(1) Except as provided in subsection (2) of this section, the department may issue permits and leases for prospecting, placer mining contracts, and contracts for the mining of valuable minerals and specific materials, except rock, gravel, sand, silt, coal, or hydrocarbons, upon and from any state-owned aquatic lands, or which have been sold and the minerals reserved by the state in tracts not to exceed six hundred forty acres or an entire government-surveyed section. The procedures contained at RCW
79.14.300 through
79.14.450, inclusive, shall apply.
(2) The department may not issue permits and leases on state-owned aquatic lands along the Washington coast from Cape Flattery south to Washington's southern boundary, nor in Grays Harbor, Willapa Bay, and the Columbia river downstream from the Longview bridge, for purposes of exploration, development, or mining of hard minerals. For the purposes of this section, "hard minerals" has the same meaning as defined in RCW
79.14.300(2).