| soil's interest under the lease, the applicant shall assign the benefit to the commissioner for the benefit of the permanent school fund. (12) The commissioner shall not approve any lease obtained by an applicant from another owner of the soil if the lease contains terms that are substantially inconsistent with or provide for a lesser bonus, rental, or royalty than the lease approved by the board. If the bonus, rental, or royalty in a lease obtained by an applicant from another owner of the soil for a comparable interest is greater than that approved by the board, then the lease approved by the board shall be amended to provide for the greater bonus, rental, or royalty, and the applicant shall be liable for all greater sums due. In determining whether an interest is comparable, the board shall consider the quantum of the interest, the time at which the lease was taken, and any other aspects of the lease transaction that the board considers to be relevant. (h) 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 §10.2 of this title (relating to Prospect Permits on State Lands) and §10.3 of this title (relating to Mining Leases on Properties Subject to Prospect). The state will receive all the consideration paid under such a lease. (i) Leasing procedure when agent's rights are forfeited. (1) When a surface owner's agency rights have been forfeited under subsection (b)(3) of this section, the land shall be subject to lease for minerals other than oil and gas under the procedures set out in §10.1 of this title (relating to Definitions; Exploration and Development Guide) and §10.2 of this title (relating to Prospect Permits on State Lands). (2) When a new lease is executed under subsection (i)(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. (3) If no new lease is executed within one year of the date of the forfeiture of the agency rights, the commissioner may, in his discretion and for the best interests of the PSF, reinstate the surface owner's agency rights. |
| Source Note: The provisions of this §10.5 adopted to be effective March 22, 1989, 14 TexReg 1280; amended to be effective May 26, 1992, 17 TexReg 3473; amended to be effective July 11, 2004, 29 TexReg 6308; amended to be effective December 10, 2009, 34 TexReg 8776 |
