TX NATURAL RESOURCES CODE

SUBTITLE B. SURVEYS AND SURVEYORS

CHAPTER 51. LAND, TIMBER, AND SURFACE RESOURCES

SUBCHAPTER D. LEASE OF LAND



§ 51.121. LEASE OF UNSOLD LAND.
     (a) Unsold public school land may be leased for any purpose the commissioner determines is in the best interest of the state under terms and conditions set by the commissioner. Commercial improvements on land under this subsection shall not become the property of the state and shall be taxed in the same manner as other private property.
     (b) Commercial improvements on land leased under Subsection (a) of this section shall be removed prior to the expiration of the lease unless a renewal or an extension of the lease has been finalized prior to the expiration of the term of the lease. If commercial improvements are not removed prior to the expiration of the lease and if there has been no renewal or extension prior to the expiration of the lease, then the commercial improvements on the land shall become property of the state.
     (c) If escheated land that is a part of the permanent school fund is leased under this chapter for a purpose other than for grazing, the period of the lease may not exceed two years. The lessee shall pay rent under the lease in money.
     (d) In leases granted under this subchapter that are for terms of 20 years or more, the commissioner may grant the lessee a preference right to purchase the leased premises. In order to grant this preference right, the commissioner must include such a provision in the lease. The provision may provide that the preference right to purchase may be exercised at any time during the term of the lease. If the commissioner does include the preference right to purchase in the lease, the lessee shall have a preference right to purchase the leased premises before the leased premises are made available for sale to any other person. All sales under this subsection must be for not less than market value as determined by an appraiser and under any other terms and conditions that the commissioner deems to be in the best interest of the state. The preference right to purchase granted under this subsection is superior to any other preference right to purchase granted under any other section of this code or under any other law. Nothing in this subsection shall be construed to allow the commissioner to grant a preference right to purchase submerged land.
     (e) Subject to the provisions of Title 2, Utilities Code, any district created by Section 59, Article XVI, Texas Constitution, that leases unsold public school land for power generation through the use of renewable energy sources, such as wind, solar, or geothermal energy and other sustainable sources, or a district participating in a power generation project using renewable energy sources which is located on unsold public school lands may distribute and sell electric energy generated on public school lands within or without the boundaries of the district and may issue bonds to accomplish such purposes pursuant to Chapter 1371, Government Code, or other applicable law. For any such power generation project which is located on both public lands and private lands, the district may sell outside its boundaries only the pro rata portion of the total amount as is generated on the public lands. All electric energy generated pursuant to this section shall be sold for resale only to utilities authorized to make retail sales under Title 2, Utilities Code, and shall be subject to the solicitation process and integrated resource planning process authorized by that title.

Acts 1977, 65th Leg., p. 2426, ch. 871, art. I, § 1, eff. Sept. 1, 1977. Amended by Acts 1979, 66th Leg., p. 472, ch. 215, § 1, eff. May 17, 1979; Acts 1983, 68th Leg., p. 3729, ch. 576, § 5, eff. Jan. 1, 1984; Acts 1985, 69th Leg., ch. 624, § 33, eff. Sept. 1, 1985; Acts 1987, 70th Leg., ch. 208, § 4, eff. Aug. 31, 1987;

Acts 1993, 73rd Leg., ch. 991, § 14, eff. Sept. 1, 1993; Acts 1999, 76th Leg., ch. 62, § 18.40, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 1420, § 8.352, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 280, § 22, eff. June 18, 2003.

§ 51.122. ADVERTISEMENT OF LEASES.
     Leases under the provisions of this subchapter may be advertised in the manner provided in Section 32.107 of this code.

Acts 1977, 65th Leg., p. 2426, ch. 871, art. I, § 1, eff. Sept. 1, 1977.

§ 51.123. LEASE APPLICATION.
     A person who desires to lease land shall submit a written application to the commissioner specifying and describing the particular land he desires to lease.

Acts 1977, 65th Leg., p. 2426, ch. 871, art. I, § 1, eff. Sept. 1, 1977.

§ 51.124. AWARD OF LEASE.
     (a) A lease shall be awarded to the highest responsible bidder.
     (b) The lease shall be awarded under the rules and in the quantities the commissioner considers to be in the best interest of the state and not inconsistent with the equities of the occupant.

Acts 1977, 65th Leg., p. 2426, ch. 871, art. I, § 1, eff. Sept. 1, 1977. Amended by Acts 1985, 69th Leg., ch. 624, § 33, eff. Sept. 1, 1985.

§ 51.125. REJECTION OF BID OR OFFER TO LEASE.
     Any bid or offer to lease may be rejected by the commissioner for fraud, collusion, or other good and sufficient cause before the lease is signed.

Acts 1977, 65th Leg., p. 2426, ch. 871, art. I, § 1, eff. Sept. 1, 1977. Amended by Acts 1985, 69th Leg., ch. 624, § 33, eff. Sept. 1, 1985.

§ 51.126. NOTIFICATION OF ACCEPTANCE AND EXECUTION OF LEASE.
     After the applications are received, the commissioner
      shall give written notification to the successful applicant that his bid or offer to lease is accepted and execute a lease to the applicant in the name and by the authority of the State of Texas.

Acts 1977, 65th Leg., p. 2427, ch. 871, art. I, § 1, eff. Sept. 1, 1977.

§ 51.127. RECORDING LEASE.
     (a) After the lessee has paid the rent for the land for a year in advance, the commissioner shall deliver the lease to the clerk of the county in which the land is located.
     (b) When a lease is filed for record, the clerk shall prepare a memorandum or abstract of the lease and shall record the memorandum or abstract in a well-bound book or on microfilm kept in his office.
     (c) The memorandum or abstract shall contain:
          (1) the number of the survey leased;
          (2) the name of the original grantee;
          (3) the amount of land leased;
          (4) the name of the lessee;
          (5) the date of the lease; and
          (6) the term of years the lease is to run.
     (d) On payment of the fee required by law, the clerk shall deliver the lease to the lessee.
     (e) Except for the record made under this section, no other record of a lease is required.

Acts 1977, 65th Leg., p. 2427, ch. 871, art. I, § 1, eff. Sept. 1, 1977.

§ 51.128. CANCELLATION OF LEASE.
     (a) If a lessee fails to pay rent within 15 days after it is due, the lessee shall owe a penalty of 10 percent of the amount due.
     (b) If a lessee fails to pay the rent within 60 days after it is due, the commissioner shall cancel the lease in writing.
     (c) The commissioner shall file the written notice of cancellation with the other papers relating to the lease, and the lease shall terminate immediately.

Acts 1977, 65th Leg., p. 2427, ch. 871, art. I, § 1, eff. Sept. 1, 1977. Amended by Acts 1987, 70th Leg., ch. 948, § 17, eff. Sept. 1, 1987.

§ 51.129. LIEN.
     (a) During the continuance of the lease and after forfeiture, the state has a lien on all property owned by the lessee which is located on the leased premises to secure payment of rent due.
     (b) The lien is superior to all other liens.
     (c) A reservation of the lien in the lease is not essential to preserve its validity.

Acts 1977, 65th Leg., p. 2427, ch. 871, art. I, § 1, eff. Sept. 1, 1977.

§ 51.130. REMOVAL OF IMPROVEMENTS.
     An improvement made by a lessee on land leased by him may be removed by the lessee on the expiration of the lease or, at the discretion of the commissioner, may become the property of the state if, in the original lease, the commissioner and the lessee agree on adequate credit to be applied to the rental to be paid the state by the lessee, thereby allowing the lessee an agreed consideration.

Acts 1977, 65th Leg., p. 2427, ch. 871, art. I, § 1, eff. Sept. 1, 1977.

§ 51.131. SOIL AND WATER CONSERVATION PLANS.
     (a) For each lease issued under this subchapter for agricultural or grazing purposes, the commissioner may require the lessee to implement a soil and water conservation plan approved by the commissioner. The commissioner, in reviewing a plan, and the lessee, in implementing a plan, may be assisted by the United States Department of Natural Resources Conservation Service.
     (b) The commissioner by rule shall adopt a procedure for reviewing and approving soil and water conservation plans required by Subsection (a) of this section.

Added by Acts 1985, 69th Leg., ch. 624, § 34, eff. Sept. 1, 1985. Amended by Acts 2003, 78th Leg., ch. 280, § 23, eff. June 18, 2003.