(1) The department will determine which parcels of state land will be offered for public auction from:

(a) Applications received;

(b) Evaluation of land not presently leased; and

(c) Land with a lease expiring, and on which it is in the best interest of the state to offer at auction for the same or different uses. The department shall give thirty days written notice to the existing lessee of such action.

(2) The department will establish the minimum qualifications required for a person to bid at public auction.

(3) Sealed bids will be accepted up to the time set and at the location specified in the notice of leasing (RCW 79.01.252). The successful bidder will be the person with the most acceptable proposal which complies with the criteria set forth in the notice of public auction.

(4) Oral auctions will be conducted by the auctioneer at the time and place designated in the notice of leasing and the lease shall be awarded to the highest bidder.

(5) The commissioner may reject any or all bids, if it is deemed in the best interest of the state.

(6) Any moneys held on deposit from an applicant will be credited to the lease if they are the successful bidder or will be refunded.