Sec 37-258. Sale of rights in dry riverbed

A. Upon receipt of the appraisal and when it is in the best interests of this state and of the trust, the commissioner may cause rights of the state in any dry riverbed on the land described in the application to be put up for sale to the highest bidder. This sale may include the state's interest in oil, gas, other hydrocarbon substances, helium or other substances of a gaseous nature, geothermal resources, coal, minerals, fossils and fertilizer of every name and description together with all uranium, thorium or other materials peculiarly essential to the production of fissionable materials.

B. The sale shall be held at the county seat of the county wherein the land was located immediately preceding the river movement which left the riverbed dry, and if such county cannot be determined by the commissioner, then the sale shall be held at the county seat of Maricopa county.

C. The sale is subject to all existing leases, covenants, conditions, restrictions, easements, encumbrances, rights and rights-of-way against the land described in the application. The state may sell its rights in an entire section in any one year. No sales shall be deemed to be agricultural land for purposes of section 37-234. At least ten per cent, but not more than twenty-five per cent, of the appraised value, as stated in the auction notice, which shall be applied to principal, together with the prescribed fee under section 37-107 shall be paid by cashier's check upon announcement of the successful bidder. The balance of the purchase price shall be paid by cashier's check within thirty days of the date of the sale and no interest shall be charged. In other respects, the sale shall be conducted as specified in this article. The minimum price at the sale shall be the value of Arizona's interest in the land as determined by the preceding appraisal, including the increased value resulting from the development or improvements made by the applicant and the applicant's predecessors in interest.

D. If the applicant is not the purchaser the applicant is entitled to receive from the proceeds of sale the amount of the increased value of the land, as determined by the appraisal, resulting from the development of or improvement of or on the land made by the applicant or the applicant's predecessors in interest. If the applicant is the purchaser the applicant is entitled to an offset against the purchase price in the amount of the increased value resulting from said developments and improvements. The payment for these improvements shall be made in the manner specified in sections 37-322 and 37-322.02, except that obtaining the prior approval of the state for making the development or improvement shall not be a prerequisite to the applicant's recovery of the increased value of the land resulting therefrom and that the payment for the improvements may not be on installments.