The board may lease lands of the state abutting on the Bay Head and Manasquan canal to any person owning lands adjacent to the right of way acquired for the canal, and authorize the lessee to construct and maintain a canal running through the leased lands connecting with the canal and the lands of the lessee, for purposes of navigation.
Such leases shall be made upon such terms and for such compensation as the board may fix and determine, and shall be executed as leases of riparian lands of the state are required to be executed.
This section shall not authorize the making of any such lease of lands acquired for such right of way by condemnation.