Article 10 Section 3 - Mortgage or other encumbrance; sale or lease at public auction
3. Mortgage or other encumbrance; sale or lease at
public auction
Section 3. No mortgage or other encumbrance of the said lands,
or any part thereof, shall be valid in favor of any person or for any purpose
or under any circumstances whatsoever. Said lands shall not be sold or
leased, in whole or in part, except to the highest and best bidder at a public
auction to be held at the county seat of the county wherein the lands to be
affected, or the major portion thereof, shall lie, notice of which public
auction shall first have been duly given by advertisement, which shall set
forth the nature, time and place of the transaction to be had, with a full
description of the lands to be offered, and be published once each week for
not less than ten successive weeks in a newspaper of general circulation
published regularly at the state capital, and in that newspaper of like
circulation which shall then be regularly published nearest to the location of
the lands so offered; nor shall any sale or contract for the sale of any
timber or other natural product of such lands be made, save at the place, in
the manner, and after the notice by publication provided for sales and leases
of the lands themselves. Nothing herein, or elsewhere in article X contained,
shall prevent:
1. The leasing of any of the lands referred to in this article in such
manner as the legislature may prescribe, for grazing, agricultural, commercial
and homesite purposes, for a term of ten years or less, without advertisement;
2. The leasing of any of said lands, in such manner as the legislature
may prescribe, whether or not also leased for grazing and agricultural
purposes, for mineral purposes, other than for the exploration, development,
and production of oil, gas and other hydrocarbon substances, for a term of
twenty years or less, without advertisement, or,
3. The leasing of any of said lands, whether or not also leased for
other purposes, for the exploration, development, and production of oil, gas
and other hydrocarbon substances on, in or under said lands for an initial
term of twenty (20) years or less and as long thereafter as oil, gas or other
hydrocarbon substance may be procured therefrom in paying quantities, the
leases to be made in any manner, with or without advertisement, bidding, or
appraisement, and under such terms and provisions, as the legislature may
prescribe, the terms and provisions to include a reservation of a royalty to
the state of not less than twelve and one-half per cent of production.