Sec 37-205. Due diligence costs related to disposition of land

A. In addition to other fees required by this title, and instead of the department performing advance due diligence pursuant to section 37-110, subsection A, the commissioner may require or allow an applicant to advance or incur the costs of the department's evaluating and processing an application and otherwise preparing land for a sale, lease, right-of-way or other use permit. Monies that are advanced by the applicant to the department pursuant to this subsection shall be deposited in a separate account of the state land department fund.

B. If the successful bidder at an auction is not the applicant, the successful bidder shall reimburse the applicant for fees and costs paid pursuant to this section in amounts and on terms the commissioner directs in the auction notice. After receiving the reimbursement amounts, the commissioner shall remit them to the applicant.

C. If an auction does not occur or a transaction is otherwise not completed as a result of a mistake or circumstances caused by the department, including issues arising out of concerns over title, misidentification of the parcel and factors affecting the commissioner's view of the timeliness or desirability of disposing of the parcel, then the commissioner, on the timely written request of an applicant, may reimburse or cause to be reimbursed to the applicant, on terms that the commissioner considers reasonable and appropriate, from monies of the department all or part of the costs paid pursuant to this section and application fees paid pursuant to section 37-107. Reimbursement for costs paid pursuant to this section may only be for costs that the commissioner determines to represent an enhancement of knowledge about the parcel or that tangibly or intangibly enhance the value of the parcel. The commissioner may refuse any reimbursement request for any reason.