Upon the execution and delivery to the Department of State Lands by any grantee to whom the State Land Board prior to February 21, 1916, erroneously conveyed various parcels of land in sections 16 and 36 to which the title of the state was found by the board to be defective, of a written instrument sufficient to annul the conveyance of the state to such grantee and to relinquish all other claims against the state arising out of such conveyance, the department pursuant to ORS § 273.125 shall:

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(1) Refund to such grantee the purchase price paid to the state for such land, with interest at the rate of six percent per annum from the time payment was made; and

(2) Pay to the grantee an amount equal to all ad valorem taxes paid by such grantee with respect to such land before June 19, 1967, without interest. [1967 c.422 § 2; 1973 c.685 § 1]