(1) The state board of land commissioners may lease any portion of the state land at a rental amount fixed and determined by the board. The rental amount shall be due and payable by the date and upon the terms set by the board in the lease. Provided however, all grazing leases shall provide for annual payments which shall be due and payable by the date set by the board in the lease.
(2) The state board of land commissioners shall notify the lessee of any increase in the applicable rental rate six (6) months in advance of the date the rent is due and payable.
(3) The lessee shall pay the rental to the director of the department of lands, who shall receipt for the same in the name of the board. Upon receiving such rental, the director shall immediately transmit the same to the state treasurer.