Current through Reg. 49, No. 38; September 20, 2024
(a) Lands and minerals subject to lease.
Generally, coal, lignite, sulphur, salt, and potash on PSF lands and all
minerals on state agency lands are subject to lease by sealed bid. See §
10.1
of this title (relating to Definitions; Exploration and Development Guide) for
lands and minerals which are subject to lease under these sealed bid procedures
and §
10.2(b)
of this title for other minerals that may be leased under the
section.
(b) Exploration for
certain minerals. Exploration for coal, lignite, sulphur, salt, and potash on
PSF lands may be conducted under geophysical and geochemical permits issued by
the GLO. Applications must be submitted on forms prescribed by the GLO. (See
§
9.11
of this title)
(c) Nomination,
advertising, and award of tracts.
(1)
Nominations, setting of terms and conditions, evaluation of sealed bids,
advertising, and awards are administered by the SLB under Chapter 9 of this
title (relating to Exploration and Leasing of State Oil and Gas).
(2) On land trade lands, the GLO will notify
the surface owner that a lease has been issued if the surface owner requests
such notice in writing by furnishing the GLO with a current mailing address and
a legal description of each tract on which he desires such notice. Failure of
the surface owner to receive notice will not affect the validity of a lease
issued under this section.
(3) TPWD
may review the leasing of lands whose minerals are subject to lease under this
section but whose surface is owned or leased by TPWD or is subject to a
conservation easement in favor of TPWD. If such lands are nominated for lease,
the GLO shall notify the executive director of TPWD of such nomination. On the
same day as a lease is issued on such lands, the TPWD will be notified of the
issuance of the lease. Such lease will state that the surface of such land is
owned or leased by TPWD or is subject to a conservation easement in favor of
TPWD and will identify the TPWD park or area manager who is responsible for the
surface of the land.
(d)
Minimum terms and conditions.
(1) Terms and
conditions of leases will be set by the SLB for each lease sale and will be
included in the notice for bids.
(2) The royalty reserved to the state shall
be not less than one-eighth of the gross production of sulphur or the value of
the sulphur that may be produced or that may be produced and sold off the area
and not less than one-sixteenth of the value of coal, lignite, salt, and potash
that may be produced.
(3) Upland
leases issued under this section on tracts in which the PSF own the surface
must include a provision requiring the payment of damages for the use of the
surface in prospecting for, exploring, developing, or producing the leased
minerals. The amount of damages for use of the surface will be determined by
negotiation with GLO staff, approved by the commissioner, and incorporated in
each lease form.
(4) Lessee shall
conduct all mining operations and reporting requirements in compliance with
state and federal laws and §
10.7
of this title (relating to Conduct of Exploration and Mining
Operations).
(5) State agency
leases (except TPWD and TDC leases) may not be for a primary term exceeding
five years.
(e)
Assignments, releases, reports, inspections, forfeitures, and reinstatements.
Leases issued under this section are subject to all general provisions covered
in §
10.8
of this title (relating to Assignments, Releases, Reports, Royalty Payments,
Inspections, Forfeitures, and Reinstatements).
