In case an irrigation district shall become the purchaser of any state lands, as in this chapter provided, which lands or any portion thereof are held by a lessee, the district shall take the title to said lands subject to said lease, and the district shall not pay for the surface improvements made by such lessee, but whenever the district shall sell and dispose of said lands the said improvements shall be appraised and paid for in the same manner as provided by law and the rules and regulations governing the state board of land commissioners were the said state board of land commissioners acting instead of the board of directors of said district.
Idaho Code § 43-1604