CHAPTER 85. ADMINISTRATION OF THE TEXAS A & M UNIVERSITY SYSTEM
EDUCATION CODE
TITLE 3. HIGHER EDUCATION
SUBTITLE D. THE TEXAS A & M UNIVERSITY SYSTEM
CHAPTER 85. ADMINISTRATION OF THE TEXAS A & M UNIVERSITY
SYSTEM
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 85.01. DEFINITIONS. In this chapter:
(1) "System" or "university system" means The Texas A & M
University System.
(2) "Board" means the board of regents of The Texas A & M
University System.
Acts 1971, 62nd Leg., p. 3191, ch. 1024, art. 1, Sec. 1, eff.
Sept. 1, 1971. Amended by Acts 1975, 64th Leg., p. 598, ch. 247,
Sec. 1, eff. Sept. 1, 1975.
SUBCHAPTER B. ADMINISTRATIVE PROVISIONS
Sec. 85.11. BOARD OF REGENTS. The government of the university
system is vested in a board of nine regents appointed by the
governor with the advice and consent of the senate.
Acts 1971, 62nd Leg., p. 3192, ch. 1024, art. 1, Sec. 1, eff.
Sept. 1, 1971. Amended by Acts 1975, 64th Leg., p. 598, ch. 247,
Sec. 2, eff. Sept. 1, 1975.
Sec. 85.12. QUALIFICATIONS; TERMS. Each member of the board
shall be a qualified voter; and the members shall be selected
from different portions of the state. The members hold office for
staggered terms of six years, with the terms of three expiring
February 1 of odd-numbered years.
Acts 1971, 62nd Leg., p. 3192, ch. 1024, art. 1, Sec. 1, eff.
Sept. 1, 1971. Amended by Acts 1983, 68th Leg., p. 2837, ch. 484,
art. III, Sec. 2, eff. June 19, 1983.
Sec. 85.13. CERTIFICATE OF APPOINTMENT. The secretary of state
shall forward a certificate to each regent within 10 days after
his appointment, notifying him of the fact of his appointment. If
any person so appointed and notified fails for 10 days to give
notice to the governor of his acceptance, his appointment shall
be deemed void and his place shall be filled as in the case of a
vacancy.
Acts 1971, 62nd Leg., p. 3192, ch. 1024, art. 1, Sec. 1, eff.
Sept. 1, 1971. Amended by Acts 1975, 64th Leg., p. 598, ch. 247,
Sec. 3, eff. Sept. 1, 1975.
Sec. 85.14. CHAIRMAN OF BOARD. The board shall elect from its
members a chairman of the board, who shall call the board
together for the transaction of business whenever he deems it
expedient.
Acts 1971, 62nd Leg., p. 3192, ch. 1024, art. 1, Sec. 1, eff.
Sept. 1, 1971. Amended by Acts 1975, 64th Leg., p. 599, ch. 247,
Sec. 4, eff. Sept. 1, 1975.
Sec. 85.15. EXPENSES OF REGENTS. The regents shall serve
without compensation but are entitled to reimbursement for actual
expenses incurred in attending board meetings and in transacting
the official business of the board.
Acts 1971, 62nd Leg., p. 3192, ch. 1024, art. 1, Sec. 1, eff.
Sept. 1, 1971. Amended by Acts 1975, 64th Leg., p. 599, ch. 247,
Sec. 5, eff. Sept. 1, 1975.
Sec. 85.16. SEAL. The board may make and use a common seal.
Acts 1971, 62nd Leg., p. 3192, ch. 1024, art. 1, Sec. 1, eff.
Sept. 1, 1971.
Sec. 85.17. SYSTEM CENTRAL ADMINISTRATION OFFICE; EXECUTIVE
OFFICER. (a) The central administration office of the
university system shall provide oversight and coordination of the
activities of each component institution within the system.
(b) The board shall appoint a chief executive officer of the
university system and determine the chief executive officer's
term of office, salary, and duties.
(c) The chief executive officer shall recommend a plan for the
organization of the university system and the appointment of a
chief administrative officer for each component institution,
agency, and service, within the system.
(d) The chief executive officer is responsible to the board for
the general management and success of the university system, and
the board may delegate authority, establish guidelines, and
cooperate with the executive officer to carry out that
responsibility. The chief executive officer may delegate his
authority if approved by the board.
(e) In addition to other powers and duties provided by this code
or other law, the central administration office of the system
shall recommend necessary policies and rules to the governing
board of the system to ensure conformity with all laws and rules
and to provide uniformity in data collection and financial
reporting procedures.
Added by Acts 1989, 71st Leg., ch. 464, Sec. 2, eff. June 14,
1989.
Sec. 85.18. MANDATORY VENUE. (a) Venue for a suit filed
against the board or a member of the board in the member's
official capacity is in Brazos County.
(b) Venue for a suit filed against The Texas A&M University
System, any component of The Texas A&M University System, or
any officer or employee of The Texas A&M University System is
in the county in which the primary office of the chief executive
officer of the system or component, as applicable, is located.
(c) This section does not waive any defense to or immunity from
suit or liability that may be asserted by an entity or individual
described by this section.
(d) In case of a conflict between this section and any other
law, this section controls.
(e) The changes in law made by the adoption of this section
apply only to an action brought on or after September 1, 2003.
Added by Acts 2003, 78th Leg., ch. 1266, Sec. 4.10, eff. June 20,
2003.
SUBCHAPTER C. POWERS AND DUTIES OF BOARD
Sec. 85.21. GENERAL POWERS AND DUTIES. (a) The board shall
make bylaws, rules, and regulations it deems necessary and proper
for the government of the university system and its institutions,
agencies, and services. The board shall regulate the course of
study and prescribe the course of discipline necessary to enforce
the faithful discharge of the duties of the officers, faculty,
and students.
(b) The board is specifically authorized, upon terms and
conditions acceptable to it, to accept and administer gifts,
donations, grants, and endowments, from any source, for use by
the system or any of the components of the system. The board may
retain such funds in local fund accounts.
Acts 1971, 62nd Leg., p. 3191, ch. 1024, art. 1, Sec. 1, eff.
Sept. 1, 1971. Amended by Acts 1983, 68th Leg., p. 2053, ch. 377,
Sec. 1, eff. June 17, 1983.
Sec. 85.22. EXPENDITURES. All expenditures may be made by order
of the board and shall be paid on warrants from the comptroller
based on vouchers approved by the president of the board or by
some officer or officers designated by him in writing to the
comptroller.
Acts 1971, 62nd Leg., p. 3192, ch. 1024, art. 1, Sec. 1, eff.
Sept. 1, 1971.
Sec. 85.23. PERMANENT IMPROVEMENTS; CONTRACTS; LAND
TRANSACTIONS. The board may enter into an agreement with any
person for the purchase, sale, lease, lease-purchase,
acquisition, or construction of permanent improvements and may
purchase, sell, lease, lease-purchase, encumber, or contract with
reference to the divesting or encumbering title to lands and
other appurtenances for the construction of the permanent
improvements. However, no debt or liability shall be incurred by
the State of Texas under this section.
Acts 1971, 62nd Leg., p. 3193, ch. 1024, art. 1, Sec. 1, eff.
Sept. 1, 1971. Amended by Acts 2001, 77th Leg., ch. 774, Sec. 1,
eff. Sept. 1, 2001.
Sec. 85.24. UTILITIES. (a) The board from time to time may
improve and equip existing central power plants and may
construct, acquire, improve, and equip steam plants and additions
to them, and the board may acquire land for these purposes for
the institutions under its control, when the total cost, type of
construction, capacity, and plans and specifications have been
approved by the board. As used in this subsection, "steam plants"
does not include electrical generating facilities, but "central
power plants" does include electrical generating facilities.
(b) The board from time to time may construct, extend, and
improve the water systems, sewer systems, or both, for any or all
institutions under its control, when the total cost, type of
construction, capacity, and plans and specifications have been
approved by the board.
(c) The board may furnish water, sewer, steam, power,
electricity, or any or all of those services from the power and
steam plant or plants and other facilities located at each
institution to any or all dormitories, kitchens and dining halls,
hospitals, student activity buildings, gymnasiums, athletic
buildings and stadiums, the dormitory for help, laundry, and
other buildings or facilities that may have been or may be
constructed at each institution, and may determine the amount to
be charged as a part of the maintenance and operation expense of
those buildings or facilities for the service or services. The
board may allocate the cost of furnishing the services to
revenue-producing buildings and facilities and to other buildings
and facilities at the institutions. The board may pledge the net
revenues from the amounts thus received for the services to pay
the principal of and interest on, and to create and maintain the
reserve for, the negotiable revenue bonds issued for the purpose
of constructing, acquiring, improving, extending, or equipping
the power and steam plants, or additions thereto, or other
facilities, and may secure the bonds additionally by pledging
rentals, rates, charges, and fees for the use or availability of
all or any property, buildings, structures, activities,
operations, or facilities, of any nature, which may be fixed and
collected from all or any designated part of the students
enrolled in the institution or institutions or from others in the
amounts and in the manner determined and provided by the board in
the resolution authorizing the issuance of the bonds.
Acts 1971, 62nd Leg., p. 3193, ch. 1024, art. 1, Sec. 1, eff.
Sept. 1, 1971.
Sec. 85.25. LANDS AND MINERAL INTERESTS. (a) The board is
vested with the sole and exclusive management and control of
lands and mineral interests under its jurisdiction and that may
be acquired by it.
(b) The board may grant, sell, lease, or otherwise dispose of
the lands and mineral interests under its jurisdiction that do
not comprise any portion of the original main campus of Texas
A&M University to other units or agencies of government, or
to any individual, group of individuals, corporation, or other
entity under terms and conditions it deems best in the public
interest.
(c)(1) Except as authorized by existing law, any grant, sale, or
lease of the surface estate of the original main campus property
must be approved by Act of the legislature.
(2) The board is hereby authorized to grant The Former Students
Association of Texas A&M University a lease of surface area
not to exceed eight acres on the original main campus for use by
the association to construct and occupy a building for use
consistent with the association's stated purposes.
(3) The board is further authorized to grant to the Texas
A&M Foundation a lease of surface area not to exceed eight
acres on the original main campus for use by the foundation to
construct and occupy a building for use consistent with the
foundation's stated purposes.
(4) The board is authorized to enter into an agreement,
including a ground lease, for construction of an office,
laboratory, and classroom building to be funded by a donor, on a
site not to exceed five acres on the original main campus. The
agreement shall provide that title to the building shall be
transferred to the board upon completion.
(d) For the purposes of this section, the original main campus
of Texas A&M University comprises that certain 748 acres,
more or less, bounded by Texas Avenue, George Bush Drive,
Wellborn Road, and University Drive in College Station, Texas.
(e) Proceeds received from the grant, sale, lease, or other
disposition of surface interests covered by this section may be
retained in local funds subject to disposition by the board for
any lawful purpose.
(f) This section is cumulative of existing statutes relating to
the authority of the board to lease for oil, gas, sulphur,
mineral ore, and other mineral developments, and otherwise to
buy, sell, and lease certain lands under its jurisdiction and
supervision.
(g) This section does not cover any lands or minerals held by
the general land office.
Acts 1971, 62nd Leg., p. 3194, ch. 1024, art. 1, Sec. 1, eff.
Sept. 1, 1971. Amended by Acts 1983, 68th Leg., p. 851, ch. 198,
Sec. 1, eff. Aug. 29, 1983; Acts 1991, 72nd Leg., ch. 338, Sec.
1, eff. Aug. 26, 1991.
Amended by:
Acts 2005, 79th Leg., Ch.
462, Sec. 1, eff. June 17, 2005.
Acts 2007, 80th Leg., R.S., Ch.
739, Sec. 1, eff. June 15, 2007.
Acts 2009, 81st Leg., R.S., Ch.
478, Sec. 1, eff. June 19, 2009.
Sec. 85.26. LEASES AND EASEMENTS; RIGHTS-OF-WAY FOR ELECTRIC
LINES, PIPELINES, IRRIGATION CANALS, ETC. (a) The board may
execute leases and grant easements for rights-of-way for
telephone, telegraph, electric transmission, and power lines, for
oil pipelines, gas pipelines, sulphur pipelines, water pipelines
and other electric lines and pipelines of any nature whatsoever,
and for irrigation canals, and laterals, and may execute
easements or leases for the erection and maintenance of electric
substations, pumping stations, loading racks, tank farms, and
other structures, and may execute easements for rights-of-way to
the Texas Department of Transportation, to any county in the
state, or to any corporation, group, organization, firm, or
individual for highway or roadway purposes, on or across any
lands belonging to the state and under the control of the board,
if the board in its discretion deems it apparent that the
interest of the state can best be served by the granting of the
easements and leases.
(b) Each easement granted under this section shall be on forms
approved by the attorney general and shall include a complete
description of the land on which the easement is to be granted,
the period of time covered by the easement, the amount of money
to be paid by the grantee to the grantor, or other consideration
for the granting of such easement. It shall also specify the
terms and conditions, penalties for failure to comply with its
provisions, and other pertinent information necessary and
desirable to effect a complete understanding of the transaction.
(c) The grant of an easement for right-of-way, except an
easement for right-of-way for highway or roadway purposes which
may be for an indefinite term shall be limited to a term of not
longer than 10 years, but any such easement may be renewed by the
board.
(d) All income received by the board under the provisions of
this section shall be accounted for and used in the same manner
as other money available to the part of the system to which the
land from which the easement is granted is assigned.
(e) No person, firm, group, organization, agency, or corporation
shall hereafter construct any telephone, telegraph, transmission,
or electric line, pipeline, electric substation, tank farm,
loading rack, pumping station, irrigation canal or lateral,
highway, or roadway of the kind and character enumerated in
Subsection (a) of this section, across or on any section or part
of a section of land of the character described in Subsection (a)
of this section, who has not obtained a proper easement as
provided by this section; or continue in possession of any such
land without obtaining from the board a grant of a right-of-way
easement or other easement across or on such land where the
telephone, telegraph, transmission, or electric lines, pipelines,
or any other transmission or pipelines, electric substation, tank
farm, loading rack, or pumping station, irrigation canal or
lateral, highway, or roadway is to constructed. Any person, firm,
group, organization, agency, or corporation violating this
subsection shall be liable for a penalty of $100 for each day of
the violation, to be recovered by the attorney general.
Acts 1971, 62nd Leg., p. 3194, ch. 1024, art. 1, Sec. 1, eff.
Sept. 1, 1971. Amended by Acts 1995, 74th Leg., ch. 165, Sec.
22(31), eff. Sept. 1, 1995.
Sec. 85.27. FLOOD CONTROL EASEMENTS. The board may convey flood
control easements over land under its jurisdiction and control to
water control and improvement districts of this state. No flood
control easement shall be conveyed unless the board receives from
the district reasonable consideration for the conveyance. The
conveyance shall be under the terms and conditions that the board
deems in the best interest of the university system.
Acts 1971, 62nd Leg., p. 3195, ch. 1024, art. 1, Sec. 1, eff.
Sept. 1, 1971.
Sec. 85.28. AIRPORTS. (a) The board may construct or otherwise
acquire an airport for any institution within the system. It may
maintain and operate the airports in connection with the teaching
of courses in aeronautical engineering and for purposes in
cooperation with the national defense program and for other
purposes which will not interfere with those uses.
(b) The board may acquire by purchase, lease, gift,
condemnation, or otherwise, and may use, operate, and maintain
any kind of property or property interest necessary or convenient
to the exercise of powers under this section. The power of
eminent domain shall be exercised in the manner provided by
general law, including Title 52, Revised Civil Statutes of Texas,
1925, as amended, except that the board shall not be required to
give bond for appeal or bond for costs.
Acts 1971, 62nd Leg., p. 3195, ch. 1024, art. 1, Sec. 1, eff.
Sept. 1, 1971.
Sec. 85.29. RESEARCH AND EXPERIMENTATION FOR TEXAS DEPARTMENT OF
TRANSPORTATION. (a) The department may contract with the
university system or a component or agency of the university
system to conduct research relating to transportation, including
the economics, planning, design, construction, maintenance, or
operation of transportation facilities.
(b) An agreement entered into under this section is not subject
to Chapter 771, Government Code.
(c) The comptroller may draw proper warrants in favor of any
part of the university system based on vouchers or claims
submitted by the system through the department covering
reasonable fees and charges for services rendered by members of
the staff of the system to the department and for equipment and
materials necessary for research and experimentation under a
contract entered into under this section.
(d) The comptroller shall pay warrants issued under this section
against any funds appropriated by the legislature to the
department. The payments made to the system shall be credited and
deposited to local institutional funds under its control.
(e) In this section:
(1) "Department" means the Texas Department of Transportation.
(2) "Transportation facilities" means highways, turnpikes,
airports, railroads, including high-speed railroads, bicycle and
pedestrian facilities, waterways, pipelines, electric utility
facilities, communication lines and facilities, public
transportation facilities, port facilities, and facilities
appurtenant to other transportation facilities.
Acts 1971, 62nd Leg., p. 3195, ch. 1024, art. 1, Sec. 1, eff.
Sept. 1, 1971. Amended by Acts 1995, 74th Leg., ch. 165, Sec.
22(32), eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 382, Sec.
1, eff. May 28, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 5.21,
eff. Sept. 1, 1997.
Sec. 85.30. DONATIONS AND TRUSTS. (a) Donations of property
may be made and accepted by the board for the purpose of
establishing or assisting in the establishment of a
professorship, chair, or scholarship in the university system or
any of its component institutions or for creating in the
university system or any of its component institutions any trust
for any lawful, educational, or charitable purpose, either
temporarily or permanently, and the donations or trusts thereby
created will be governed by the rules prescribed by this section.
(b) The legal title to the property shall be vested in the board
acting as an entity, or the State of Texas, to be held in trust
for the purpose under any directions, limitations, and provisions
that may be declared in the donation or trust agreement, not
inconsistent with the objectives and proper management of the
system or its component institutions.
(c) The donor may declare and direct the manner in which the
title to the property shall thereafter be transmitted from the
trustee in continued succession, to be held for and appropriated
to the declared purposes.
(d) The donor may declare and direct the person or class of
persons who shall receive the benefit of the donation and the
manner of their selection.
(e) The declarations, directions, and limitations shall not be
inconsistent with the objects and proper management of the system
or its institutions.
(f) The title to the property donated shall be received, and the
trust conferred in the donation shall be assumed, subject to laws
that may be passed and carried into effect from time to time
which may be necessary to prevent the loss of or damage to the
property donated or an abuse or neglect of the trust so as to
defeat, materially change, or prevent the objects of the
donation.
(g) Copies of the donation shall be filed with the board.
Added by Acts 1983, 68th Leg., p. 2053, ch. 377, Sec. 2, eff.
June 17, 1983.
Sec. 85.31. FUNDS RECEIVED FOR TRUST SERVICES. (a) The board
may at its discretion charge administrative fees for services
rendered in the management and administration of any trust estate
under the control of the system or any component of the system.
(b) Funds received pursuant to such charges may be deposited in
an appropriate system or university account and may be expended
by the board for any purpose of the system.
Added by Acts 1983, 68th Leg., p. 2053, ch. 377, Sec. 2, eff.
June 17, 1983.
Sec. 85.32. EMINENT DOMAIN. (a) The board may exercise the
power of eminent domain to acquire any real property that the
board considers necessary and proper to carry out its powers and
duties.
(b) The board shall exercise the power of eminent domain in the
manner prescribed by Chapter 21, Property Code, except that the
board is not required to deposit a bond or the amount equal to
the award of damages by the special commissioners under Sections
21.021(a)(2) and (3), Property Code.
Added by Acts 2001, 77th Leg., ch. 774, Sec. 2, eff. Sept. 1,
2001.
SUBCHAPTER D. LEASE OF LANDS FOR OIL, GAS, AND OTHER MINERAL
DEVELOPMENT
Sec. 85.51. AUTHORITY TO LEASE. (a) The board may lease for
oil, gas, sulphur, mineral ore, and other mineral developments
all lands and mineral interests under its control, owned or in
the future acquired by the state for the use of the university
system.
(b) The board shall offer oil and gas leases at public auction,
by sealed bid, by negotiated agreement, or through any other
means that the board considers to be in the best interest of the
university system.
Acts 1971, 62nd Leg., p. 3196, ch. 1024, art. 1, Sec. 1, eff.
Sept. 1, 1971. Amended by Acts 2003, 78th Leg., ch. 1266, Sec.
4.09, eff. June 20, 2003.
Sec. 85.52. SALE OF MINERAL ORE IN PLACE. Mineral ore located
in and on the land may also be sold in place by the board at not
less than the fair market value as determined by the same methods
as are provided for leasing of lands under this subchapter for
development of the minerals in the lands.
Acts 1971, 62nd Leg., p. 3196, ch. 1024, art. 1, Sec. 1, eff.
Sept. 1, 1971.
Sec. 85.53. TRACTS, LOTS, BLOCKS. The board may cause the lands
to be surveyed or subdivided into tracts, lots, or blocks that
will, in its judgment, be most conducive and convenient to
facilitate the advantageous sale of lease for oil, gas, sulphur,
mineral ore, and other minerals, and may make maps and plats that
may be thought necessary to carry out the purposes of this
subchapter. The board may obtain authentic abstracts of title to
all the lands as it deems necessary from time to time, and may
take any steps necessary to perfect a merchantable title to the
lands in the State of Texas.
Acts 1971, 62nd Leg., p. 3196, ch. 1024, art. 1, Sec. 1, eff.
Sept. 1, 1971.
Sec. 85.54. PLACING LEASES ON MARKET; ADVERTISING. (a)
Whenever, in the opinion of the board, there is a demand for the
purchase of oil, gas, sulphur, mineral ore, or other mineral
leases on any tract or part of any tract of land that will
reasonably insure an advantageous sale, the board shall place the
oil, gas, sulphur, mineral ore, or other mineral leases on the
land on the market in any tract or tracts, or any part thereof,
that the board may designate.
(b) The board shall cause to be advertised a brief description
of the land from which the oil, gas, sulphur, mineral ore, or
other minerals is proposed to be leased. The advertisement shall
be made by inserting in two or more papers of general circulation
in this state; and in addition the board may, in its discretion,
cause the advertisement to be placed in an oil and gas journal
published in and out of the state, mail copies of the proposals
to the county judge of the county where the lands are located,
and mail copies of the proposals to other persons the board
thinks would be interested.
Acts 1971, 62nd Leg., p. 3196, ch. 1024, art. 1, Sec. 1, eff.
Sept. 1, 1971.
Sec. 85.55. PUBLIC AUCTION; BIDS; ACCEPTANCE; REJECTION;
PAYMENTS. (a) The board may sell the lease or leases to the
highest bidder at public auction, at Texas A & M University,
in College Station, at any hour between 10 a.m. and 5 p.m.
(b) The board may reject all bids. However, the highest bidder
shall pay to the board on the day of the sale 25 percent of the
bonus bid, and the balance of the bid shall be paid to the board
within 24 hours after notification that the bid has been
accepted. Payments shall be in cash, certified check, or
cashier's check, as the board may direct. Failure to pay the
balance of the amount bid will forfeit to the board the 25
percent paid.
(c) A separate bid shall be made for each tract or subdivision
thereof. No bids shall be accepted which offer less than the fair
market price per ton for the mineral ore or a royalty of less
than one-eighth of the gross production of oil, gas, sulphur, and
other minerals in the land bid upon, and this minimum royalty may
be increased at the discretion of the board. Every bid shall
carry the obligation to pay an amount not less than $1 per acre
for delay in drilling or development. The amount shall be fixed
by the board in advance of the advertisement and shall be paid
every year for five years unless in the meantime production in
paying quantities is had upon the land or the land is re-leased
by the lessee.
Acts 1971, 62nd Leg., p. 3197, ch. 1024, art. 1, Sec. 1, eff.
Sept. 1, 1971.
Sec. 85.56. SUBSEQUENT PROCEDURE IF NO BIDS ACCEPTED. If no bid
is accepted by the board at the public auction, any subsequent
procedure for the sale of oil, gas, sulphur, mineral ore, and
other mineral leases shall be in the manner prescribed by this
subchapter.
Acts 1971, 62nd Leg., p. 3197, ch. 1024, art. 1, Sec. 1, eff.
Sept. 1, 1971.
Sec. 85.57. WITHDRAWAL OF LAND ADVERTISED. The board may
withdraw any lands advertised for lease or for the sale of
mineral ore in place.
Acts 1971, 62nd Leg., p. 3197, ch. 1024, art. 1, Sec. 1, eff.
Sept. 1, 1971.
Sec. 85.58. ACCEPTANCE OF BIDS; AWARD OF LEASE. (a) If in the
opinion of the board any one of the bidders has offered a
reasonable and proper price for any tract and not less than the
price fixed by the board, the lands advertised may be leased for
oil, gas, sulphur, mineral ore, and other mineral purposes under
the provisions of this subchapter and any regulations the board
may prescribe which are not inconsistent with the provisions of
this subchapter.
(b) On acceptance of a bid, the board shall prepare a lease
contract. The bid and a copy of the lease contract shall be filed
in the general land office.
Acts 1971, 62nd Leg., p. 3197, ch. 1024, art. 1, Sec. 1, eff.
Sept. 1, 1971.
Sec. 85.59. EXPLORATORY TERM; EXTENSION; OTHER PROVISIONS OF
LEASE. (a) The exploratory term of the lease as determined by
the board prior to the promulgation of the advertisement shall in
no case exceed five years, and each lease shall provide that the
lease will terminate at the expiration of its exploratory term
unless by unanimous vote of members of the board the lease may be
extended for a period of three years. The lease may be extended
if the board finds that there is likelihood of oil, gas, sulphur,
mineral ore, and other minerals being discovered by lessees, and
that the lessees have proceeded with diligence to protect the
interest of the state. However, if oil, gas, sulphur, mineral
ore, and other minerals are being produced in paying quantities
from the premises, the lease shall continue in force and effect
as long as the oil, gas, sulphur, mineral ore, and other minerals
are being so produced. No extension under this subsection may be
made by the board until the last 30 days of the original term of
the lease.
(b) When, in the discretion of the board, it is deemed for the
best interest of the state to extend a lease issued by the board,
the board by unanimous vote may extend the lease for a period not
to exceed three years, on the condition that the lessee shall
continue to pay yearly rental as provided in the lease and any
additional terms the board may see fit and proper to demand. The
board may extend the lease and execute an extension agreement.
(c) The lease shall include any additional provisions and
regulations the board may prescribe to preserve the interest of
the state, not inconsistent with the provisions of this
subchapter.
Acts 1971, 62nd Leg., p. 3197, ch. 1024, art. 1, Sec. 1, eff.
Sept. 1, 1971.
Sec. 85.60. DISCONTINUANCE OF YEARLY PAYMENTS; TERMINATION FOR
NONPRODUCTION. When the royalties amount to as much as the
yearly payments as fixed by the board, the yearly payments may be
discontinued. If before the expiration of five years oil, gas,
sulphur, mineral ore, and other minerals have not been produced
in paying quantities, the lease shall terminate unless extended
as provided by this subchapter.
Acts 1971, 62nd Leg., p. 3198, ch. 1024, art. 1, Sec. 1, eff.
Sept. 1, 1971.
Sec. 85.61. OPERATIONS UNDER LEASE: EFFECT ON RENTAL PAYMENTS,
TERM OF LEASE. If, during the term of any lease issued under the
provisions of this subchapter, the lessee is engaged in actual
drilling and mining operations for the discovery of oil, gas,
sulphur, mineral ore, and other minerals on land covered by any
such lease, no rentals shall be payable as to the tract on which
the operations are being conducted as long as the operations are
proceeding in good faith; and if oil, gas, sulphur, mineral ore,
and other minerals are discovered in paying quantities on any
tract of land covered by any lease, then the lease as to that
tract shall remain in force as long as oil, gas, sulphur, mineral
ore, and other minerals are produced in paying quantities from
the tract.
Acts 1971, 62nd Leg., p. 3198, ch. 1024, art. 1, Sec. 1, eff.
Sept. 1, 1971.
Sec. 85.62. PRORATION OR REDUCTION OF PRODUCTION. When, in the
discretion of the board, it is for the best interest of the state
to prorate or reduce production of any land, the board may
execute the necessary contract to carry out that purpose.
Acts 1971, 62nd Leg., p. 3198, ch. 1024, art. 1, Sec. 1, eff.
Sept. 1, 1971.
Sec. 85.63. INTERFERENCE WITH SURFACE USES. No lease for oil,
gas, sulphur, mineral ore, and other minerals shall be made by
the board which will permit the drilling or mining for oil, gas,
sulphur, mineral ore, and other minerals within 300 feet of any
building on the land without the consent of the board. A lease on
any experimental station or farm shall provide that the
operations for oil, gas, sulphur, mineral ore, and other minerals
shall not in any way interfere with use of the land as an
experimental station and shall not cause the abandonment of the
property or its use for experimental farm purposes; and the
lessee shall drill, mine, and carry on his operations in such a
way as not to cause the abandonment of the property for
experimental farm purposes, and any such leased property shall be
subject to the use by the State of Texas for all experimental
purposes and the board shall continue to operate the experimental
station.
Acts 1971, 62nd Leg., p. 3198, ch. 1024, art. 1, Sec. 1, eff.
Sept. 1, 1971.
Sec. 85.64. PROTECTION FROM DRAINAGE. In every case where the
area in which oil, gas, sulphur, mineral ore, and other minerals
sold shall be contiguous or adjacent to lands which are not lands
belonging to and held by the university system, the acceptance of
the bid and the sale made thereby shall constitute an obligation
on the owner to adequately protect the land leased from drainage
from the adjacent lands to the extent that a reasonably prudent
operator would do under the same and similar circumstances. In
cases where the area in which the oil, gas, sulphur, mineral ore,
and other minerals are sold is contiguous to other lands
belonging to and held by the university system which have been
leased or sold at a lesser royalty, the owner shall likewise
protect the land from drainage from the lands so leased or sold
for a lesser royalty. On failure to protect the land from
drainage as herein provided, the sale and all rights thereunder
may be forfeited by the board in the manner provided in this
subchapter for forfeitures.
Acts 1971, 62nd Leg., p. 3199, ch. 1024, art. 1, Sec. 1, eff.
Sept. 1, 1971.
Sec. 85.65. RIGHTS OF PURCHASER; ASSIGNMENT; RELINQUISHMENT.
(a) Title to all rights purchased may be held by the owners as
long as the area produces oil, gas, sulphur, mineral ore, and
other minerals in paying quantities.
(b) All rights purchased may be assigned. All assignments shall
be filed in the general land office as prescribed by rule,
accompanied by 10 cents per acre for each acre assigned and the
filing fee as prescribed by rule. An assignment shall not be
effective unless filed as required by rule. An assignment shall
not relieve the assignor of any liabilities or obligations
incurred prior to the assignment.
(c) All rights to all or any part of a leased tract may be
released to the state at any time by recording a release
instrument in the county or counties in which the tract is
located. Releases must also be filed with the chairman of the
board and the general land office, accompanied by the filing fee
prescribed by rule. A release shall not relieve the owner of any
obligations or liabilities incurred prior to the release.
(d) The board shall authorize the laying of pipeline, telephone
line, and the opening of roads as deemed reasonably necessary for
and incident to the purpose of this subchapter.
Acts 1971, 62nd Leg., p. 3199, ch. 1024, art. 1, Sec. 1, eff.
Sept. 1, 1971. Amended by Acts 1987, 70th Leg., ch. 948, Sec. 35,
eff. Sept. 1, 1987.
Sec. 85.66. ROYALTY PAYMENTS; INSPECTION OF RECORDS; REPORT OF
LAND COMMISSIONER. (a) If oil or other minerals are developed
on any of the lands leased by the board, the royalty or money as
stipulated in the sale shall be paid to the general land office
at Austin on or before the last day of each month for the
preceding month during the life of the rights purchased, and
shall be set aside in the state treasury as specified in Section
85.70 of this code. The royalty or money paid to the general land
office shall be accompanied by the sworn statement of the owner,
manager, or other authorized agent showing the gross amount of
oil, gas, sulphur, mineral ore, and other minerals produced and
saved since the last report, the amount of oil, gas, sulphur,
mineral ore, and other minerals produced and sold off the
premises, and the market value of the oil, gas, sulphur, mineral
ore, and other minerals, together with a copy of all daily
gauges, or vats, tanks, gas meter readings, pipeline receipts,
gas line receipts and other checks and memoranda of the amounts
produced and put into pipelines, tanks, vats, or pool and gas
lines, gas storage, other places of storage, and other means of
transportation.
(b) The books and accounts, receipts and discharges of all
wells, tanks, vats, pools, meters, pipelines, and all contracts
and other records pertaining to the production, transportation,
sale, and marketing of oil, gas, sulphur, mineral ore, and other
minerals shall at all times be subject to inspection and
examination of any member of the board or any duly authorized
representative of the board.
(c) The commissioner of the general land office shall tender to
the board on or before the 10th day of each month a report of all
receipts from the lease or sale of oil, gas, sulphur, mineral
ore, and other minerals turned into the state treasury, as
provided by Section 85.70 of this code, of the preceding month.
(d) Each lease shall contain a provision enabling the Board, at
its discretion, to require that payment of royalty, as stipulated
in the lease, be in kind. The Board shall have all powers
necessary to negotiate and execute sales contracts or any other
instruments necessary for the disposition of any royalty taken in
kind. Such other reasonable provisions, not inconsistent with
this subchapter, that will facilitate the efficient and equitable
payment of royalty in kind may be included in the lease by the
Board.
Acts 1971, 62nd Leg., p. 3199, ch. 1024, art. 1, Sec. 1, eff.
Sept. 1, 1971. Amended by Acts 1973, 63rd Leg., p. 846, ch. 382,
Sec. 1, eff. Aug. 27, 1973; Acts 1989, 71st Leg., ch. 105, Sec.
8, eff. Sept. 1, 1989.
Sec. 85.67. FORFEITURE; OTHER REMEDIES; LIEN. (a) If the owner
of the rights acquired under this subchapter fails or refuses to
make the payment of any sum due thereon, either as rental,
royalty on production, or other payment, within 30 days after
same becomes due, or if the owner or his authorized agent makes
any false return or false report concerning production, royalty,
drilling, or mining, or if the owner fails or refuses to drill
any offset well or wells in good faith, as required by his lease,
or if the owner or his agent refuses the proper authority access
to the records and other data pertaining to the operations under
this subchapter, or if the owner or his authorized agent fails or
refuses to give correct information to the proper authorities, or
fails or refuses to furnish the log of any well within 30 days
after production is found in paying quantities, or if any of the
material terms of the lease are violated, the lease is subject to
forfeiture by the board by an order entered upon the minutes of
the board reciting the facts constituting the default and
declaring the forfeiture.
(b) The board may have suit instituted for forfeiture through
the attorney general.
(c) On proper showing by the forfeiting owner, within 30 days
after the declaration of forfeiture, the lease may, at the
discretion of the board and on such terms as it may prescribe, be
reinstated.
(d) In case of violation by the owner of the lease contract, the
remedy of the state by forfeiture is not the exclusive remedy,
but suit for damages or specific performance, or both, may be
instituted.
(e) The state shall have a first lien upon all oil, gas,
sulphur, mineral ore, and other minerals produced upon the leased
area and upon all rigs, tanks, vats, pipeline, telephone lines,
and machinery and appliances used in the production and handling
of oil, gas, sulphur, mineral ore, and other minerals produced
thereon, to secure any amount due from the owner of the lease.
Acts 1971, 62nd Leg., p. 3200, ch. 1024, art. 1, Sec. 1, eff.
Sept. 1, 1971.
Sec. 85.68. FILING OF RECORDS. All surveys, files, records,
copies of sale and lease contracts, and all other records
pertaining to the sales and leases hereby authorized, shall be
filed in the general land office and constitute archives thereof.
Acts 1971, 62nd Leg., p. 3201, ch. 1024, art. 1, Sec. 1, eff.
Sept. 1, 1971.
Sec. 85.69. PAYMENTS; DISPOSITION. Payments under this
subchapter shall be made to the commissioner of the general land
office at Austin, who shall transmit to the comptroller all
royalties, lease fees, rentals for delay in drilling or mining,
and all other payments, including all filing assignments and
relinquishment fees, to be deposited in the state treasury as
provided by Section 85.70 of this code.
Acts 1971, 62nd Leg., p. 3201, ch. 1024, art. 1, Sec. 1, eff.
Sept. 1, 1971. Amended by Acts 1989, 71st Leg., ch. 105, Sec. 9,
eff. Sept. 1, 1989; Acts 1997, 75th Leg., ch. 1423, Sec. 5.22,
eff. Sept. 1, 1997.
Sec. 85.70. CERTAIN MINERAL LEASES; DISPOSITION OF MONEY;
SPECIAL FUNDS; INVESTMENT. (a) Except as provided by Subsection
(c) of this section, all money received under and by virtue of
this subchapter shall be deposited in the state treasury to the
credit of a special fund to be known as The Texas A&M
University System Special Mineral Investment Fund. With the
approval of the comptroller, the board of regents of The Texas
A&M University System may appoint one or more commercial
banks, depository trust companies, or other entities to serve as
custodian or custodians of the Special Mineral Investment Fund's
securities with authority to hold the money realized from those
securities pending completion of an investment transaction if the
money held is reinvested within one business day of receipt in
investments determined by the board of regents. Money not
reinvested within one business day of receipt shall be deposited
in the state treasury not later than the fifth day after the date
of receipt. In the judgment of the board, this special fund may
be invested so as to produce an income which may be expended
under the direction of the board for the general use of any
component of The Texas A&M University System, including
erecting permanent improvements and in payment of expenses
incurred in connection with the administration of this
subchapter. The unexpended income likewise may be invested as
herein provided.
(b) The income from the investment of the special mineral
investment fund under Subsection (a) of this section shall be
deposited to the credit of a fund to be known as The Texas
A&M University System Special Mineral Income Fund, and shall
be appropriated by the legislature exclusively for the university
system for the purposes herein provided.
(c) The board shall lease for oil, gas, sulphur, or other
mineral development, as prescribed by this subchapter, all or
part of the land under the exclusive control of the board owned
by the State of Texas and acquired for the use of Texas A&M
University--Kingsville and its divisions. Any money received by
the board concerning such land under this subchapter shall be
deposited in the state treasury to the credit of a special fund
to be known as the Texas A&M University--Kingsville special
mineral fund, to be used exclusively for Texas A&M
University--Kingsville and its branches and divisions. Money may
not be expended from this fund except as authorized by the
general appropriations act.
Acts 1971, 62nd Leg., p. 3201, ch. 1024, art. 1, Sec. 1, eff.
Sept. 1, 1971. Amended by Acts 1989, 71st Leg., ch. 105, Sec. 9,
eff. Sept. 1, 1989; Acts 1997, 75th Leg., ch. 227, Sec. 5, eff.
May 23, 1997; Acts 1997, 75th Leg., ch. 1311, Sec. 3, eff. Sept.
1, 1997.
Sec. 85.71. FORMS; CONTRACTS; REGULATIONS. The board shall
adopt forms and contracts and shall promulgate rules and
regulations that in its best judgment will protect the income
from lands leased under this subchapter. A majority of the board
may act in all cases, except where otherwise provided by this
subchapter.
Acts 1971, 62nd Leg., p. 3201, ch. 1024, art. 1, Sec. 1, eff.
Sept. 1, 1971.
Sec. 85.72. EXPENSES OF EXECUTING THIS SUBCHAPTER. The expenses
of executing the provisions of this subchapter shall be paid by
warrants drawn by the comptroller on the state treasury against
the income from the special fund accumulated from leases,
rentals, royalties, and other payments.
Acts 1971, 62nd Leg., p. 3201, ch. 1024, art. 1, Sec. 1, eff.
Sept. 1, 1971.