37-246. Sale of natural products of lands by
purchaser under certificate of purchase; disposition of proceeds;
violation; classification


A. If a purchaser of state land under a certificate of purchase sells or contracts
to sell directly or indirectly any sand, gravel, stone or other natural product from the
land described in the certificate, he shall file with the department within ten days
after the sale or making the contract, a statement under oath on a form furnished by the
department, of the kind and quantity of natural product sold, the terms of the sale, and
the amount received or to be received therefor.


B. Upon receipt of any money from a sale or contract described in subsection A, the
holder of the certificate shall promptly pay the money to the department. The money
shall be applied by the department first to payment of the interest accrued under the
certificate, and the remainder, if any, to payment of the principal amount owing on the
land described in the certificate. If the payment is sufficient to discharge the total
debt owing under the certificate, with accrued interest thereon, the department shall
issue a patent to the purchaser as provided in this article.


C. The department shall cancel the certificate of purchase of a purchaser of state
land who fails or refuses to make or knowingly makes any false statement in any statement
required by subsection A, or who fails or refuses to pay to the department any money
required to be paid by subsection B. The land described in the certificate, together
with all improvements thereon, shall revert to the state, and all amounts theretofore
paid for the land by the purchaser shall be forfeited to the state.


D. A person who violates a provision of this section is guilty of a class 2
misdemeanor.