§ 36-5-111 — Payment for or removal of existing improvements

Any applicant applying to lease state lands upon which there are
fences, buildings, reservoirs, ditches, dams, wells, or other
improvements of any kind, belonging to or made by another, or
for which water rights or proportionate interests in irrigation
reservoirs, canals, or systems, have been acquired, shall before
receiving the lease, pay to the director for the use and benefit
of the owner or maker of any improvements at the time of the
execution of the lease, the current market value of the
improvements unless a different value is agreed to between the
owner of the improvements and the applicant thereof as finally
determined by the board in accordance with its rules and
regulations. Alternatively, the owner of the improvements shall,
upon giving notice to the director in writing within the time
fixed by board rule and regulation, have the right to remove
those improvements in a manner which minimizes injury to the
land; provided, that the improvements be removed within a period
of one hundred twenty (120) days from the date of the expiration
of the lease. For purposes of this section, "current market
value" means the replacement value of the lessee's improvement
at the time of transition of the lease, after the remaining
useful life of the improvement is considered.