(a) State lands shall be classified as to whether they should be retained in public ownership or returned to private ownership through sale or donation, and the classification may be changed.
(b)
(1) The Commissioner of State Lands shall dispose of the lands and make deeds to the lands in accordance with the classification under subsection (a) of this section.
(2) With the approval of the Governor and review by the General Assembly or the Legislative Council, lands classified as suitable for return to private ownership may be sold under subsection (e) of this section to private parties by the Commissioner of State Lands.
(c) The Commissioner of State Lands may direct that land shall be retained and administered by certain appropriate state or local agencies or shall be disposed of and deeded in such manner that the state shall be eligible for any benefits under any act of the United States Congress.
(d) Where lands are disposed of by return to private ownership, the deeds shall contain such restrictive covenants or restraints on alienation as the Commissioner of State Lands may deem necessary to ensure the protection and use of the land in a manner beneficial to the public. All coal, oil, gas, and mineral rights shall be reserved to the state except in the case of tax-forfeited lands. However, the original owner or his or her heirs shall be allowed to redeem or acquire these lands in accordance with the provisions of this subchapter without the oil, gas, and mineral rights being restricted or reserved.
(e)
(1) Where land is classified as land which should be returned to private ownership by sale, the Commissioner of State Lands shall offer the land for sale to the highest bidder, but only if his or her bid is at least equal to the appraised value.
(2) Land shall not be sold for less than its appraised value, except that, pending appraisal, the Commissioner of State Lands is authorized to continue sales of state lands as provided for in §§ 26-37-101 — 26-37-105, 26-37-201 — 26-37-205, and 26-37-301 — 26-37-303.
(f) Land shall not be donated by the Commissioner of State Lands until it has been classified as appropriate for donation by the Commissioner of State Lands.
(g) If, at the end of three (3) years after appraisal by the Commissioner of State Lands, lands classified as land which should be returned to private ownership by sale shall remain unsold on the books of the Commissioner of State Lands, the unsold lands shall be reappraised by the Commissioner of State Lands.
(h) Tax-delinquent lands are not subject to the terms and restrictions of this section and may be disposed of as required by law.