Sec 37-604.01. Exchange of state subsurface rights and interests

A. The department and selection board, for the purpose of consolidating surface and subsurface ownership, may exchange unleased or unclaimed subsurface rights and interests and leased oil and gas rights and interests, managed by the state land department for subsurface rights and interests owned by others.

B. Such exchanges shall be subject to the following requirements:

1. All subsurface rights and interests exchanged shall be of substantially equal value.

2. Exchanges of subsurface rights and interests leased for oil and gas shall only be made with the United States of America.

3. Leases for oil and gas on subsurface rights and interests exchanged pursuant to this article shall remain in full force and effect for the term of the lease.

4. Before any of the state subsurface rights and interests may be considered for exchange under the provisions of this article, they shall be classified as suitable for purposes in accordance with the provisions of section 37-212.

5. Prior to any exchange of subsurface rights and interests the state land department shall give thirty days' notice in writing to other interested state agencies, counties, municipalities and leaseholders on such lands that are or may be affected by the exchange.

6. Subsurface rights and interests conveyed to the state under this article shall, upon the acceptance of title and records, be dedicated to the same purpose and administered under the same laws which the lands conveyed were subject to.

C. Any person may, within ten days of the date of notice as provided herein, file a written protest of the exchange at the state land department. Upon receipt of such a protest to a contemplated exchange pursuant to this section, the state land commissioner shall, not later than thirty days after receipt of the protest, hold a public hearing at the county seat of the county in which the state lands proposed to be exchanged are located to hear any and all matters relevant to the proposed exchange. Notice of the public hearing shall be mailed to all protestants and published at least weekly during the thirty day period prior to the date of the hearing in a newspaper of general circulation in the county.

D. The state land department may promulgate rules and regulations governing application and procedures for exchanges of subsurface rights and interests.