31 Tex. Admin. Code § 155.44 - Mining Leases on Relinquishment Act Lands
(a) Lands subject to lease.
(1) Any survey or portion of a survey of
Relinquishment Act land, as this term is uniquely defined in §
155.40(a)(6) of
this title (relating to Definitions; Exploration and Development Guide), is
subject to lease under this section.
(2) All minerals are subject to lease by the
surface owner as agent for the state. For purposes of this section, minerals
include all substances commonly classified as minerals including geothermal
energy and related resources even though they may be extracted by methods that
destroy the surface. Minerals other than oil and gas may be leased together or
separately. Oil and gas must be leased under the terms of Chapter 9 of this
title (relating to Exploration and Leasing of State Oil and Gas).
(b) Authority and duties of agent.
Authority and duties of the owner of the soil are described in Texas Natural
Resources Code §
53.074
(Authority and Duties of Agent). The owner of the soil may lease Relinquishment
Act land pursuant to Texas Natural Resources Code §
53.081.
(c) Lease negotiation procedure.
(1) The surface owner is authorized to act as
the state's leasing agent with any person, firm, or corporation desiring to
develop PSF lands for geothermal energy and related resources.
(2) The lease shall be negotiated by the
surface owner and the prospective lessee on a form prepared and furnished by
the GLO, which will incorporate the terms and conditions prescribed by the
SLB.
(3) The proposed lease shall
be submitted to the GLO for approval prior to recording the lease in the county
records.
(d) Approval
and filing of lease.
(1) The SLB may reject or
refuse for filing any lease deemed not in the best interest of the
state.
(2) Upon rejection of a
proposed lease by the SLB, the prospective lessee will be given written notice
which will specify the reasons for the rejection and any changes, deletions, or
additions which would render the lease acceptable.
(3) Upon receipt of approval of the lease,
the prospective lessee shall finalize the lease and have the lease recorded in
the county or counties in which the land lies and shall file a certified copy
of the lease with the GLO. Leases are not effective until approved and filed in
the GLO.
(4) The state's share of
the approved bonus payment and the filing fee prescribed by § 1.3 of this title
(relating to Fees) shall be submitted along with the certified copy of the
lease. Any lease is void unless it recites the actual consideration paid or
promised for the lease.
(5) A
surface owner, as the state's agent, owes the state a fiduciary duty. This
fiduciary responsibility must be of paramount concern when a surface owner
enters lease negotiations.
(e) Lease terms and conditions.
(1) Lessee shall pay bonus, rentals,
royalties, and other lease considerations as follows.
(A) On leases executed before September 1,
1987, lessee shall pay to the state 60% of all bonuses, rentals, and royalties
and other considerations agreed upon. Lessee shall pay to the surface owner 40%
of all consideration agreed upon.
(B) On leases executed on or after September
1, 1987, lessee shall pay to the state 80% of all consideration agreed upon.
Lessee shall pay to the surface owner 20% of all consideration agreed
upon.
(2) In the event
of production, the state must receive not less than one-sixteenth of the value
of the geothermal energy and related resources produced. The combined royalty
payable to the surface owner and the state will be expressly provided for in
the lease negotiated by the surface owner.
(3) All royalties and other payments accruing
to the state shall be paid to the state through the commissioner at Austin, and
shall be deposited to the PSF.
(f) Reports, assignments, releases,
inspection, forfeitures, and reinstatements. Leases issued under this section
will be governed by all general provisions found in §
155.46 of this title (relating to
Conduct of Exploration and Mining Operations) and §
155.47 of this title (relating to
Assignments, Releases, Reports, Royalty Payments, Inspections, Forfeitures, and
Reinstatements). However, a lease issued under this section cannot be assigned
to the surface owner who executed the lease.
(g) Leasing procedure when agent cannot be
located. If a potential lessee cannot locate a surface owner, such lessee can
follow the procedures set out in the Texas Natural Resources Code, §
52.186. Once
these procedures have been followed, Relinquishment Act land will be leased for
minerals other than oil and gas through the prospect permit and leasing
procedures found in §
155.41 of this title (relating to
Prospect Permits on State Lands) and §
155.42 of this title (relating to
Mining Leases on Properties Subject to Prospect). The state will receive all
the consideration paid under such a lease.
(h) Leasing procedure when agent's rights are
forfeited.
(1) When a surface owner's agency
rights have been forfeited, the land shall be subject to lease for minerals
other than oil and gas under the procedures set out in §
155.40 of this title (relating to
Definitions; Exploration and Development Guide) and §
155.41 of this title (relating to
Prospect Permits on State Lands).
(2) When a new lease is executed under
subsection (h)(1) of this section, the surface owner shall not be entitled to
any share of the revenue generated by such lease, but the surface owner's
agency rights will be ipso facto reinstated upon expiration of the new
lease.
Notes
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