31 Tex. Admin. Code § 155.43 - Exploration and Mining Leases for Minerals Subject to Sealed Bid
(a) Lands subject to lease. PSF lands are
subject to lease by sealed bid for the development of geothermal energy and
related resources. See §
155.40 of this title (relating to
Definitions; Exploration and Development Guide) for lands that are subject to
lease under these sealed bid procedures.
(b) Nomination, advertising, and award of
tracts.
(1) Nominations, setting of terms and
conditions, evaluation of sealed bids, advertising, and awards are administered
by the SLB under Chapter 151 of this title (relating to Operations of the
School Land Board).
(2) On land
trade lands, the GLO will notify the surface owner that a lease has been issued
if the surface owner requests such notice in writing by furnishing the GLO with
a current mailing address and a legal description of each tract on which he
desires such notice. Failure to receive notice will not affect the validity of
a lease issued under this section.
(3) TPWD may review the leasing of lands
whose minerals are subject to lease under this section but whose surface is
owned or leased by TPWD or is subject to a conservation easement in favor of
TPWD. If such lands are nominated for lease, the GLO shall notify the executive
director of TPWD of such nomination. On the same day as a lease is issued on
such lands, the TPWD will be notified of the issuance of the lease. Such lease
will state that the surface of such land is owned or leased by TPWD or is
subject to a conservation easement in favor of TPWD.
(c) Minimum terms and conditions.
(1) Terms and conditions of leases will be
set by the SLB for each lease sale and will be included in the notice for
bids.
(2) The royalty reserved to
the state shall be not less than one-sixteenth of the value of the geothermal
energy and related resources that may be produced.
(3) Upland leases issued under this section
must include a provision requiring the payment of damages for the use of the
surface in prospecting for, exploring, developing, or producing the leased
minerals. The amount of damages for use of the surface will be included in the
notice for bids and incorporated in each lease form.
(4) Lessee shall conduct all mining
operations and reporting requirements in compliance with state and federal laws
and §
155.46 of this title (relating to
Conduct of Exploration and Mining Operations).
(d) Assignments, releases, reports,
inspections, forfeitures, and reinstatements. Leases issued under this section
are subject to all general provisions covered in §
155.47 of this title (relating to
Assignments, Releases, Reports, Royalty Payments, Inspections, Forfeitures, and
Reinstatements).
Notes
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