(1) The Department of State Lands may, after notice of competitive bidding, and following such competitive bidding, lease or license submersible and submerged lands of navigable streams owned by the State of Oregon for the purpose of removing material therefrom. Competitive bid requirements may be waived for leases of less than one year’s duration. No lease shall be made for a lump sum but only on a basis of the price per cubic yard or ton for the material removed.
(2) The department may prescribe by rule the manner in which the volume in cubic yards or the weight in tons for the material removed shall be determined.
(3) Notwithstanding subsections (1) and (2) of this section, the department may enter into a license for the removal of material from submersible and submerged lands of navigable streams owned by the State of Oregon based on a competitive market rate that reflects fair market value.
(4) The department shall, prior to any competitive bidding notice, establish prebid qualifications that include but are not limited to the following:
(a) The minimum yardage amount of material that must be removed for each year for which the lease is valid.
(b) Evidence that all bidders have an established market, as provided by each bidder.