TX NATURAL RESOURCES CODE

SUBTITLE B. SURVEYS AND SURVEYORS

CHAPTER 53. MINERALS

SUBCHAPTER E. LEASE OF PUBLIC SCHOOL AND GULF LAND FOR COAL,



§ 53.151. LEASE OF CERTAIN AREAS.
     (a) Under the provisions of this subchapter, the board may lease to any person for the production of coal, lignite, sulphur, salt, and potash:
          (1) islands, saltwater lakes, bays, inlets, marshes, and reefs owned by the state within tidewater limits;
          (2) the portion of the Gulf of Mexico within the jurisdiction of the state;
          (3) rivers and channels that belong to the state;
          (4) all unsold surveyed and unsurveyed public school land; and
          (5) all land sold with a reservation of minerals to the state under Section 51.054 or 51.086 of this code in which the state has retained leasing rights.
     (b) The lease may not be granted for any land within 2,500 feet of a military base.

Added by Acts 1979, 66th Leg., p. 49, ch. 29, § 1, eff. April 3, 1979. Amended by Acts 1983, 68th Leg., p. 5245, ch. 965, § 7, eff. June 19, 1983; Acts 2003, 78th Leg., ch. 149, § 17, eff. May 27, 2003; Acts 2003, 78th Leg., ch. 1276, § 13.002(c), eff. Sept. 1, 2003.

§ 53.152. LAWS APPLICABLE TO LEASES.
     Leases of land described by Section 53.151 of this code shall be made in the same procedural manner as leases of that land for oil and gas under Chapter 52 of this code.

Added by Acts 1979, 66th Leg., p. 49, ch. 29, § 1, eff. April 3, 1979. Amended by Acts 1993, 73rd Leg., ch. 897, § 61, eff. Sept. 1, 1993.

§ 53.153. CONDITIONS OF LEASE.
     (a) Coal, lignite, sulphur, salt, and potash may be leased together or separately.
     (b) A lease granted under this subchapter shall be for a primary term not to exceed 20 years and as long after that time as the minerals are produced in paying quantities.

Added by Acts 1979, 66th Leg., p. 49, ch. 29, § 1, eff. April 3, 1979. Amended by Acts 1993, 73rd Leg., ch. 897, § 62, eff. Sept. 1, 1993.

§ 53.154. ROYALTY RATE.
     The board shall set the royalty rate on production of sulphur, coal, lignite, salt, and potash from land leased under this subchapter. The royalty rate set must be at least one-eighth of the gross production or the market value of the sulphur produced and at least one-sixteenth of the gross production or the market value of the coal, lignite, salt, and potash produced.

Added by Acts 1979, 66th Leg., p. 49, ch. 29, § 1, eff. April 3, 1979. Amended by Acts 1993, 73rd Leg., ch. 897, § 63, eff. Sept. 1, 1993.

§ 53.155. COMPENSATION FOR DAMAGES FROM USE OF SURFACE.
     (a) Leases issued under Subchapter B or E of this chapter
      for unsold surveyed or unsurveyed school land, other than land included in islands, saltwater lakes, bays, inlets, marshes, and reefs owned by the state in tidewater limits and other than that portion of the Gulf of Mexico within the jurisdiction of the state, must include a provision requiring compensation for damages from the use of the surface in prospecting for, exploring, developing, or producing the leased minerals.
     (b) The commissioner by rule shall set the procedure for receiving compensation for damages to the surface of land dedicated to the permanent school fund.
     (c) Money collected for surface damages shall be deposited in a special fund account in the State Treasury to be used for conservation, reclamation, or constructing permanent improvements on land that belongs to the permanent school fund.
     (d) The special fund account must be an interest-bearing account, and the interest received on the account shall be deposited in the State Treasury to the credit of the permanent school fund.
     (e) Money collected under this section and designated for the construction of permanent improvements as provided by this section must be used not later than two years after the date on which the money is collected.
     (f) Any money that remains in the special fund account for longer than two years shall be deposited in the State Treasury to the credit of the permanent school fund.
     (g) Compensation for damages under this section is in addition to any bonus, rental, royalty, or other payment required by the lease.

Added by Acts 1985, 69th Leg., ch. 624, § 48, eff. Sept. 1, 1985. Amended by Acts 1987, 70th Leg., ch. 948, § 32, eff. Sept. 1, 1987; Acts 1993, 73rd Leg., ch. 897, § 64, eff. Sept. 1, 1993;

Acts 2003, 78th Leg., ch. 328, § 9, eff. Jan. 1, 2004.

§ 53.156. CONTRACTS AND AGREEMENTS.
     On the land office's written request, mailed to the lessee's address as shown on its lease or otherwise properly changed in conformity with the terms of the lease, a copy of a contract for the sale or processing of minerals leased under this subchapter and any subsequent agreement or amendment to the contract shall be filed in the land office within 30 days after the date the land office mails the written request. The land office shall treat a contract, agreement, or amendment filed in the land office as confidential unless otherwise authorized by the lessee.

Added by Acts 1993, 73rd Leg., ch. 897, § 65, eff. Sept. 1, 1993.