| Issue Date: | |
|---|---|
| Revised Date: | 2018-03-07 |
Legal Citations
- Education Code sec. 66.65
- Natural Resources Code sec. 32.1073, sec. 34.018, sec. 34.051, sec. 52.022, sec. 52.031, sec. 52.188
Object Type
Cash — Natural Resources
Origin Date
1931 by the 42nd Leg.
Description
(1) Land owned by or held in trust for the use and benefit of a department, board or agency may be leased by the appropriate board to any person under the provisions of this chapter for the purpose of prospecting or exploring for, producing, storing, caring for, transporting, preserving, selling and disposing of oil and gas.
A bid shall not be accepted which offers:
- a royalty of less than one-eighth of the gross production of oil or gas; or
- a cash bonus of less than $10 an acre.
The minimum royalty and bonus may be increased at the discretion of the board.
A bid shall contain an obligation to pay at least $1 an acre annual rental beginning with the second year of the lease, with the amount to be set by the board in advance of the advertisement.
At the expiration of the 5-year primary term without actual production, lease extensions may be obtained for 30-day periods. If the tract is 640 acres or less, the fee is $3,000. If more than 640 acres, the fee is $6,000.
If the lease was assigned to the owner of the soil without the advance approval of the commissioner and the owner of the soil subsequently assigns the lease, the owner of the soil must pay the state two times the entire consideration that he received upon subsequent assignment of the lease.
When an assignment to an owner of the soil has the commissioner's advance approval and the owner of the soil subsequently assigns the lease, the owner of the soil must pay the state one-half of his profit on the subsequent assignment. His profit is the difference between what he paid for his assignment and what he received for the subsequent assignment.
(2) The rental for university lands is subject to the payment of an annual rental after the first year of not less than 10 cents per acre, payable each year in advance, unless the royalties received from the land during the preceding year equal or exceed the amount of the annual rental payment. (§ 66.65)
Due Date
Annually in advance beginning with the second year of the lease.
Collecting Agencies
- 305 – General Land Office (1) for the appropriate agency
- 720 – University of Texas System (2) Board of Regents
Deposit Funds
- GR Account - 0009 – Game, Fish, and Water Safety (1) rental due on land belonging to Parks and Wildlife
- 0045 – Permanent University Fund (2)
- GR Account - 0064 – State Parks (1) rental due on land belonging to Parks and Wildlife
- GR Account - 0506 – Non-Game and Endangered Species Conservation (1) rental due on land belonging to Parks and Wildlife
(1) Appropriate special fund using the agency number of the agency that has administrative authority for the fund;
Note
Amended by H.B. 2143, 70th Leg., R.S.
USAS Values
| Appropriation Year | 25 |
|---|---|
| USAS Title | OIL AND GAS LEASE RENTAL |
| Receipt Category | 08 – Natural Resources |
| Receipt Type | 80 – Land Income |
| Object Group | 30 – Revenues |
| USAS Status | A |
| Rev/Exp Category | 04 – LAND INCOME |