Leasing procedure

(a) Any person who wants to obtain a lease for marine activities in state marine waters shall request a lease from the board at the time of filing an application. (b) Upon receipt of a completed application and authorization of a lease, the board shall: (1) Negotiate with and grant a lease to the applicant; or (2) Conduct a public auction and grant the lease to the highest qualified bidder. Public auctions shall be conducted in accordance with chapter 171. If an auction is held and the applicant submitting a completed application is not the highest qualified bidder, the board shall require the highest qualified bidder to indemnify the applicant for all legitimate costs incurred in the preparation of any environmental assessment or environmental impact statement included in the application pursuant to chapter 343 and the rules adopted thereunder. In establishing and following internal procedures for lease applications, the board shall attempt to minimize costs to those applicants submitting completed applications. (c) The board shall not revoke or modify its approval of an application in such a way as to invalidate, impair, limit, or affect, directly or indirectly, in whole or in part, the rights of a lessee as set forth in the lease granted to the lessee pursuant to this chapter.