(1) Application to lease will be considered only for state lands as may be shown to be available for lease in department records or when an existing lease will expire within one hundred twenty days or leases which can be considered for conversion to a higher and better use.

(2) Application to lease will be considered for lands owned by other governmental entities, which are being managed by the department, only after the owner has made a written request to the department or entered into an agreement with the department to make the same available for leasing pursuant to these rules.

(3) An application to lease shall be made upon forms prescribed by the department which shall be accompanied by fees prescribed by the board. The fee shall not be refunded unless the state lands applied for are not available for leasing. Applications not accompanied by the proper fees shall be rejected.

(4) The commissioner may withhold from leasing any state land either before or after an application to lease is made. The commissioner may reject any and all applications to lease.

(5) Any person authorized to do business in the state of Washington may apply for a lease of state lands.