Issue Date:
Revised Date: 2016-12-14

Legal Cites

Object Type

Cash — Natural Resources

Origin Date

1931 by the 42nd Leg.


Land owned by or held in trust for the use and benefit of a department, board or agency may be leased for the purpose of prospecting, producing, storing, caring for, transporting, preserving, selling and disposing of oil and gas.

A bid may not be accepted if it 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.

Relinquishment Act Leasing:
Lands under a forfeited Relinquishment Act lease agreement are subject to lease for oil and gas as provided by Natural Resources Code, Chapter 32 for the leasing of unsold surveyed public school lands. The lease requires a royalty of at least one-eighth paid to the Permanent School Fund (0044).

Permanent University Fund Lands:
The oil and gas in each tract offered for sale for a bonus to be determined by high bid in addition to the stipulated royalty or for a stipulated bonus and a royalty determined by high bid.

Due Date

When bid for lease is submitted.

Collecting Agencies

Deposit Funds


Amended by S.B. 739, 68th Leg., R.S.

Amended by S.B. 493, 69th Leg., R.S.

Amended by H.B. 2143, 70th Leg., R.S.

Amended by S.B. 1354, 75th Leg., R.S.

S.B. 1, 81st Leg., R.S. deposited amounts through A&M University leases to institutional funds.

USAS Values

Appropriation Year 24
Receipt Category 08 – Natural Resources
Receipt Type 80 – Land Income
Object Group 30 – Revenues
USAS Status A
Rev/Exp Category 04 – LAND INCOME