(1) At cancellation, termination, or abandonment of the cabinsite lease, the lessee will be notified of their right to be compensated for their improvements by a new lessee, or their right to remove those improvements.

(2) If the former lessee informs the department that they wish to remove their improvements, the former lessee must:

(a) obtain a land use license to remove the improvements. The land use license may be for a term up to 60 days. The term may be extended by the department for good cause; and

(b) pay the license fee in advance. The license fee will be calculated as the most recent year's lease fee, divided by 365, and multiplied by the number of days in the license. The minimum fee for a removal land use license shall be $50.

(3) If the former lessee informs the department that they wish to be compensated for their improvements by a new lessee, the former lessee will have a maximum of three years from the time of cancellation, termination, or abandonment of the cabinsite lease to be compensated for their improvements by a new lessee. The former lessee shall have:

(a) submitted in writing to the department a statement that the former lessee is seeking third-party compensation for the improvements;

(b) paid all property taxes and any applicable special assessments; and

(c) provided the department with qualifying value information for the improvements. At any time during the three-year period and at the approval of the department, the former lessee may request a license to remove the improvements, at a fee and duration consistent with this rule.

(4) The beginning of the three year time period shall be either:

(a) the effective date of an abandonment form executed by the lessee and accepted by the department; or

(b) the date rent is due, if the rent is not paid as per ARM 36.25.1004 or no abandonment form is submitted.

(5) If the lessee abandons the improvements there shall be no obligation by the department or other party for compensation for all improvements on the property, including movable and nonmovable improvements, as well as personal property.

(6) The department reserves the right to withhold authorization to remove the improvements during any time that a lease is being actively bid by the department.

(7) If three years after the cancellation, termination, or abandonment of the cabinsite lease no new lessee has been found, the department shall provide written notice to the former lessee that unless the improvements are removed within 60 days, the improvements will become the property of the trust. This condition and limitation applies to all improvements on the property, including movable and nonmovable improvements, as well as personal property.

(8) If the department receives no written request from the former lessee seeking to receive compensation for improvements from a new lessee or to remove the improvements, the department shall seek a new lessee for the cabinsite lease.

(9) Final determination of settlement for improvements will be conducted in accordance with statutes and rules pertaining to arbitration.