HBA-TBM H.C.R. 242 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.C.R. 242
By: Uher
Civil Practices
4/23/2001
Introduced



BACKGROUND AND PURPOSE 

Gulf Marine Institute of Technology (GMIT) is a nonprofit research
institute that was formed to study and implement mariculture technologies
to grow native finfish and oysters using the biggest offshore oil platform
in territorial waters of the State of Texas.  GMIT alleges that its
research was compromised by the General Land Office (GLO).  According to
GMIT, GLO executed a surface and subsurface lease agreement with Seagull
Energy E & P, Inc. (Seagull) on August 27, 1986 for the purpose of oil and
gas production.  GMIT subsequently negotiated with Seagull to transfer
Seagull's inactive oil and gas lease and platform to GMIT for mariculture
research and development.  In its formal surface lease application dated
July 23, 1998, GMIT fully disclosed to GLO its intended use of the platform
for mariculture research and development. As a condition of the lease
assignment, GLO required GMIT to post a $2.6 million performance bond to
ensure that it would dismantle and remove the mariculture platform complex
upon completion of the project. On September 19, 1998, GLO approved and
accepted the performance bond, and the assignment of the lease from Seagull
to GMIT became effective.  Seagull was required to plug, abandon, and
remove all production equipment from the platform.  On May 12, 1999, GLO
notified GMIT that it no longer had the right to use the platform, and GMIT
was given by GLO a final deadline of May 26, 2000 to dismantle the
platform.  GMIT alleges that by approving the assignment of the lease, GLO
entered into a contractual relationship with GMIT with the understanding
that the platform would be used for mariculture research and development
purposes that GLO breached by claiming that the lease is terminated and
requiring the platform to be removed.  House Concurrent Resolution 242
grants permission to GMIT to sue the State of Texas and the General Land
Office.   

RULEMAKING AUTHORITY

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

ANALYSIS

House Concurrent Resolution 242 grants permission to the Gulf Marine
Institute of Technology to sue the State of Texas and the General Land
Office (GLO) and provides that the commissioner of GLO be served process.