N.J. Stat. § 13:8-23
Any owner of a fresh water lake or pond which is subject to acquisition by the state as provided by section 13:8-22 of this title, may propose an agreement with the board, by which he shall retain title to the property, but grant to the citizens of this state access to and the free use of the waters of such lake or pond for boating and fishing subject to a reasonable charge to be made for the use of boats belonging to the owner of such lake or pond.
If, after making an investigation, the board shall be satisfied that the public interest will be as well served by the freedom to use the lake or pond for boating or fishing, as it would be if the property were conveyed to the state, the board shall enter into an agreement with the owner of such lake or pond, which agreement shall provide that, in consideration of the free use by the public of the waters of such lake or pond for boating and fishing, the property shall be exempt from taxation so long as the agreement remains in force, the same as it would be if the state acquired title thereto.
N.J.S. § 13:8-23