(1) The department shall, prior to the issuance of any lease under the provisions of this chapter, fix the annual rent and prescribe the terms and conditions of the lease. However, in fixing the rent, the department shall not take into account the value of any improvements placed upon the lands by the lessee.

(2) No lease issued under the provisions of this chapter shall be for a term longer than thirty years. Failure to use those beds leased under the provisions of this chapter for booming purposes, for a period of three years shall work a forfeiture of the lease and the land shall revert to the state without notice to the lessee upon the entry of a declaration of forfeiture in the records of the department.