(1) If the lessee is not the purchaser, the lessee must remove all his movable improvements by March 1 following the sale or a later date allowed by the department for good cause shown unless he and the purchaser reach an agreement that some or all of them will remain. The lessee may remove any building which he has designated for removal in his application for sale. Removal must be completed by August 1 following the date the purchaser takes possession of the property, which is March 1 following the sale. The lessee must leave all other permanent improvements unless he and the purchaser agree otherwise.

(2) The purchaser must, in accordance with 72-2-325 , MCA, reimburse the lessee for all permanent improvements that he chooses to leave. If the lessee and purchaser cannot agree on the value of the improvements, the parties shall engage in the arbitration process described in 77-6-306 , MCA. If the arbitration process is not completed within six months or a reasonable time determined by the department, the improvements become the property of the department. The department shall then determine the value of the improvements, obtain that amount from the purchaser, and reimburse the lessee.

(3) If the lessee removes any permanent improvements, he shall reclaim the site by removing any foundations and hazards and by filling with suitable material any pits or excavations that result from removal of the improvement.