The board of university and school lands may cause a new contract to be issued to the holder of any contract for the purchase of land subject to its control and a conveyance to be made to a railroad company for railroad right of way when the holder of the contract shall:
1. Surrender the original contract to the board;
2. Present satisfactory evidence that a railroad has been located and established across the land included in the contract after the issuance thereof;
3. File a plat of the land showing the exact location, width, and area in acres [hectares] of the land required for the right of way;
4. Pay to the commissioner the balance of the purchase price under the contract and all interest and taxes thereon to date for the acreage [hectarage] required for the right of way; and 5. Make application in writing for the cancellation of the contract and the issuance to the applicant of a new contract for the land, less the acreage [hectarage] required for the right of way. The commissioner of university and school lands shall collect a fee of five dollars for each new contract and for each conveyance made under the provisions of this section.