secretary of state, and a record thereof shall be kept in the office of the board. ['96, p. 246*; '97, p. 69. Patent when subject to easement for highway, 1123. 2349. Lands may be leased. Term. Quantity. Term. Quantity. Application. Payment. Preference. All land appraised and unsold shall be subject to lease at an annual rental of not less than two per cent of the appraised value thereof. Lands other than grazing lands shall be leased for terms of not more than five years, and in tracts not exceeding one hundred and sixty acres in extent to any one person, company, or corporation. Grazing lands may be leased for such terms not exceeding twelve years and in tracts of such quantities as may be for the best interest of the state, at the discretion of the board; provided, that no lease shall exceed fifty thousand acres to any one person or corporation; and provided further, that when it shall be shown that a lease has been secured for the purpose of a re-lease, or for the benefit of any person or corporation securing such lease, the board shall declare such lease void, unless such re-lease be consented to by the board. Applications for lease shall be made to the board, and shall contain an affidavit that the applicant is not the owner of a lease of state lands of more than three hundred and twenty acres, except grazing lands, including the amount applied for, and that he desires to lease for his own use and benefit. Applications for lease shall be accompanied by the fees provided by law to be paid for making said lease. If the board deems it advisable to lease said land, it shall cause the same to be appraised, and determine the annual rental thereon and forward a lease for said lands, duly executed, to the county treasurer, to be delivered to the lessee upon the payment of the first instalment of rental as herein provided. The first payment upon a lease shall be until the first day of January next ensuing. Subsequent payments shall be due and payable annually, in advance, on the first day of January of each year; provided, that where inhabitants of cities, towns, or villages desire to lease the grazing lands lying contiguous to said cities, towns, or villages, or other lands which they have used continuously for a period of ten years for grazing purposes, they shall have the preference right to do so. In leasing grazing lands, the board shall give the preference right to actual settlers. The board may withhold from sale or lease lands on which there are springs of water, where water for stock purposes is scarce, and their sale or lease, if inclosed, would, in the opinion of the board, create a monopoly of large tracts of United States or state grazing lands in favor of the purchasers or lessees of such lands on which such springs or streams are located; and provided further, that the board shall give the preference right to lease the grazing lands of the state to citizens of the state. ['96, pp. 246-7*; '97, pp. 69-70. Fee for making leases, ? 2355. Lease of state mineral lands, ?? 2370, 2371. 2350. Lease may be offered at public auction. If two or more persons desire to lease the same tract of land subject to lease under this title, except grazing lands lying contiguous to cities, towns, or villages, and except as herein before provided, the board may, if deemed advisable by it, let the said land at public auction, to the person who, in addition to the two per cent of the appraised value, will pay the highest premium for the lease. ['96, p. 247*; '97, p. 71. 2351. Original and duplicate receipts for rent. Payment for or removal of improvements. When payments of rental or rental and premium are made, the county treasurer shall issue receipts in duplicate therefor, the "original" to be delivered to the lessee and the "duplicate" to be delivered to the county auditor and by that officer countersigned and transmitted to the board. When an applicant for the lease of lands, other than the owner of the improvements thereon, is the highest bidder therefor, he shall deposit with the county treasurer of the county wherein said lands are situated the appraised value of the improvements, and the amount so deposited shall be paid to the owner of the improvements, or, if such owner so elect, he may remove the improve 1899 ments within ninety days, in which case the amount deposited shall be returned 2352. Covenants of lease. Forfeiture. Each lease shall contain covenants that the lessee will promptly pay the rental annually in advance, that no waste shall be committed on the land, that the premises shall be surrendered at the expiration of the term of the lease, that the lessee will not sub-let without the written consent of the board, and that a failure to pay the agreed rental for a period of one month from the time such rental is due, will work a forfeiture of said lease after notice as hereinafter provided. ['96, p. 248*; '97, p. 71. 2353. Default in payment works forfeiture. Notification. Relief. Any lessee or purchaser, or any assignee of any lessee or purchaser, who is in default for the non-payment of rental, principal, or interest due the state for a period of one month after such rental, principal, or interest is due and payable, shall be notified by the board by registered letter of such default, and if within one month after service of such notice, such delinquent lessee, purchaser, or assignee has not paid such rental, principal, or interest so delinquent and has procured no extension of time, as provided in this chapter, his lease or contract of sale shall be forfeited, and such forfeiture shall be noted on the records of the board. Any person whose lease or contract of sale has been forfeited may, however, be relieved from such forfeiture at any time before the land has again been sold or leased, by paying all arrears of rental, principal, and interest, and five per cent penalty thereon; provided, that where through good and reasonable cause, such purchaser or lessee has been unable to meet his payments when due, as provided in this chapter, the board may, in its discretion, when the reasons assigned are considered good and sufficient by the board, extend the time for making such payments, not to exceed one year at any one extension, on the person or persons paying interest on such deferred payments, at the rate of five per cent per annum. The board may make such rules regarding such extensions as it deems proper. ['96, p. 248; '97, pp. 71-2. 2354. Cutting timber on leased lands. The lessee of state lands shall in no case be allowed to cut or use more timber therefrom than shall be necessary for the improvement of such lands, or for fuel for the use of the family of the lessee. The cutting and hauling of timber from leased agricultural or grazing lands to saw mills is prohibited. ['96, p. 249; '97, p. 72. Protection of timber, 2340. 2355. Fees of board. The board shall collect the following fees: for making lease for agricultural lands, each one dollar; for making leases of all other lands, including grazing lands, five dollars; for certificates of purchase, each two dollars; for issuing more than one certificate on each purchase of state lands made by one party, one dollar for each additional certificate so issued; for making certified copies of papers, or records, the same fees as are charged by the secretary of state for like services. ['96, p. 249; '97, p. 72. 2356. County treasurers to report monthly. Fees paid into state treasury. On the last business day of each month county treasurers of counties wherein state lands have been sold or leased, shall transmit to the state treasurer all moneys received on account of such sales or leases, and shall at the same time forward to the state auditor a statement of the amount of moneys transmitted, together with such information as to the sources from which the funds are derived as may be required by the board. All sums received for fees, fines, and forfeitures under this chapter, shall be paid into the state treasury and become a part of the general fund of the state. ['96, p. 249; '97, p. 72. 2357. Investment of funds. Security. Interest. Board to keep securities and collect interest. The board shall make the necessary orders for the investment or disposal of the funds derived from the sale and rental of public lands of the state in the state treasury. Such funds shall be invested for and on account of the specific purpose for which the lands were granted in government, state, county, city, or school district bonds, or in first mortgages on improved farms within the state; but no loan secured by mortgage on such improved farms shall exceed one-third of the market value of the same, exclusive of the improvements, and in no case shall exceed one-half of the assessed value. Whenever the board shall order the investment of any part of the general school fund, or any permanent fund held for investment, said board shall notify the state auditor of such order, and the state auditor shall draw a warrant for the amount stated in the notice, in favor of the president and secretary of the board, and the state treasurer shall pay such warrant out of the funds designated. The annual interest on all farm loans herein provided for shall be seven per cent; provided, that the expense of investigation of titles and values shall be paid by the intending borrower. The board shall be the legal custodian of all notes, mortgages, and other evidences of indebtedness arising from investments of state funds made by it, and shall collect all interest due the state on all investments. Interest so collected shall be paid into the state treasury, to the credit of the fund to which it belongs, on the last business day of each month. Whenever the state board of examiners shall so direct, the interest derived from the investment of funds belonging to the respective state institutions shall from time to time, upon proper requisition therefor, be used for the maintenance of said institutions; and whenever the board shall order the use of said fund or any portion thereof, it shall notify the state auditor of such order, and the state auditor shall draw a warrant for the amount stated in the notice, in favor of the institution which is entitled thereto; and the state treasurer shall pay such warrant out of the funds designated. ['96, pp. 249-50*; '97, pp. 72-3. 2358. Lands may be subdivided into lots and sold. Any portion of the public lands of this state, excepting such lands as are occupied by bona fide settlers who have a preference right of purchase, as hereinbefore provided, may be subdivided into lots, and sold as provided in this chapter, the board being satisfied that by a subdivision of any tract into lots, the sale of the same could be made for a greater amount than if sold in legal subdivisions as designated by United States surveys. The board shall have authority to employ the necessary surveyors to survey such tracts, to be subdivided into lots of such size as it shall determine. A plat of the surveys so made shall be filed in the office of the county recorder of the county wherein the land is situated, and a copy thereof filed in the office of the board. Tracts so subdivided shall not be subject to lease, but each lot shall be sold at public aution at such times as the board may direct. The manner of appraisement and sale of such subdivided lands shall be in all respects the same as in the case of other lands sold. ['96, p. 250; '97, pp. 73–4. 2359. State auditor's account with county treasurers. The state auditor shall charge each of the county treasurers in the state with the amount of money, rental, interest, and principal, separately, received from the sale or lease of lands in their respective counties, as shown by the duplicate receipts forwarded by the county treasurers of the several counties; and upon presentation of the state treasurer's receipt, shall credit the several county treasurers with the amount of the same. ['96, p. 250; '97, p. 74. County treasurer to receive payments, ?? 2343, 2344, 2345, 2351. 2360. Forest and water supply reserves. The board shall set apart and reserve from sale such tracts of timber lands and the timber thereon, as may, in the opinion of the board, be required to preserve the forests of the state, prevent a diminution of the flow of rivers, and aid in the irrigation of the arid lands. ['96, pp. 250-1*; '97, p. 74. Forest reserves authorized, Con. art. 18, sec. 1. 2361. Board to make rules and regulations. Supplies. The board shall have power to make all needful rules and regulations, not inconsistent with the provisions of this chapter, for carrying the same into effect; and shall supply all records, books, and papers that may be required for the purposes of this chapter. ['96, p. 251; '97, p. 74. 2362. Employment of counsel. The board shall cause the state to be properly represented in all suits, actions, controversies, or claims relating to state lands. ['96, p. 251; '97, p. 74. 2363. Annual report to be published. The secretary, under the direction of the board, shall annually, on or before the first day of January in each year, publish a full report of the board's transactions, showing the amount of lands in each county belonging to the state, to what fund they belong, their value to the amount sold or leased during the year. Said report shall contain such other items of information concerning the state lands as the board may deem proper, and the board shall report the same to the governor. '97, pp. 74-5. ['96, p. 251*; 2364. Rights protected. Sale of land for right of way. Nothing in this chapter shall be so construed as to impair the vested or accrued rights of any ditch or irrigation company, or any person owning any ditch or ditches, on or passing through any state lands, or to prevent the sale of more than one hundred and sixty acres for a continuous right of way, or for stations and building grounds within the state for a common carrier, or for canal or irrigation companies or associations. ['96, p. 251*; '97, p. 75. Right of way granted to railroads, 439. 2365. State land holdings compacted. Exchange of lands. In order to compact, as far as practicable, the land holdings of the state, the board is hereby authorized to exchange any of the land held by the state for other land within the state held by other proprietors; and the board is hereby authorized to execute and deliver the necessary deeds to such other proprietors and receive therefrom proper deeds of the land so exchanged; provided, that no exchange shall be made by the board until a patent for the land so received in exchange shall have been issued by the government of the United States to such proprietors or their grantors. ['97, p. 75. 2366. Testimony in contests. Notice. Rehearing before board. Where contests arise as to the preference rights of claimants for lands under the control of the board of land commissioners, the board shall have full power to direct the taking of testimony concerning the points involved, which shall be reported in full to said board. It shall be the duty of the secretary of the board to notify the parties to the contest of the findings and conclusions of said board. Within thirty days after such notification has been served on such contestants by mail they shall notify the board of their intention to dispute the findings and conclusions of said board. If notice of intention to contest shall be served on the board, then the board shall fix the date for hearing the case and so notify the parties to the contest; otherwise the findings and conclusions of the board shall stand as the decision of said board. ['97, p. 75. 2367. Members may subpoena witnesses and administer oaths. Any member of the board may issue subpoenas to compel the attendance of witnesses and the production of books and papers before him or the board, and may administer oaths in the performance of his official duty. ['97, p. 75. SURVEY OF PUBLIC LANDS. 2368. Application for survey of unsurveyed lands. The governor is hereby authorized and directed, by and with the consent of the state board of land commissioners, to make application to the commissioner of the general land office for the survey of public unsurveyed lands for the purpose of satisfying the public land grant to this state in accordance with the provisions of chapter 301, 28 U. S. statutes at large, pp. 394, 395. ['96, p. 342; '97, p. 76. UNIVERSITY LAND FUNDS. 2369. Proceeds of university land sales to be paid to board. Deferred payments. The board of regents of the University of Utah, and the treasurer thereof, are hereby authorized and required to turn over to the state board of land commissioners all moneys and evidences of indebtedness in their possession or under their control, arising out of the sale of university lands within this state. All deferred payments for the sale of university lands shall be made in accordance with the contracts of sale, to the county treasurer of the respective counties wherein such lands are located, in the manner provided in this chapter. ['96, p. 358; '97, p. 76. LEASE OF STATE MINERAL LANDS. 2370. Mineral lands to be leased. Any state lands upon which stone, coal, coal oil, gas, or any mineral may be found, whether such land has theretofore been leased for a term of years or not, may be leased for the purpose of obtaining therefrom such stone, coal, coal oil, gas, or any mineral, for such length of time and conditioned upon the payment to the state board of land commissioners of such royalty upon the product, as the state board of land commissioners may determine. ['97, p. 88. Lease of other state lands, 2 2349. 2371. Rules regarding leasing. The state board of land commissioners is hereby authorized to make all necessary rules and regulations to carry the foregoing section into effect. ['97, p. 88. CHAPTER 2. DESERT LANDS GRANTED BY THE UNITED STATES. 2372. Acceptance of conditions of land grant. The state of Utah, hereby accepts the conditions of section four of the act of congress entitled "An act making appropriations for sundry civil expenses of the government for the fiscal year ending June thirtieth, eighteen hundred and ninety-five, and for other purposes," approved August eighteenth, A. D., eighteen hundred and ninety-four, together with all grants of land to the state under the provisions of the aforesaid act. ['97, p. 100. 2373. Selection and disposal of land by commissioners. The selection, management, and disposal of said land shall be vested in the state board of land commissioners. Said board is hereby authorized to make all contracts necessary to carry out the provisions of this chapter, and may make such rules not in conflict with this chapter or the said act of congress as it may deem best. ['97, p. 100. General powers of the board, ? 2325. 2374. Application to board for selection of arid lands. Form. Any person, company, association, or corporation having heretofore constructed or now constructing, or having acquired the right to construct ditches, canals, reservoirs, or other irrigation works, which can be utilized to reclaim lands under the provisions of this chapter; or any person, company, association, or corporation desiring to acquire the right to use any state reservoir site, or any unappropriated waters controlled by the state, or both, and to construct ditches, canals, reservoirs, or other irrigation works to reclaim lands under the provisions of this chapter, shall file with the board an application for the selection in behalf of the state by the board, of the lands to be reclaimed, designating such lands by legal subdivisions. This application shall be accompanied by a proposal to utilize or |