When lands that the Department of State Lands believes were acquired from the State of Oregon by fraud or in violation of the laws of the state are held by any person owning other lands the title to which is not involved, the department may provide as a condition to the contract of settlement described in ORS 273.326 that such other lands, or such portion thereof as the department considers advisable, may also be subdivided and disposed of under the direction and supervision of the department according to the conditions agreed to.
ORS 273.331