Purchase of lands by lessee or other person
(1) The lessee of any common school grazing land, upon its classification for sale by the Department of State Lands, may purchase such land at a price and on terms prescribed under subsection (2) of this section if the lessee is an individual person, a resident of this state and owns, in fee simple, land immediately adjacent to the common school grazing land for which the lessee has applied. For purposes of this section, lands are considered to be adjacent if their boundaries are common or intersect at a common point.
(2) Application to purchase common school grazing land under subsection (1) of this section must be made in a manner prescribed by the rules of the department. Upon receiving an application, the department shall determine whether the applicant qualifies under subsection (1) of this section. If the applicant qualifies, the department shall cause an appraisal to be made of the land for which application has been made. The department then shall fix a price for such land. ORS 270.020 (Title to property), 273.225 (Application for lease to take material) to 273.241 (Action to recover damages for unlawful removal of material) and 273.275 (Price of state lands) do not apply to the sale of land under this subsection. The applicant shall pay not less than 10 percent of the purchase price at the time of purchase, and shall pay the remainder in 10 equal installments, at least one installment to be paid each year, over a period not to exceed 10 years from the time of purchase, with interest at the rate fixed by the department for purposes of ORS 327.425 (Loans and investment of funds).
(3) If application to purchase common school grazing land is made by a person other than the lessee of such land, the department promptly shall notify the lessee by registered or certified mail. Not later than the 90th day after notice was mailed to the lessee, the lessee may make written application in a manner prescribed by the rules of the department to purchase such land. If the department determines that the lessee qualifies under subsection (1) of this section, the department shall proceed under subsection (2) of this section. If the department determines that the lessee does not so qualify, or if the lessee does not make timely application as required by this subsection, the department shall proceed to sell such land in accordance with applicable provisions of law other than this section. [1967 c.147 §2]
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