HBA-NMO H.B. 1494 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 1494
By: Alexander
Energy Resources
7/7/1999
Enrolled



BACKGROUND AND PURPOSE 

The E.B. LaRue, Jr. Survey in Henderson County encompasses 29 acres.  Prior
to the 76th Texas Legislature, the School Land Board (board) controlled its
mineral rights and the surface rights to the land were in private hands and
had been sold several times.  The landowner at the time would have liked to
develop the land, but was reluctant because he did not own the mineral
rights.  H.B. 1494 authorizes the board, if it is in the best interest of
the permanent school fund, to sell mineral rights, other than oil and gas,
to the present surface  owner of the E.B. LaRue, Jr. Survey in Henderson
County.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  (a) Authorizes the School Land Board (board) to sell the
minerals, other than oil and gas, dedicated to the permanent school fund
under, in, or on either of certain tracts in Henderson County to a
qualified applicant as provided by this Act if the board determines that
the sale is in the best interests of the permanent school fund.  

(b) Provides that a person, to qualify as an applicant, must be a natural
person who owns the entire surface estate in either of two specified tracts
in the E.B. LaRue, Jr. Survey in Henderson County; occupies or uses the
surface of either tract for purposes other than conveying or developing
minerals or geothermal resources from the tract; and submits an application
and information as required by the board to determine qualifications. 

(c) Provides that the sale of minerals, other than oil and gas, must be at
the minerals' fair market  value as determined by the board and on terms
and conditions the board determines to be in the best interest of the
permanent school fund.  Authorizes the board to retain up to a
one-sixteenth free royalty interest in the minerals to protect the state's
interests if the minerals are leased or developed at a later date. 

(d) Provides that the person applying to purchase minerals other than oil
and gas must submit a written application to the board not later than the
first anniversary to the effective date of this Act. 

SECTION 2.Emergency clause.
  Effective date: upon passage.