(1) If the current lessee of the land to be sold has initiated the sale, as authorized by 77-2-361 through 77-2-367 , MCA, and deposited earnest money with the department, the lessee may cancel the sale. The lessee shall send written notice by certified mail to the department, postmarked no later than 30 days before the date of the auction.

(2) If the lessee cancels the sale after the department has given notice of the auction, the lessee shall pay all costs incurred by the department in preparing the sale, including but not limited to:

(a) any costs incurred for preparation of documents required by 75-1-201 , et seq., MCA;

(b) appraisal;

(c) survey;

(d) cultural resource inventory;

(e) natural resource inventories;

(f) public hearings;

(g) other costs that may be incurred by the department.

(3) The earnest money and bid deposit, as required in 36.25.808(4) , paid by the lessee must be applied toward costs incurred by the department for the canceled sale.

(4) Any amount of earnest money and bid deposit remaining after payment of department costs must be returned to the lessee.