The director of the department of environmental management, when he or she shall deem any land or interests in land acquired or taken under the provisions of this chapter to be no longer required for the purposes of this chapter, may:

(1)  With the consent of the person or persons from whom the land or interests were obtained, or their heirs, successors, or assigns, convey the land or any part thereof with or without suitable restrictions by executing and recording a deed thereof, which deed shall be duly executed on behalf of the state by the director of the department of environmental management, and the recorded deed shall thereby revest the title to the land or interests in land so conveyed in the persons, their heirs, successors, and assigns, in whom it was vested at the time of the taking, and the fair market value of the land or interests in land so conveyed at the time of the conveyance may be pleaded in mitigation of damages in any proceedings instituted on account of the taking; or

(2)  Lease or sell and convey the land with or without suitable restrictions for such consideration as may be fixed by the director of the department of environmental management, by executing and delivering a lease or deed thereof, which lease or deed shall be executed on behalf of the state by the director; provided, however, the person or persons in whom the title to the land was vested at the time the land was acquired under the provisions of this chapter, shall, if living, and if the land was so acquired within the preceding five (5) years, have the prior right to lease, purchase, or reinvest himself or herself or themselves, as the case may be, of the land before the land may be leased, sold, or conveyed as provided by this section. The prior right shall be conclusively presumed to have been waived in the event that a written offer to lease, sell, or reconvey the land, containing the terms and conditions of the offer, shall have been sent by registered or certified mail to the last known address of the person or persons, and the offer shall not have been accepted within thirty (30) days from the date of the mailing.