department, and also the status of all personal taxes as may be assessed against any such borrower, and upon all such mortgages wherein the borrower fails to make such report, as required herein, the Commissioners of the Land Office shall request and secure from the various county treasurers of the State of Oklahoma a report covering the conditions of such tax payments, it being the intention of this provision to require the Commissioners of the Land Office to secure current information as to the tax condition affecting each and every tract of land as may be mortgaged to the state, as well as to the personal taxes that may be assessed against each of the state's borrowers. It is hereby made the mandatory duty of the various county treasurers of the state to promptly furnish, without charge, such information and certificate that taxes have been paid, as required herein, upon the request of the Commissioners of the Land Office, or the borrower. Laws 1941, p. 294, • 3, emerg. eff. April 17, 1941. •64166. Certificates of purchase - Payment of taxes. Upon all lands as may be sold by the Commissioners of the Land Office, under certificates of purchase, after the effective date of this act, the purchaser and holder of such certificate of purchase shall likewise be required to keep his real and personal taxes paid within one (1) year from the time that such taxes may become due, and all such certificate of purchase holders shall likewise report to the Commissioners of the Land Office on or before the 15th day of April in each calendar year the status of the taxes upon the land covered by such certificates of purchase, and also the status of all personal taxes as may have been assessed against any such certificate of purchase holder. Upon all such certificates of purchase wherein the holders fail to furnish a certificate of the county treasurer, as required herein, the Commissioners of the Land Office shall request and secure from the various county treasurers of the state of Oklahoma a report covering the status of such taxes, it being the intention by this provision to require the Commissioners of the Land Office to secure current information as to the tax condition affecting each and every tract of land as may be hereafter sold by the Commissioners of the Land Office under certificate of purchase. In the event that any such purchaser shall permit his real estate taxes on the lands covered by his certificate of purchase, or his personal taxes, to become delinquent as much as one year, then it is made the mandatory duty of the Commissioners of the Land Office, after proper notice, as otherwise provided by law, to cancel such certificate of purchase after the effective date of this act. Laws 1941, p. 295, • 4, emerg. eff. April 17, 1941. •64-181. Certain lands to be sold. The Commissioners of the Land Office shall dispose of, sell and convey, subject to the limitations, exceptions, conditions, rules, regulations and instructions, provided by law, except where same is embraced in any reservation specifically reserved from sale for any special purpose, all the following enumerated and described school and public lands of this state: All lands owned by this state, reserved, granted, and taken in lieu of sections numbered sixteen, thirty-six, thirteen and thirty-three and known as indemnity lands: Provided, that when such lands or any part thereof are sold and conveyed, the proceeds derived therefrom shall be prorated among the several funds as their interest may appear, and used as provided by law; also all lands embraced in sections numbered thirty-three in that part of the state formerly known as Oklahoma Territory, and granted to the state for charitable and penal institutions and public buildings: Provided, further, that all the money derived from the sale of any or all of such lands, shall be apportioned and disposed of as may be provided by law; also all lands granted to this state by the United States under and by virtue of Section 12 of the Enabling Act for the following purposes, namely: for the benefit of the Oklahoma University, two hundred fifty thousand (250,000) acres; for the benefit of Oklahoma State University, two hundred fifty thousand (250,000) acres; for the benefit of the University Preparatory School, one hundred fifty thousand (150,000) acres; for the benefit of Langston University, one hundred thousand (100,000) acres; for the benefit of the normal schools now established or hereafter to be established, three hundred thousand (300,000) acres. Provided, that all money derived from the sale of any of such lands shall be invested for the state in trust, and interest thereon shall be used exclusively and as above apportioned in the support and maintenance of such schools. Provided, further, that if any tract, part or parcel of any of the land enumerated and described in this section, was or shall be returned to the Commissioners of the Land Office by a board of appraisers thereof, including those tracts of land embraced in sections numbered thirteen, sixteen and thirty-six, and otherwise herein reserved from sale, that are now platted and occupied and leased directly from the State of Oklahoma for townsite purposes, as being more valuable for townsite than for agricultural purposes, then such tract, part or parcel of such land shall be by the Commissioners of the Land Office reserved from sale and disposed of under the terms of this article: Provided, further, that where any part of any of the above enumerated and described lands are known to be valuable for mineral, including gas or oil, such part of said lands shall not be sold prior to January 1, 1915. R.L. 1910, • 7144. Amended by Laws 1998, c. 246, • 28, eff. Nov. 1, 1998. •64182. Disposition of proceeds. All proceeds of the sale of such land described in the preceding section shall be sacredly preserved for the use and benefit of the several funds, institutions, and purposes for which said land was granted by the United States to the State of Oklahoma, under the provisions of the Enabling Act, and of any other Acts of Congress, and by the Constitution, for the uses and purposes, and upon the conditions and under the limitations for which the same was granted and the money resulting from such sale shall be handled, disposed of and used by the state in like manner as the other monies belonging to the said several funds under the laws of this state. R.L. 1910, • 7145. •64183. Limitations of purchase. No person shall be permitted to purchase more than one quarter section of land under the provisions of this article, except as provided by the terms of the Enabling Act: Provided, however, that the land granted to the state under and by virtue of Section 12, of the Enabling Act, commonly called "new college lands" shall be classified by the Commissioners of the Land Office from the appraisement heretofore made as agricultural and grazing lands. All of said land which has of its surface twelve and onehalf percent (12 1/2%) or more and less than thirtyseven and onehalf percent (37 1/2%) that is tillable, productive and suitable for farming purposes, shall be classified as Class A, and said class of grazing lands shall be sold in tracts not to exceed one section; and all land having less than twelve and onehalf percent (12 1/2%) of its surface that is tillable, productive and suitable for farming purposes, or that is rough, mountainous or barren, shall be classified as Class B, and sold in tracts not to exceed two (2) sections, if in the opinion of the Commissioners of the Land Office it is deemed best and proper. R.L. 1910, • 7146. •64184. Preference right of lessees. Any lessee holding a preference right lease on any of the lands described in the first section of this article, same being Section 33 and indemnity shall have the preference right to purchase all of the lands so leased by him at the highest bid at the time of the sale, or in case of no bid, then to take the same at the appraised value. R.L. 1910, • 7147; Laws 1915, c. 210, • 5, emerg. eff. April 2, 1915. •64185. Record for taxation Tax sales. The Commissioners of the Land Office shall, as soon as possible, after the sale of lands, transmit to the clerk of each county in which any lands mentioned in this article have been sold, a detailed description of each parcel of the land so sold and the names of the purchaser, and the clerk shall extend the same upon the tax rolls for the purpose of taxation, and the same shall thereupon become subject to taxation the same as other lands and the taxes assessed thereon collected and enforced in like manner as against other lands: Provided, however, that the purchaser, at a tax sale of any such lands sold for delinquent taxes shall acquire, by virtue of such purchase only such rights and interest as belong to the holder and owner of the certificate of sale issued by the Commissioners of the Land Office under the provisions of this article and the right to be substituted in the place of the holder and owner of such certificate of sale as the assignee thereof; and upon a production to the proper officer of a tax certificate given upon such tax sale, in case such lands have been redeemed, such tax purchaser shall have the right to make any payment of principal or interest then in default upon such certificate of sale as the assignee thereof. But no tax deed shall be issued upon any tax certificate procured under the provisions of this article, while legal title of said lands remains in the State of Oklahoma. R.L. 1910, • 7148. •64186. Cancellation of certificate Redemption. Whenever a certificate for the sale of any of said lands has been canceled, it shall be the duty of the Commissioners of the Land Office to notify the clerk of the county in which such lands are located of said cancellation and thereafter such lands shall not be listed for taxation but in the event of the redemption of any such lands the party making such redemption shall pay as taxes and in addition to all other charges an amount equal to the taxes last levied thereon for each year such land was not listed for taxation, together with such interest and penalty as would have been charged if the same had been regularly listed and taxed. R.L. 1910, • 7149. •64187. Lien Certificate of purchase Patents Interest on deferred payments. The state shall have first lien upon all lands sold, together with all improvements and appurtenances thereunto belonging, until all payments, both principal and interest are made thereon; and upon such payments being made, the Commissioners of the Land Office shall in forms of law execute to each purchaser, as in this article provided, a patent in fee simple; provided, that a certificate of purchase reciting the conditions of such purchase shall be issued to every purchaser under this article immediately upon execution of the contract of purchase, and such certificate of purchase shall be entitled to record, as evidence of the same, under the provisions of the law of conveyance. Provided that it shall be the duty of the tax assessor of each county wherein said lands are situated to place on the tax rolls all lands held under said certificate of purchase; said taxes to be paid by the purchaser named in said certificate of purchase or said purchaser assignee. Provided, that the Commissioners of the Land Office shall charge five percent (5%) interest upon any deferred payments and interest after the same have become due and payable. R.L. 1910, • 7152; Laws 1916, c. 36, p. 96, • 2; Laws 1933, c. 91, p. 163, • 7. •64188. Lessee, not purchasing, to be paid for improvements. Upon the sale of such lands as provided herein, if any lessee having preference right to purchase, fails or refuses to pay the highest bona fide bid thereon, then upon said lessee's fixing a date at which time he will surrender possession of said property, the purchaser shall pay to the Commissioners of the Land Office, or their authorized agent, to reimburse the lessee having such preference right, the appraised value of all such improvements, as defined herein, and all purchasers of land sold under this article shall pay to said Commissioners or their authorized agent the appraised value of all of the improvements upon said land to reimburse the lessee having such preference right to said value; and upon possession being given by the lessee, the Commissioners of the Land Office shall immediately pay to him the value of all such improvements paid to them by such purchaser. R.L. 1910, • 7153. •64189. Payments Resale. In addition to the value of the improvements, five percent (5%) of the purchase price of the land shall be paid, at the time of the sale, except where the land sells for less than One Thousand Dollars ($1,000.00),in which case the initial payment shall be Fifty Dollars ($50.00) on any quarter section. The remainder of the purchase price may be paid in forty equal annual payments, with interest at the rate of five percent (5%) per annum; provided, that after the expiration of one (1) year, the purchaser may at any time make any or all deferred payments, both principal and accrued interest; provided further, that the purchaser shall not be permitted to sell the land so purchased until the end of one (1) year from the date of purchase to any person or persons owning more than one section, according to the United States survey. R.L. 1910, • 7154; Laws 1915, c. 210, • 6, emerg. eff. April 2, 1915. •64190. Improvements on lands sold - Requirements. Improvement Required. The purchaser of any land, sold under the provisions of this article, shall be required to establish and maintain valuable, lasting and permanent improvements other than fencing, together with tillage of same upon lands so purchased, and if the land purchased is grazing land, he shall not be required to establish and maintain valuable, lasting and permanent improvements, other than fencing, thereon before he shall acquire title from the state to any of the land so purchased; and purchasers of said lands shall be limited in purchase of said lands to said lands, and shall not exceed the above mentioned maximum amounts, respectively, of either agricultural or grazing lands; and such purchaser shall take such land subject to such restrictions and conditions. Violations of this provision shall work a forfeiture of said lands, together with the appurtenances thereunto belonging, and the same shall then escheat to the state upon proof of a violation of the conditions herein provided. Provided, that whenever the holders of any certificate of purchase of any state or school lands shall surrender the same to the Commissioners of the Land Office, with the request to have the same divided into two or more certificates, it shall be lawful for the Commissioners to issue the same; provided, further that no new certificate shall issue while there is due and unpaid any interest, principal or taxes on the principal certificate of same when in any case where the Commissioners of the Land Office shall be of the opinion, after examination of the land if necessary, that the security will be impaired and endangered by the proposed division and a fee of One Dollar ($1.00) for each certificate so issued shall be paid by the applicant, such fee to be a part of the expense fund of the Commissioners of the Land Office. R.L. 1910, • 7155; Laws 1915, c. 210, • 7, emerg. eff. April 2, 1915. •64191. Transfer of purchaser's rights. Any purchaser of lands under the provisions of this act shall have the right to transfer or assign all his rights, title and interest in and to such lands, and such assignments shall be in form and executed and acknowledged as required under the laws governing conveyances; provided, before delivery of patent, such assignment, to be valid, shall be duly recorded in a proper book, kept for that purpose by the Commissioners of the Land Office; and provided, further, that where the purchaser of such lands has a husband or wife, such husband or wife shall join in the assignment of any such contract. Upon the sale and transfer of the interest of a holder of a certificate of purchase in and to the land covered thereby, if the same is approved by the Commissioners of the Land Office, and upon the payment of any principal or interest due to date of transfer, and the surrendering of the certificate of purchase transferred, the Commissioners of the Land Office shall issue and deliver to the transferee a new certificate of purchase upon the execution by the transferee of a new certificate of purchase note for the deferred payments, and the note, executed by the holder of the certificate of purchase transferred, shall be canceled and surrendered to him. R.L. 1910, • 7156; Laws 191011, c. 44, p. 87, • 1; Laws 1915, c. 210, • 8, emerg. eff. April 2, 1915. •64192. Conditions imposed follow land. All purchasers, lessees, or holders of any of the public lands of this state, shall take the same subject to the conditions of this article; and all certificates, contracts or written evidence issued to any purchaser shall recite that the same is taken and accepted subject to all the conditions of this article. R.L. 1910, • 7157. •64193. Sale of land in or near city. The Commissioners of the Land Office shall reserve from sale, any lands lying near or within the limits of any city or town, which may have a greater value than for farming purposes, by being platted and sold as town lots, acreage tracts, or public parks; and said Commissioners shall cause said lands to be surveyed, platted, appraised and sold at public auction for such purposes, and the lessee shall have the preference right to buy at the highest and best bid. R.L. 1910, • 7161. •64194. Advertisement. Before selling any public, state or school lands, the Commissioners of the Land Office shall advertise the fact that such sale shall be had by publication in four consecutive issues of at least one weekly newspaper of general circulation in the county in which said lands are situated. Such notice shall state the time, place and terms of sale, give a brief description of the land and improvements, and of the appraised value of the land and the appraised value of the improvements, and state that any further information that is desired may be obtained by addressing the Secretary to the Commissioners of the Land Office. Laws 1916, c. 36, p. 96, • 1. •64195. Lease or sale to commercial clubs Terms. That any commercial club, chamber of commerce, or other similar organization, incorporated under the laws of the State of Oklahoma, of any city, town or village of the State of Oklahoma, shall be permitted to lease or purchase land from the Commissioners of the Land Office of the State of Oklahoma, under the same rules and regulations as other lessees or purchasers of state land: Provided that said land so leased or purchased must be located within one (1) mile of the corporate limits of said city, town or village, provided, that not more than three hundred twenty (320) acres of said land shall be leased or sold to such organization in any city, town or village. Laws 191011, c. 50, p. 126, • 1, emerg. eff. March 6, 1911. •64196. Time limitation on deferred payments - Interest rates. The balance of the purchase price of lands sold by the Commissioners of the Land Office after the effective date of this act under sales contract, to be denominated, certificate of purchase, shall be paid over a period to be fixed by the Commissioners of the Land Office not to exceed twentyfive (25) years, on an amortized plan, with interest at the rate of four percent (4%) per annum, payable semiannually, providing for the payment of principal and interest installments so as to liquidate such sales contract in full at maturity. All delinquent installments, both principal and interest, shall bear interest at the rate of six percent (6%) per annum until paid. Laws 1961, p. 491, • 1, emerg. eff. July 12, 1961. •64-211. Repealed by Laws 1943, p. 159, • 9. •64-212. Repealed by Laws 1943, p. 159, • 9. •64-213. Repealed by Laws 1943, p. 159, • 9. •64214. Officers - Misdemeanor. The failure or neglect or refusal of the officers of the Land Office to comply with the provisions of this act, shall be deemed a misdemeanor, and they shall forfeit their office. Laws 192324, c. 57, p. 71, • 4, emerg. eff. March 25, 1924. •64215. Waiver of interest on delinquent interest and rentals due on mortgages, certificates of purchase, and preference right leases. The Commissioners of the Land Office of the State of Oklahoma are hereby authorized, empowered and directed to accept payment of delinquent interest due on any mortgage or certificate of purchase, without charging or adding thereto any interest on such delinquent interest, whether such delinquent interest be represented by coupons or notes, or by mortgages wherein the principal has matured, but all interest coupons have been paid; and the Commissioners of the Land Office are hereby further authorized, empowered and directed to accept the payment of delinquent rentals on preference right leases without charging or adding thereto any interest on such delinquent rentals, and that all penalty interest in excess of five percent (5%) as provided in any note, mortgage, contract of purchase, or lease, should be waived by the Commissioners of the Land Office in accepting delinquent payments due thereon. Laws 1937, p. 134, • 1. •64216.1. Certificates of purchase - Cancellation. Any certificate of purchase contract heretofore or hereafter issued by the Commissioners of the Land Office covering public lands of the State of Oklahoma, shall be subject to cancellation upon delinquency of any annual installment of either principal or interest, delinquency of any ad valorem or personal taxes constituting liens against the land covered thereby, or upon violation of any of the provisions of the certificate of purchase contract. The Commissioners of the Land Office shall, in each calendar year, request and obtain from the county treasurer of the county in which any public lands covered by certificates of purchase contracts are located, a report showing the status of all ad valorem and personal taxes constituting liens against such lands. It is hereby made the mandatory duty of any county treasurer of this state, when requested by the Commissioners of the Land Office, to furnish without cost the status of any ad valorem and personal taxes constituting liens against lands covered by certificates of purchase contracts. Laws 1943, p. 157, • 1, eff. April 13, 1943. •64216.2. Delinquent installments - Interest. All delinquent installments of both interest and principal on certificates of purchase contracts issued in connection with sales made after the effective date of this act shall bear interest at the rate of three percent (3%) per annum from the date of maturity until paid. Laws 1943, p. 157, • 2, eff. April 13, 1943. •64216.3. Certificates heretofore issued. The Commissioners of the Land Office are hereby authorized and directed at their discretion to cancel any certificate of purchase contract heretofore or hereafter issued by the Commissioners of the Land Office covering public lands of the State of Oklahoma where the lawful owner of such certificate of purchase contract is or shall be in default of any annual installment due thereon or upon violation of any of the provisions contained in such certificate of purchase contract: Provided, that it shall be the mandatory duty of the Commissioners of the Land Office from and after the expiration of one (1) year subsequent to the effective date of this act to cancel any certificate of purchase contract issued or to be issued in connection with a sale of public lands made after May 9, 1939, where the lawful owner of the certificate of purchase contract is or shall be in default of any annual installment due thereon for a period of two (2) years. Laws 1943, p. 157, • 3, eff. April 13, 1943. •64216.4. Sales prior to April 17, 1941. The Commissioners of the Land Office are hereby authorized and directed, and it shall be their mandatory duty, to cancel any certificate of purchase contract heretofore or hereafter issued by the Commissioners of the Land Office covering public lands of the State of Oklahoma in connection with sales made prior to April 17, 1941, where the lawful owner of such certificate of purchase contract is or shall be in default of any ad valorem or personal taxes constituting liens against said land for a period of one (1) year: Provided, that no certificate of purchase contract covering lands sold prior to April 17, 1941, shall be canceled for failure to pay delinquent taxes until after the expiration of one (1) year subsequent to the effective date of this act. Laws 1943, p. 157, • 4, eff. April 13, 1943. •64216.5. Notice of cancellation - Procedure. The Secretary to the Commissioners of the Land Office when directed by the Commissioners of the Land Office shall issue and serve upon the delinquent lawful owner of the certificate of purchase contract a thirtyday notice, as hereinafter provided, of the fact of said delinquency and that unless said lawful owner shall appear and show cause, if any he has, why said certificate of purchase should not be canceled, same will be canceled, and all his rights, including payments made, will be forfeited. The lawful owner of a certificate of purchase contract, his heirs, executors, administrators, devisees, trustees and assigns, shall be served with notice of cancellation, either by registered mail, by personal service of notice by any employee of the Commissioners of the Land Office authorized or directed by the Secretary to the Commission to make such service, or by publication. If said owner be living and his whereabouts are unknown, or personal service of notice or notice by registered mail cannot be had upon him, or if dead and the names and whereabouts of his heirs, executors, administrators, devisees, trustees, and assigns, or either of them, are unknown and cannot be ascertained by any means within the control of any employee of the Commissioners of the Land Office designated by the Secretary to the Commission, to ascertain said fact, then upon the filing of an affidavit, by said employee, setting forth said fact, service may be had upon said person or persons by publication of said notice in two consecutive issues of a weekly newspaper published in and of general circulation in the county wherein the land is situated. Any party served by publication, as provided in this act, must answer on or before the expiration of thirty (30) days from and after the date of first publication. Proof of personal service of notice and proof of service of notice by publication shall be made by affidavit. If service of notice is made by registered mail, a registry return receipt with the signature of the addressee is sufficient proof of said service. Proof of service of notice, as herein provided, shall be filed in the office of the Commissioners of the Land Office prior to the date of said hearing. Laws 1943, p. 157, • 5, eff. April 13, 1943. •64216.6. Hearings Order Appeal. The Commissioners of the Land Office may hear and determine the rights of the parties interested in said certificate of purchase contract, or either of them, at any time after the expiration of the thirty (30) days from date of service of notice of cancellation and in the event the Commissioners of the Land Office shall render an order canceling said certificate of purchase contract, said Commissioners of the Land Office shall enter their order to that effect, which order of cancellation shall become final and conclusive as to the rights of all parties concerned, and all sums paid by the purchaser prior to the cancellation of the certificate of purchase, together with all the improvements on said land, shall be retained by the Commissioners of the Land Office as compensation for the use and occupancy of said premises; Provided, that the lawful owner of any certificate of purchase canceled shall have a right to appeal from the order of cancellation to the district court of the county in which the land covered by the canceled certificate is located by filing, within thirty (30) days after date of such order, with the Secretary to the Commissioners of the Land Office, a written notice of intention to appeal and by posting a supersedeas bond in an amount equal to, at least, double the annual rental value of the property involved, which bond shall in no event be less than Fifty Dollars ($50.00). Such bond shall be conditioned that the appellant will pay all costs of such appeal, and such damages as the court may award, if the decision be adverse to him. If such notice be given and such bond be furnished by the appellant and approved by the Commissioners of the Land Office, then it shall be the duty of the Secretary, within thirty (30) days thereafter, to certify a transcript of the proceedings had before the Commissioners of the Land Office, to the district court, which court shall hear and determine said appeal upon the record as made and submitted by the Secretary to the Commissioners of the Land Office. Laws 1943, p. 158, • 6, eff. April 13, 1943. •64216.7. Failure to deliver possession. If any party in possession of the land covered by a certificate of purchase which has been duly canceled fails to deliver possession of said land and premises within thirty (30) days after the rendition of the order of cancellation, provided no appeal has been perfected, or if perfected, denied, the Commissioners of the Land Office are hereby given authority to issue a writ of ouster over the signature of the Chairman or Vice Chairman and under the seal of the Secretary, directed to the sheriff of the county wherein the land is located, to oust and dispossess such purchaser or any person or persons so unlawfully using or possessing any such lands, and it is hereby made the mandatory duty of said sheriff to enforce said writ of ouster in the same form and manner as orders from the district court are enforced. The sheriff shall make return on such writ of ouster within ten (10) days after receipt of same. Laws 1943, p. 158, • 7, eff. April 13, 1943. •64216.8. Partial invalidity. If any section, subsection, sentence, clause or phrase of this act is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this act. Laws 1943, p. 159, • 8, eff. April 13, 1943. •64221. Irrigation and flood control projects - Sale of lands. The Commissioners of the Land Office are hereby authorized to sell for cash, and convey, subject to oil and gas and mineral rights therein and for not less than the appraised value, any portion of the lands held in trust by the State of Oklahoma for school or public building purposes upon proper showing to them that the lands are necessary and are to be used in connection with irrigation and flood control projects which involves the expenditure of state and federal monies. Laws 1933, c. 192, p. 422, • 1. •64222. Oil and gas - Reservation - Lease. The Commissioners of the Land Office shall reserve the oil and gas and other minerals in the land with the right to lease or enter upon and explore for oil and gas and mineral purposes that portion of the land not used by the purchaser or reasonably necessary for the use or purpose sold. Laws 1933, c. 192, p. 422, • 2. •64223. Lessee - Preference right. Any lessee holding a preference right lease shall have the preference right to purchase the lands so leased by him at the highest bid at the time of the sale. Laws 1933, c. 192, p. 422, • 3. •64224. Sale - Reimbursement of lessee. Upon the sale of such lands as provided herein, if any lessee having preference right to purchase fails or refuses to pay the highest bona fide bid thereof, said lessee shall be entitled to be reimbursed for the improvements placed on the preference right lease by him at their value fixed by the appraisers selected by the Commissioners of the Land Office to appraise the same and shall surrender possession of the said lease immediately following the sale of the land and payment for improvements. Laws 1933, c. 192, p. 422, • 4. •64-225. Repealed by Laws 1947, p. 412, • 2. •64225.1. Appraisement Right of appeal. Before any lands under the jurisdiction and control of the Commissioners of the Land Office, covered by preference right leases and the improvements located thereon owned by the lessees, shall be offered for sale and sold, the Commissioners of the Land Office shall cause the same to be appraised by three disinterested appraisers, who are nonresidents of the county in which the land is situated, to be selected by said Commissioners, who, before entering upon their duties, shall take and subscribe the oath required of state officers. Said appraisers shall make a true appraisement of said lands at the actual cash value thereof, exclusive of all improvements, and shall separately appraise all improvements owned by the lessee which can be removed without manifest injury to the land, and all improvements to said land placed thereon by the lessee at his expense which cannot be removed without manifest injury to the land, including trees, terraces, water wells, ponds, and other improvements of a similar nature, at their actual cash value. The preference right lessee shall be entitled to appeal to the Commissioners of the Land Office from the appraisement made by the appraisers selected by the Commissioners and may present evidence to the Commissioners of the Land Office tending to prove a different value of the improvements than that fixed by the appraisers of the Commissioners. Said appeal to the Commissioners shall be filed within ten (10) days after receiving notice of the appraisement fixed by the appraisers. Laws 1947, p. 412, • 1. •64226. Public auction Office of Secretary - Extension of time. The lands herein authorized to be sold shall be offered for sale to the highest bidder at public auction at the Office of the Secretary to the Commissioners of the Land Office within six (6) months from the date of the final approval of the appraisement by the Commissioners, unless for good cause shown, the Commissioners of the Land Office extend the time of offering the land for sale for a period not to exceed one (1) year from the date of the final approvement of the appraisement. Laws 1933, c. 192, p. 423, • 6. •64227. Notice of sale Publication. Before selling the lands and improvements herein authorized to be sold, the Commissioners of the Land Office shall advertise such sale by publication in a newspaper of general circulation in the county in which such land is situate for fifteen (15) days prior to the date of sale. Such notice shall state the time and place of sale and the quantity of land to be sold and the purposes of the sale. Laws 1933, c. 192, p. 423, • 7. •64228. Deed Reservation of oil and gas. The Commissioners of the Land Office upon completion of the sale and receipt of the purchase price shall issue a deed to the purchaser thereof which shall contain a provision therein reserving the oil, gas and other minerals as herein provided. Laws 1933, c. 192, p. 423, • 8. •64229.1. Lands in Texas - Allocation of balances due. That, in order that justice and right may be done to those holders of certificates of purchase covering original grant lands located along the 100th degree of West Longitude, a portion of which said lands have, as a result of the decision of the Supreme Court of the United States, been found to be situate in the State of Texas, the Commissioners of the Land Office be and they are hereby authorized, empowered, and directed to allocate the balance of the purchase price remaining unpaid on any such certificates of purchase, upon a proportionate acreage basis, thereby permitting any holder of such certificate of purchase to pay ratably for that portion of the land covered by his certificate or certificates of purchase which still remains in the State of Oklahoma, which land only the Commissioners of the Land Office were originally authorized to sell. Laws 1941, p. 303, • 1. •64229.2. Allocation Method of determining. In making such allocation the Commissioners of the Land Office shall first determine the balance of the principal remaining unpaid upon any such certificate of purchase as of March 17, 1930, and shall accept, in full settlement of the purchase price of the land lying in Oklahoma, such share of the balance of said principal in proportion as the acreage still remaining in the State of Oklahoma bears to the total acreage covered by the original certificate of purchase, and interest shall be computed from said date of March 17, 1930, only upon such proportionate part of the principal as is ascertained hereby to be due against the land lying in Oklahoma. Laws 1941, p. 303, • 2. •64229.3. Amended certificates of purchase. In the event that any holder of such certificate of purchase shall desire merely to place his account on the land lying in Oklahoma in good standing and not immediately to patent the same, the Commissioners of the Land Office are authorized and directed, after computing the balance due on the land lying in Oklahoma, as herein provided, and after requiring the holder of such certificate to place his account on the Oklahoma land in current standing and paid to date, to issue an amended certificate of purchase covering only the portion of the land still remaining in the State of Oklahoma, and to accept from the holder of the amended certificate of purchase a note for the amount found to be remaining unpaid against the Oklahoma land, amortized and payable over the balance of the original fortyyear period of payment, such note to draw interest at the same rate as fixed in the original certificate of purchase note, as accepted by the Commissioners of the Land Office when the land was first sold. Laws 1941, p. 303, • 3. •64229.4. Purpose of act. It is hereby declared the purpose and legislative intent of this act to provide a fair and equitable method by which those holders of certificates of purchase covering in part lands located in the State of Texas, and which the Commissioners of the Land Office had no authority to sell, may protect their rights in that portion of the lands covered by any certificate of purchase held by them or their heirs, successors or assigns, which lies in the State of Oklahoma, without requiring the holders of such certificates of purchase to pay the State of Oklahoma for lands now found to be situate in the State of Texas, and to which the Commissioners of the Land Office can furnish no title after payment has been made. Laws 1941, p. 304, • 4. •64229.5. Full payments - Credit. The holder of any such certificate of purchase covering lands located partially in the State of Texas, who has since March 17, 1930, or whose predecessors in title have since said date, made any payments to the Commissioners of the Land Office upon the full purchase price on the lands covered by such certificate or certificates, shall be entitled to proper credit for all such overpayments as may be disclosed, upon a redetermination of the balance of the purchase price remaining as of March 17, 1930, to have been made on all or any of the land of such purchaser or certificate holder still situate in Oklahoma, and the Commissioners of the Land Office shall allow such credit in computing and making settlement of the balance yet remaining unpaid on the Oklahoma lands covered by such or any like certificate of purchase held by the original purchaser or his heirs, successors or assigns. Provided, that the Commissioners of the Land Office shall not be authorized, by the provisions of this act, to make any refunds or to pay any sums of money whatsoever out of the funds now under their management and control. Laws 1941, p. 304, • 5. •64241. All public lands subject to lease. Except as otherwise provided by law, all the public lands of this state shall be subject to lease in the manner provided herein. The Commissioners of the Land Office shall have charge of the leasing of such lands. R.L. 1910, • 7170. Amended by Laws 1997, c. 292, • 5, eff. July 1, 1997. •64-242. Repealed by Laws 1933, c. 91, • 14; Laws 1937, p. 133, • 13. •64-243. Repealed by Laws 1961, p. 491, • 1. •64244. Commissioners of Land Office - Delinquency - Notice. If the lessee of any of the lands enumerated herein shall be in default of the annual rental due the state for a period of six (6) months, the Commissioners of the Land Office shall within ninety (90) days after such delinquency, cause notice to be given such delinquent lessee, and person in possession of the lands, that if such delinquency is not paid within thirty (30) days from the service of such notice, his lease will be declared forfeited to the state by the Commissioners of the Land Office. If the amounts due are not paid within thirty (30) days from the date of the service of such notice, the said lease shall be declared forfeited and the possession of the land therein described shall revert to the state, the same as though such lease had never been made. The order making such forfeiture shall be spread upon the records of the Commissioners of the Land Office. The service of the notice herein provided shall be made by registered mail; in case the post office address of the owner of such lease be unknown, the notice herein provided shall be served upon the person in possession and shall be published in two consecutive issues of some weekly newspaper published in or of general circulation in the county where the land is situated. The forfeiture shall be entered by said board after thirty (30) days from the date of the first publication or registered notice; provided, the lessee of any land so forfeited may redeem the same within thirty (30) days after the first notice to him, his agent or sublessee, by paying all delinquencies, fees and costs of forfeiture at any time before the expiration of thirty (30) days, as aforesaid, and as provided by this article; provided, further, the Commissioners of the Land Office are required to serve notice of delinquencies and proceed with forfeiture as stated herein, at least once each year. The improvements on lands so reverting to the state shall be sold under the direction of the Commissioners of the Land Office, at public sale, after appraisement, upon due notice to the lessee, and sublessee, and the proceeds received therefrom shall inure to the holder of the delinquent lease after paying to the state all delinquencies and rents and expenses incurred in making such sale; provided, further, the Secretary to the Commissioners of the Land Office is hereby authorized at all such sales of the improvements on lands so reverting to the state, in case there are no other bidders to bid off such improvements offered at said sale at a reasonable figure, in the name of the state for the benefit of the fund to which said lands so reverting to the state belong, the state acquiring all the rights, both legal and equitable, that any other purchaser could acquire by reason of said purchase. If the lessee of any tract, block or parcel of state school or other public lands shall fail, neglect or refuse, for a period of fifteen (15) days, to enter into a renewal lease and execute the notes for the annual rentals as provided by law, at the expiration of any agricultural lease after any appraisement for rental purposes has been approved by the Commissioners of the Land Office, the Commissioners of the Land Office shall cause notice to be given to such agricultural lessee that if such agricultural lease and notes for the annual rentals are not executed and delivered within ten (10) days from the service of such notice, his preference right to release will be declared forfeited to the state by the Commissioners of the Land Office. If said agricultural lessee shall fail, neglect or refuse to enter into a renewal lease and execute the rental notes as provided by law, within ten (10) days of the date of service of such notice, the said agricultural lessee's preference right to re-lease shall be declared forfeited and the land therein described shall revert to the state, the same as though no such lease had ever been made. Provided, however, the lessee may appeal to the district court of the county within ten (10) days, by making bond in double the amount of the appraised value of the lease, and provided, however, that if the agricultural lessee shall appeal from the order of the Commissioners of the Land Office approving the appraisement for rental purposes, to the district court of the county in which the land is so located, then no action shall be taken by the Commissioners of the Land Office pending a review of the appraisement made by the Commissioners of the Land Office in the said district court, until after ten (10) days from the date the order of the district court fixing the amount of said appraisement shall become final. The order making such forfeiture shall be spread upon the records of the Commissioners of the Land Office. The improvements on land so reverting to the state shall be sold under the direction of the Commissioners of the Land Office, at public sale, upon ten (10) days notice to the lessee; and the proceeds received therefrom shall inure to the owner of said improvements after payment shall have been made to the state for all rentals at the rental fixed by law, and all costs for the time said lands are withheld from the state, together with the expenses incurred in the making of such sale. The service of the notice herein provided, the time of entering said order of forfeiture, and the right of the preference right lessee to redeem, shall be as provided herein. That in all cases where improvements on lands reverting to the state under Sections 1 and 2, of this act, and are bid off by the Secretary of the Commissioners of the Land Office for the amount of delinquent rentals, interest and costs of forfeiture due and payable thereon, shall revert to the proper funds and the Commissioners of the Land Office may sell the improvements, on any tract of such lands at public auction. Provided, however, that before any such sale be made, the Commissioners of the Land Office shall cause legal notice to be published for two (2) consecutive weeks prior to the date of said sale, in the county in which said lands are located. The proceeds from such sales shall be credited to the earnings of the fund to which said lands belonged. R.L. 1910, • 7177; Laws 192324, c. 58, p. 71, • 1, emerg. eff. March 25, 1924. •64245. Commissioners of Land Office - Misdemeanor. The failure, or neglect, or refusal of the officers of the Land Office to comply with the provisions of this act shall be deemed a misdemeanor, and they shall forfeit their office. Laws 192324, c. 58, p. 73, • 2, emerg. eff. March 25, 1924. •64246. Assignment of lease as security. No assignment of a school land lease as security shall be valid unless filed for record in the office of the Commissioners of the Land Office within thirty (30) days after the execution thereof, and the Commissioners of the Land Office shall charge a fee of One Dollar ($1.00) for entering and recording each assignment; provided, that no assignments of the lease which is the home of the family shall be valid unless executed by both husband and wife. R.L. 1910, • 7178. •64-247. Repealed by Laws 1941, p. 462, • 1. •64248. Penalty for waste. If any person shall commit waste, or trespass or other injury upon any of the lands herein referred to, the person so offending shall, upon conviction thereof, be fined in any sum not less than Twentyfive Dollars ($25.00) nor more than One Thousand Dollars ($1,000.00). R.L. 1910, • 7182. •64249. Removal of crops and improvements. Any lessee may, at the termination of his lease, remove any or all of his improvements, and he shall have the right to harvest or remove any growing crop thereon: Provided, however, that in case the lessee is in default for nonpayment for any rental or assessment of any nature, he shall not be allowed to remove such improvement or make such entry to secure crops until all arrearage is fully satisfied; said improvements, that are movable, shall then be moved immediately within sixty (60) days from termination of his lease. R.L. 1910, • 7183. •64250. Appeals from Commissioners. From all decisions of the Commissioners of the Land Office an appeal may be taken by any person affected thereby to the district court of the county where the land is situated. Said appeals shall be taken by the appellant serving written notice upon the Secretary to the Commissioners of the Land Office, within fifteen (15) days after the rendition of the decisions complained of, and by executing bond with sureties in such sum as the Secretary shall prescribe, not to exceed double the annual rental of the land affected by such appeal, and not less than Fifty Dollars ($50.00), to the effect that the appellant will pay all costs of such appeal, if the decision be adverse to him, and such damages as the court may award. Upon the giving of such notice and bond, the Secretary to the Commissioners of the Land Office shall forthwith transmit to the clerk of the district court certified copies of the original papers in the matter appealed from, together with a transcript of the record of the Commissioners relating to such cause. The district court shall hear and try said cause de novo, and from the judgment of the district court either party may appeal to the Supreme Court, as provided by law in civil actions. R.L. 1910, • 7187. •64-251. Power to administer oaths - False swearing. The Commissioners of the Land Office and the Secretary thereof shall have the power to administer oaths to witnesses and take affidavits to petitions and other instruments filed before the Secretary or the Commissioners in the same manner as the clerks of the district courts of the State of Oklahoma; said affidavits shall be attested under seal of the Commissioners of the Land Office, which seal they shall provide, the Secretary to the Commissioners of the Land Office being custodian thereof; and any person, either as a witness or party interested, who makes false statements under oath in any matter or hearing pending before the Secretary or Commissioners of the Land Office, shall be deemed guilty of the felony of perjury and upon conviction thereof shall be punished by imprisonment in the State Penitentiary for a term of not less than one (1) year nor more than three (3) years. Any person who executes any written instrument, petition or affidavit before the Commission or the Secretary under oath, and who in said petition, affidavit or other instrument, makes false statements shall be guilty of the felony of perjury and shall be punished as herein provided. R.L. 1910, • 7188. Amended by Laws 1997, c. 133, • 546, eff. July 1, 1999; Laws 1999, 1st Ex.Sess., c. 5, • 397, eff. July 1, 1999. NOTE: Laws 1998, 1st Ex.Sess., c. 2, • 23 amended the effective date of Laws 1997, c. 133, • 546 from July 1, 1998, to July 1, 1999. •64252. Records made public. All of the records in possession, control, care and custody of the Commissioners of the Land Office are hereby declared to be public records, and certified copies thereof are admissible in evidence in the courts of this state. Any person shall be entitled to receive a certified copy of any instrument on record with the Commissioners of the Land Office on the payment of a fee as prescribed by the Commission. R.L. 1910, • 7189. •64-253. Subleases. A. Any agricultural lessee of land under the management and control of the Commissioners of the Land Office who is a resident of the State of Oklahoma and who is unable by reason of age, sickness, accident or other circumstances beyond the lessee’s control to operate the leased agricultural premises in accordance with the purpose or purposes specified in the lease may sublease the land not more than one time for a period not to exceed one (1) year by and with the consent of the Commissioners of the Land Office; provided, that before any lessee shall be permitted to sublet any of such land, the lessee shall make application to the Commissioners of the Land Office and obtain a sublease permit, which the Commissioners may issue if the said lessee is not delinquent in the payment of rental or other assessments due and payable. Such sublease permit shall not be issued until the lessee has paid to the Commissioners of the Land Office a fee equal to ten percent (10%) of a year's rental. B. Any lessee holding a preference right or nonpreference right lease under the management and control of the Commissioners of the Land Office may transfer the lessee’s interest in the leased land with consent of the Commissioners of the Land Office. C. Subject to the approval of the School Land Commission, the heirs or devisees of a deceased lessee or transferee of a preference right or nonpreference right lease under the management of the Commissioners of the Land Office shall succeed to the interest and have all the rights of the lessee under the terms of the lease agreement and such lease or transfer shall not terminate by reason of the death of any lessee or transferee of a preference right lease. D. Hereafter no preference right lease may be created by the School Land Commission. R.L.1910, • 7190. Amended by Laws 1965, c. 29, • 1, emerg. eff. Feb. 26, 1965; Laws 1976, c. 148, • 1; Laws 1977, c. 83, • 1; Laws 2000, c. 321, • 2. •64254. Irrigation of school land - Liabilities. The Commissioners of the Land Office are hereby authorized in their discretion, upon showing made by the lessee in possession of any tract of school or state lands, to permit any such tract of school or state lands to be included in any proposed federal reclamation irrigation project; provided, that if any such tract is included in any such irrigation project, all costs and expenses connected with such project, same being the pro rata share of the construction of any such project, assessed by the United States Government through the reclamation service, shall be assessed against the improvements and the preference right of any such lessee in possession of any such tract of school or state lands; and any such assessments so made by the United States Government, through the reclamation service, shall be a lien against said improvements and preference right of any such lessee, subject only to the lien of the state for rents due the state; provided further, that in the event of the sale of any such tract or tracts of school and state lands, such irrigation improvements on said lands shall be considered an improvement owned by the lessee and shall be appraised as such; provided, that the state shall not be liable for any expense connected with the building, construction or operation of any such irrigation system. Laws 1915, c. 210, • 3, emerg. eff. April 2, 1915. •64255. Division of land into acreage units. For the purpose of including any tract of school or state lands in any proposed federal reclamation irrigation project, the Commissioners of the Land Office are hereby authorized in their discretion, upon showing made, to permit the lessee thereof to subdivide the land within such irrigation project and covered by his lease into tracts to conform to the acreage units as may be prescribed by the Secretary of the Interior. Laws 1915, c. 210, • 4, emerg. eff. April 2, 1915. •64256. Lease of certain land to Oklahoma State Industries of the Department of Corrections. A. The Commissioners of the Land Office are hereby authorized and directed to make and enter into a lease for a period of ten (10) years, with the Oklahoma State Industries of the Department of Corrections for the following described land and premises: 1. The whole of Section 36 in Township 6 north of Range 21 west, I.M., in Greer County, Oklahoma. 2. The whole of Section 16 in Township 12 north of Range 6 east, I.M., less 2.55 acres in the NW 1/4 and 3 acres in the NE 1/4 and 2.5 acres in the SW 1/4 in Lincoln County, Oklahoma. 3. The west 1/2 and NE 1/4 of Section 16 in Township 24 north of Range 10 west, I.M., less 5 acres in NE 1/4 in Alfalfa County Oklahoma. B. The lease shall contain the following provisions in addition to any which may be agreed upon by the Commissioners of the Land Office and the Oklahoma State Industries of the Department of Corrections: 1. The lessee shall maintain, repair and preserve all improvements for said described lands; and 2. The lessee shall take all necessary and proper measures to protect the area from fire and theft. C. Such properties shall be used for the benefit of the Oklahoma State Industries of the Department of Corrections. D. All other school lands leased by Oklahoma State Industries of the Department of Corrections at public auction shall be for a period of ten (10) years. Laws 1910-11, c. 135, p. 315, • 2; Laws 1988, c. 23, • 1, eff. Nov. 1, 1988. •64256.1. Rentals Determination and payment. Unless otherwise provided by law, rentals shall be determined by public auction and shall be paid into the common school fund, out of the General Revenue Fund of the state, not otherwise appropriated; Provided, that the lessees now occupying said lands shall receive and be paid in full value for their improvements and leasehold interest. Added by Laws 1988, c. 23, • 2, eff. Nov. 1, 1988. •64-257. Repealed by Laws 1965, c. 401, • 3, eff. July 5, 1965. •64-258. Repealed by Laws 1965, c. 401, • 3, eff. July 5, 1965. •64259. Term of lease. Any lands leased by the Commissioners of the Land Office for agricultural and/or grazing purposes shall be leased for a period not to exceed five (5) years under such terms and conditions and at such annual rental as may be fixed by the Commissioners of the Land Office. Laws 1965, c. 401, • 1, emerg. eff. July 5, 1965. •64260. Appraisement of land Rules and regulations. The Commissioners of the Land Office are hereby authorized and empowered to make and promulgate rules and regulations relating to the appraisement of land and any improvements located upon such land as may be owned by the state, leasing and subleasing such lands and improvements, reservation of rights and interests, collection of rentals, conservation and preservation of such lands and the fertility thereof and any other rules and regulations necessary in order that the purposes for which such lands are owned and held by the state may be accomplished. Laws 1965, c. 401, • 2, emerg. eff. July 5, 1965. •64-260.1. Appeal. The approval of the School Land Commission if not given shall be subject to an appeal as provided for in Section 250 of Title 64 of the Oklahoma Statutes to the district court of the county wherein the land under lease is located. Laws 1976, c. 148, • 2. •64260.2. Renewal of lease. Every lessee holding a preference right lease on agricultural or grazing lands who, after appraisement for rental purposes, desires to renew said lease covering the same tracts of land shall make application to the Commissioners of the Land Office for a new lease on or before October 1 next preceding the expiration of the term of his existing lease. All other applicants for a lease on said land shall make proper application on or before November 1 next preceding the expiration of such existing lease. If the current lessee has in good faith complied with all requirements of his existing lease to the satisfaction of the Commissioners of the Land Office, the new lease shall be awarded to said current lessee, if the Commissioners decide that said land be leased. Laws 1976, c. 148, • 3. •64-261. Repealed by Laws 1965, c. 401, • 3, eff. July 5, 1965. •64-262. Repealed by Laws 1965, c. 401, • 3, eff. July 5, 1965. •64-263. Repealed by Laws 1965, c. 401, • 3, eff. July 5, 1965. •64-264. Repealed by Laws 1965, c. 401, • 3, eff. July 5, 1965. •64-265. Repealed by Laws 1965, c. 401, • 3, eff. July 5, 1965. •64-266. Repealed by Laws 1965, c. 401, • 3, eff. July 5, 1965. •64-267. Repealed by Laws 1965, c. 401, • 3, eff. July 5, 1965. •64-281. Leases authorized - Duration, terms and conditions - Public competition - Assignment. The Commissioners of the Land Office are authorized to lease for oil and gas purposes any of the school or other lands owned by the State of Oklahoma, which such Commissioners may deem valuable for oil and gas. Each such lease shall be a commencetype lease and shall provide for a term not less than one year and not to exceed five (5) years and as long thereafter as oil or gas may be produced therefrom in paying quantities, upon such terms and conditions and in such quantities as the Commissioners shall by rules and regulations prescribe. Each such lease shall provide for the delivery to the state of a royalty of not less than oneeighth (1/8) part of the oil or gas produced from the leased premises or in lieu thereof the payment to the state of the market value of said royalty interest, as the Commissioners may elect. The leases shall be offered by public competition after notice of the lease auction published one time not less than thirty (30) days prior to the lease auction date in two newspapers authorized by law to publish legal notices. One of the newspapers shall be published in the county where the land is located or other newspaper as authorized by Section 106 of Title 25 of the Oklahoma Statutes. The other shall be a newspaper of general circulation in this state. Such leasing shall be let by sealed bids and each lease awarded to the highest responsible bidder, such oil and gas leases may be assigned only with the consent and approval of the Commissioners of the Land Office; provided, the Commissioners have the right to reject any and all bids. The Commissioners of the Land Office shall provide any other notice of oil and gas lease sales to all interested parties by any means it determines is needed to attract the best competition. Added by Laws 1917, c. 253, p. 462, • 1. Amended by Laws 1968, c. 243, • 1, emerg. eff. April 24, 1968; Laws 1981, c. 54, • 1, eff. Oct. 1, 1981; Laws 2003, c. 205, • 2, eff. July 1, 2003. •64282. School lands - Leasing for oil and gas. When any tract of the school or other public lands, granted to the State of Oklahoma under the Act of Congress known as the "Enabling Act", or any or all of stateowned lands set apart and designated for the use, benefit, and occupancy of state educational institutions, is known by the Commissioners of the Land Office of the state to contain oil or gas, or where such lands are, by said Commissioners, deemed valuable for oil and gas purposes, such Commissioners shall enter of record in their office their finding, declaring that such oil or gas character exists, and further declaring that the oil and gas deposits are segregated from the surface use and interest therein, and such segregation of such deposits shall conclusively withhold the same from sale, lease or other alienation, except as provided in this article. R.L. 1910, • 7195; Laws 1933, c. 106, p. 209, • 1. •64283. Lease of surface interest to reserve mineral deposits. Each agricultural, timber, grazing or other lease to any surface interest in land in which the deposits are segregated, as provided in the preceding section shall reserve to the state, its lessees or grantees the right to drill and operate oil and gas wells on such premises, and the easement, use and right-of-way to enter upon and fully enjoy the mining right reserved in this article. R.L. 1910, • 7196. •64-284. Repealed by Laws 1947, p. 412, • 1. •64-285. Community oil and gas lease. The lease contract of the state, with any lessee for oil and gas purposes, shall stipulate, and the advertisement for bids for leasing such land shall specify a fixed royalty, to be determined by the commissioners of the land office, and in no event less than twelve and one-half percent (12 1/2%) of the total output of such oil and gas, and in addition thereto any bonus offered for such lease, and shall also require a deposit of sufficient earnest money in the hands of the commission as the commission may require to accompany each bid, with appropriate conditions of forfeiture for failure to comply with the terms and conditions of bidding upon such lands. All leases for oil and gas provided in this article shall contain a provision requiring the lessee to drill a sufficient number of wells upon the leased premises to offset the wells upon adjoining contiguous premises, and a further provision that a failure to faithfully operate the leased premises for oil and gas to as full an extent as individual and corporate premises are being operated within the general oil and gas field, where such land is located, shall forfeit such lease to the state. No transfer or assignment of any lease shall be valid or convey any right in the assignee without the consent in writing of the commissioners of the land office. The board of commissioners may make such additional rules that are determined necessary to enforce the provisions of this article. Provided, the commissioners of the land office shall have authority to enter into agreements upon such terms and conditions as they may impose, providing for the communitizing of any oil and gas lease executed by them with other leases to be jointly operated and developed as a unit when they deem such communitization to be to the best interest of the funds and property under their management. This provision shall apply to existing leases as well as to leases to be entered into hereafter. (The word "communitizing" or "communitization", as used herein shall be defined as a combining of diverse interests or interests owned by different parties in lands and minerals on an area for a common development for oil and gas purposes so that such area may be considered as a unit or a whole.) R.L. 1910, • 7198. Amended by Laws 1941, p. 304, • 1, emerg. eff. May 1, 1941; Laws 1997, c. 118, • 2, eff. July 1, 1997. •64-286. Repealed by Laws 1947, p. 412, • 1. •64287. Lessee liable to surface holder for damages. Any person, firm or corporation leasing under the provisions of this article and operating for oil and gas shall be liable to the surface owner, the lessee or purchaser for all damages or loss accruing to the surface interest in said land and to all crops and improvements thereupon and appurtenances and hereditaments thereunto belonging, whether said land be agricultural, timber, grazing or otherwise. R.L. 1910, • 7200. •64288. Condemnation under certain conditions. Should the lessee or owner of the surface interest and the lessee of the oil and gas interest specified in this article be unable to agree upon the damage and loss sustained by such surface lessee or owner by such lessee of the oil and gas interests therein, the latter may condemn the same for such purpose under the law of eminent domain to like extent and in the same manner and upon the same procedure and remedies as is provided for the assessment of damages and compensation to the owner of the fee in case of condemnation for railway purposes. R.L. 1910, • 7201. •64289. Proceeds - Funds - Bonuses and royalties. The proceeds derived in bonuses and royalties and from other inducements and considerations for the execution and operation of the oil and gas leases in this article provided, except oil and gas leases on stateowned lands set apart and designated for the use, benefit, and occupancy of state educational institutions, shall be carried into the several funds, for the use and benefit of which such lands were granted by the United States to the State of Oklahoma, and to the territory now comprising the area embraced within the said state, under the provisions of the Enabling Act, and any and all other Acts of Congress. For the uses and purposes, and upon the conditions, and under the limitations for which the same were granted, and the money resulting from such lease and from the operation thereof shall be handled, disposed of and used in like manner as the other monies belonging to said several funds under the laws of this state. The proceeds derived in bonuses, royalties, and from other inducements and considerations for the execution and operation of the oil and gas leases on stateowned lands set apart and designated for the use, benefit, and occupancy of state educational institutions shall be paid to the State Treasurer, and by him deposited to the credit of the General Revenue Fund of the State of Oklahoma, which shall at the next session of the Legislature be appropriated for the use and benefit of such institutions. R.L. 1910, • 7203; Laws 1933, c. 106, p. 209, • 2. •64290. Leasing authorized. The Commissioners of the Land Office are hereby authorized to lease for oil and gas purposes all lands between mean high water mark in all streams or rivers of two chains or over; all such streams are declared the property of the State of Oklahoma. Laws 1919, c. 206, p. 293, • 1, emerg. eff. March 28, 1919. •64291. Mode of leasing. Said lands are to be leased under the same provisions as the school and other lands of the State of Oklahoma. Laws 1919, c. 206, p. 293, • 2, emerg. eff. March 28, 1919. •64292. Contracts authorized. The Commissioners of the Land Office shall be, and they are hereby authorized to execute supplemental contracts to lessees on all lease contracts embracing more than thirty thousand (30,000) acres in one body without submitting same to bids for the renewal of said leases, providing that if oil and gas, or either of them, are being produced on said tracts of land in paying quantities at the expiration of said leases, that then, and in that event, said leases shall be extended for so long a period of time as gas and oil, or either of them, shall be produced on said tracts of land in paying quantities; provided, however, that drilling operations shall be commenced within six (6) months from the date of passage of this resolution, and shall be prosecuted with diligence. Laws 1919, c. 304, p. 442. •64293. Royalty proceeds from sale of oil and gas production. The royalty proceeds derived from the sale of oil or gas production under any oil and gas lease granted by the Commissioners of the Land Office shall be paid to the Commissioners pursuant to the terms of the Production Revenue Standards Act, Sections 1 through 15 of this act. Added by Laws 1987, c. 204, • 39, operative July 1, 1987. Amended by Laws 1992, c. 190, • 16, eff. July 1, 1993. •64-294. Commissioners of the Land Office not to recover certain taxes from certain persons. If any person responsible for paying oil and gas royalty to the Commissioners of the Land Office has paid, caused to be paid, pays or causes to be paid, to the Oklahoma Tax Commission, gross production tax pursuant to Section 1001 of Title 68 of the Oklahoma Statutes, petroleum excise tax pursuant to Section 1101 of Title 68 of the Oklahoma Statutes, excise tax on gas pursuant to Section 1102 of Title 68 of the Oklahoma Statutes, or conservation excise tax pursuant to Section 1108 of Title 68 of the Oklahoma Statutes, on said royalty, the Commissioners of the Land Office shall not recover from such person the taxes so paid. Added by Laws 1991, c. 342, • 7, emerg. eff. June 15, 1991. •64-311. Repealed by Laws 1955, p. 374, • 11. •64-312. Repealed by Laws 1955, p. 374, • 11. •64-313. Repealed by Laws 1955, p. 374, • 11. •64-314. Repealed by Laws 1955, p. 374, • 11. •64-315. Repealed by Laws 1955, p. 374, • 11. •64-316. Repealed by Laws 1955, p. 374, • 11. •64-317. Repealed by Laws 1955, p. 374, • 11. •64-318. Repealed by Laws 1955, p. 374, • 11. •64-319. Repealed by Laws 1955, p. 374, • 11. •64-320. Repealed by Laws 1955, p. 374, • 11. •64-321. Repealed by Laws 1955, p. 374, • 11. •64-322. Repealed by Laws 1955, p. 374, • 11. •64-323. Repealed by Laws 1955, p. 374, • 11. •64-324. Repealed by Laws 1955, p. 374, • 11. •64-325. Repealed by Laws 1955, p. 374, • 11. •64-326. Repealed by Laws 1955, p. 374, • 11. •64-327. Repealed by Laws 1955, p. 374, • 11. •64-328. Repealed by Laws 1955, p. 374, • 11. •64-329. Repealed by Laws 1955, p. 374, • 11. •64-330. Repealed by Laws 1955, p. 374, • 11. •64-351. Division of proceeds of sales and leases. In accordance with Section 12 of the Enabling Act of this state, the income, interest, rentals and proceeds of the sale of the following lands, now collected and hereafter to be collected, are hereby made available to the institutions to which the grants were made, namely; for the benefit of - The University of Oklahoma 250,000 acres. The University Preparatory School 150,000 acres. Oklahoma State University 250,000 acres. Langston University 100,000 acres. The normal schools now established or hereafter to be established 300,000 acres. R.L. 1910, • 7225. Amended by Laws 1998, c. 246, • 29, eff. Nov. 1, 1998. •64352. New College Fund Designation. The State Auditor and Inspector, Treasurer and Commissioners of the Land Office, and all other officers of the state are hereby directed and required to use the term "New College Fund" upon all their records as the proper name for designating fund created by virtue of the Enabling Act. Hereafter such fund shall be known and referred to as above specified. R.L. 1910, • 7226; Laws 1979, c. 30, • 37, emerg. eff. April 6, 1979. •64353. Proceeds made available. In accordance with Section 3, Article 15, Chapter V., Session Laws of 1907 and 1908, the income, interest, rentals and proceeds from section numbered thirtysix, township numbered nine north, of range three west, of the Indian Meridian, in Cleveland County, Oklahoma, now collected and hereafter to be collected are hereby made available for the use and benefit of the University of Oklahoma. Laws 191011, c. 85, p. 189, • 1. •64354. Payment to State Treasurer Filing statement with treasurer. The Commissioners of the Land Office are hereby authorized, empowered and directed to pay to the State Treasurer during the first week in January and the first week in July of each year hereafter, all income derived from the "Section Thirteen Fund State Educational Institutions"; and all income derived from the "New College Fund"; and shall file with the State Treasurer a statement showing in detail the sources from which said income has been derived. Laws 1913, c. 101, p. 177, • 1. •64355. Apportionment of income among institutions. The State Treasurer shall apportion the income derived from the "Section Thirteen Fund State Educational Institutions" among the educational institutions entitled thereto, in accordance with the division and distribution made in Section 1, of Article 11, Chapter 34, Session Laws of 19071908, entitled "An Act to provide for the division and distribution of the income, rentals, interest, and proceeds from certain lands among certain educational institutions, and making appropriations of such fund in pursuance thereof, designating a name by which such fund shall hereafter be known, and declaring an emergency"; and shall likewise apportion the income derived from the "New College Fund" to the educational institutions entitled thereto, in accordance with Section 1, Article 5, Chapter 28, Session Laws of 1909, entitled "An Act to provide for making available to various educational institutions the income, interest, rentals, and proceeds from certain lands, and making appropriations of such funds; designating a name by which such fund shall hereafter be known and declaring an emergency". The Director of State Finance shall notify the chairman of the board having control of each of said educational institutions, and the president of each of said institutions, of the amount apportioned to it. The amount so apportioned to each educational institution shall, immediately after each successive apportionment, become available and are hereby appropriated for the use of the respective institutions, and shall be paid out in accordance with the law. Laws 1913, c. 101, p. 177, • 2; Laws 1979, c. 47, • 71, emerg. eff. April 9, 1979. •64-356. Repealed by Laws 1961, p. 491, • 1. •64-357. Repealed by Laws 1979, c. 47, • 109, emerg. eff. April 9, 1979. •64-371. Receipts to constitute Public Building Fund - Transfer from General Revenue Fund. A. All monies heretofore or hereafter received from the sale or rentals of Section 33 and lands granted in lieu thereof, the same being lands granted to the State of Oklahoma for charitable and penal institutions and public buildings, shall constitute and be known as the "Public Building Fund". B. On or before July 15, 2008, and on or before July 15 each year thereafter, the State Treasurer shall transfer from the General Revenue Fund an amount equal to all monies accruing in the Public Building Fund for the previous fiscal year to the State Land Reimbursement Fund which shall be expended in accordance with the provisions of Section 194 of Title 62 of the Oklahoma Statutes. R.L. 1910, • 7227. Amended by Laws 1910-11, c. 89, p. 194, • 1; Laws 2007, c. 323, • 1, eff. July 1, 2007. •64-371a. Repealed by Laws 1993, c. 330, • 33, eff. July 1, 1993. •64-372. Repealed by Laws 1961, p. 491, • 1. •64-373. Repealed by Laws 1961, p. 491, • 1. •64-374. Repealed by Laws 1961, p. 491, • 1. •64-375. Repealed by Laws 1961, p. 491, • 1. •64-376. Repealed by Laws 1961, p. 491, • 1. •64-377. Repealed by Laws 1961, p. 491, • 1. •64-378. Repealed by Laws 1961, p. 491, • 1. •64-379. Repealed by Laws 1961, p. 491, • 1. •64-380. Repealed by Laws 1961, p. 491, • 1. •64381. Investment of Public Building Fund in dormitory building bonds. The Commissioners of the Land Office of the State of Oklahoma are hereby authorized and directed to invest the Public Building Fund of the State of Oklahoma in University Dormitory Building Bonds of the State of Oklahoma and Agricultural and Mechanical College Dormitory Building Bonds of the State of Oklahoma, issued under and pursuant to the provisions of Chapter 87, Session Laws of Oklahoma, 192324, and to pay therefor the face value of said bonds with accrued interest thereon to date of purchase, the total investment hereby authorized being Six Hundred Thousand Dollars ($600,000.00), together with interest on said bonds from the date of execution thereof to date of purchase. Laws 1925, c. 256, p. 364, • 1. •64-401. Repealed by Laws 1949, p. 440, • 1. •64-402. Repealed by Laws 1949, p. 440, • 1. •64-403. Repealed by Laws 1949, p. 440, • 1. •64-404. Repealed by Laws 1949, p. 440, • 1. •64405. Lease for oil and gas mining authorized Duration Provisions. Any county, township, school district, city or town that now owns or may hereafter acquire any land under control of the board of county commissioners, board of town trustees, directors of school districts, boards of education or the governing body of any city acting by and through its duly constituted officers is hereby authorized and empowered to enter, from time to time, into valid oil and gas mining lease or leases of such land to any person, firm, association, or corporation for oil and gas development for a primary term not to exceed ten (10) years and as long thereafter as oil or gas is or can be produced, and any such oil and gas lease may provide that the lessee therein shall have the right and power to consolidate the land covered by said lease with other adjoining land for the purpose of joint development and operation of the entire consolidated premises as a unit, in which event, the lessor in such lease shall share in the royalty on oil and gas produced from said consolidated tract in the proportion that the area of the land covered by such lease bears to the total area of said consolidated tract, or for the purpose of constructing permanent improvements thereon for a term not to exceed ten (10) years. This law does not apply to agricultural purposes. Laws 1943, p. 160, • 1, emerg. eff. April 1, 1943. •64406. Notice by publication Validation of leases heretofore executed. The leases mentioned in the preceeding section shall be executed only after notice by publication for two (2) weeks in a newspaper of general circulation in the county in which the land is situated and a public sale thereof to the highest and best bidder: Provided, that all leases heretofore executed by the board of county commissioners, board of town trustees, directors of school districts or boards of education covering lands under their control are hereby validated. Laws 1943, p. 160, • 2, emerg. eff. April 1, 1943. •64407. "Abandoned municipality" - Definition - Oil and gas leases thereon. (A) As used herein, "abandoned municipality" means any city, town, or school district in and for which there is not, and has not been for a period of one (1) year, any acting or functioning governing board and no persons purporting or claiming to act as such governing board: Provided, however, that a school district which has been disorganized and its territory legally made a part of another school district, by annexation, uniting, consolidation, or otherwise, shall not be considered an "abandoned municipality" within this act. (B) Oil and gas mining leases of lands belonging to or under the control of an abandoned municipality may be entered into and executed in the following manner: (1) Any legal resident of said abandoned municipality, or any person desiring to offer to purchase an oil or gas mining lease or leases of any lands owned by or belonging to any abandoned municipality, may file a petition in the district court of the county in which said abandoned municipality is located, alleging that said municipality is an abandoned municipality as defined by this act, stating the particular facts upon which said allegation is based, and that there are lands belonging to said abandoned municipality upon which it is desirable to execute an oil or gas mining lease or leases, and requesting the appointment of a receiver authorized to enter into such lease or leases as herein provided. If said abandoned municipality is located in more than one county, the petition shall be filed in the district court of the county in which the greater portion of the area thereof is located. (2) Notice of the filing of said petition and of the purpose thereof, and of the date of the hearing to be held as provided herein, shall be given by publication for three successive issues in a weekly newspaper of general circulation in the county in which the abandoned municipality is located, the first publication to be not less than twentyfive (25) days prior to said hearing, and in addition, such notice shall be posted not less than twentyfive (25) days prior to said hearing at five public places within such abandoned municipality. (3) The district court shall hold a hearing at which any interested person may appear in support of, or in opposition to, the appointment of a receiver for the purpose of executing and entering into an oil and gas mining lease or leases of lands belonging to or under the control of the abandoned municipality. The district court may continue said hearing from time to time without additional notice. (4) If the district court shall find that the municipality is an abandoned municipality as defined by this act, and that there are lands belonging to said abandoned municipality, and that there is a person or persons desiring to secure an oil or gas mining lease or leases upon such lands, or any part thereof, the court shall appoint a receiver who shall have power and authority, upon approval by the court, to enter into valid oil and gas mining lease or leases of such lands to any person, firm, association, or corporation for oil and gas development, said leases to be for the term and conditioned as are leases executed by governing boards under the provisions of Section 1, Chapter 8, Title 64, Session Laws 1943; and said leases must be offered for sale and sold in the manner prescribed by Section 2, Chapter 8, Title 64, Session Laws 1943. (5) After said lease or leases have been executed by the receiver, they shall be submitted to the district court for approval, and the district court shall approve the same if they comply with the provisions of this act. (6) After said lease or leases have been executed by the receiver and approved by the district court, and the said lease or leases shall be recorded in each county in which any portion of said lands may be located, and the receiver shall be discharged. (7) All monies to which said abandoned municipality is entitled, including rents, royalties, bonus payments, or any monies whatsoever, under any lease entered into under the provisions of this section, shall be paid to the county treasurer of the county in which the petition was filed, and shall be by the county treasurer deposited in a special account to the credit of said abandoned municipality, to be disposed of as may now or hereafter be provided by law. (8) Any lessee, or the assignee of any lessee, under any lease executed as provided in this section, who shall fail to pay any monies to which said abandoned municipality is legally entitled under the terms of said lease, to the county treasurer, shall be guilty of a misdemeanor, and upon conviction thereof shall be fined a sum of not more than Ten Thousand Dollars ($10,000.00). (9) The district attorney shall have authority to enforce the obligations of any lessee or the assignee thereof under any lease entered into as prescribed by this section, by any legal proceeding he may deem necessary, and he shall defend the interests of said abandoned municipality in any action or proceeding in which the interests of said abandoned municipality under said lease may be adversely affected. (10) If any municipality, after having been an abandoned municipality, shall again have an acting, functioning, and duly constituted governing board, said governing board shall assume control of any lands belonging to said abandoned municipality, and of any leases thereof, including those executed as provided by this section, in the same manner and to the same extent as though said leases had been executed and entered into by said governing board. Laws 1949, p. 438, • 1, emerg. eff. June 6, 1949. •64408. School lands - Leases. Oil and gas mining lease or leases of lands belonging to the county separate schools of any county shall be entered into by the board of county commissioners as to such lands not located within any independent school district, and shall be entered into by the board of education of any independent school district in which any such lands are located. Such leases shall be for the term and conditioned as are leases executed by governing boards under the provisions of Section 1, Chapter 8, Title 64, Session Laws 1943; and said leases must be offered for sale and sold in the manner prescribed by Section 2, Chapter 8, Title 64, Session Laws 1943. Laws 1949, p. 439, • 2, emerg. eff. June 6, 1949. •64421. State lands - Contracts for use - Damages. When the United States of America, acting through the Secretary of the Interior or his duly authorized representative, or acting through the Secretary of War or his duly authorized representative, or when any irrigation district, conservancy district or water users' association, organized under the laws of this state, acting by or through its board of directors, determines that the fee simple title or any lesser estate, interest, right or easement in and to any lands owned by the State of Oklahoma, including lands under the control and management of the Commissioners of the Land Office, except land acquired by the state through and by reason of grants to the state as made by the terms of the Enabling Act, is necessary or convenient for the construction, development, operation or maintenance of any irrigation, reclamation, water conservation and utilization, flood control, military or national defense project, needful public buildings, or for any other public use or purpose, or determines that the construction, development, operation or maintenance of any such project will result in the destruction, alteration, damaging or appropriation of any such lands, or any facility, structure, easement or right of the State of Oklahoma, the United States of America, or the irrigation district, conservancy district or water users' association, as the case may be, engaged in the construction, operation, development or maintenance of any such project, may file a certificate of such determination and a written application for the acquisition of the title to any such land, or any lesser estate, right, interest or easement therein or thereto, or the right to destroy, alter, damage or appropriate any existing facility, easement or right of the state, with the board, commission, officer, or agency of the State of Oklahoma, having the management or control of such stateowned lands, easements, rights or facilities. Upon the filing of such certificate and request the board, officer, commission or agency having control or management of such land, easement, right or facility shall, with the consent and approval of the Governor, be authorized and empowered: 1. To enter into contracts for sale and conveyance of, and to sell at private sale, the fee simple title or any lesser estate, right, interest or easement in and to or upon any such stateowned land to such applicant upon such terms and conditions and for such consideration as such board, commission, officer or agency may deem proper. 2. To enter into contracts and agreements to convey to such applicant the fee simple title or any lesser estate, right or easement in and to or upon any stateowned lands in exchange for other like lands or property. 3. To enter into contracts and agreements granting to the applicant the right to destroy, alter, damage or appropriate any right, easement or facility owned by the State of Oklahoma, upon such terms and conditions and for such consideration as such board, officer or agency may deem proper. 4. To execute any and all contracts, deeds and instruments of conveyance, of every kind or character, which may be proper, necessary or convenient in the exercise of the powers herein conferred and to carry out or fulfill the intent and purpose of this act. Laws 1941, p. 305, • 1, emerg. eff. Feb. 28, 1941. •64422. Execution of instruments Approval by Governor. Any instrument, easement, contract, or deed which may be required in, or convenient to, the exercise of the powers granted in Section 1 of this act shall be executed by the chairman or presiding officer and attested by the secretary, if such instrument be executed by a board or commission, and if such instrument be executed by an officer, it shall be signed by said officer. No such contract, easement, deed or instrument of conveyance shall be effective unless and until the approval of the Governor is endorsed thereon in writing. Laws 1941, p. 306, • 2, emerg. eff. Feb. 28, 1941. •64423. Eminent domain - Agreements. When the United States of America, acting through the Secretary of the Interior, or his duly authorized representative, or acting through the Secretary of War, or his duly authorized representative, shall determine that the construction, development, operation or maintenance of any irrigation, reclamation, water conservation and utilization, flood control, military or national defense project, or any needful public building or other public project being constructed, operated, developed or maintained under the laws of the United States, requires the appropriation of the fee simple title or any lesser estate, right or easement in and to or upon any tract of land owned by the State of Oklahoma and acquired by the state through and by reason of grants to the State of Oklahoma, made by the terms of the Enabling Act, and files a certificate executed by the Secretary of the Interior, or his duly authorized representative, or by the Secretary of War, or his duly authorized representative, certifying that the fee simple title or some lesser estate, right or easement in and to or upon such land will be appropriated and taken for such purposes under the power of eminent domain, the Commissioners of the Land Office may enter into negotiations with the United States of America, acting as aforesaid, for the purpose of determining by agreement the amount which the State of Oklahoma will be entitled to receive by reason of such appropriation for said purposes. If the Commissioners of the Land Office are able to agree with the United States of America, acting as aforesaid, on the amount to which the State of Oklahoma will be entitled by reason of such appropriation, the Commissioners of the Land Office, by and with the consent of the Governor of the State of Oklahoma, may upon payment of the amount of compensation agreed upon and in recognition of the taking and appropriation of such land and in lieu of condemnation proceedings for the determination of the amount of such damages, execute a deed of conveyance evidencing the title or right acquired by the United States of America in the exercise of its sovereign powers and further evidencing the payment and receipt of full compensation for the land, right, easement or estate so appropriated. The execution and delivery of said deed shall operate as conclusive evidence of such appropriation and taking and the United States of America shall thereupon be authorized to enter upon and take possession of the land to the extent of such appropriation as evidenced by said deed. Said deed of conveyance shall not be effective unless the approval of the Governor is endorsed thereon in writing. The Commissioners of the Land Office shall have like power to execute deeds of conveyance in lieu of condemnation proceedings when any irrigation district, conservancy district or water users' association, organized under the laws of the State of Oklahoma, certifies by and through its board of directors the necessity of taking of any such lands, and upon such certification by such irrigation district, conservancy district or water users' association, the provisions of this section shall apply with like force and effect to all such stateowned lands, or any lesser estate, right or easement therein or thereon, so appropriated by any such district or association. Deeds in lieu of condemnaton proceedings shall be executed by the presiding officer of the Commissioners of the Land Office and attested by the Secretary but no such deed shall be effective unless and until the approval of the Governor is endorsed thereon in writing. Laws 1941, p. 306, • 3, emerg. eff. Feb. 28, 1941. •64424. Partial invalidity. If any section, subsection, sentence, clause or phrase of this act is held to be invalid, the decision shall not affect the validity or the meaning of the remaining portions of this act. The Legislature hereby declares that it would have passed this act, and each section, subsection, sentence, clause and phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid. Laws 1941, p. 307, • 4, emerg. eff. Feb. 28, 1941. •64425. Rights and powers Cumulative. Each and all of the rights, powers and remedies granted and conferred by the terms of this act shall be cumulative and shall be construed to be in addition to those already existing, except that at any private or voluntary sale of stateowned lands by the Commissioners of the Land Office such sale shall be held only upon resolution adopted by a unanimous vote of the Commissioners of the Land Office. Laws 1941, p. 307, • 5, emerg. eff. Feb. 28, 1941. •64451. Prospecting - Permits. To further the development of mineral resources in the State of Oklahoma, particularly with regard to valuable minerals, including uranium, the Commissioners of the Land Office are hereby authorized to issue prospecting permits to citizens of the United States, granting an exclusive right to prospect for any minerals owned by the state, under the jurisdiction and control of the Commissioners of the Land Office; provided, that all such permits shall be for a period of not to exceed one (1) year and no permit shall cover more than one hundred sixty (160) acres of land. Laws 1955, p. 373, • 1, emerg. eff. June 7, 1955. •64452. Application for permit Fee - Issuance of permit. The application for a prospecting permit shall be in writing and addressed to the Secretary of the Commissioners of the Land Office, accompanied by a reasonable fee to be fixed by the Commissioners, to defray the expenses incurred in the issuance of such permit, keeping a permanent record thereof and services rendered in connection with enforcement of the terms and provisions of such permit. Upon approval of an application by the Commissioners, they shall issue a written permit subject to such conditions and requirements as may be fixed by the Commissioners. Laws 1955, p. 373, • 2, emerg. eff. June 7, 1955. •64453. Report of discovery Preference right to purchase lease. Should a prospector discover a valuable mineral, he shall make a detailed written report of his discovery to the Commissioners of the Land Office within thirty (30) days from the date of such discovery. He shall not remove any minerals in commercial quantities without a lease contract issued to him by the Commissioners of the Land Office. As a consideration for the discovery of a valuable mineral, such prospector shall be granted a preference right to purchase a mining lease covering the land described in his permit, at the highest bid, should such lease be offered for sale. Laws 1955, p. 373, • 3, emerg. eff. June 7, 1955. •64454. Notice and sale of lease. Should the Commissioners of the Land Office find that the state owns a valuable mineral, they shall offer the necessary mineral lease for sale on competitive bids, and notice of such sale shall be published in at least one newspaper, authorized by law to publish legal notices, in the county in which the land is located. The notice shall state the terms and conditions under which sale will be made; the annual rental and/or royalty which will be acceptable to the Commissioners, and that the Commissioners have the right to reject any and all bids. Laws 1955, p. 373, • 4, emerg. eff. June 7, 1955. •64455. Terms of leases Performance bond. A mining lease shall cover not to exceed one hundred sixty (160) acres of land and shall provide for an annual rental of not less than One Dollar ($1.00) per acre, or if minerals are produced the royalty shall not be less than five percent (5%) of the gross receipts from sale of minerals produced, or in lieu thereof, if the minerals are not sold, the payment to the State of not less than five percent (5%) of the market value of the minerals produced, as the Commissioners may elect. All leases shall be issued for a primary term of not more than five (5) years and as long thereafter as specified minerals are produced in paying quantities. All leases for production of minerals provided in this act shall contain a provision that a failure to faithfully operate said premises to as full an extent as other premises are being operated within the general area, in which such land is located or a violation of any covenant contained in said lease shall forfeit such lease to the state. The Commissioners shall require a good and sufficient bond for the faithful performance of the convenants contained in said lease. Laws 1955, p. 374, • 5, emerg. eff. June 7, 1955. •64456. Cancellation of prospecting permits - Grounds for appeals. Upon the violation of any of the terms or provisions of any prospecting permit or mining lease, or the laws of the State of Oklahoma relating to public lands of said state, the Commissioners of the Land Office shall have the right at any time to cancel the prospecting permit or lease, upon ten (10) days notice given by registered mail to the last known address of the prospector or lessee, or by posting notice in writing in a conspicuous place upon the premises, specifying the terms, provisions or laws violated. All orders of cancellation shall become final, unless an appeal to the district court of the county in which the land is located is perfected within thirty (30) days after date of such order. Laws 1955, p. 374, • 6, emerg. eff. June 7, 1955. •64457. Liability for damage to surface interests. Any person, firm or corporation, receiving a prospecting permit or lease under the provisions of this act, and prospecting, exploring or operating for minerals, shall be liable to the surface owner or surface lessee for all damages or loss accruing to the surface interest in said land and to all crops and improvements thereupon and appurtenances and hereditaments thereunto belonging. Laws 1955, p. 374, • 7, emerg. eff. June 7, 1955. •64458. Rules and regulations. The Commissioners of the Land Office are hereby authorized to make and promulgate appropriate rules and regulations for the purpose of carrying into effect the provisions of this act. Laws 1955, p. 374, • 8, emerg. eff. June 7, 1955. •64-459. Violations and penalty. Any person who prospects for minerals owned by the State of Oklahoma, under the jurisdiction and control of the Commissioners of the Land Office, without a prospecting permit, or who removes any such minerals without a lease contract, contrary to the provisions of this act, or who violates any other terms or provisions of this act, shall be guilty of a felony and upon conviction shall be punished by a fine of not less than Fifty Dollars ($50.00) and not to exceed Fifty Thousand Dollars ($50,000.00), or by imprisonment for not less than thirty (30) days and not to exceed ten (10) years, or by both such fine and imprisonment. Added by Laws 1955, p. 374, • 9, emerg. eff. June 7, 1955. Amended by Laws 1997, c. 133, • 547, eff. July 1, 1999; Laws 1999, 1st Ex.Sess., c. 5, • 398, eff. July 1, 1999. NOTE: Laws 1998, 1st Ex.Sess., c. 2, • 23 amended the effective date of Laws 1997, c. 133, • 547 from July 1, 1998, to July 1, 1999. •64460. Provisions shall not affect other uses of land. The provisions of this act shall not affect the sale of sand, gravel, caliche or rock by the Commissioners of the Land Office for construction or road purposes, or the exploration for or production of oil and gas. Laws 1955, p. 374, • 10, emerg. eff. June 7, 1955.
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