31 Tex. Admin. Code § 151.2 - Energy Lease Sales

(a) Written requests that designated tracts of state land be offered for lease of oil, gas, and other minerals may be submitted to the commissioner of the General Land Office (GLO) at any time.

(b) When the School Land Board (SLB) schedules a lease sale, it shall also set a final date for submitting nominations for that sale. This date shall be included in the notice of the sale. A list of tracts offered for lease at a particular lease sale may be obtained from the GLO. The GLO reserves the right to assess a fee for this service. For more information please contact the Minerals Leasing Division of the GLO.

(c) A $100 fee made payable to the GLO shall be submitted for each tract nominated. Nomination fees are nonrefundable. However, a refund of a nomination fee may be granted at the commissioner's discretion, if the commissioner determines that it is in the best interest of the state.

(d) After a bid has been received by the GLO it may not be revoked or withdrawn by the bidder. All bids must include a separate check in an amount equal to one and one-half percent of the bid payable to the commissioner as a special fee. Checks submitted by unsuccessful bidders shall be returned to the bidders. Failure to pay the special fee does not render a bid void, but the commissioner shall demand payment of the fee before issuing a lease to the successful bidder. If the successful bidder fails or refuses to make the payment within 30 days after demand by the commissioner, the bidder is not entitled to a sale of or lease on the tract covered by that bid and the cash bonus shall be automatically forfeited to be deposited by the commissioner in the state treasury to the credit of the appropriate special mineral fund for the agency involved. The SLB, at its option, may offer the tract for sale or lease to the next best bidder under the same terms as submitted by and as would have been granted to the best bidder.

(e) Interested state and federal agencies will be requested to submit recommendations on tracts nominated in submerged areas so that a prospective bidder is informed in advance as to any drilling or development restrictions which might be expected.

(f) All bonuses and special fees required by Texas Natural Resources Code § 32.110 shall be returned to the makers of unsuccessful bids. Executed leases will be delivered to the successful bidders.

(g) Nominators of tracts shall pay all required advertising costs associated with lease sales other than those sales regularly scheduled for April and October of each year. Nominators of tracts in such a sale shall be billed by the GLO for their portion of those costs.

Notes

31 Tex. Admin. Code § 151.2

The provisions of this §151.2 adopted to be effective October 7, 1998, 23 TexReg 10039.