If after the hearing and after considering objections, if any, to exclusion of the lands or parts thereof mentioned in the petition, the board deems it not for the best interests of the district to exclude the lands mentioned in the petition or any part thereof, it shall deny the petition. If, however, the board shall deem it for the best interests of the district to exclude such lands, or
any part thereof, from the district, it shall grant the petition and by resolution direct the chairman and secretary of the board to issue an order excluding such lands from the district, unless the district has outstanding bonds or improvement warrants or unless a contract obligating the district has been entered into with the United States or any department or agency thereof or with the state or any department or political subdivision thereof.
61-10-35. Outstanding bonds or improvement warrants or contractual obligations - Order excluding lands - Assent. If the holders of outstanding bonds or improvement warrants, or of contracts obligating the district, consent in writing to exclusion of lands mentioned in the petition, the board of directors may by resolution direct the chairman and the secretary of the board to execute the board's order excluding the lands from the district. The assent in writing of holders of district bonds or improvement warrants, or of anyone interested in a contract obligating the district, must be filed with the secretary of the district and copied in the minutes of the board, and the minutes or a certified copy of the minutes are admissible in evidence with the same effect as the written assent. If assent is not given, the board shall deny and dismiss the petition. When lands are excluded from the district, a certified copy of the order of the board must be filed in the department of water resources and the county auditor of each county in which the excluded lands are situated and filed and recorded in the office of the recorder of each of those counties.
61-10-36. Election to determine exclusion of land - Notice of election - Form of ballot - Conduct of election. If electors who together own at least ten percent of the whole number of irrigable acres [hectares] in the district object in writing to the exclusion of such land, the board shall by resolution order an election to submit to the electors of the district the question whether or not the lands mentioned in the petition, or any part thereof, shall be excluded. Notice of such election, describing the lands proposed for exclusion from the district, shall be given in the manner provided for a regular election of the district. The ballot at such election shall be substantially in the following form: Shall the tracts of land described in the notice of this election be excluded from the irrigation district? Yes (for exclusion of lands) ☐ No (against exclusion of lands) ☐ The election shall be conducted substantially as a general election of an irrigation district is conducted.