For exploration and development of minerals other than oil and gas,
see Chapter 10 of this title, (relating to Exploration and Development of
State Minerals Other than Oil and Gas).Oil and gas underlying state lands
are leased in the following ways, depending on the type of land.
(1) PSF uplands, submerged lands, riverbeds and channels. PSF
uplands submerged lands, riverbeds and channels are leased by the SLB under
sealed bid procedures. For SLB sealed bid procedures see Texas Natural Resources
Code, Chapter 32, Subchapters D and E, Chapter 52, Subchapter B, §9.22(1)
of this title, (relating to Leasing Procedures), and Chapter 151 of this title,
(relating to General Rules of Practice and Procedure). For only riverbeds
and channels, also see Texas Natural Resources Code, Chapter 52, Subchapter
C.
(2) PSF oil and gas interests owned with associated mineral
leasing rights. Generally, whenever the PSF owns mineral interests coupled
with leasing rights, oil and gas leases are issued by the SLB under the sealed
bid procedures of paragraph (1) of this subsection. (For examples of these
types of PSF mineral interests, see Texas Natural Resources Code, §51.054(a),
§32.061 (see especially historical legislative note), §33.001(g),
or §51.052(h).)
(3) PSF oil and gas interests owned without associated
mineral leasing rights.
(A) Relinquishment Act lands. Leases are generally negotiated
by surface owners as agents for the state. See Texas Natural Resources Code,
Chapter 52, Subchapter F, and §9.22(2), and §9.22(3). Note: Relinquishment
Act lands owned by a department, board, or agency of the state, including
TDCJ land, TPWD land, and highway rights-of-way land, are leased under the
sealed bid procedures of paragraph (1) of this subsection. See Texas Natural
Resources Code, §32.002(d) and §34.002(b).
(B) Free royalty lands. Leases are issued by the executive
right holders as the state's agents. See §9.22(4).
(4) Certain state agency lands. Lands owned by the
state or held in trust for the use and benefit of the state or a department,
board, or agency of the state, except TPWD, TDCJ, University of Texas System,
A&M University System, or Relinquishment Act lands, are leased by the
SLB under the sealed bid procedures of paragraph (1) of this subsection. See
Texas Natural Resources Code, §§32.001(4)(D), 32.002 (a)(1), (2),
(6), and (7), and 32.002(d).
(5) Texas Highway Department rights-of-way. Land owned
by the state to construct or maintain a highway, road, street, or alley, except
those subject to the Relinquishment Act, are leased through a preferential
leasing system administered by the SLB. See Texas Natural Resources Code,
§32.002(a)(4) and (5), §32.002(b), (c), and (d), Chapter 32, Subchapter
F, and §9.22(5).
(6) TDCJ and TPWD lands, except for Relinquishment Act
lands. Leases are issued by the appropriate board for lease through sealed
bid procedures. See Texas Natural Resources Code, Chapter 34, and Chapter
201 of this title, (relating to Operations of the Texas Parks and Wildlife
Department and Texas Department of Criminal Justice Boards for Lease).
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