(a) This state, acting by and through the department, shall have the power to acquire, either by negotiation or by exercise of the power of eminent domain, land which has been affected or disturbed by surface mining, which now consists of orphan banks or unreclaimed spoil piles, and which in its present state is hazardous or otherwise detrimental to the health and safety of the citizens of the state, or which in its present state is damaging to off-site property or to the water quality of streams.

(b) Prior to acquiring any land pursuant to this section, the commissioner shall extend to the owners thereof an opportunity to reshape, plant and do other acts or reclamation thereon to the same extent and within the same time limits as prescribed in this part and regulations adopted pursuant thereto. If the owner or owners agree in writing to perform such reclamation and, weather permitting, start such reclamation within a period of sixty (60) days, the land shall not be acquired by the state.

(c) The commissioner shall attempt to purchase any land which the commissioner has determined should be acquired for the purpose of reclamation and which the owners have not agreed to reclaim as provided in subsection (b). In any case where the commissioner and the owners of the land are unable to agree upon the amount to be paid for the land, the commissioner may exercise the power of eminent domain against such land by filing a condemnation suit under any procedure as provided in title 29, chapter 16.

(d) The purchase price, in the case of a negotiated acquisition, or the damages as finally determined, in the case of acquisition by condemnation, and the necessary expenses incidental thereto, shall be paid from the Tennessee surface mine reclamation fund or appropriations made by the general assembly for such purposes and appropriations for which federal funds made available for such purposes have been credited.