Okla. Stat. tit. 64, § 64-1023: 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 fifty-five (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 July 1, 1989, shall revert to the trust at the end of the

lease.

B. In connection with any commercial and agricultural leases,

the Commissioners of the Land Office shall, unless otherwise

exempted by the Constitution or laws of this state:

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. An appraiser selected by the Commissioners of the Land

Office shall appraise any improvements approved by the Commissioners

of the Land Office made to the property leased as an agricultural

lease by the current lessee that cannot be removed without manifest

injury to the land. When the Commissioners enter into a new lease

for the property, the lease shall require the new lessee to

reimburse the previous lessee for the appraised value of any

improvements made by the previous lessee by the date the new lessee

is permitted to take occupancy of the property. It shall be

considered a default of the lease of the property to the new lessee

if such reimbursement is not made. Provided, no fees may be charged

to a lessee above those included in the originally accepted bid to

irrigate land used for agricultural purposes if the water is not

sourced from lands owned or managed by the Commissioners.

D. The Commissioners of the Land Office may refuse to accept

any bid or lease on a commercial, agricultural, or mineral lease

where the party is in default of any installment due or in violation

of any provisions contained in a prior or current lease contract.

E. The Commissioners of the Land Office may refuse to accept

any bid or lease contract where the interested party cannot show

adequate creditworthiness as determined by the Land Office.

F. The Commissioners of the Land Office shall promulgate rules

to implement the provisions of this section.