(a) The notice shall identify the lease from which the oil is to be offered, the proposed point of delivery, the time for receiving and opening bids, and indicate that forms for bidding may be obtained at an office of the Commission. Such notice shall be published at least once in a newspaper of general circulation in the county in which the point of delivery is situated, and may be published at least once in a newspaper of general circulation in the City of Los Angeles, or San Francisco, or Sacramento.

(b) At the time and place specified in the notice, not earlier than fourteen (14) days after the last date of publication the sealed bids shall be opened publicly and an award shall be made to the highest responsible bidder unless, in the opinion o the Commission, the acceptance of the highest qualified bid is not in the best interests of the State, in which event the Commission may reject all bids. Thereupon new bids may be called for or the Commission may refuse to call for new bids, or the Commission may negotiate and enter into agreements for sale under terms and conditions deemed to be in the best interests of the State. The Commission reserves the right at any time to reject any and all bids or to cancel the invitation to bid.

(c) At the time of the bid award, the Commission shall direct the Executive Officer or his agent to notify the lessee that the State intends to take royalty oil in kind commencing on the date specified in the sales contract.