(1) The commission, with the approval of the secretary, may acquire title in the name of the state to any land or interest in any land by purchase, donation, or condemnation if the land or interest is adversely affected by past coal mining practices and upon a determination that acquisition of this land is necessary to successful reclamation and that:

(a) The acquired land after restoration, reclamation, abatement, control or prevention of the adverse effects of past coal mining practices will serve recreation and historical purposes, conservation and reclamation purposes or provide open space benefits;

(b) Permanent facilities such as a treatment plant or a relocated stream channel will be constructed on the land for restoration, reclamation, abatement, control or prevention of the adverse effects of past coal mining practices;

(c) Acquisition of coal refuse disposal sites and all coal refuse at the site will serve the purpose of this chapter or that public ownership is desirable to meet emergency situations and prevent recurrences of the adverse effects of past coal mining practices.

(2) The commission shall only acquire land that is necessary for the reclamation work or the post reclamation use of the land and acquisition shall be limited by the scope of the project. The price paid for land acquired under this section shall reflect the fair market value of the land as adversely affected by past coal mining practices.

(3) In addition to the authority to acquire land under subsection (1) of this section, the commission, with the approval of the secretary, is authorized to use money in the fund to acquire land by purchase, donation, or condemnation, and to reclaim and transfer acquired land to any agency of the state authorized to own and operate real property or to a political subdivision of the state, or to any person, firm, association, or corporation, if he determines that such is an integral and necessary element of an economically feasible plan for the project to construct or rehabilitate housing for persons disabled as the result of employment in the mines or work incidental thereto, persons displaced by acquisition of land pursuant to this section, or persons dislocated as the result of adverse effects of coal mining practices which constitute an emergency as provided in 30 USCS 1240 or persons dislocated as the result of natural disasters or catastrophic failures from any cause. These activities shall be accomplished under the terms and conditions required for the secretary, which may include transfers of land with or without monetary consideration: to the extent that the consideration is below the fair market value of the land transferred, no portion of the difference between the fair market value and the consideration shall accrue as a profit to such persons, firm, association, or corporation. No part of the funds provided in this chapter may be used to pay the actual construction costs of housing. The commission, with approval of the secretary, and with grants received for the purposes of this subsection may make grants and commitments for grants and may advance money under the same terms and conditions as it may require of the state, or any department, agency, or instrumentality of the state, or any public body or nonprofit organization.

(4) Where land acquired is deemed to be suitable for industrial, commercial, residential, or recreational development, the commission, with the approval of the secretary, may sell, after appropriate public notice, the land by public sale under a system of competitive bidding, in accordance with the regulations prescribed by the executive director, at not less than fair market value, and the executive director is to ensure that the lands are put to proper use consistent with local, state or federal land use plan, if any, for the area in which the land is located. The executive director, when requested and after appropriate notice, shall hold a public hearing in the county or counties or the appropriate subdivisions of the state in which lands acquired under this section are located. The hearings shall be held at a time which shall afford local citizens and governments the maximum opportunity to participate in the decision concerning the use or disposition of the lands after restoration, reclamation, abatement, control or prevention of the adverse effects of past coal mining practices.

(5) The commission, with the approval of the secretary, may transfer the administrative responsibility for land acquired under this section to any state, regional or local agency, department or institution, with or without cost, employing terms that will ensure the use of the land is consistent with the authorization under which the land was acquired.

(6) The commission may receive grants from the secretary when necessary to carry out provisions of this section.