§ 36-5-103 — Application for lease; cancellation of application

Any person, firm, association or corporation desiring to lease
state lands for agricultural and grazing purposes shall file
with the director an application on the form approved by the
board, which must be accompanied by the regular filing fee and
payment acceptable to the director for the full amount of the
first year's rental offered. If there are improvements owned by
another located upon said lands, the applicant must also
transmit in the manner above provided, the estimated amount of
the value of the improvements as listed in his application, and
in the event the successful applicant fails, refuses or neglects
to complete the lease awarded, or otherwise fails, refuses, or
neglects to comply with the provisions of this act, or the rules
and regulations of the board, after having been given thirty
(30) days notice by registered mail, the application shall be
cancelled and the sum remitted as rentals and twenty-five
percent (25%) of the sum remitted for improvements shall be
retained by the board as liquidated damages; and the sum paid as
rental shall be paid by the director to the state treasurer and
credited by him to the proper permanent land income fund
account, and the sum paid for improvements shall be credited to
the general fund.