Natural Resources Code
SUBTITLE D. DISPOSITION OF THE PUBLIC DOMAIN
CHAPTER 51. LAND, TIMBER, AND SURFACE RESOURCES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 51.001. Definitions.
In this chapter:
(1) "Commissioner" means the Commissioner of the General Land
Office.
(2) "Land office" means the General Land Office.
(3) "Board" means the School Land Board.
(4) "Comptroller" means the Comptroller of Public Accounts of the
State of Texas.
(5) "Board of regents" means the board of regents of The
University of Texas System.
(6) "Public school land" means all land of the state that is
dedicated to the permanent school fund.
(7) "Asylum land" means all land of the state that is dedicated
to the various asylum funds.
(8) "Surveyed land" means all or part of any tract of land
surveyed either on the ground or by protraction and dedicated to
the public school fund which is unsold and for which field notes
are on file in the land office or that may be delineated on the
maps of that office as such.
(9) "Unsurveyed land" means any land that is not included in
surveys on file in the land office or surveys delineated on maps
of that office.
Acts 1977, 65th Leg., p. 2417, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Amended by Acts 1997, 75th Leg., ch. 1423, Sec. 14.02, eff. Sept.
1, 1997.
SUBCHAPTER B. PROVISIONS GENERALLY APPLICABLE TO THE SALE AND
LEASE OF
PUBLIC SCHOOL AND ASYLUM LAND
Sec. 51.011. Sale and Lease of Public School and Asylum Land.
Any land that is set apart to the permanent school fund and the
various asylum funds under the constitution and laws of this
state together with the mineral estate in riverbeds, channels,
and the tidelands, including islands, shall be controlled, sold,
and leased by the school land board and the commissioner under
the provisions of this chapter.
Acts 1977, 65th Leg., p. 2418, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.012. Commissioner's Authority.
Subject to the authority of the board and to exceptions and
restrictions that may be imposed by the constitution and laws of
this state, the commissioner is vested with the authority
necessary to carry out the provisions of this chapter relating to
the sale and lease of public school and asylum land and to the
protection of this land from free use and occupancy and from
unlawful enclosure.
Acts 1977, 65th Leg., p. 2418, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.0125. Land Used by State Agency.
Land that belongs to the permanent school fund as a result of
having been deeded or given to the state and that has been used
in the past by a state agency shall be first offered for sale or
lease to state agencies before it can be sold or leased to any
other party. No permanent school fund land may be used by a
state agency without fair market value compensation to the
permanent school fund.
Added by Acts 1993, 73rd Leg., ch. 991, Sec. 12, eff. Sept. 1,
1993.
Sec. 51.013. Classification and Valuation of Land.
(a) As the public interest may require, the commissioner shall
classify or reclassify and value or revalue all public school and
asylum land and shall designate the land as agricultural,
grazing, timber, or a combination of these classifications based
on the facts in the particular case.
(b) After the classification and appraisement is entered on the
records of the land office, no further action needs to be taken
by the commissioner and no notice is required to be given to the
county clerk for the classification and appraisement to be
effective.
Acts 1977, 65th Leg., p. 2418, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.014. Rules.
(a) The commissioner may adopt rules necessary to carry out the
provisions of this chapter and may alter or amend the rules to
protect the public interest.
(b) Before rules are adopted under Subsection (a) of this
section, the commissioner shall submit the rules to the governor
for his approval.
Acts 1977, 65th Leg., p. 2418, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.015. Forms.
The commissioner shall adopt forms that are necessary or proper
to transact business that he is required to transact and may
request that the attorney general prepare the forms.
Acts 1977, 65th Leg., p. 2418, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.016. Duties of the Attorney General.
The attorney general shall furnish the commissioner with advice
and legal assistance that may be required to execute the
provisions of this chapter.
Acts 1977, 65th Leg., p. 2418, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.017. Furnishing Data to Board of Education.
On request, the commissioner shall furnish to the State Board
of Education all available data.
Acts 1977, 65th Leg., p. 2418, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.018. Records and Accounts.
The commissioner shall keep in his custody as records of his
office each application, affidavit, obligation, and paper
relating to the sale and lease of public school and asylum land
and shall keep accurate accounts with each purchaser or lessee.
Acts 1977, 65th Leg., p. 2418, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.019. Special Fee.
Each bidder on a mineral lease or land sale by the board shall
remit by separate check a special sale fee in the amount and in
the manner provided in Section 32.110 of this code.
Acts 1977, 65th Leg., p. 2419, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Amended by Acts 1985, 69th Leg., ch. 624, Sec. 32, eff. Sept. 1,
1985.
Sec. 51.020. Refunds.
(a) On presentation of proper proof, money paid in good faith
to a fund in the State Treasury for public land or by a lessee of
public land or minerals to which the fund is not entitled may be
offset or credited by the commissioner against other sums owing
or shall be refunded by the comptroller in the following
instances:
(1) if an error is made in good faith and the refund,
stating to whom payment is to be made, is supported by the
official signature of the commissioner or the attorney general;
(2) if the payment is made according to law but title cannot
issue or possession cannot pass because of a conflict in
boundaries, an erroneous sale, an erroneous lease, or other
cause;
(3) if there is a sale of leased land;
(4) if lease money is paid on a previous forfeited sale and
the sale has been reinstated and the interest paid;
(5) if erroneous timber sales or leases have been made;
(6) if overpayments have been made in final payments to the
comptroller because of decreased acreage or other cause;
(7) if reduction has been made in acreage of timber sold or
leased; or
(8) if payments are made in good faith by claimants of land
where the applicants have no right to purchase the land as
revealed by investigation of title.
(b) After specific appropriations are made according to law,
refunds shall be paid from the funds to which the payments have
been credited.
(c) Any claim for refund except a refund covered by Subdivision
(1) of Subsection (a) of this section shall be certified by the
commissioner, verified by the affidavit of the claimant, and
approved by the attorney general as to the correctness and as to
whom the refund is due.
(d) In the event of a failure of title or right of possession,
money paid by any purchaser or lessee who subsequently sells the
land or assigns the lease shall be refunded to the person on whom
the loss falls.
Acts 1977, 65th Leg., p. 2419, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Amended by Acts 1991, 72nd Leg., ch. 642, Sec. 5, eff. Aug. 26,
1991; Acts 1997, 75th Leg., ch. 1423, Sec. 14.03, eff. Sept. 1,
1997.
SUBCHAPTER C. SALE OF PUBLIC SCHOOL AND ASYLUM LAND
Sec. 51.051. Sale of Land.
Subject to the provisions of Section 32.109 of this code, all
sales of land described in Section 51.011 of this code shall be
made by or under the direction of the school land board to the
applicant who submits the highest bid for the land at a price
that is not less than the price set by the board for purchase of
the land.
Acts 1977, 65th Leg., p. 2419, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.0511. Sale or Lease of Land for Radioactive Waste Disposal Site.
Subchapter E, Chapter 402, Health and Safety Code regarding the
sale or lease or permanent school fund land for purposes of a
disposal site prevails over provisions of this chapter, Chapters
32, 52, and 53 of this code, and the board's rules relating to
the sale or lease of permanent school fund land to the extent of
any conflict.
Added by Acts 1987, 70th Leg., 2nd C.S., ch. 22, Sec. 7, eff.
Oct. 20, 1987. Amended by Acts 1991, 72nd Leg., ch. 14, Sec.
284(91), eff. Sept. 1, 1991.
Sec. 51.052. Conditions for Sale of Land.
(a) Land sold under the provisions of this subchapter shall be
sold without condition of settlement and residence.
(b) A purchaser of land under this subchapter may make a down
payment of an amount determined by the board and the board may
set the terms and conditions of the sale, including the interest
rate. On full payment and satisfaction of other conditions, the
purchaser is entitled to a patent for the land. This subsection
does not prevent the board from requiring a tract of land to be
purchased for cash.
(c) Repealed by Acts 1987, 70th Leg., ch. 208, Sec. 14, eff.
Aug. 31, 1987.
(d) Before the land under this subchapter is sold, the
appraisers for the land office must appraise the land at its
market value and file a copy of the appraisal with the
commissioner. No land covered by this subchapter may be sold for
less than the market value that appears in the appraisal made
under this subsection.
(e) The owner of land that surrounds land in a tract of 700
acres or less shall have a preference right to purchase the tract
before the land is made available for sale to any other person,
provided the person having the preference right pays not less
than the market value for the land as determined by the board.
(f) If the surrounding land is owned by more than one person,
the owners of land with a common boundary with a tract of 700
acres or less that is for sale shall have a preference right to
purchase the tract before it is made available to any other
person, provided the person with the preference right pays not
less than the market value of the land as determined by the board
and the board finds use of the preference to be in the best
interest of the state. The board shall adopt rules to implement
this preference right.
(g) If land is located within the boundaries of or adjacent to
any state park, refuge, natural area, or historical site subject
to the management and control of the Parks and Wildlife
Department, the department has a preference right to purchase the
land before it is made available for sale to any other person. A
sale to the department under this section may not be for less
than the fair market value of the land, as determined by the
board.
(h) The board may sell or exchange any interest in the surface
estate of public school land directly to any state agency, board,
commission, or political subdivision or other governmental entity
of this state without the necessity of a sealed bid sale. All
sales or exchanges made pursuant to this subsection shall be for
not less than fair market value as determined by the board and
under such other terms and conditions the board determines to be
in the best interest of the state.
(i) If no bid meeting minimum requirements is received for a
tract of land offered at a sealed bid sale under Subchapter D of
Chapter 32 of this code, the asset management division of the
land office may solicit proposals or negotiate a sale, exchange,
or lease of the property to any person. The sale price may not
be less than the appraised value of the land as determined by the
asset management division. The board must approve any negotiated
sale, exchange, or lease of any land under this section.
(j) The board, in its sole discretion and in the best interests
of the permanent school fund as determined by the board and
without regard to requirements of local governments as to the
necessity of any such dedication, may dedicate permanent school
fund land to any governmental unit for the benefit and use of the
public in exchange for nonmonetary consideration with a value
reasonably equivalent to or greater than the value of the
dedicated land, if the board determines that such an exchange
would benefit the permanent school fund. The asset management
division of the land office shall determine the value of the
nonmonetary consideration and shall file a copy of its
determination with the commissioner. Examples of public purposes
for which permanent school fund land may be dedicated under this
subsection include but are not limited to: (1) rights-of-way for
public roads, utilities, or other infrastructure; (2) public
schools; (3) public parks; (4) government offices or facilities;
(5) public recreation facilities; and (6) residential
neighborhood public amenities.
Acts 1977, 65th Leg., p. 2419, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Amended by Acts 1983, 68th Leg., p. 5242, ch. 965, Sec. 1, eff.
June 19, 1983; Acts 1987, 70th Leg., ch. 208, Sec. 14, eff. Aug.
31, 1987; Acts 1989, 71st Leg., ch. 383, Sec. 4, eff. June 14,
1989; Acts 1991, 72nd Leg., ch. 633, Sec. 5, eff. Aug. 26, 1991;
Acts 1993, 73rd Leg., ch. 991, Sec. 13, eff. Sept. 1, 1993; Acts
1995, 74th Leg., ch. 293, Sec. 1, eff. Aug. 28, 1995.
Sec. 51.054. Reservation of Minerals.
(a) Except as otherwise provided in this section, land
dedicated to the permanent school fund shall be sold subject to a
reservation set by the board of not less than one-eighth of all
sulphur and other mineral substances from which sulphur may be
derived or produced and not less than one-sixteenth of all other
minerals to the state; provided, that if leasing rights are
retained hereunder, the reserved minerals shall be subject to
lease as provided by Subchapter B, Chapter 52, Natural Resources
Code, and Subchapters B and E, Chapter 53, Natural Resources
Code. The mineral reservation to the state shall be determined
by the board before the land is offered for sale. If the board
determines that a mineral reservation under this section would
substantially reduce the value of the surface of land by
restricting its suitability for agricultural, commercial, or
residential use, the board may take such action or waive such
rights as are in the best interest of the permanent school fund,
including, without limitation, establishing designated
exploration or drilling sites, waiving surface or other rights of
access or development, or conveying the land with no mineral
reservation.
(b) Land that is set apart for the various asylum funds shall
be sold with the oil, gas, coal, and all other minerals reserved
to the fund to which the land belongs.
(c) The provisions of this section do not apply to oil and gas
sold from public school and asylum land covered by Subchapter F,
Chapter 52, of this code.
(d) The provisions of this section do not apply to vacancies
covered by Section 51.201 of this code.
(e) An oil, gas, or other mineral lease on land in which the
state reserves a mineral or royalty interest is not effective
until a certified copy of the recorded lease is filed in the
General Land Office.
Acts 1977, 65th Leg., p. 2420, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Amended by Acts 1983, 68th Leg., p. 5243, ch. 965, Sec. 2, eff.
June 19, 1983; Acts 1985, 69th Leg., ch. 923, Sec. 3, eff. Aug.
26, 1985; Acts 1995, 74th Leg., ch. 354, Sec. 3, eff. Aug. 28,
1995.
Sec. 51.0551. Lists of Public Land Offered for Sale: Criminal Penalties.
(a) A person, including a corporation or an association,
commits an offense if he reproduces, prints, or prepares or sells
or furnishes a printed, multigraphed, or mimeographed list
prepared by or under the direction of the commissioner offering
for sale or lease any state or public school land.
(b) This section does not prohibit the commissioner or land
board from advertising in a newspaper or otherwise as is provided
by law nor a newspaper or periodical from publishing the list in
a regular issue as a news item.
(c) An offense under this section is a misdemeanor punishable
by a fine of not more than $1,000.
Added by Acts 1983, 68th Leg., p. 1021, ch. 235, art. 5, Sec.
1(a), eff. Sept. 1, 1983.
Sec. 51.056. Application to Purchase Land.
(a) A person who wants to purchase public school or asylum land
shall submit to the commissioner a separate written application
for each tract.
(b) Each application shall:
(1) designate the land to be purchased;
(2) state the bid offered;
(3) include an affidavit disclosing the names of all persons
or entities either directly or indirectly interested in the
purchase of the land.
(c) The sale of the land is effective from the date of the
receipt and filing of the application, affidavit, obligation, and
the payment of the initial portion of the price offered.
(d) The application to purchase and the notice of award shall
state that the land is sold without condition of settlement and
with a reservation of minerals, as determined by the board.
Acts 1977, 65th Leg., p. 2420, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Amended by Acts 1983, 68th Leg., p. 5243, ch. 965, Sec. 3, eff.
June 19, 1983; Acts 1987, 70th Leg., ch. 208, Sec. 5, eff. Aug.
31, 1987.
Sec. 51.057. Delivery of Applications.
(a) An application for the purchase of public school or asylum
land shall be delivered to the land office in a sealed envelope
addressed to the commissioner with the words "application to buy
land" and the date the land is to be sold endorsed on the
envelope. Applications that do not have the required
endorsements are nevertheless valid.
(b) The envelopes shall remain unopened and the applications
unfiled, and the commissioner or his chief clerk shall keep the
envelopes and applications in a safe and secure manner until the
date of sale.
Acts 1977, 65th Leg., p. 2421, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.058. Method for Making First Payment.
(a) An applicant shall submit with his application the required
first payment in the form of money or remittance collectible on
demand in Austin and convertible at par into money on order of
the comptroller without liability.
(b) If a remittance is made payable to the commissioner, the
payment is not invalid for that reason, but the commissioner
shall endorse it to the comptroller without incurring liability
and the remittance shall be treated as if it were payable to the
comptroller.
(c) An application is void if the payment is not made as
provided in this section.
Acts 1977, 65th Leg., p. 2421, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Amended by Acts 1997, 75th Leg., ch. 1423, Sec. 14.04, eff. Sept.
1, 1997.
Sec. 51.059. Opening Applications.
(a) On the date of sale, the application envelopes shall be
opened and the applications shall be filed and the information
entered on the docket of the board as provided in Section 32.108
of this code.
(b) Any person who desires to be present at the time the
envelopes are opened may do so.
Acts 1977, 65th Leg., p. 2421, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.060. Recordation of First Payments.
(a) After each application envelope is opened and the first
payment for the land is in the land office, the commissioner
shall have the payment listed on a daily list which shall be made
in triplicate, showing the name and address of each applicant and
the purpose for which each payment is made and shall transmit to
the comptroller all of the payments together with two of the
lists.
(b) On receiving the payments and the lists, the comptroller
shall compare the payments with the lists, and if the comptroller
finds that the payments and the lists are correct, he shall
receipt one of the lists and return it to the commissioner and
shall retain the other list.
Acts 1977, 65th Leg., p. 2421, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Amended by Acts 1997, 75th Leg., ch. 1423, Sec. 14.05, eff. Sept.
1, 1997.
Sec. 51.061. Collection of Remittances.
(a) The comptroller shall immediately collect all collectible
remittances and shall report to the commissioner all remittances
not collectible in Austin.
(b) Any remittances that cannot be collected shall be returned
to the commissioner.
Acts 1977, 65th Leg., p. 2421, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Amended by Acts 1997, 75th Leg., ch. 1423, Sec. 14.06, eff. Sept.
1, 1997.
Sec. 51.062. Disposition of First Payments.
(a) The comptroller shall retain all first payments he has
collected until the commissioner notifies him of the final
disposition of the applications to purchase land.
(b) After the comptroller is notified, he shall return to each
applicant whose application is rejected the amount of his first
payment.
(c) On the last working day of each month, the comptroller
shall deposit in the State Treasury to the credit of the proper
fund the amount collected by him on accepted applications during
that month.
Acts 1977, 65th Leg., p. 2421, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Amended by Acts 1997, 75th Leg., ch. 1423, Sec. 14.07, eff. Sept.
1, 1997.
Sec. 51.063. Duplicate High Bids.
If two or more applicants submit the same bid for a tract of
land and the bids are the highest bids offered on the sale date,
the school land board shall reject all of the bids and the land
shall be offered for sale on the next sale date. Any subsequent
bid for the land may not be considered if it is less than the
high bids rejected under this section.
Acts 1977, 65th Leg., p. 2422, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.064. Individual Bids.
(a) Any public school or asylum land offered for sale for which
no application is made under Section 51.056 of this code may be
sold to any person who files a proper application in the land
office in the manner provided by law.
(b) A person who files an application under this section is not
required to have any memorandum on the envelope containing the
application.
(c) If two or more applications are filed under this section on
the same day for the same land, the person offering the highest
price shall have his offer accepted, but if two or more persons
offer the same price for the land, the commissioner and the
school land board shall proceed in the manner provided by this
chapter for the first filing.
Acts 1977, 65th Leg., p. 2422, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.065. Notice and Record of Sale.
(a) The commissioner shall notify the county clerk of the
proper county of the sale of each tract of land, the name and
address of the purchaser, and the price of the land.
(b) After being informed of any sale of public school or asylum
land, the county clerk shall enter in his books opposite the
description of the land sold, the name of the purchaser and the
date of the sale.
(c) The notice of sale and the book containing the entry are
public records.
Acts 1977, 65th Leg., p. 2422, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.066. Notice of Award.
(a) The commissioner shall prepare and issue a notice of award
for each tract of land sold.
(b) Each notice of award shall be appropriately numbered and
shall be worded in a manner that will constitute a receipt for
the first payment after it is signed by the commissioner.
(c) One copy of the notice of award shall be retained in the
land office and the other copy shall be sent to the purchaser.
Acts 1977, 65th Leg., p. 2422, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.067. Information Required With Payments.
A person who is making a payment of principal, interest, or
lease rental on land shall give the name of the original
purchaser or lessee and shall sufficiently designate the land.
Acts 1977, 65th Leg., p. 2422, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.068. Fund Accounts.
(a) Payments of principal, interest, and lease rental shall be
accounted for in a similar form but separate from first payments
on land.
(b) The comptroller shall deposit 80 percent of all these
payments received each month to the probable fund to which they
belong as indicated by the commissioner and shall hold the
remaining 20 percent in the suspense account until definite
notice is received from the commissioner as to the proper fund.
After definite notice is received, the comptroller shall credit
the full amount to the proper fund.
(c) The commissioner shall give definite notice to the
comptroller immediately after he issues receipts to the persons
making the payments.
(d) The commissioner and comptroller shall keep an account with
each fund according to advices given by them and shall retain the
advices as permanent records.
Acts 1977, 65th Leg., p. 2423, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Amended by Acts 1991, 72nd Leg., ch. 641, Sec. 24, eff. Sept. 1,
1991; Acts 1997, 75th Leg., ch. 1423, Sec. 14.08, eff. Sept. 1,
1997.
Sec. 51.069. Disposition of Payments on Public School Land.
(a) Payments on public school land received by the commissioner
shall be transmitted to the comptroller to be credited to the
proper fund.
(b) The comptroller shall credit payments received on the
purchase price of public school land to the permanent school fund
and payments received as interest on the purchase of public
school land to the available school fund.
Acts 1977, 65th Leg., p. 2423, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Amended by Acts 1997, 75th Leg., ch. 1423, Sec. 14.09, eff. Sept.
1, 1997.
Sec. 51.070. Unpaid Interest on Public School Land.
(a) Unpaid and delinquent interest on sales of public school
land shall bear interest at a rate set by the board, which
interest shall be payable at the times and on such terms as are
established by the board by rule or by contract.
(b) No patent may be issued for any public school land until
all compounded interest is paid to the time of issuing the
patent.
Acts 1977, 65th Leg., p. 2423, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Amended by Acts 1983, 68th Leg., p. 5244, ch. 965, Sec. 4, eff.
June 19, 1983; Acts 1995, 74th Leg., ch. 354, Sec. 1, eff. Aug.
28, 1995.
Sec. 51.071. Forfeiture of Land.
(a) If principal or interest on a sale of land is not paid when
due, the land is subject to forfeiture by the commissioner by
entry on the wrapper containing the papers "Land Forfeited" or
similar words, the date of the forfeiture, and the official
signature of the commissioner.
(b) After the entry is made on the wrapper, the land and all
payments that have been made for it are forfeited to the state,
and the land may be offered for sale on a subsequent sale date.
Acts 1977, 65th Leg., p. 2423, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Amended by Acts 1983, 68th Leg., p. 5244, ch. 965, Sec. 5, eff.
June 19, 1983.
Sec. 51.072. Effect of Forfeiture.
In cases of forfeiture, the original obligations and penalties
are as binding as if no forfeiture occurred.
Acts 1977, 65th Leg., p. 2423, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.073. Classification and Sale of Leased and Forfeited Land.
(a) Before it is sold, the commissioner shall classify and
value land on which leases have been cancelled or have expired
and land forfeited to the state.
(b) Except as provided in Section 51.064 of this code, no land
may be sold until it is advertised.
Acts 1977, 65th Leg., p. 2423, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.074. Reinstatement of Land Purchases.
(a) If no rights of third persons have intervened, the
purchasers or their vendees, heirs, or legal representatives, who
claim land that has been forfeited for nonpayment of interest,
may have the claim reinstated on written request by paying into
the State Treasury the amount of interest due on the claim up to
the date of reinstatement.
(b) The right to reinstate a claim under this section is
limited to the last purchaser from the state, or his vendees,
heirs, or legal representatives, and must be exercised within
five years from the date of the forfeiture.
(c) If there is a valid outstanding grazing lease that prevents
reinstatement within the time provided in Subsection (b) of this
section, the claim may be reinstated within 60 days after the
grazing lease expires if the application for reinstatement
together with the payment for all past due interest has been
filed in the land office within five years from the date of
forfeiture.
Acts 1977, 65th Leg., p. 2423, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.075. Forfeiture of a Deceased Purchaser's Land.
(a) If a purchaser of land dies, the heirs or legal
representatives of the deceased have one year following November
1 after the purchaser's death in which to make payment before the
commissioner declares the land to be forfeited.
(b) If the forfeiture is declared by the commissioner within
the time period stated in Subsection (a) of this section, it will
be set aside on proper proof of death if no rights of third
parties have intervened.
Acts 1977, 65th Leg., p. 2424, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.076. Legal Proceedings.
None of the provisions of Sections 51.071 through 51.072 and
51.074 through 51.075 of this code shall prevent the state from
instituting legal proceedings necessary:
(1) to enforce a forfeiture;
(2) to recover the full amount of interest and penalties
that may be owed to the state at the time the forfeiture
occurred; or
(3) to protect another right to the land.
Acts 1977, 65th Leg., p. 2424, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.077. Lien.
To secure the payment of principal and interest due on a sale
of public school land, university land, and asylum land, the
state has an express lien for the use and benefit of the fund to
which the land belongs. The lien is in addition to any right and
remedy that the state has for enforcement of the payment of
principal or interest due and unpaid.
Acts 1977, 65th Leg., p. 2424, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.078. Transfer of Indebtedness.
(a) If a person or the Federal Farm Loan Bank, with the consent
of the owner of land covered by Section 51.077 of this code, pays
to the state the principal and interest due on any obligation
given for the land, the commissioner, on written request of the
owner, may execute, acknowledge, and deliver to the person or the
Federal Farm Loan Bank a written transfer of the indebtedness
held by the state. The written request of the owner shall be
acknowledged in the manner required for the conveyance of real
estate and shall be accompanied by an affidavit of ownership.
(b) The person or the Federal Farm Loan Bank is subrogated to
all the rights, liens, and remedies held by the state to secure
and enforce the payment of the principal and interest that was
paid to the state.
(c) If the land claimed by a person claiming to be the owner is
held under evidence of title that the law or rules of the land
office do not authorize to be filed in the land office, the
commissioner may admit the owner to be the person that the person
or the Federal Farm Loan Bank paying the indebtedness admits to
be the owner, and on making this admission the instrument of
transfer shall be executed.
(d) None of the provisions of this section shall change any
part of the law or rules that apply to the land office with
relation to titles to land and issuance of patents.
Acts 1977, 65th Leg., p. 2424, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.079. Transfers Generally.
(a) An owner of public school land or asylum land purchased
from the state may sell the land or a definite portion of the
land in any size tract.
(b) If land to be sold is separated from another portion of
land but is not sufficiently designated by metes and bounds in
the papers offered to be filed so that it may be identified with
certainty, the commissioner shall require that proper field notes
accompany the papers before he files them and separates the land.
Acts 1977, 65th Leg., p. 2425, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.080. Personal Transfers.
(a) A vendee who obtains through personal transfer a whole
survey or a whole portion of a survey purchased from the state as
a whole or who obtains through personal transfer a portion of a
survey purchased from the state as a whole or in a quantity less
than the whole survey is entitled to become a substitute
purchaser directly from the state in the manner provided in this
section.
(b) With the approval of the commissioner, the vendee may file
in the land office a complete chain of title through personal
transfers that have been duly executed and recorded in the
counties in which the land or a part of the land is located and
shall pay the fees provided by law.
(c) After the papers are filed in the land office, the
substituted purchaser shall have his portion of land separated
from the other portion of land, if any, on the records of the
land office and shall assume and be liable to the state for all
unpaid principal and interest due the state for the land conveyed
by the deeds that are filed, together with all obligations and
penalties attaching to the original purchase.
(d) The obligation of the original purchaser and the obligation
of all vendors of the substituted purchaser are enforceable
against the substituted purchaser as if he were the original
purchaser from the state, and the obligation of the vendor or
vendors of the substituted purchaser are canceled.
Acts 1977, 65th Leg., p. 2425, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.081. Transfers Other Than Personal Transfer.
A person who claims title through a source other than by
personal transfer to a definite portion of a survey that is less
than the whole survey purchased from the state, with the approval
of the commissioner, may have the portion of land that he claims
separated from the other portion of the survey on the records of
the land office by filing in the land office evidence of claims
that may be required by the commissioner and by paying the fees
provided by law for papers filed as evidence of the claim or a
right to a separation of the area.
Acts 1977, 65th Leg., p. 2425, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.082. Liability of Vendee.
After a separation of land is made on the records of the land
office, the portion that is separated shall be charged and
credited with its pro rata part of the principal and interest due
and paid to November 1 preceding the date of the filing of the
transfers or other papers.
Acts 1977, 65th Leg., p. 2425, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.083. Patent on Part of a Tract.
(a) If an owner or claimant of land whose ownership or claim is
shown on the records of the land office desires a patent on a
portion of the whole tract, the owner or claimant, with the
approval of the commissioner, may file field notes for the
portion of the tract on which the patent is desired, together
with the filing fee required by law, and may obtain a patent for
the portion of the tract after the full price is paid, together
with all fees required by law.
(b) If the ownership of the tract is evidenced by personal
transfer, the patent shall be issued to the owner and his
assigns, but if the claimant claims title through other evidence
than by personal transfer, the patent shall be issued in the name
of the person and his assigns who hold title by original purchase
or in the name of the person and his assigns who appear on the
records to hold title through the last personal transfer.
(c) If a patent is issued in the name of any person other than
the legal owner, the patent and the rights granted in the patent
inure to the benefit of the legal owner.
Acts 1977, 65th Leg., p. 2426, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.084. Sale Without Condition of Residence.
No sale made without condition of settlement may be questioned
by the state or any person after one year from the date of the
sale.
Acts 1977, 65th Leg., p. 2426, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.085. Time for Purchase of Land.
Each purchaser of land has the option of paying the purchase
price in full at any time, together with all fees, and obtaining
a patent for the land.
Acts 1977, 65th Leg., p. 2426, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.086. Sale of Escheated Permanent School Land.
See, also, italicized material following text of this section
(a) All sales of escheated land that is a part of the permanent
school fund must be made to the highest bidder at a price that
may not be less than the greater of $2.50 an acre or the minimum
price set by the court under Section 71.107, Property Code.
(b) On a contract for sale of escheated permanent school land,
the initial payment must be in cash and may not be less than
one-tenth of the purchase price. The purchaser shall pay the
balance of the purchase price in nine equal annual installments
and shall pay interest on the deferred amount at the rate of six
percent a year.
(c) When escheated permanent school land is sold, this state
shall reserve all minerals in the land for the permanent school
fund.
Added by Acts 1983, p. 3729, ch. 576, Sec. 4, eff. Jan. 1, 1984.
Amendment by Acts 1983, 68th Leg., p. 5246, ch. 965, Sec. 8
Section 311.031(c) of the Code Construction Act (Vernon's
Ann.Civ.St. art. 5429b-2) provides, in part, that the repeal of a
statute by a code does not affect an amendment of the statute by
the same legislature which enacted the code and that the
amendment is preserved and given effect as part of the code
provision.
Section 8 of Acts 1983, 68th Leg., p. 5246, ch. 965, eff. June
19, 1983, amends Vernon's Ann.Civ.St. art. 3281 [now, this
section, Sec. 51.121, and V.T.C.A. Property Code, Sec. 71.202]
without reference to the repeal of said article by Acts 1983,
68th Leg., p. 3729, ch. 576, Sec. 6. Section 1 of ch. 576
enacted the Property Code. As so amended, art. 3281 reads:
"All lands heretofore or hereafter escheated to the State of
Texas by provisions of this Title are hereby dedicated,
appropriated and set apart to the Permanent Free School Fund of
the State of Texas. The Clerk of the District Court in which any
judgment shall be rendered for the State escheating real estate
to the State, shall, within ninety (90) days of the date of said
judgment, forward the Commissioner of the General Land Office at
Austin, Texas, a certified copy of said judgment of escheat. The
Clerk of said Court shall likewise notify the Commissioner of the
General Land Office of any appeal that may be taken in said case.
Upon receipt of a certified copy of judgment escheating real
estate to the State from which no appeal is taken, or upon
receipt of a certified copy of notice of affirmance of any
judgment escheating lands to the State, from which an appeal was
taken, the Commissioner of the General Land Office shall list
said lands as escheated permanent free school lands. The
Commissioner of the General Land Office may lease said lands for
grazing purposes under existing laws relating to the leasing for
grazing purposes of unsold school lands. The Commissioner of the
General Land Office may lease said lands for agricultural,
residential, business or other purposes for a term of not to
exceed two (2) years, said rental to be payable in money, the
amount of said rental and all other terms of the lease to be
fixed by the Commissioner of the General Land Office. Any unsold
escheated permanent free school lands shall be subject to lease
for oil and gas development or subject to other mineral
development under Statutes governing the leasing for mineral
purposes of all other unsold permanent free school lands. Any
escheated permanent free school lands may be sold by the
Commissioner of the General Land Office for not less than
one-tenth of the purchase price in cash and the balance of said
purchase price payable in nine equal annual installments, said
deferred installments to bear interest at the rate set by the
School Land Board. Any lands so sold shall be sold to the
highest bidder as are other public free school lands but no
escheated lands shall be sold at a price of less than Two Dollars
and Fifty Cents ($2.50) per acre. All sales of escheated
permanent free school lands shall be with a reservation to the
State of all the minerals in the land in favor of the Permanent
Free School Fund. The mineral interests retained by the State
under this Article are subject to lease as provided by Subchapter
B, Chapter 52, Natural Resources Code, and Subchapters B and E,
Chapter 53, Natural Resources Code. All sums received from the
leasing, mineral developments, or sale of escheated lands shall
be deposited in the Permanent School Fund of Texas. The Tax
Assessor/Collector of each county shall take all steps necessary
to identify land that may be subject to escheat and shall notify
the Commissioner of the General Land Office and the Attorney
General so that appropriate action can be taken. The
Commissioner of the General Land Office is authorized to adopt
such regulations as he deems necessary to carry out this Article.
Said regulations or forms adopted shall be approved by the
Attorney General."
SUBCHAPTER D. LEASE OF LAND
Sec. 51.121. Lease of Unsold Land.
(a) Unsold public school and asylum land may be leased for
agricultural, grazing, or commercial purposes under terms and
conditions set by the commissioner. Commercial improvements on
land under this subsection shall not become the property of the
state and shall be taxed in the same manner as other private
property.
(b) Commercial improvements on land leased under Subsection (a)
of this section shall be removed prior to the expiration of the
lease unless a renewal or an extension of the lease has been
finalized prior to the expiration of the term of the lease. If
commercial improvements are not removed prior to the expiration
of the lease and if there has been no renewal or extension prior
to the expiration of the lease, then the commercial improvements
on the land shall become property of the state.
(c) If escheated land that is a part of the permanent school fund
is leased under this chapter for a purpose other than for
grazing, the period of the lease may not exceed two years. The
lessee shall pay rent under the lease in money.
(d) In leases granted under this subchapter that are for terms of
20 years or more, the commissioner may grant the lessee a
preference right to purchase the leased premises. In order to
grant this preference right, the commissioner must include such a
provision in the lease. The provision may provide that the
preference right to purchase may be exercised at any time during
the term of the lease. If the commissioner does include the
preference right to purchase in the lease, the lessee shall have
a preference right to purchase the leased premises before the
leased premises are made available for sale to any other person.
All sales under this subsection must be for not less than fair
market value as determined by General Land Office appraisers and
under any other terms and conditions that the commissioner deems
to be in the best interest of the state. The preference right to
purchase granted under this subsection is superior to any other
preference right to purchase granted under any other section of
this code or under any other law. Nothing in this subsection
shall be construed to allow the commissioner to grant a
preference right to purchase submerged land.
(e) Subject to the provisions of the Public Utility Regulatory
Act (Article 1446c, Vernon's Texas Civil Statutes), any district
created by Article XVI, Section 59, of the Texas Constitution
that leases unsold public school or asylum land for power
generation through the use of renewable energy sources, such as
wind, solar, or geothermal energy and other sustainable sources,
or a district participating in a power generation project using
renewable energy sources which is located on unsold public school
or asylum lands may distribute and sell electric energy generated
on public school or asylum lands within or without the boundaries
of the district and may issue bonds to accomplish such purposes
pursuant to Chapter 656, Acts of the 68th Legislature, Regular
Session, 1983 (Article 717q, Vernon's Texas Civil Statutes), or
other applicable law. For any such power generation project
which is located on both public lands and private lands, the
district may sell outside its boundaries only the pro rata
portion of the total amount as is generated on the public lands.
All electric energy generated pursuant to this section shall be
sold for resale only to utilities authorized to make retail sales
under the Public Utility Regulatory Act (Article 1446c, Vernon's
Texas Civil Statutes) and shall be subject to the solicitation
process and integrated resource planning process authorized by
that Act.
Acts 1977, 65th Leg., p. 2426, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Amended by Acts 1979, 66th Leg., p. 472, ch. 215, Sec. 1, eff.
May 17, 1979; Acts 1983, 68th Leg., p. 3729, ch. 576, Sec. 5,
eff. Jan. 1, 1984; Acts 1985, 69th Leg., ch. 624, Sec. 33, eff.
Sept. 1, 1985; Acts 1987, 70th Leg., ch. 208, Sec. 4, eff. Aug.
31, 1987; Acts 1993, 73rd Leg., ch. 991, Sec. 14, eff. Sept. 1,
1993.
Sec. 51.122. Advertisement of Leases.
Leases under the provisions of this subchapter may be
advertised in the manner provided in Section 32.107 of this code.
Acts 1977, 65th Leg., p. 2426, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.123. Lease Application.
A person who desires to lease land shall submit a written
application to the commissioner specifying and describing the
particular land he desires to lease.
Acts 1977, 65th Leg., p. 2426, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.124. Award of Lease.
(a) A lease shall be awarded to the highest responsible bidder.
(b) The lease shall be awarded under the rules and in the
quantities the commissioner considers to be in the best interest
of the state and not inconsistent with the equities of the
occupant.
Acts 1977, 65th Leg., p. 2426, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Amended by Acts 1985, 69th Leg., ch. 624, Sec. 33, eff. Sept. 1,
1985.
Sec. 51.125. Rejection of Bid or Offer to Lease.
Any bid or offer to lease may be rejected by the commissioner
for fraud, collusion, or other good and sufficient cause before
the lease is signed.
Acts 1977, 65th Leg., p. 2426, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Amended by Acts 1985, 69th Leg., ch. 624, Sec. 33, eff. Sept. 1,
1985.
Sec. 51.126. Notification of Acceptance and Execution of Lease.
After the applications are received, the commissioner shall
give written notification to the successful applicant that his
bid or offer to lease is accepted and execute a lease to the
applicant in the name and by the authority of the State of Texas.
Acts 1977, 65th Leg., p. 2427, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.127. Recording Lease.
(a) After the lessee has paid the rent for the land for a year
in advance, the commissioner shall deliver the lease to the clerk
of the county in which the land is located.
(b) When a lease is filed for record, the clerk shall prepare a
memorandum or abstract of the lease and shall record the
memorandum or abstract in a well-bound book or on microfilm kept
in his office.
(c) The memorandum or abstract shall contain:
(1) the number of the survey leased;
(2) the name of the original grantee;
(3) the amount of land leased;
(4) the name of the lessee;
(5) the date of the lease; and
(6) the term of years the lease is to run.
(d) On payment of the fee required by law, the clerk shall
deliver the lease to the lessee.
(e) Except for the record made under this section, no other
record of a lease is required.
Acts 1977, 65th Leg., p. 2427, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.128. Cancellation of Lease.
(a) If a lessee fails to pay rent within 15 days after it is
due, the lessee shall owe a penalty of 10 percent of the amount
due.
(b) If a lessee fails to pay the rent within 60 days after it
is due, the commissioner shall cancel the lease in writing.
(c) The commissioner shall file the written notice of
cancellation with the other papers relating to the lease, and the
lease shall terminate immediately.
Acts 1977, 65th Leg., p. 2427, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Amended by Acts 1987, 70th Leg., ch. 948, Sec. 17, eff. Sept. 1,
1987.
Sec. 51.129. Lien.
(a) During the continuance of the lease and after forfeiture,
the state has a lien on all property owned by the lessee which is
located on the leased premises to secure payment of rent due.
(b) The lien is superior to all other liens.
(c) A reservation of the lien in the lease is not essential to
preserve its validity.
Acts 1977, 65th Leg., p. 2427, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.130. Removal of Improvements.
An improvement made by a lessee on land leased by him may be
removed by the lessee on the expiration of the lease or, at the
discretion of the commissioner, may become the property of the
state if, in the original lease, the commissioner and the lessee
agree on adequate credit to be applied to the rental to be paid
the state by the lessee, thereby allowing the lessee an agreed
consideration.
Acts 1977, 65th Leg., p. 2427, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.131. Soil and Water Conservation Plans.
(a) For each lease issued under this subchapter for
agricultural or grazing purposes, the commissioner shall require
the lessee to implement a soil and water conservation plan
approved by the commissioner. The commissioner, in reviewing a
plan, and the lessee, in implementing a plan, may be assisted by
the United States Department of Agriculture Soil Conservation
Service.
(b) The commissioner by rule shall adopt a procedure for
reviewing and approving soil and water conservation plans
required by Subsection (a) of this section.
Added by Acts 1985, 69th Leg., ch. 624, Sec. 34, eff. Sept. 1,
1985.
SUBCHAPTER E. SALE AND LEASE OF VACANCIES
Sec. 51.171. Sale and Lease of Vacant Land.
(a) Vacant and unsurveyed public school land shall be located,
sold, and leased under this subchapter, except:
(1) submerged lands within tidewater limits;
(2) all islands, flats, and emergent lands within tidewater
limits;
(3) natural lakes; and
(4) riverbeds, including channels and islands in riverbeds, above
tidewater limits.
(b) This subchapter does not alter or diminish the public domain
status of the surface estate of riverbeds and channels and
islands in riverbeds that are located above tidewater limits.
Acts 1977, 65th Leg., p. 2427, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Amended by Acts 1993, 73rd Leg., ch. 991, Sec. 1, eff. Sept. 1,
1993.
Sec. 51.172. Definitions.
In this subchapter:
(1) "Applicant" means any person who files an application.
The term may include a good-faith claimant.
(2) "Application" means an application to purchase or lease
a vacancy under this subchapter.
(3) "Good-faith claimant" means a person who:
(A) occupies or uses or whose predecessors in interest
have occupied or used a vacancy for purposes other than
exploring for or removing or purporting to lease or
otherwise convey oil, gas, sulphur, other minerals, or
geothermal resources from the vacancy;
(B) has had, or whose predecessors in interest have had,
the vacancy enclosed or within definite recognized
boundaries and in possession for a period of 10 or more
years with a good-faith belief that the vacancy was included
within the boundaries of a survey or surveys that were
previously titled, awarded, or sold under circumstances that
would have vested title in the vacancy if it were actually
located within the boundaries of the survey or surveys;
(C) is the owner of land adjoining a vacancy on which no
application has previously been filed; or
(D) holds under a good-faith claimant or is entitled to
a distributive share of any title acquired under an
application made by a good-faith claimant.
(4) "Interest" means any right or title in or to real
property, whether affecting the surface, subsurface, or mineral
estate, including:
(A) fee simple title;
(B) a determinable fee created under a mineral lease or
conveyance or otherwise;
(C) a royalty, nonparticipating royalty, or overriding
royalty interest;
(D) a remainder or reversionary interest; or
(E) an interest arising under a lien.
(5) "Interested person" means:
(A) a person who may own or who claims any interest in
land claimed to be vacant or in any land adjoining or
overlapping that land as determined from the records of the
land office, the records of the county clerk's office, and
the tax records of the county or counties in which the land
claimed to be vacant is located;
(B) any other person who asserts a right to or interest
in the land claimed to be vacant and who is known to the
applicant or whose identity could be ascertained by the
applicant with the exercise of reasonable diligence;
(C) the attorney general; or
(D) the applicant.
(6) "Vacancy" means an area of unsurveyed public school land
that:
(A) is not in conflict on the ground with land
previously titled, awarded, or sold;
(B) has not been listed on the records of the land
office as public school land; and
(C) was not, on the date of filing of an application:
(i) subject to an earlier subsisting
application by an applicant or good-faith claimant; or
(ii) the subject of pending litigation
brought by the state to recover the land.
Acts 1977, 65th Leg., p. 2428, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Amended by Acts 1993, 73rd Leg., ch. 991, Sec. 1, eff. Sept. 1,
1993.
Sec. 51.173. Application.
(a) To purchase or lease a vacancy, a person must file an
application. The filing of an application commences a proceeding
under this subchapter. The applicant must file the application
with the county surveyor of the county in which all or part of
the land claimed to be vacant is located. If the county does not
have a county surveyor, the application must be filed with the
county clerk.
(b) The application must:
(1) describe the land that is claimed to be vacant;
(2) state whether the applicant is a good-faith claimant;
(3) state whether the applicant seeks to purchase the
vacancy or obtain a mineral lease on the vacancy;
(4) state the name and last known address of all interested
persons; and
(5) provide any other information that the commissioner
requires by rule.
(c) The commissioner by rule shall set an application filing
fee in an amount of not less than $5. The applicant shall pay the
filing fee to the county surveyor or county clerk at the time the
application is filed.
(d) The county surveyor or county clerk shall mark the exact
date and hour of filing on the original and a duplicate copy of
the application and shall return a marked copy to the person
filing the application. The original shall be recorded in a book
kept for that purpose separate from the deed or real property
records.
(e) Priority among applications covering the same land claimed
to be vacant is determined by the time of filing indicated by the
date and hour marked on the application by the county surveyor or
county clerk.
Renumbered from Sec. 51.175 and amended by Acts 1993, 73rd Leg.,
ch. 991, Sec. 1, eff. Sept. 1, 1993.
Sec. 51.174. Filing Application With Commissioner.
(a) The applicant shall file with the commissioner a copy of
the application with the county surveyor's or clerk's mark
indicating the time of filing not later than the 10th day after
the application is filed with the county surveyor or clerk. The
applicant shall include a filing fee set by the commissioner in
an amount of not less than $100. If the 10th day after filing
falls on a Saturday, Sunday, or state or federal holiday, the
application may be filed on the next regular business day
following the 10th day.
(b) The commissioner shall mark the date of filing on the
application and assign a file number to the application.
(c) An applicant who does not file the application with the
commissioner in the time provided in this section or pay the
filing fee waives all rights under the application.
(d) The commissioner may refuse to accept for filing an
application that:
(1) has material omissions;
(2) does not describe the land claimed to be vacant
adequately for the land to be located on the ground; or
(3) describes as vacant land that has been finally
adjudicated in a court of this state or of the United States
not to be vacant.
Amended by Acts 1983, 68th Leg., p. 403, ch. 81, Sec. 21(f), eff.
Sept. 1, 1983. Renumbered from Sec. 51.178 and amended by Acts
1993, 73rd Leg., ch. 991, Sec. 1, eff. Sept. 1, 1993.
Sec. 51.175. Deposit.
(a) If an applicant is not a good-faith claimant, the
commissioner shall estimate the costs of proceeding under the
application, including the costs of a survey made by a licensed
state land surveyor or the county surveyor, the preparation of
copies and working sketches by the land office, the mailing or
publication of notices and copies, and other similar costs,
excluding allocable costs of salaries and overhead expended by
the land office in actually conducting a hearing or preparing
orders and proposals for decision.
(b) The commissioner shall notify the applicant in writing of
the estimated costs and the applicant shall make a deposit with
the commissioner in the amount of the estimated costs.
(c) If at any time the commissioner determines that the funds
on deposit are insufficient to pay the costs of the proceeding,
the commissioner shall estimate the additional amount required
and shall notify the applicant in writing to make a supplemental
deposit of the estimated amount. The notice must be dated.
(d) The applicant shall make an initial deposit or a
supplemental deposit not later than the 30th day after the date
of the written notice to make the deposit. The commissioner
shall cancel the application if the applicant does not make a
required deposit within the prescribed time. Cancellation
terminates all rights under that application.
Renumbered from Sec. 51.179 and amended by Acts 1993, 73rd Leg.,
ch. 991, Sec. 1, eff. Sept. 1, 1993.
Sec. 51.176. Appeal of Amount of Deposit.
(a) An applicant may appeal the amount of an initial deposit or
supplemental deposit determined by the commissioner in the manner
provided for the appeal of agency decisions under Chapter 2001,
Government Code.
(b) If the applicant does not pay the amount determined by the
district court on or before the 15th day after the judgment of
the district court becomes final and nonappealable, the
commissioner shall cancel the application. Cancellation
terminates all rights under that application.
Renumbered from Sec. 51.181 and amended by Acts 1993, 73rd Leg.,
ch. 991, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 1995, 74th
Leg., ch. 76, Sec. 5.95(49), eff. Sept. 1, 1995.
Sec. 51.177. Disposition of Deposits.
(a) The commissioner shall deposit all initial and supplemental
deposits received under this subchapter to the credit of a
separate trust account in the treasury. The comptroller, on the
commissioner's order, shall make disbursements from that account
for purposes authorized by this subchapter.
(b) After proceedings on an application are concluded and all
expenditures authorized under this subchapter are paid, the
commissioner shall provide the applicant a complete statement of
all deposits and expenditures and shall remit to the applicant
any balance remaining from the deposit or supplemental deposits
made by the applicant.
Renumbered from Sec. 51.183 and amended by Acts 1993, 73rd Leg.,
ch. 991, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 1997, 75th
Leg., ch. 1423, Sec. 14.10, eff. Sept. 1, 1997.
Sec. 51.178. Appointment of Surveyor.
(a) Not later than the 60th day after the date on which the
required deposit is paid, the commissioner shall appoint a
licensed state land surveyor or the county surveyor of the county
in which all or a part of the land claimed to be vacant is
located to make a survey of that land.
(b) The fees and expenses paid for the survey are those
provided by law. If the fees and expenses are not provided by
law, the commissioner and surveyor shall make an agreement as to
the fees and expenses reasonable for the work to be performed.
(c) The fees and expenses shall be paid by the applicant and
may be paid from the initial deposit or any supplementary
deposits made by the applicant under this subchapter.
(d) The commissioner shall promulgate rules setting out the
qualifications and method of selection of surveyors appointed
pursuant to this section. The rules shall provide the greatest
practicable opportunity for all qualified surveyors to obtain
appointment and shall provide the opportunity for an interested
party to move for the removal of an appointed surveyor on the
grounds of bias, prejudice, or conflict of interest. No surveyor
appointed shall be removed, however, except upon notice to the
surveyor and all interested parties and hearing. The fact of
removal of a surveyor shall not be a basis for any disciplinary
action against that surveyor under the Professional Land
Surveying Practices Act (Article 5282c, Vernon's Texas Civil
Statutes).
Renumbered from Sec. 51.185 and amended by Acts 1993, 73rd Leg.,
ch. 991, Sec. 1, eff. Sept. 1, 1993.
Sec. 51.179. Notice to Interested Persons.
(a) Not later than the 10th day after the date on which the
commissioner appoints the surveyor, the commissioner shall give
notice by certified mail, return receipt requested, to all
interested persons at the last known address. The notice shall
contain:
(1) the date of the notice;
(2) a statement that a vacancy application has been made;
(3) the name, address, and telephone number of the surveyor
appointed to make the survey;
(4) a statement that the survey may begin any time after the
20th day after the date of the notice;
(5) a statement that an interested party is entitled to:
(A) observe the conduct of the survey;
(B) receive a copy of the final survey report and other
documents filed by the surveyor; and
(C) participate in the vacancy proceeding;
(6) a true and legible copy of the application; and
(7) other information the commissioner by rule may
prescribe.
(b) If the location of an interested person is unknown or if a
notice is returned as unclaimed or undeliverable, the
commissioner shall publish notice as prescribed by the Texas
Rules of Civil Procedure. If notice by publication is made, the
survey may not begin and further proceedings may not be held
until the 30th day after publication is completed.
(c) If the applicant, another interested person, or the
surveyor shows that the delay required by Subsection (b) of this
section may materially affect the accuracy of the survey because
of destruction, alteration, or removal of natural features,
monuments, or witness objects, or for other good cause, the
commissioner may order the survey to proceed. Notice of the
request to proceed with the survey and of any order issued in
response to the request shall be mailed first class to all
interested persons.
(d) The right of an interested person, personally or through a
representative or representatives, to observe the conduct of a
survey made under this subchapter does not require a delay in the
conduct of a survey solely to allow an interested person or that
person's representative to be present during the survey.
Renumbered from Sec. 51.184 and amended by Acts 1993, 73rd Leg.,
ch. 991, Sec. 1, eff. Sept. 1, 1993.
Sec. 51.180. Waiver of Notice.
(a) An interested person may waive service of the notice
required by Section 51.179 of this code by filing with the
commissioner a sworn affidavit stating the person's intent to
waive notice. The affidavit shall state that the person
executing the waiver has been provided with a true copy of the
application filed with the commissioner.
(b) The affidavit may also state clearly the interested
person's intent to waive all further notice of the vacancy
proceedings. If the affidavit states this intent, it must also
state prominently and clearly that the interested person is aware
that waiving the right to further notice may result in the loss
of the opportunity to appear and to contest the application.
(c) The commissioner by rule may prescribe the form and
specific content of the affidavit described in this section,
including additional information to be included.
Amended by Acts 1993, 73rd Leg., ch. 991, Sec. 1, eff. Sept. 1,
1993.
Sec. 51.181. Survey.
(a) Except when notice by publication is required, at any time
after the 20th day after the date of the notice required by
Section 51.179(a) of this code, the surveyor shall begin the
survey of the land claimed to be vacant.
(b) The surveyor shall prepare and file in the land office:
(1) a detailed written report of all aspects of the survey,
including record research conducted, survey corners recovered
in the course of the field survey, and details of boundary
construction using recovered corners;
(2) field notes in the form and content prescribed by law,
describing the land and the lines and corners surveyed;
(3) a complete plat depicting in detail the survey results;
(4) the names and addresses of all persons who have
possession of the land described in the application and a
description of the lands occupied by those persons; and
(5) the names and addresses of all persons known to the
surveyor who have or claim any interest in the land.
(c) The surveyor shall file the report required by this section
not later than the 140th day after the date of the notice
required by Section 51.179(a) of this code. If notice by
publication is required and the commissioner has not ordered the
survey to proceed, the surveyor shall file the report not later
than the 170th day after the date on which notice by publication
is completed. If the commissioner has ordered the survey to
proceed, the surveyor shall file the report not later than the
140th day after the date of the commissioner's order.
(d) For good cause shown, the commissioner by written order may
extend the time for filing the survey. The order shall state the
cause for the extension and shall be included in the record. A
single order may not extend the time for filing by more than 60
days.
(e) An interested person at the person's own expense may have
any surveying done that the person considers desirable, but a
survey report, a plat, or field notes based on a survey made by a
person not qualified by law to survey public lands in this state
may not be admitted into evidence in a vacancy proceeding or
filed in the land office.
(f) The commissioner shall serve a true copy of the survey
report, field notes, plat, and all other documents filed by the
surveyor on each interested person, including those named in the
survey report, by certified mail, return receipt requested, not
later than the fifth business day after the survey report is
filed in the land office.
Renumbered from Secs. 51.186, 51.187 and amended by Acts 1993,
73rd Leg., ch. 991, Sec. 1, eff. Sept. 1, 1993.
Sec. 51.182. Additional Interested Persons.
(a) All persons named in the survey report as occupying or as
having or claiming any interest in the land described in the
application shall be included in the proceeding as interested
persons and shall be provided notice as prescribed by this
subchapter.
(b) An application may not be canceled or a proceeding
terminated because of the discovery of an additional interested
person unless the commissioner finds that the person filing the
application knowingly and intentionally omitted the name of the
person from the application.
Amended by Acts 1993, 73rd Leg., ch. 991, Sec. 1, eff. Sept. 1,
1993.
Sec. 51.183. Exceptions.
An interested person may file exceptions to the survey report,
field notes, and plat not later than the 30th day after the date
the survey report is filed in the land office. A person filing
exceptions shall serve a true copy on all interested persons and
on the surveyor by certified mail, return receipt requested. The
exceptions shall include a certificate of the fact of that
service.
Amended by Acts 1993, 73rd Leg., ch. 991, Sec. 1, eff. Sept. 1,
1993.
Sec. 51.184. Additional Surveys.
(a) The commissioner or the land office staff may consult with
the surveyor. The commissioner, after notice to the interested
persons, may direct the surveyor to make additional surveys, to
investigate as the commissioner considers necessary, and to
prepare supplemental reports, plats, and field notes the
commissioner requires.
(b) The commissioner shall provide copies of all reports,
plats, field notes, and other information resulting from
additional surveys and investigation to all interested persons.
(c) An interested person may file exceptions or other responses
not later than the 20th day after the surveyor files the required
documents with the land office.
(d) Service of additional documents and exceptions or responses
to those documents shall be made as provided by Sections 51.181
and 51.183 of this code.
Amended by Acts 1993, 73rd Leg., ch. 991, Sec. 1, eff. Sept. 1,
1993.
Sec. 51.185. Action on Application.
(a) Not later than the 90th day after the date on which the
surveyor files the survey report and other documents required to
be filed, the commissioner shall either deny the application as
provided by Section 51.186 of this code or hold a hearing to
determine whether a vacancy exists.
(b) Except as provided by Section 51.192 of this code, the
commissioner may not find that a vacancy exists unless a hearing
is held.
(c) The commissioner shall decide all issues raised or that
could be raised by the application and any exceptions or
responses to the application, including the existence of a
vacancy, the boundaries of a vacancy, and the status and rights
of any interested person as a good-faith claimant or prior
applicant.
(d) The commissioner may not decide in a proceeding on an
application any claim of the state or permanent school fund for
damages arising from trespass, the removal or use of minerals or
geothermal resources, mispayment of proceeds from the sale or use
of minerals or geothermal resources, damages to the soil,
vegetation, or other life or habitat, and similar or related
claims. Those claims may be asserted by the commissioner in
administrative proceedings under rules adopted by the
commissioner or through suit brought by the attorney general at
the request of the commissioner.
(e) Evidence or testimony regarding the existence or extent of
mineral development or other economic use of land claimed to be
vacant may not be introduced or considered, unless that evidence
or testimony is relevant to determine the existence or boundaries
of the alleged vacancy or the status of a person as a good-faith
claimant.
Amended by Acts 1985, 69th Leg., ch. 923, Sec. 5, eff. Aug. 26,
1985. Renumbered from Sec. 51.188 and amended by Acts 1993, 73rd
Leg., ch. 991, Sec. 1, eff. Sept. 1, 1993.
Sec. 51.186. Denial of Application.
(a) If, after reviewing the survey report, any supplemental
reports, any exceptions to the reports, all pertinent publicly
available records of the land office and the state archives, and
land office staff recommendations, the commissioner decides that
the land claimed to be vacant is not vacant, the commissioner may
enter an order denying the application. The order shall contain
findings of fact, conclusions of law, and other matters the
commissioner considers appropriate.
(b) The commissioner shall promptly send a true copy of the
order denying the application to the applicant by certified mail,
return receipt requested.
(c) The commissioner shall place in the file assigned to the
application the original order, all materials filed by the
surveyor, all exceptions and responses to the surveyor's filings,
all memoranda provided to the commissioner by the land office
staff, a list of all files and records of the land office and
state archives examined by the staff or commissioner in
connection with the application, and all other relevant papers.
(d) An interested person may request a rehearing and appeal the
commissioner's order as provided by Chapter 2001, Government Code
and by rules adopted by the commissioner consistent with that
Act. If a rehearing is not requested, the order becomes final on
the 30th day after the date it is signed. If a rehearing is
requested and denied, the order becomes final on the date that
time for appeal to the district court expires. If appeal is
taken, the order becomes final on the date that a judgment
disposing of the order becomes final.
(e) When the commissioner's order denying the vacancy is final,
all rights under the application are terminated.
Amended by Acts 1993, 73rd Leg., ch. 991, Sec. 1, eff. Sept. 1,
1993; Acts 1995, 74th Leg., ch. 76, Sec. 5.95(49), eff. Sept. 1,
1995.
Sec. 51.187. Effect of Final Order.
(a) A final order of the commissioner under this subchapter is
conclusive with respect to the land described in the application
or final order. A final order of the commissioner does not have
the effect of stare decisis with respect to land not described in
the application or final order, but may be considered with all
other evidence.
(b) The cancellation, withdrawal, abandonment, or termination
of an application, the refusal of the commissioner to accept an
application for filing, or the order or judgment of any court
resulting in or affecting such an action has no effect on a
subsequent determination of whether any land described in the
application is vacant.
(c) A decision of the commissioner issued before September 1,
1993, that denies a vacancy application or letter of inquiry is
not conclusive as to the existence or nonexistence of a vacancy.
Amended by Acts 1993, 73rd Leg., ch. 991, Sec. 1, eff. Sept. 1,
1993.
Sec. 51.188. Rulemaking; Venue of Appeals.
(a) A hearing under this subchapter and further proceedings
arising from the hearing shall be conducted in accordance with
Chapter 2001, Government Code and rules adopted by the
commissioner consistent with that Act.
(b) Appeal of a final order of the commissioner is to a
district court of the county in which the land claimed to be
vacant or a part of that land is located. The district court
shall review the commissioner's order under the substantial
evidence rule.
Amended by Acts 1993, 73rd Leg., ch. 991, Sec. 1, eff. Sept. 1,
1993; Acts 1995, 74th Leg., ch. 76, Sec. 5.95(49), eff. Sept. 1,
1995.
Sec. 51.189. Commissioner's Order.
(a) If it appears to the commissioner that the alleged vacancy
is not in conflict with land previously titled, awarded, or sold
by the state or its predecessor sovereigns, the commissioner
shall enter an order declaring the existence of a vacancy and
determining all other issues.
(b) If it appears to the commissioner that the land claimed to
be vacant is not vacant, the commissioner shall enter an order
denying the application and determining all other issues.
(c) The commissioner shall base the order on the testimony and
other competent evidence presented at the hearing, the surveyor's
filings and all supplements to those filings, any exceptions or
responses to the surveyor's filings and all supplements to those
filings, and the publicly available records of the land office
and the state archives. The commissioner and the examiner or
examiners who conduct hearings on the application may consult
with the land office staff and the surveyor to the extent
permitted by Chapter 2001, Government Code. The record shall
include a list of the names and titles of all staff consulted, a
list of the files and documents of the land office and state
archives examined, and a copy of all memoranda provided to the
examiners or commissioner by the land office staff or by the
surveyor.
(d) The order shall contain:
(1) findings of fact;
(2) conclusions of law;
(3) a field note description of the land, if any, found to
be vacant, sufficient to locate it on the ground, and other
elements required by law;
(4) an accurate plat of the land, if any, found to be vacant
consistent with the field notes and prepared by the surveyor or
a licensed state land surveyor on the land office staff; and
(5) other matters the commissioner considers appropriate.
(e) The commissioner's order may adopt, without restating, the
findings of fact and conclusions of law stated in a proposal for
decision prepared by the examiner or examiners who conducted the
hearings and any opinion or statement contained in that proposal
for decision.
Amended by Acts 1993, 73rd Leg., ch. 991, Sec. 1, eff. Sept. 1,
1993; Acts 1995, 74th Leg., ch. 76, Sec. 5.95(49), eff. Sept. 1,
1995.
Sec. 51.190. Determination of Boundaries; Reopening.
(a) In determining the boundaries and size of a vacancy, the
commissioner is not restricted to a description of the land
claimed to be vacant that is provided by the applicant, the
surveyor, or an interested party. The commissioner shall adopt
the description of a vacancy that best describes the vacancy and
is consistent with the information available under this section.
(b) If in determining the boundaries and size of a vacancy it
becomes apparent to the commissioner that persons who have not
been named as interested persons and who have not been served
notice of the proceeding under the application may be affected by
the finding that a vacancy exists at the location and with the
boundaries believed by the commissioner to conform to the record,
the proceeding shall be reopened and the persons affected shall
be joined as interested persons and given an opportunity to
participate adequately in the proceeding. This subsection does
not require the refiling of an application or the conduct of a
new survey by the surveyor.
Amended by Acts 1993, 73rd Leg., ch. 991, Sec. 1, eff. Sept. 1,
1993.
Sec. 51.191. Good-Faith Claimant Status.
(a) An applicant or interested person who wishes to assert
status as a good-faith claimant may file notice of claim of
good-faith status at any time before the 20th day preceding the
date on which the first hearing begins. The notice of claim of
good-faith status shall state the grounds for the claim and
describe the land claimed to be affected by the good-faith
status. The notice shall be filed in the land office and served
on all interested persons by certified mail, return receipt
requested.
(b) Filing notice of claim of good-faith status is not an
admission by the person asserting the claim that a vacancy
exists.
Renumbered from Secs. 51.193 and 51.195 and amended by Acts 1993,
73rd Leg., ch. 991, Sec. 1, eff. Sept. 1, 1993.
Sec. 51.192. Order Without Notice and Hearing.
(a) An applicant who asserts status as a good-faith claimant
may present evidence to the commissioner that:
(1) the good-faith claimant owns all of the land and
interests in land completely surrounding the land claimed to be
vacant;
(2) there is no subsisting prior application covering the
land described in the good-faith claimant's application;
(3) no previous application has been made covering the land
described in the good-faith claimant's application; and
(4) the good-faith claimant meets all other requirements of
a good-faith claimant.
(b) If the commissioner finds that the evidence presented is
accurate, further notice to other persons is not required and, on
acceptance for filing by the commissioner of a survey made by a
licensed state land surveyor or the county surveyor of the county
in which the land claimed to be vacant or a part of that land is
located, the commissioner may enter an order declaring the
existence of the vacancy and determining the good-faith status of
the applicant.
(c) For purposes of this section, land claimed to be vacant and
surrounded by lands owned only by the good-faith claimant and the
state is considered to be surrounded completely by land owned by
the good-faith claimant.
(d) Two or more persons may jointly apply as good-faith
claimants under this section if together they meet the
requirements of Subsection (a) of this section.
(e) A person who would have been an interested person under an
application made under this subchapter by a person other than a
good-faith claimant may move to set aside an order entered under
this section by filing a written motion with the commissioner not
later than the second anniversary of the date of that order. The
person shall serve a true copy of the motion by certified mail,
return receipt requested, on the applicant and all persons
holding or claiming under the applicant.
(f) The commissioner shall set aside an order issued under this
section finding that a vacancy exists if, after notice and
hearing, the commissioner finds that the person asserting rights
under this section, at the time the order declaring the vacancy
was entered, did not:
(1) qualify as a good-faith claimant under this subchapter;
(2) own all of the land and interests in land surrounding
the land claimed to be vacant; or
(3) meet another material requirement of this section.
(g) The commissioner on the commissioner's own motion may set
aside an order after notice and hearing as required by
Subsections (e) and (f) of this section.
(h) If the order is set aside, the commissioner shall reopen
the proceeding on the application and conduct the reopened
proceeding in the same manner as proceedings on other
applications.
(i) The issues in a reopened proceeding are limited to the
status of the applicant as a good-faith claimant entitled to
rights under this section and the rights of any other person as
an applicant or good-faith claimant.
(j) An application of a good-faith claimant who does not own
all of the land and interests in land completely surrounding the
land claimed to be vacant is treated as an application under
other sections of this subchapter.
Amended by Acts 1983, 68th Leg., p. 403, ch. 81, Sec. 21(g), eff.
Sept. 1, 1983. Renumbered and amended by Acts 1993, 73rd Leg.,
ch. 991, Sec. 1, eff. Sept. 1, 1993.
Sec. 51.193. Sale or Lease of Vacancy.
(a) When a vacancy has been established by final order, the
school land board may sell or lease the vacancy as provided by
this subchapter.
(b) The board shall set the sale price and other terms and
conditions as in all other sales of other lands dedicated to the
permanent school fund. The sale price may not be less than the
fair market value as determined by an appraisal conducted by the
land office.
(c) The fee prescribed in Section 32.110(a) of this code
applies to all sales and leases made under this subchapter.
(d) The board may allow a credit against the sale price in an
amount not to exceed the actual cost of the survey paid by an
applicant or good-faith claimant if:
(1) the purchaser is a person exercising a preferential
right to purchase under this subchapter;
(2) the board has reserved all mineral and geothermal
leasing rights; and
(3) the board finds that the fair market value of the
mineral estate is equal to or exceeds 50 percent of the amount
of the credit.
Amended by Acts 1993, 73rd Leg., ch. 991, Sec. 1, eff. Sept. 1,
1993.
Sec. 51.194. Market Value; Mediation; Binding Arbitration.
(a) A person seeking to purchase a vacancy by exercising a
right of preferential purchase under this subchapter, by filing a
written request with the commissioner, may have the issue of
market value submitted to mediation before a trained mediator
acceptable to both the board and the person seeking to purchase
the vacancy if:
(1) the price set by the board under Section 51.193 of this
code exceeds by 15 percent or more the market value estimated
in an appraisal made by a real estate appraiser certified in
Texas for the person seeking to purchase the vacancy; and
(2) the appraisal was made not more than six months before
the date on which the board set the price.
(b) If agreement on price is not reached through mediation on
or before the 60th day after the first mediation session, the
person seeking to purchase the vacancy, by filing a written
request with the commissioner, may have the issue of market value
submitted to binding arbitration.
(c) A panel of three real estate appraisers certified in Texas
shall conduct the arbitration. The person seeking to purchase
the vacancy shall name one member of the panel, the board shall
name one member of the panel, and the two panel members shall
name the third member of the panel, who is the panel's presiding
officer. The board or the person seeking to purchase the vacancy
may object to and have disqualified the first person named to the
panel by the other party. Appraisers employed by or who contract
with the land office are eligible to serve on the arbitration
panel.
(d) The arbitration shall be conducted under the rules of the
American Arbitration Association or under other rules agreed on
by the parties.
(e) The decision of the arbitration panel is not subject to
judicial review.
(f) The costs of mediation and arbitration shall be shared
equally by the land office and the person seeking to purchase the
vacancy.
Amended by Acts 1993, 73rd Leg., ch. 991, Sec. 1, eff. Sept. 1,
1993.
Sec. 51.195. Conditions of Sale; Mineral Awards.
(a) In all sales, the board shall reserve to the permanent
school fund all oil, gas, sulphur, and other minerals and
geothermal resources and shall determine the manner in which
those minerals and geothermal resources are to be leased.
(b) Before the sale of a vacancy, the land office shall prepare
and present to the board a study of the mineral prospects and
value of the vacancy, taking into consideration the size and
configuration of the vacancy, its location with respect to other
surrounding and nearby tracts, the proximity of mineral
production, and the likelihood of future mineral leasing and
development. The study shall include a recommendation as to the
method most advantageous to the state by which the vacancy could
be leased.
(c) The board shall review the study and land office
recommendations and shall determine whether:
(1) the state shall retain all leasing rights and the
vacancy shall be leased as provided in Subchapter B, Chapter
52, and Subchapters B and E, Chapter 53, of this code; or
(2) the owner of the soil shall be designated to execute
leases as the agent of the state subject to the rights,
obligations, and liabilities of Subchapter F, Chapter 52, and
Subchapter C, Chapter 53, of this code.
(d) If the board determines that the owner of the soil shall
act as agent under Subsection (c)(2) of this section, the board
shall establish the division of bonus, rental, and royalty
between the permanent school fund and the owner of the soil. The
portion to be paid to the owner of the soil may not be less than
20 percent or more than 50 percent. The board may establish
different portions to be paid to the owner of the soil for the
lease of different substances.
(e) If the board provides for lease by the owner of the soil
under Subsection (c)(2) of this section, the original purchaser
is a good-faith claimant, and the vacancy was established under
an application made by a person other than a good-faith claimant,
the board shall award the applicant a perpetual nonparticipating
royalty of not less than 1/32 or more than 1/16 of the value of
all oil, gas, and sulphur produced and a perpetual
nonparticipating royalty of not less than one percent or more
than two percent of the value of all geothermal resources and all
other minerals produced.
(f) If the board determines that the state shall retain all
leasing rights as provided in Subsection (c)(1) of this section,
the board shall award:
(1) to an applicant other than a good-faith claimant, a
perpetual nonparticipating royalty of 1/32 of the value of oil
and gas and sulphur and one percent of the value of all
geothermal resources and all other minerals produced; and
(2) to a good-faith claimant purchasing the vacancy, a
nonparticipating royalty of 1/32 of the value of oil and gas
and sulphur and one percent of the value of all geothermal
resources and all other minerals produced.
(g) If a preferential right to obtain the first mineral lease
on a vacancy is exercised by any person, the state's royalty
under the lease shall be reduced by 25 percent for a period of
five years after the date of first production under the first
lease if sales of production from or attributable to the lease
are commenced during the primary term of the lease.
Amended by Acts 1985, 69th Leg., ch. 923, Sec. 8, eff. Aug. 26,
1985. Renumbered from Sec. 51.201 and amended by Acts 1993, 73rd
Leg., ch. 991, Sec. 1, eff. Sept. 1, 1993.
Sec. 51.196. Preferential Right of Good-Faith Claimant.
(a) A good-faith claimant has a preferential right to purchase
or lease the portion of a vacancy subject to the good-faith
claim.
(b) A good-faith claimant may exercise the preferential right
by filing a notice of intent to purchase or lease, on a form
prescribed by the board, not later than the 90th day after the
date the order establishing the vacancy becomes final. The
good-faith claimant shall describe in the notice the portion of
the vacancy the good-faith claimant seeks to purchase or lease.
The good-faith claimant shall mail a copy of the notice to the
applicant and to all other interested persons who have asserted
status as good-faith claimants.
(c) All preferential rights held by a good-faith claimant
expire if the good-faith claimant does not file the notice of
intent within the time prescribed by Subsection (b) of this
section or does not complete the purchase or lease within 60 days
after the board sets the terms of the purchase or lease. For
good cause shown, the board may extend the time to complete the
purchase or lease by a period not to exceed 90 days.
(d) A good-faith claimant exercising a preferential right shall
repay to the applicant the applicant's reasonable expenses
incurred in determining the existence of a vacancy, excluding
filing and attorney fees, not later than the date on which the
sale or purchase by the good-faith claimant is completed.
Failure to pay the expenses cancels the preferential right of the
good-faith claimant.
Renumbered from Secs. 51.193, 51.197 and 51.198 and amended by
Acts 1993, 73rd Leg., ch. 991, Sec. 1, eff. Sept. 1, 1993.
Sec. 51.197. Preferential Right of Applicant Other Than Good-Faith
Claimant.
(a) On the expiration of the preferential right of a good-faith
claimant to purchase or lease or if there is no good-faith
claimant, an applicant who is not a good-faith claimant has a
preferential right to purchase or lease all or any portion of the
vacancy.
(b) An applicant may exercise the preferential right by filing
a notice of intent to purchase or lease, on a form prescribed by
the board, not later than the 90th day after the date on which
the rights of the good-faith claimant expire. The applicant
shall describe in the notice the portion of the vacancy the
applicant seeks to purchase or lease. The applicant shall mail a
copy of the notice to all other interested persons asserting
status as good-faith claimants.
(c) All preferential rights held by an applicant expire if the
applicant does not file the notice of intent within the time
prescribed by Subsection (b) of this section or does not complete
the purchase or lease within 60 days after the date on which the
board sets the terms of the purchase or lease. For good cause
shown, the board may extend the time to complete the purchase or
lease by a period not to exceed 90 days.
Amended by Acts 1985, 69th Leg., ch. 923, Sec. 9, eff. Aug. 26,
1985. Renumbered from Sec. 51.202 and amended by Acts 1993, 73rd
Leg., ch. 991, Sec. 1, eff. Sept. 1, 1993.
Sec. 51.198. Rights Assignable.
An applicant or good-faith claimant may assign all rights in a
vacancy or land claimed to be vacant. The assignment must be in
writing. The assignor shall record the assignment in the real
property records of the county or counties in which the vacancy
or land claimed to be vacant is located and file a certified copy
of the recorded assignment in the land office.
Amended by Acts 1993, 73rd Leg., ch. 991, Sec. 1, eff. Sept. 1,
1993.
Sec. 51.199. Lease Terms Under Preferential Rights.
The board shall prescribe terms for preferential purchases or
leases consistent with this subchapter. The board may not grant
a preferential lease with a royalty of less than 1/8 of the
value of all oil, gas, and sulphur produced or less than five
percent of the value of all geothermal resources and all other
minerals produced.
Amended by Acts 1993, 73rd Leg., ch. 991, Sec. 1, eff. Sept. 1,
1993.
Sec. 51.200. Effect of Prior Conveyances.
(a) A mineral lease, surface lease, deed, or any other
conveyance of any interest in land executed by a good-faith
claimant before the date of completion of a sale or lease under
this subchapter does not give the grantee under that conveyance
any interest in or to the vacancy or its minerals.
(b) A title to land or an interest in land acquired from the
state under a preferential right does not pass as after-acquired
title under a covenant of general warranty, description, or other
provision contained in a conveyance executed before the date of
completion of a sale or lease under this subchapter.
Amended by Acts 1993, 73rd Leg., ch. 991, Sec. 1, eff. Sept. 1,
1993.
Sec. 51.201. Rulemaking Authority.
(a) The commissioner may adopt rules consistent with this
subchapter relating to applications to purchase or lease
vacancies and the determination of the existence of vacancies.
(b) The board may adopt rules consistent with this subchapter
relating to the sale and lease of vacancies.
Amended by Acts 1993, 73rd Leg., ch. 991, Sec. 1, eff. Sept. 1,
1993.
Sec. 51.202. Conflict With Other Code Provisions.
To the extent that any provision of this subchapter pertaining
to vacancies or the sale or lease of vacancies conflicts with any
other provision of this code, this subchapter controls.
Amended by Acts 1993, 73rd Leg., ch. 991, Sec. 1, eff. Sept. 1,
1993.
SUBCHAPTER F. PATENTS
Sec. 51.241. Issuance of Patent.
The commissioner shall issue a patent when the records of his
office reflect that full payment for land has been made where
required and fees that are due on the land have been paid to the
land office and have not been withdrawn, including the fee for
recording the patent in the county or counties in which the land
is located.
Acts 1977, 65th Leg., p. 2435, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.242. Patent Fees.
When a person applies for a patent, he shall pay to the land
office in addition to all other required payments a fee set by
the commissioner in an amount not less than $1 for each county in
which all or a part of the land is located and shall give the
name and address of the owner or agent.
Acts 1977, 65th Leg., p. 2435, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Amended by Acts 1983, 68th Leg., p. 404, ch. 81, Sec. 21(h), eff.
Sept. 1, 1983.
Sec. 51.243. Requisites of a Patent.
(a) Each patent for land from the state shall be issued in the
name and by authority of the state under the state seal and the
land office seal and shall be signed by the governor and
countersigned by the commissioner.
(b) Before the patent is delivered to the person who is
entitled to it, it shall be registered in the land office patent
book.
Acts 1977, 65th Leg., p. 2436, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Amended by Acts 1993, 73rd Leg., ch. 300, Sec. 35, eff. Aug. 30,
1993.
Sec. 51.244. Delivery of Patent.
(a) When a patent is ready for delivery, the commissioner shall
send it, together with the check for payment of the fee required
by Section 51.242 of this code and the name and address of the
owner or his agent, by certified mail to the clerk of the proper
county.
(b) On receiving the patent, the clerk shall record it and
shall send the patent, together with the name and address of the
owner or his agent and the remaining recording fees, by certified
mail to the clerk of another proper county until the patent has
been recorded in each county in which all or part of the land is
located.
(c) After the patent is recorded in all the proper counties, it
shall be sent by certified mail to the proper party.
Acts 1977, 65th Leg., p. 2436, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Amended by Acts 1995, 74th Leg., ch. 354, Sec. 2, eff. Aug. 28,
1995.
Sec. 51.245. Deceased Patentee.
A patent issued in the name of a person who is deceased at the
time the patent is issued conveys and secures valid title to the
heirs or assignee of the deceased person.
Acts 1977, 65th Leg., p. 2436, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.246. Acquisition of Deed of Acquittance to Excess Acreage.
(a) If the area of a tract of land that is titled or patented
exceeds the quantity provided in the title or patent and if under
the existing law the title to all or a part of the tract may be
affected by the existence of the excess acreage, the person who
owns the survey or portion of the survey or has an interest in it
may pay for the total excess acreage in the survey or the total
excess in a given tract out of the patented or titled survey at
the price fixed by the board.
(b) Any person who owns an interest in a titled or patented
survey or any portion of a titled or patented survey in which
excess acreage is located and who desires to pay for the excess
acreage shall file with the commissioner a request for an
appraisement of the land with corrected field notes in the form
provided by law, together with a sworn statement of facts
relating to his right to purchase and other evidence of his right
to purchase which may be required by the commissioner. The
corrected field notes shall describe the patented tract, and if
purchasing excess in a portion of a tract, shall include a
description of the portion in which the applicant is making
application to purchase excess.
(c) If it appears that excess acreage actually exists and that
the applicant is entitled to obtain it under the law, the
commissioner shall execute a deed of acquittance covering the
land in the name of the original patentee or his assignees with a
mineral reservation or with no mineral reservation accordingly as
may have been the case when the survey was titled or patented.
(d) The transfer shall inure distributively to the benefit of
the lawful owners of the land in proportion to their holdings.
Acts 1977, 65th Leg., p. 2436, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.247. Patents for Land That Cannot be Patented by Other Methods.
(a) Any headright survey, homestead donation, preemption
survey, scrip survey, or other survey awarded or sold before
August 20, 1931, which has been held and claimed in good faith by
a person for 10 years before the date of application for a patent
but which cannot be patented under existing law may be patented
on payment to the commissioner of the purchase price as set by
the board.
(b) The patent shall be issued to the owner of record as shown
in the records of the land office and shall inure distributively
to the legal owners of the land.
(c) If a tract of school land has been occupied by mistake as
part of another tract, the occupant shall have a preference right
for a period of six months after discovery of the mistake to
purchase the land at the same price paid or contracted to be paid
for the land actually conveyed to him.
Acts 1977, 65th Leg., p. 2436, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.248. Doubtful Claim.
If it appears to the commissioner from the records of his
office or from information given to him under oath that there is
an illegality in a claim, the commissioner, if he considers it
necessary, shall refer the matter to the attorney general, and
the attorney general's written decision is sufficient authority
for the commissioner to issue or withhold the patent.
Acts 1977, 65th Leg., p. 2437, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.249. Conflicting Surveys.
If conflicts exist between surveys, the commissioner shall
issue patents to the portions of the surveys that are free from
conflict.
Acts 1977, 65th Leg., p. 2437, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.250. Conflicting Title.
(a) If a patent to land is issued by mistake on any valid claim
for land and is afterwards found to be in conflict with an older
title, the owner of the patent or any part of the land embraced
by the patent which is in conflict may return the patent to the
commissioner for cancellation. If the owner of the land that is
the subject of the conflict cannot obtain the patent, he shall
return to the commissioner legal evidence of his title to the
patent or part of the patent.
(b) The person returning the patent or filing the evidence also
shall make and file with the commissioner an affidavit stating
that he is still the owner of the land and has not sold or
transferred it.
(c) If the land office records or a duly certified copy of a
judgment of a court of competent jurisdiction that has
adjudicated the title reflects that a conflict exists, the
commissioner may cancel the patent or the part of a patent that
appears to belong to the party making the application.
(d) In cases where a survey in a block or system of surveys
conflicts on one side or more, and omits an unpatented strip on
another side or sides due to the patent being issued on an
erroneous subsequent survey not conforming to the original and
recognized pattern for the block or system, the commissioner, at
the request of all parties owning under said patent, may cancel
said patent and issue a corrected patent that shall conform to
said block or system of surveys. In the event that excess
acreage exists, a deed of acquittance shall be procured, as
provided by law, and will be issued simultaneously with the
corrected patent. This Subsection (d) shall not adversely affect
the rights of any party in or entitled to possession of land
affected by this subsection, but merely clarifies that the
ownership in any land in a block or system of surveys exists as
if the patent had been correctly issued on the date the erroneous
patent was issued. The rights of a claimant under applicable law
shall be construed as if the corrected patent had been originally
issued.
Acts 1977, 65th Leg., p. 2437, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Amended by Acts 1981, 67th Leg., p. 2239, ch. 535, Sec. 1, eff.
Aug. 31, 1981.
Sec. 51.251. Partial Conflict of Title.
If there is only a partial conflict of title under a patent,
the commissioner in the manner provided in Section 51.250 of this
code may cancel any patent presented to him and issue a patent to
the applicant for the portion of the land that is covered by his
original patent but that is not in conflict with the older title
if the area can be determined from the field notes.
Acts 1977, 65th Leg., p. 2437, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.252. Refund of Purchase Money.
(a) If a patent cannot be issued for land because of a
conflict, erroneous survey, or illegal sale or if a patent is
issued for land and is later canceled, the comptroller, on proper
proof, may issue his warrant to the proper parties for amounts
paid in good faith to the State Treasury for taxes, lease
payments, or purchase payments on this land.
(b) Proof of these good-faith payments may be shown by the
certificate of the commissioner if the records of the land office
show that a patent cannot be issued because of conflict,
erroneous survey, or illegal sale or that a patent has been
canceled.
(c) The provisions of this section do not apply to surveys on
which the errors may be corrected.
Acts 1977, 65th Leg., p. 2437, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.253. Corrected Patent.
(a) An owner of land in one or more patented surveys may apply
to the General Land Office for a corrected patent to correct
scriveners' errors or obvious errors in the field note
description of the original patent as determined by the
commissioner. The application must clearly identify the error in
the original patent.
(b) The General Land Office may adopt rules relating to the
implementation and operation of this section, including rules
requiring the payment of reasonable filing and processing fees by
an applicant for a corrected patent.
Added by Acts 1983, 68th Leg., p. 752, ch. 182, Sec. 1, eff.
Sept. 1, 1983.
SUBCHAPTER G. EASEMENTS
Sec. 51.291. Grants of Easements.
(a) Except as provided by Subsection (b) of this section, the
commissioner may execute grants of easements for rights-of-way
across, through, and under unsold public school land, the portion
of the Gulf of Mexico within the jurisdiction of the state, the
state-owned riverbeds and beds of navigable streams in the public
domain, and all islands, saltwater lakes, bays, inlets, marshes,
and reefs owned by the state within tidewater limits for:
(1) telephone, telegraph, electric transmission, and powerlines;
(2) oil pipelines, including pipelines connecting the onshore
storage facilities with the offshore facilities of a deepwater
port, as defined by the federal Deepwater Port Act of 1974 (33
U.S.C.A. Section 1501 et seq.), gas pipelines, sulphur pipelines,
and other electric lines and pipelines of any nature;
(3) irrigation canals, laterals, and water pipelines;
(4) roads; and
(5) any other purpose the commissioner considers to be in the
best interest of the state.
(b) Consent to conduct an activity that would disturb or remove
marl, sand, gravel, shell, or mudshell on or near the surface of
a state-owned riverbed or the bed of a navigable stream in the
public domain may be granted only under Chapter 86, Parks and
Wildlife Code.
(c) Money received by the land office for the grants of easements
through and under the state-owned riverbeds and beds of navigable
streams in the public domain shall be deposited in a special fund
account in the state treasury to be used for the removal or
improvement of unauthorized structures on permanent school fund
land. This fund does not impose a duty or obligation on the
state to accept ownership of, remove, or improve unauthorized
structures on permanent school fund land.
Acts 1977, 65th Leg., p. 2438, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Amended by Acts 1985, 69th Leg., ch. 624, Sec. 35, eff. Sept. 1,
1985; Acts 1993, 73rd Leg., ch. 991, Sec. 15, eff. Sept. 1, 1993.
Sec. 51.292. Easements and Leases for Certain Facilities.
The commissioner may execute grants of easements or leases for
electric substations, pumping stations, loading racks, and tank
farms to be located on state land other than land owned by The
University of Texas System.
Acts 1977, 65th Leg., p. 2438, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.293. Easements on University Land.
(a) The Board of Regents of The University of Texas System may
continue to execute all right-of-way easements under authority
already granted across land that belongs to the state but is
dedicated to the support and maintenance of The University of
Texas System for telephone, telegraph, electric transmission, and
powerlines, for oil pipelines, gas pipelines, sulphur pipelines,
and other electric lines and pipelines of any nature, and for
irrigation canals, laterals, and water pipelines.
(b) The board of regents may continue to execute under
authority already granted grants of easements or leases for the
erection and maintenance of electric substations, pumping
stations, loading racks, and tank farms on university land.
(c) In addition to the purposes for which grants of easements
may be executed under Subsections (a) and (b) of this section,
the board of regents may execute grants of easements on
university land for any other purpose it considers to be in the
best interest of the permanent university fund land.
Acts 1977, 65th Leg., p. 2438, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Amended by Acts 1985, 69th Leg., ch. 624, Sec. 36, eff. Sept. 1,
1985.
Sec. 51.294. Forms for Grant.
Easements granted under Sections 51.291 through 51.293 of this
code shall be granted on forms approved by the attorney general.
Acts 1977, 65th Leg., p. 2438, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.295. Conditions for Easement.
Telephone, telegraph, electric transmission, powerline, and
pipeline right-of-way easements and easements or rights-of-way
for irrigation canals, laterals, and water pipelines shall be
executed on terms to be determined by the commissioner or the
board of regents, but no easement for an oil, gas, or sulphur
pipeline or a telephone, telegraph, electric transmission, or
powerline easement may be granted that does not provide for the
annual privilege fee of not less than two and one-half cents a
lineal rod a year.
Acts 1977, 65th Leg., p. 2438, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.296. Term of Easements.
(a) Except as provided in Subsection (b) of this section, no
grant of easement or lease enumerated under Section 51.293 of
this code may be granted for a term that is longer than 10 years,
but an easement or lease may be renewed by the board of regents
of The University of Texas System . The term for easements or
leases granted under Sections 51.291 and 51.292 of this
subchapter may be for any term the commissioner deems to be in
the best interest of the state.
(b) The commissioner by rule shall set the amount of and shall
collect money for damages to the surface of land dedicated to the
permanent school fund.
(c) Money collected for surface damages shall be deposited in
the special fund account described in Section 52.297 of this
code.
(d) A right-of-way easement for a pipeline connecting onshore
storage facilities with the offshore facilities of a deepwater
port, as defined by the Deepwater Port Act of 1974 (33 U.S.C.A.
Section 1501 et seq.), may be granted for a term coincident with
the term of the license issued by the secretary of transportation
pursuant to the Deepwater Port Act of 1974 (33 U.S.C.A. Section
1501 et seq.), and the easement may be renewed for additional
terms of up to 10 years coincident with the term for each renewal
of the license.
Acts 1977, 65th Leg., p. 2439, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Amended by Acts 1985, 69th Leg., ch. 624, Sec. 37, eff. Sept. 1,
1985; Acts 1987, 70th Leg., ch. 208, Sec. 7, eff. Aug. 31, 1987.
Sec. 51.297. Recording Easements.
(a) Each easement granted under Sections 51.291 through 51.293
of this code shall be recorded in the county clerk's office of
the county in which the land is located, and the recording fee
shall be paid by the person who obtains the easement.
(b) The person who obtains an easement under Sections 51.291
and 51.292 of this code shall furnish to the commissioner a
certified copy of the easement. The person who obtains an
easement under Section 51.293 of this code shall furnish to the
board of regents of The University of Texas System a certified
copy of the easement.
Acts 1977, 65th Leg., p. 2439, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Amended by Acts 1985, 69th Leg., ch. 923, Sec. 12, eff. Aug. 26,
1985; Acts 1987, 70th Leg., ch. 208, Sec. 12, eff. Aug. 31, 1987.
Sec. 51.298. Annual Privilege Fee.
(a) A person who occupies or uses any unsold public school
land, any islands, saltwater lakes, bays, inlets, marshes, or
reefs owned by the state within tidewater limits, any portion of
the Gulf of Mexico within the jurisdiction of the state, or any
unsold public land dedicated to The University of Texas System as
a right-of-way for a telephone, telegraph, electric transmission,
or powerline, for an oil pipeline, gas pipeline, or sulphur
pipeline, or for an irrigation canal, lateral, or water pipeline
shall pay annually in advance to the commissioner an amount equal
to two and one-half cents a lineal rod a year for each rod of
telephone, telegraph, electric transmission, or powerline, or
each rod of oil or gas pipeline.
(b) The annual privilege fee shall be paid by those persons who
have not previously paid this fee on all oil pipelines, gas
pipelines, and telephone, telegraph, electric transmission, and
powerlines that are in existence and located on public land
mentioned in Subsection (a) of this section.
(c) The fee shall be paid annually unless the grant of the
easement makes some other provision.
(d) A higher annual privilege fee may be set by contract
between the authorized officials and the grantee of the easement.
Acts 1977, 65th Leg., p. 2439, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.299. Fees for Certain Facilities.
The rent to be charged for an easement or lease for an electric
substation site, pumping station, loading rack, tank farm, or
road or for an easement for a purpose not specifically listed by
Section 51.291, 51.292, or 51.293 of this code but granted in the
best interest of the state or the permanent university fund land
shall be an amount agreed to between the lessee and the board of
regents with respect to university land and the commissioner with
respect to other state land.
Acts 1977, 65th Leg., p. 2439, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Amended by Acts 1985, 69th Leg., ch. 624, Sec. 38, eff. Sept. 1,
1985.
Sec. 51.300. Disposition of Income.
Income received by the commissioner under this subchapter from
public school land shall be credited to the available school
fund, and income received from university land shall be credited
to the available university fund. Other income received by the
commissioner on other land under this subchapter shall be
credited to the General Revenue Fund.
Acts 1977, 65th Leg., p. 2439, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.301. Interest on Past-Due Payments.
(a) Payments under this subchapter that are past due shall bear
interest at a rate of 10 percent a year.
(b) If no date for payment is provided in the contract or if no
written contract has been executed, the unpaid annual fees shall
bear interest at a rate of 10 percent calculated from January 1
following the year for which the annual privilege fee was due.
Acts 1977, 65th Leg., p. 2440, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.302. Prohibition and Penalty.
(a) No person may construct or maintain any structure or
facility on land owned by the state, nor may any person who has
not acquired a proper easement, lease, permit, or other
instrument from the state as required by this chapter or Chapter
33 of this code and who owns or possesses a facility or structure
that is now located on or across state land continue in
possession of the land unless he obtains from the commissioner,
the board, or the board of regents an easement, lease, permit, or
other instrument required by this chapter or Chapter 33 of this
code for the land on which the facility or structure is to be
constructed or is located.
(b) A person who constructs, maintains, owns, or possesses a
facility or structure on state land without a proper easement or
lease from the state under this chapter or under Chapter 33 of
this code is liable for a penalty of not less than $50 or more
than $1,000 a day for each day that a violation occurs. The
penalty shall be recovered by the commissioner under Section
51.3021 of this code or in a civil action by the attorney
general.
(c) A person who owns, maintains, or possesses an unauthorized
facility or structure is, for purposes of this section, the
person who last owned, maintained, or possessed the facility or
structure.
(d) The commissioner or attorney general may also recover from
a person who constructs, maintains, owns, or possesses a facility
or structure on state land without the proper easement the costs
to the state of removing that facility or structure under Section
51.3021 of this code.
(e) Penalties and costs recovered under this section shall be
deposited in the special fund established under Sections 52.297
and 53.155 of this code.
(f) This section is cumulative of all other applicable
penalties or enforcement provisions of this code.
(g) In lieu of seeking administrative penalties or removal of
the facility or structure under Section 51.3021 of this code, the
commissioner may elect to accept ownership of the facility or
structure as a fixture and may exercise the state's rights as
owner of the facility or structure by filing notice of such
ownership in the real property records of the county in which the
facility or structure is located. For facilities or structures
located on coastal public land, notice of ownership shall be
filed in the county adjacent to the property on which the
facility or structure is located. A notice under this subsection
shall contain a legal description of the adjacent property, the
owner of property if known, and a description of the facility or
structure. A state agency fund or trust fund is not liable for
the condition of any facility or structure as a result of
acquiring an interest in the facility or structure under this
section.
Acts 1977, 65th Leg., p. 2440, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Amended by Acts 1985, 69th Leg., ch. 624, Sec. 39, eff. Sept. 1,
1985; Acts 1991, 72nd Leg., ch. 465, Sec. 1, eff. June 11, 1991;
Acts 1993, 73rd Leg., ch. 991, Sec. 16, eff. Sept. 1, 1993.
Sec. 51.3021. Removal of Facility or Structure by Commissioner.
(a) The commissioner may remove and dispose of a facility or
structure on land owned by the state if the commissioner finds
the facility or structure to be:
(1) without the proper easement or lease from the state
under Chapter 33 or 51 of this code; or
(2) an imminent and unreasonable threat to public health,
safety, or welfare.
(b) Before the commissioner may remove a facility or structure
under this section or impose a penalty under Section 51.302 of
this code, the commissioner must give written notice to a person
who is constructing, maintains, owns, or possesses the facility
or structure. The notice must state:
(1) the specific facility or structure that is without
proper easement or lease or that threatens public health,
safety, or welfare;
(2) that the person who is constructing, maintains, owns, or
possesses the facility or structure shall remove the facility
or structure:
(A) not later than the 30th day after the date on which
the notice is served, if the facility or structure is on
state land without a proper lease or easement; or
(B) within a reasonable time specified by the
commissioner if the facility or structure is an imminent and
unreasonable threat to public health, safety, or welfare;
(3) that failure to remove the facility or structure may
result in liability for a penalty under Section 51.302(b) of
this code in an amount specified, removal by the commissioner
and liability for the costs of removal, attachment of a lien to
the adjacent littoral property to secure payment of the penalty
and costs of removal, or any combination of such remedies; and
(4) that the person who is constructing, maintains, owns, or
possesses the facility or structure may submit, not later than
the 30th day after the date on which the notice is served,
written request for a hearing.
(c) The notice required by Subsection (b) of this section must
be given:
(1) by service in person or by registered or certified mail,
return receipt requested; or
(2) if personal service cannot be obtained or the address of
the person responsible is unknown, by posting a copy of the
notice on the facility or structure and by publishing notice in
a newspaper with general circulation in the county in which the
facility or structure is located two times within 10
consecutive days.
(d) The commissioner by rule shall adopt procedures for a
hearing under this section.
(e) The commissioner must grant a hearing if a hearing is
requested. A person who does not timely request a hearing waives
all rights to judicial review of the commissioner's findings or
orders and shall immediately remove the facility or structure and
pay any penalty assessed. If a hearing is held, the commissioner
shall issue a final order concerning removal of the facility or
structure and payment of a penalty.
(f) The trial courts of this state shall give preference to an
appeal from a final order of the commissioner under this section
as provided by Section 23.101(a), Government Code.
(g) The commissioner may contract for the removal and disposal
of a facility or structure under this section and may pay the
costs of removal from the special fund established under Sections
52.297 and 53.155 of this code or from funds appropriated by the
legislature.
(h) If the person who is constructing, maintains, owns, or
possesses the facility or structure does not pay assessed
penalties, removal costs, and other assessed fees and expenses
not later than the 60th day after the entry of a final order
assessing the penalties, costs, and expenses, the commissioner
may:
(1) sell salvageable parts or attachments of the facility or
structure to offset those costs;
(2) record a lien, in the total amount of the penalties,
costs, and other fees and expenses assessed, against the
adjacent littoral property;
(3) request the attorney general to institute civil
proceedings to collect the penalties, costs of removal, and
other fees and expenses remaining unpaid; or
(4) use any combination of the remedies prescribed by this
subsection, or other remedies authorized by law, to collect the
unpaid penalties, costs of removal, and other fees and expenses
assessed on account of the unauthorized facility or structure
on state land and its removal by the commissioner.
(i) The lien authorized by this section arises and attaches at
the time a notice of lien is recorded and indexed in the real
property records in the county where the adjacent littoral
property is located. The notice of lien must contain a legal
description of the adjacent littoral property, the name of the
owner of the adjacent littoral property, if known, and the total
amount of the penalties, costs, and other fees. The lien is
subordinate to the rights of prior bona fide purchasers or
lienholders on the adjacent littoral property.
(j) The decision to remove a facility or structure under this
section is discretionary with the commissioner. This section
does not impose a duty on the state to remove a facility or
structure or to remedy or warn of a hazardous condition on state
land.
Added by Acts 1991, 72nd Leg., ch. 465, Sec. 2, eff. June 11,
1991. Amended by Acts 1993, 73rd Leg., ch. 991, Sec. 17, eff.
Sept. 1, 1993.
Sec. 51.303. Venue.
The venue for suits by or against the state under Sections
51.291 through 51.3021 of this code or for violation of
provisions of Sections 51.291 through 51.302 of this code shall
be in Travis County.
Acts 1977, 65th Leg., p. 2440, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Amended by Acts 1991, 72nd Leg., ch. 465, Sec. 3, eff. June 11,
1991.
Sec. 51.304. Easements for Soil Conservation and Flood Prevention.
The commissioner may execute grants of easements on unsold
public school land to conservation and reclamation districts for
soil conservation and flood prevention projects authorized by the
Watershed Protection and Flood Prevention Act (16 U.S.C. Section
1001 et seq.), as amended.
Acts 1977, 65th Leg., p. 2440, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.305. Terms and Form of Grant.
The grant of the easement may contain any provisions that the
commissioner considers necessary to protect the interests of the
state and may be perpetual or for a term of years.
Acts 1977, 65th Leg., p. 2440, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.306. Consideration.
The consideration paid to the state for the grant of the
easement under Section 51.304 of this code shall be determined by
the commissioner to compensate the state for any damage to the
land or to the use of the land caused by the easement, but if the
commissioner determines that the benefits resulting from the
grant of the easement are more than the damage, the commissioner
may waive the consideration for the easement.
Acts 1977, 65th Leg., p. 2440, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.307. Reservation of Mineral Rights.
Mineral rights together with the right to explore for, produce,
and market the minerals in land granted as an easement under
Section 51.304 of this code shall be reserved to the state and
shall be subject to lease for minerals in the same manner as
other unsold public school land.
Acts 1977, 65th Leg., p. 2441, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
SUBCHAPTER H. SALE OF TIMBER, GAYULE, AND LECHUGUILLA
Sec. 51.341. Definition.
In this subchapter, "timbered land" means land that is valued
chiefly for the timber located on it.
Acts 1977, 65th Leg., p. 2441, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.342. Sale of Timber.
Timber located on public land shall be sold in full tracts for
cash at its fair market value.
Acts 1977, 65th Leg., p. 2441, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.343. Rules.
Subject to the provisions of this chapter, the commissioner
shall adopt rules for the sale of timber which are considered
necessary and judicious.
Acts 1977, 65th Leg., p. 2441, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.344. Application to Purchase Timber.
An application to purchase timber shall be made in the manner
provided for filing an application to purchase land.
Acts 1977, 65th Leg., p. 2441, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.345. Ingress and Egress From Land.
The purchaser of timber without the land is entitled to ingress
and egress on the land for a period of five years after the date
of the award to remove or protect the timber on the land.
Acts 1977, 65th Leg., p. 2441, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.346. Reversion of Title to Timber.
After the five-year period provided in Section 51.345 of this
code, title to the timber reverts to the fund to which the land
belongs and is subject to sale by the state.
Acts 1977, 65th Leg., p. 2441, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.347. Sale of Gayule and Lechuguilla.
The board may sell the gayule or lechuguilla growing or found
on the public school land, exclusive of timber.
Acts 1977, 65th Leg., p. 2441, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.348. Conditions of Sale.
The sale of gayule and lechuguilla may be on any terms and
conditions and with any limitations that the board considers most
advantageous and in the best interest in protecting the public
school fund and the state.
Acts 1977, 65th Leg., p. 2441, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 51.349. Contracts.
The board may enter into any contract including an executory
contract of sale which they consider wise for the purpose of
having the commercial properties and value of gayule and
lechuguilla determined, but it may not spend any public money or
incur any liability on behalf of the state through these
contracts.
Acts 1977, 65th Leg., p. 2441, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
SUBCHAPTER I. ACQUISITION OF PUBLIC SCHOOL LAND
Sec. 51.401. Special Fund Account.
(a) The board may designate money received from the sale of
public school land under this chapter for deposit in a special
fund account in the State Treasury to be used by the board to
acquire fee or lesser interests in real property for the use and
benefit of the permanent school fund, as provided by Section
51.402 of this subchapter.
(b) 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 available school fund.
(c) Money received from the sale of a particular piece of land
and designated for the acquisition of land under this subchapter
must be used by the board not later than two years after the date
of the sale of land from which the money is derived.
(d) Any money from a specific sale 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.
(e) Sections 403.094 and 403.095, Government Code, do not apply
to a fund account created under this section.
Added by Acts 1985, 69th Leg., ch. 624, Sec. 40. Amended by Acts
1993, 73rd Leg., ch. 991, Sec. 18, eff. Sept. 1, 1993.
Sec. 51.402. Land Acquisition.
(a) The board may use the money designated under Section 51.401
of this subchapter to acquire property for any of the following
purposes:
(1) to add to a tract of public school land to form a tract
of sufficient size to be manageable;
(2) to add contiguous land to public school land; or
(3) to acquire, as public school land, property of unique
biological, commercial, geological, cultural, or recreational
value.
(b) Before acquiring property under Subsection (a) of this
section, the board must determine that the acquisition is in the
best interest of the permanent school fund.
Added by Acts 1985, 69th Leg., ch. 624, Sec. 40.
Sec. 51.403. Market Value.
(a) The board may not pay more than market value for any
property acquired under this subchapter.
(b) Market value shall be determined by an appraisal of the
property performed by appraisers employed by the land office.
Added by Acts 1985, 69th Leg., ch. 624, Sec. 40.
Sec. 51.404. Title Security.
(a) Property acquired under this subchapter shall be conveyed
to the state by warranty deed.
(b) The board may purchase or acquire title insurance for any
property purchased under this subchapter.
Added by Acts 1985, 69th Leg., ch. 624, Sec. 40.
Sec. 51.405. Contracts for Purchase.
The board may enter into contracts for the purchase of property
under this subchapter.
Added by Acts 1985, 69th Leg., ch. 624, Sec. 40.
Sec. 51.406. Dedication to Permanent School Fund.
Land acquired under this subchapter is dedicated to the
permanent school fund and is subject to sale and lease in the
same manner and under the same authority as any other real
property dedicated to the permanent school fund.
Added by Acts 1985, 69th Leg., ch. 624, Sec. 40.
Sec. 51.407. Rules.
The board shall adopt rules for the implementation of this
subchapter.
Added by Acts 1985, 69th Leg., ch. 624, Sec. 40