By:  Sims                                              S.B. No. 964
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to the location, survey, sale, and lease of vacant and
    1-2  unsurveyed public school land and certain public boundaries and
    1-3  related fees.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Subchapter E, Chapter 51, Texas Natural Resources
    1-6  Code, is amended to read as follows:
    1-7        Sec. 51.171.  SALE AND LEASE OF VACANT LAND.  (a)  Vacant and
    1-8  unsurveyed public school land <except riverbeds, channels, islands,
    1-9  lakes,  and other areas within tidewater limits> shall be located,
   1-10  sold, and leased under the provisions of this subchapter<.>, except
   1-11  the following:
   1-12              (1)  submerged lands within tidewater limits,
   1-13              (2)  all islands, flats, and emergent lands within
   1-14  tidewater limits,
   1-15              (3)  natural lakes,
   1-16              (4)  riverbeds, including channels and islands therein,
   1-17  above tidewater limits.
   1-18        (b)  Nothing in this subchapter shall be construed to alter
   1-19  or diminish the status of the surface estate of riverbeds,
   1-20  channels, and islands therein located above tidewater limits as
   1-21  public domain.
   1-22        Sec. 51.172.  DEFINITIONS.  In this subchapter:
   1-23              (1) <(3)>  "Applicant" means any person<, other than a
    2-1  good-faith claimant,> who <discovers and> files an application <to
    2-2  purchase or lease a vacancy>.  "Applicant" may include a good faith
    2-3  claimant.
    2-4              (2)  "Application" means an application to purchase or
    2-5  lease a vacancy under the provisions of this subchapter.
    2-6              (3) <(1)>  "Good-faith claimant" <and "claimant"> means
    2-7  any person who:
    2-8                    (A)  <who> occupies or uses <or has previously
    2-9  occupied or used> or whose predecessors in interest have occupied
   2-10  or used a vacancy for purposes other than exploring for or removing
   2-11  oil, gas, sulphur, <or> other minerals, or geothermal resources
   2-12  from the vacancy<.> or leasing or otherwise conveying to any person
   2-13  any purported right to explore for or remove oil, gas, sulphur,
   2-14  other minerals, or geothermal resources from the vacancy; and
   2-15                    (B)  <who> has, <himself> or whose predecessors
   2-16  in interest have, had the vacancy enclosed or within definite
   2-17  recognized boundaries and in possession for a period of <10> ten or
   2-18  more years with a good-faith belief that the vacancy was included
   2-19  within <inside> the boundaries of <the> a survey or surveys that
   2-20  <were> was previously titled, awarded, or sold under circumstances
   2-21  that would have vested title in the vacancy if it were actually
   2-22  located within the boundaries of <the> such  survey or surveys
   2-23  <whose boundaries are recognized boundaries in the community.>; or
   2-24                    (C)  is the owner of land adjoining a vacancy on
   2-25  which no application has previously been filed.
    3-1                    (D)  A person holding under a good faith claimant
    3-2  or entitled to a distributive share of any title acquired under an
    3-3  application made by a good faith claimant, as defined in this
    3-4  section.
    3-5              (4)  "Interest" means all rights and titles in and to
    3-6  real property, whether affecting the surface, subsurface, or
    3-7  mineral estate, including, without limitation, fee simple title, a
    3-8  determinable fee created under a mineral lease or conveyance or
    3-9  otherwise, royalty, non-participating royalty, and overriding
   3-10  royalty interests, remainder and reversionary interests, and
   3-11  interests arising under liens.
   3-12              (5)  "Interested person" means:
   3-13                    (A)  any person who may own or who claims any
   3-14  interest in land claimed to be vacant or in any lands adjoining or
   3-15  overlapping the same as can be determined from the records of the
   3-16  General Land Office, the records of the county clerk's office, and
   3-17  the tax records of the county or counties in which the land claimed
   3-18  to be vacant is located;
   3-19                    (B)  any other person asserting any right to or
   3-20  interest in the land claimed to be vacant known to the person
   3-21  filing the application or whose identity could be ascertained by
   3-22  the person filing the application with the exercise of reasonable
   3-23  diligence;
   3-24                    (C)  the attorney general; and
   3-25                    (D)  the applicant.
    4-1              (6) <(2)>  "Vacancy" means an area of unsurveyed public
    4-2  school land that:
    4-3                    (A)  is not in conflict on the ground with land
    4-4  previously titled, awarded, or sold;
    4-5                    (B)  has not been listed on the records of the
    4-6  General Land Office <land office> as public school land; and
    4-7                    (C)  was, on the date of filing of an
    4-8  application:<, neither>
    4-9                          (i)  not subject to an earlier subsisting
   4-10  application <to purchase or lease> by <a discoverer> an applicant
   4-11  or good faith claimant, and/or < nor involved in>
   4-12                          (ii)  not the subject of pending litigation
   4-13  brought by the state to recover the land.
   4-14        Section 51.173.  Application.  (a)  The filing of an
   4-15  application commences a proceeding under this subchapter.  An
   4-16  applicant shall file an application with the county surveyor of the
   4-17  county in which all or part of the land claimed to be vacant is
   4-18  located.  If the county does not have a county surveyor, the
   4-19  application shall be filed with the county clerk.
   4-20        (b)  In the application, the applicant shall:
   4-21              (1)  describe the land that is claimed to be vacant;
   4-22              (2)  state whether the person filing the application is
   4-23  filing as a good faith claimant;
   4-24              (3)  state whether the person filing the application
   4-25  seeks to purchase the vacancy or obtain a mineral lease thereon;
    5-1              (4)  state the name and last known address of all
    5-2  interested persons; and
    5-3              (5)  provide any other information that the
    5-4  commissioner may require by rule.
    5-5        (c)  The commissioner shall set the amount of the filing fee
    5-6  for the application by rule, which amount shall not be less than
    5-7  five dollars.  The applicant shall pay the prescribed amount to the
    5-8  county surveyor or county clerk at the time the application is
    5-9  filed.
   5-10        (d)  The county surveyor or county clerk shall file mark the
   5-11  exact date and hour of filing on the original and a duplicate copy
   5-12  of the application and shall return one copy to the person filing
   5-13  the application.  The other copy shall be recorded in a book kept
   5-14  for that purpose separate from the deed or real property records.
   5-15        (e)  The time of filing of the application under this section
   5-16  shall establish the priority among applications covering the same
   5-17  land claimed to be vacant, and shall be determined by the county
   5-18  surveyor's or county clerk's file mark.
   5-19        Sec. 51.174 Filing Application with the Commissioner.
   5-20  <PURCHASE OF VACANCY BY ADJOINING LANDOWNER.><If the owner of the
   5-21  land adjoining an alleged vacancy files an application to purchase
   5-22  the vacancy and no application to purchase or lease the vacancy has
   5-23  been previously filed, the owner of the adjoining land, who
   5-24  otherwise qualifies as a good-faith claimant, shall be considered a
   5-25  good-faith claimant regardless of the length of time he has owned
    6-1  the adjoining land or has enclosed the vacancy or has had it within
    6-2  definite recognized boundaries and in possession with the belief
    6-3  that the vacancy was included within his survey.>
    6-4        (a)  The person filing an application shall file the file
    6-5  marked copy of the application with the commissioner within ten
    6-6  days after the application is filed with the county surveyor.  At
    6-7  the same time, the applicant shall pay to the commissioner a filing
    6-8  fee set by the commissioner by rule in an amount not less than one
    6-9  hundred dollars.  In the event that the tenth day falls on a
   6-10  Saturday, Sunday, or state or federal holiday, the application will
   6-11  be considered timely filed if filed on the next regular business
   6-12  day following the Saturday, Sunday, or state or federal holiday.
   6-13        (b)  The commissioner shall cause the date of filing to be
   6-14  marked on the application and assign the application a file number.
   6-15        (c)  Failure to file the application with the commissioner in
   6-16  the time provided in this section and to pay the filing fee
   6-17  constitutes a waiver of all rights under that application.
   6-18        (d)  The commissioner may refuse to accept for filing an
   6-19  application that has material omissions, fails to describe the land
   6-20  claimed to be vacant in a manner such that it could be located on
   6-21  the ground, or describes as land claimed to be vacant land that has
   6-22  been finally adjudicated in the courts of this state or of the
   6-23  United States not to be vacant.
   6-24        Sec. 51.175.  DEPOSIT. <APPLICATION TO PURCHASE OR LEASE A
   6-25  VACANCY.>  <(a)  An applicant who claims that a vacancy exists and
    7-1  who desires to purchase or lease the vacancy shall file with the
    7-2  county surveyor in the county in which any part of the vacancy is
    7-3  located a sworn written application in duplicate to purchase or
    7-4  lease the vacancy.>
    7-5        <(b)  The application shall:>
    7-6              <(1)  describe the land that is claimed to be vacant;>
    7-7              <(2)  state the desire of the applicant to purchase or
    7-8  lease the land under the provisions of this chapter;>
    7-9              <(3)  give the names and addresses of any owners or
   7-10  claimants of land or any interest in land or of leases on,
   7-11  adjoining, overlapping, or including the land claimed to be vacant
   7-12  as far as can be determined from the records of the land office and
   7-13  the county clerk's office in the county in which the land is
   7-14  located and the tax records of the county in which the land is
   7-15  located;>
   7-16              <(4)  give the names and addresses of any persons who,
   7-17  from facts known to the applicant, assert any right to the alleged
   7-18  vacant land; and>
   7-19              <(5)  state that the applicant knows of no other
   7-20  claimants than those listed.>
   7-21        (a)  When the applicant is not a good faith claimant, the
   7-22  commissioner shall estimate the costs of proceeding under the
   7-23  application, including in such estimate the costs of a survey
   7-24  conducted by a Licensed State Land Surveyor or the county surveyor,
   7-25  the preparation of copies and working sketches by the General Land
    8-1  Office, the mailing and/or publication of notices and copies, and
    8-2  other such costs, other than the allocable costs of salaries and
    8-3  overhead expended by the General Land Office in actually conducting
    8-4  any hearing and preparing orders and proposals for decision.
    8-5        (b)  The commissioner shall notify the applicant in writing
    8-6  of such estimated costs and the applicant shall make a deposit with
    8-7  the commissioner in the amount of the estimated costs.
    8-8        (c)  If at any time the commissioner determines that the
    8-9  funds on deposit are insufficient to pay the costs of the
   8-10  proceeding, the commissioner shall make an estimate of the amount
   8-11  required and notify the applicant in writing to make a supplemental
   8-12  deposit of the estimated amount.
   8-13        (d)  The applicant shall make all deposits or supplemental
   8-14  deposits within thirty days of the date of the written notice to
   8-15  make such deposits.  The commissioner shall cancel the application
   8-16  upon the failure of the applicant to make such deposits.
   8-17  Cancellation terminates all rights arising under the canceled
   8-18  application.
   8-19        Sec. 51.176.  APPEAL OF AMOUNT OF DEPOSIT.  <FILING FEE.>
   8-20  <At the time the application is filed, the applicant shall pay to
   8-21  the county surveyor a filing fee set by the board of not less than
   8-22  $5.>
   8-23        (a)  The applicant may appeal the estimated cost or
   8-24  supplemental cost determined by the commissioner in the manner
   8-25  provided for the appeal of agency decisions under the
    9-1  Administrative Procedure and Texas Register Act, art.  6252-13a,
    9-2  Tex. Rev. Civ. Stat.
    9-3        (b)  If the applicant fails to pay the amount determined by
    9-4  the district court within fifteen days after the judgment of the
    9-5  district court becomes final and nonappealable, the commissioner
    9-6  shall cancel the application.  Cancellation terminates all rights
    9-7  arising under the canceled application.
    9-8        Sec. 51.177.  DISPOSITION OF DEPOSITS.  <FILING APPLICATION
    9-9  WITH COUNTY.> <(a)  The county surveyor shall mark the exact date
   9-10  and hour of filing on the original and duplicate copy of each
   9-11  application and shall return one copy of the application to the
   9-12  applicant and shall record the other copy in a book kept for that
   9-13  purpose.>
   9-14        <(b)  If the county does not have a county surveyor, the
   9-15  preliminary filing of the application shall be with the county
   9-16  clerk.  The county clerk shall record the application in a book
   9-17  kept for that purpose and not in the deed records.>
   9-18        (a)  The commissioner shall deposit all deposits and
   9-19  supplemental deposits required to be made under this subchapter to
   9-20  a separate trust account in the Treasury from which the treasurer
   9-21  shall make disbursements as authorized by this subchapter upon the
   9-22  commissioner's order.
   9-23        (b)  Upon conclusion of the proceedings under an application
   9-24  and payment of all expenditures authorized under this subchapter,
   9-25  the commissioner shall provide a complete statement of all deposits
   10-1  and expenditures to the applicant and remit to the applicant any
   10-2  balance remaining from the deposit or supplemental deposits made by
   10-3  the applicant.
   10-4        Sec. 51.178.  APPOINTMENT OF SURVEYOR.  <FILING APPLICATION
   10-5  WITH COMMISSIONER.>  <(a)  Within 10 days after the application is
   10-6  filed with the county surveyor, the copy of the application that is
   10-7  returned to the applicant shall be filed with the commissioner.>
   10-8        <(b)  The commissioner shall mark the date of filing on the
   10-9  application.>
  10-10        <(c)  The applicant shall pay to the commissioner a filing
  10-11  fee set by the commissioner in an amount not less than $100.>
  10-12        <(d)  Failure to file the application with the commissioner
  10-13  in the time provided by this section and to pay the filing fee
  10-14  constitutes a waiver of all rights under the application.>
  10-15        <(e)  As between applicants, priority dates from the time of
  10-16  filing the application with the county surveyor.>
  10-17        (a)  Within sixty days of the payment of the required
  10-18  deposit, the commissioner shall appoint a licensed state land
  10-19  surveyor or the county surveyor of the county in which all or a
  10-20  part of the land claimed to be vacant is located to make a survey
  10-21  of the land claimed to be vacant.
  10-22        (b)  The fees and expenses paid for the survey shall be the
  10-23  same as provided by law, and, if the fees and expenses are not
  10-24  provided by law, the commissioner and surveyor shall make an
  10-25  agreement as to the fees and expenses reasonable for the work
   11-1  performed.
   11-2        (c)  The fees and expenses shall be paid by the applicant,
   11-3  who shall make deposits or supplementary deposits for the same as
   11-4  required by this subchapter.
   11-5        Sec. 51.179.  NOTICE TO INTERESTED PERSONS.  <DEPOSIT.>
   11-6  <(a)  The commissioner shall notify the applicant by letter of the
   11-7  estimated cost of proceeding under the application, and within 30
   11-8  days after the date of the commissioner's letter, the applicant
   11-9  shall make a deposit with the commissioner to pay the cost of the
  11-10  work that may be necessary to comply with the request contained in
  11-11  the application.>
  11-12        <(b)  On failure to make the deposit required under this
  11-13  section, all rights under the application are lost.>
  11-14        (a)  Not later than ten days after appointing the surveyor,
  11-15  the commissioner shall issue notice to all interested persons at
  11-16  the their last known address by certified mail, return receipt
  11-17  requested.  The notice shall state that a vacancy application has
  11-18  been made, the name, address, and telephone number of the surveyor
  11-19  appointed to conduct the survey, that the survey may commence at
  11-20  any time after the twentieth day after the date of the notice, and
  11-21  that any interested party is entitled to observe the conduct of the
  11-22  survey, to receive a copy of the final survey report and other
  11-23  documents filed by the surveyor, and participate in the vacancy
  11-24  proceeding.  A true and legible copy of the application shall be
  11-25  attached to the notice.  The notice may also contain such other
   12-1  information as the commissioner may by rule prescribe.
   12-2        (b)  In the event that the whereabouts of any interested
   12-3  person is unknown or any notice is returned as unclaimed or
   12-4  undeliverable, notice by publication shall be made in the form and
   12-5  manner prescribed by the Texas Rules of Civil Procedure.  If notice
   12-6  by publication is made, no survey shall be commenced and no further
   12-7  proceedings shall be held until thirty days after publication is
   12-8  completed.  If, however, the applicant, other interested party, or
   12-9  the surveyor shows that such delay may materially affect the
  12-10  ability to make an accurate survey due to the destruction,
  12-11  alteration, or removal of natural features, monuments, or witness
  12-12  objects, or for other good cause, the commissioner may order that
  12-13  the survey shall proceed.  Notice of the request to proceed with
  12-14  the survey and of any order issued in response thereto shall be
  12-15  provided to all interested parties by first class mail.
  12-16        (c)  An interested party may waive notice of service by
  12-17  filing with the commissioner a sworn affidavit stating the
  12-18  interested party's intent to waive notice.  The affidavit shall
  12-19  state that the person executing the waiver has been provided with a
  12-20  true copy of the application filed with the commissioner.
  12-21        (d)  The affidavit may also state clearly the interested
  12-22  party's intent to waive all further notice of the vacancy
  12-23  proceedings.  If the affidavit so states, it must also state
  12-24  prominently and clearly that the interested party is aware that
  12-25  waiver of the right to further notice may result in the loss of the
   13-1  opportunity to appear and to contest the application.
   13-2        (e)  The commissioner may by rule prescribe the form and
   13-3  specific content of the affidavit, described in this section,
   13-4  including any additional information to be set forth therein.
   13-5        Sec. 51.180.  SURVEY.  <INSUFFICIENT DEPOSIT.>  <(a)  If the
   13-6  deposit is insufficient, the applicant shall be requested by letter
   13-7  to make a further deposit of an amount determined by the
   13-8  commissioner.>
   13-9        <(b)  If the further deposit is not made within 30 days after
  13-10  the date of the letter, work shall be discontinued and the
  13-11  application canceled with the cancellation endorsed on the
  13-12  application.>
  13-13        <(c)  On cancellation, the right to purchase or lease the
  13-14  vacancy under the application is lost.>
  13-15        (a)  At any time after the twentieth day following the date
  13-16  of the notice, except when notice by publication is required, the
  13-17  surveyor appointed shall commence the survey of the land claimed to
  13-18  be vacant.
  13-19        (b)  The surveyor shall prepare and file in the General Land
  13-20  Office the following:
  13-21              (1)  a thorough written report detailing all aspects of
  13-22  the survey, including but not limited to record research conducted,
  13-23  survey corners recovered in the course of the field survey, and
  13-24  details of boundary construction based on recovered corners;
  13-25              (2)  field notes in the form and content prescribed by
   14-1  law, describing the land and the lines and corners surveyed;
   14-2              (3)  a complete plat depicting in detail the results of
   14-3  the survey;
   14-4              (4)  the names and addresses of all persons who have
   14-5  possession of the land described in the application, together with
   14-6  a description of the lands occupied by such persons; and
   14-7              (5)  the names and addresses of all persons who have or
   14-8  claim any interest in the land.
   14-9        (c)  All persons named in the survey report as occupying,
  14-10  having or claiming any interest in the land described in the
  14-11  application shall be included in the proceeding as interested
  14-12  persons and be provided the notice prescribed by this subchapter.
  14-13  No application shall be canceled or proceeding terminated because
  14-14  of the discovery of any such additional interested parties, unless
  14-15  the commissioner finds that the person filing the application
  14-16  knowingly and intentionally omitted the names of such persons from
  14-17  the application.
  14-18        (d)  The surveyor's filing shall be made not later than 140
  14-19  days from the date of the notice required by Section 51.179, except
  14-20  when notice by publication is required and the commissioner has not
  14-21  ordered the survey to proceed.  In such instance, the surveyor's
  14-22  filing shall be made not later than 140 days after the thirtieth
  14-23  day following the completion of citation by publication.  If the
  14-24  commissioner has ordered the survey to proceed, the surveyor's
  14-25  filing shall be made not later than 140 days from the date of the
   15-1  commissioner's order.
   15-2        (e)  Upon good cause shown, the commissioner may by written
   15-3  order extend the time for the filing of the survey.  The order
   15-4  shall set out the cause for the extension and shall be included in
   15-5  the record.  The time for filing shall not be extended by more than
   15-6  sixty days by any one order.
   15-7        (f)  Any interested party at his or her own expense may have
   15-8  any surveying done that he or she considers desirable, provided,
   15-9  however, that no survey report, plat, or field notes based on a
  15-10  survey conducted by any person not qualified by law to conduct
  15-11  surveys of public lands in Texas shall be admitted into evidence in
  15-12  the vacancy proceeding or filed in the General Land Office.
  15-13        (g)  The surveyor shall serve a true copy of the survey
  15-14  report, field notes, plat, and all other documents filed by the
  15-15  surveyor on each interested party, including those named in the
  15-16  survey report, by certified mail, return receipt requested, on the
  15-17  same day that the survey report is filed in General Land Office.
  15-18  The survey report shall include a certificate of the fact of such
  15-19  service.
  15-20        Sec. 51.181.  EXCEPTIONS.  <APPEAL OF AMOUNT OF DEPOSIT.>
  15-21  <(a)  The applicant is entitled to appeal the estimated cost
  15-22  determined by the commissioner to a district court in Travis County
  15-23  by giving written notice to the commissioner within 15 days after
  15-24  receiving the estimated cost from the commissioner as provided in
  15-25  Sections 51.179 through 51.180 of this code.>
   16-1        <(b)  The applicant has 15 days after the district court
   16-2  enters its decision in which to pay the amount ordered by the
   16-3  court's decision.>
   16-4        Any interested party may file exceptions to the survey
   16-5  report, field notes, and plat not later than thirty days from the
   16-6  date that the survey report is filed in the General Land Office.
   16-7  All persons filing exceptions shall serve a true copy on all
   16-8  interested parties and the surveyor by certified mail, return
   16-9  receipt requested.  The exceptions shall include a certificate of
  16-10  the fact of such service.
  16-11        Sec. 51.182.  ADDITIONAL SURVEYING.  <DEPOSITS AS TRUST
  16-12  FUND.>  <Deposits provided under Sections 51.179 through 51.180 of
  16-13  this code shall be a special trust fund to be used only for the
  16-14  purpose authorized by this subchapter.>
  16-15        The commissioner or the staff of the General Land Office may
  16-16  consult with the surveyor and the commissioner may, upon notice to
  16-17  the interested parties, direct the surveyor to conduct such
  16-18  additional surveying and investigation as the commissioner may deem
  16-19  necessary and to prepare such supplemental reports, plats, and
  16-20  field notes as the commissioner may require.  The surveyor shall
  16-21  provide copies of all such reports, plats, field notes, and other
  16-22  information resulting from such additional surveying and
  16-23  investigation to all interested parties.  Interested parties may
  16-24  file exception or other responses thereto within twenty days from
  16-25  the date of filing.  Service of such additional documents and any
   17-1  exceptions or responses thereto shall be made in the same manner as
   17-2  provided in Sections 51.180 and 51.181.
   17-3        Sec. 51.183.  ACTION ON APPLICATION.  <STATEMENT AND REFUND
   17-4  OF REMAINING DEPOSIT.>  <As soon as the total expense properly
   17-5  charged against the deposit is determined, the commissioner shall
   17-6  render a complete statement to the applicant together with any
   17-7  balance remaining from the deposit.>
   17-8        (a)  Within ninety days after the surveyor's filing of the
   17-9  survey report and other documents required to be filed, the
  17-10  commissioner shall either deny the application as provided in
  17-11  Section 51.184 or commence a hearing to determine whether a vacancy
  17-12  exists.
  17-13        (b)  Except as otherwise provided in this subchapter with
  17-14  respect the application of certain good faith claimants, the
  17-15  commissioner cannot find that a vacancy exists unless a hearing is
  17-16  held.
  17-17        (c)  The commissioner shall decide all issues raised or that
  17-18  could be raised by the application and any exceptions or responses
  17-19  thereto, including, without limitation, the existence of a vacancy,
  17-20  the boundaries of a vacancy, and the status and rights of any
  17-21  interested person as a good faith claimant or prior applicant.
  17-22        (d)  The commissioner shall not decide any claim of the state
  17-23  or permanent school fund for damages arising from trespass, the
  17-24  removal or use of minerals or geothermal resources, mispayment of
  17-25  proceeds from the sale or use of minerals or geothermal resources,
   18-1  damages to the soil, vegetation, or other life or habitat, and
   18-2  similar or related claims in the proceeding held pursuant to the
   18-3  filing of the application.  Such claims may be asserted by the
   18-4  commissioner either in administrative proceedings under rules
   18-5  promulgated by the commissioner or through suit brought by the
   18-6  attorney general upon the request of the commissioner.
   18-7        (e)  No evidence or testimony regarding the existence or
   18-8  extent of mineral development or other economic use of any land
   18-9  claimed to be vacant shall be introduced or considered, except as
  18-10  the same may be relevant to determine the existence or boundaries
  18-11  the alleged vacancy or the status of any person as a good faith
  18-12  claimant.
  18-13        Sec. 51.184.  DENIAL OF APPLICATION. <NOTICE OF INTENTION TO
  18-14  SURVEY.>  <(a)  After the application is filed with the
  18-15  commissioner and the deposit is made, the commissioner shall mail a
  18-16  notice of intention to survey to all persons named as interested
  18-17  persons in the application at the addresses provided in the
  18-18  application and to the attorney general.>
  18-19        <(b)  The notices shall be deposited in the post office in
  18-20  Austin at least 10 days before the date set for the beginning of
  18-21  the survey.>
  18-22        (a)  If, after reviewing the survey report, any supplemental
  18-23  reports, any exceptions thereto, the records of the General Land
  18-24  Office and the State Archives and the recommendations of the staff
  18-25  of the General Land Office, the commissioner decides that the area
   19-1  alleged to be vacant is not vacant, the commissioner may enter an
   19-2  order denying the application.  The order shall contain findings of
   19-3  fact, conclusions of law, and such other matters as the
   19-4  commissioner may deem appropriate.
   19-5        (b)  The commissioner shall promptly provide a true copy of
   19-6  the order denying the application to the applicant by certified
   19-7  mail, return receipt requested.
   19-8        (c)  The commissioner shall cause the original order, all
   19-9  materials filed by the surveyor, all exceptions and responses to
  19-10  the surveyor's filings, all memoranda provided to the commissioner
  19-11  by the staff of the General Land Office, a list of all files and
  19-12  records of the General Land Office and State Archives examined by
  19-13  the staff or commissioner in connection with the application, and
  19-14  all other relevant papers to be filed in the file assigned to the
  19-15  application.
  19-16        (d)  Any interested party may request a rehearing and appeal
  19-17  the commissioner's order in the manner provided under the
  19-18  Administrative Procedures and Texas Register Act, art. 6252-13a,
  19-19  Tex. Rev. Civ. Stat. and rules promulgated by the commissioner.  If
  19-20  rehearing is not requested, the order becomes final thirty days
  19-21  after the date it is signed.  If rehearing is requested and denied,
  19-22  the order becomes final when the time for appeal to the district
  19-23  court has expired.  In the event that appeal is taken, the order
  19-24  becomes final when any judgment disposing of the order becomes
  19-25  final.
   20-1        (e)  When the commissioner's order denying the vacancy
   20-2  becomes final, all rights created by the application become null
   20-3  and void.
   20-4        Sec. 51.185.  EFFECT OF FINAL ORDER. <APPOINTMENT OF
   20-5  SURVEYOR.>  <(a)  The commissioner shall appoint a surveyor to make
   20-6  the survey in accordance with the notice of intention to survey.>
   20-7        <(b)  The surveyor shall be a surveyor licensed by the state
   20-8  or the county surveyor of the county in which the vacancy or part
   20-9  of the vacancy is located.>
  20-10        (a)  A final order of the commissioner under this subchapter
  20-11  shall be conclusive with respect to the land described in the
  20-12  application.  A final order of the commissioner shall not have the
  20-13  effect of stare decisis, provided, however, that a final decision
  20-14  of the Supreme Court of Texas or the Supreme Court of the United
  20-15  States upon an appeal of an order of the commissioner may have
  20-16  stare decisis effect as in other cases.
  20-17        (b)  Neither the cancellation, withdrawal, abandonment, or
  20-18  termination of an application or the refusal of the commissioner to
  20-19  accept an application for filing, nor the order or judgment of any
  20-20  court resulting in or affecting the same, shall have any binding
  20-21  effect or be deemed to be res adjudicata or stare decisis with
  20-22  respect to whether any of the land described in the application is
  20-23  or is not vacant.
  20-24        (c)  No decision of the commissioner issued prior to
  20-25  September 1, 1993, denying a vacancy application or letter of
   21-1  inquiry shall be conclusive as to the existence or non-existence of
   21-2  a vacancy.
   21-3        Sec. 51.186.  RULEMAKING; VENUE OF APPEALS. <SURVEY REPORT.>
   21-4  <(a)  Except as provided in Subsection (b) of this section, a
   21-5  written report of the survey, together with field notes describing
   21-6  the land and the lines and corners surveyed and a plat showing the
   21-7  results of the survey, shall be filed in the land office within 120
   21-8  days from the filing of the application.>
   21-9        <(b)  The commissioner may extend the time for filing the
  21-10  survey if good cause is shown.  The cause for extension of time
  21-11  shall be stated in writing and filed as part of the record of the
  21-12  proceedings.  An extension of time may not be more than 60 days.>
  21-13        <(c)  The survey report shall give the names and post-office
  21-14  addresses of all persons who have possession of the land described
  21-15  in the application and of all persons found by the surveyor who
  21-16  have or claim any interest in the land.>
  21-17        (a)  Hearings under this subchapter and further proceedings
  21-18  arising therefrom shall be conducted in accordance with the
  21-19  provisions of the Administrative Procedure and Texas Register Act,
  21-20  art. 6252-13a, Tex. Rev. Civ.  Stat. and rules promulgated by the
  21-21  commissioner.
  21-22        (b)  The appeal of a final order of the commissioner shall be
  21-23  to the district court of the county in which the land claimed to be
  21-24  vacant or any part thereof is located.  The district court shall
  21-25  review the commissioner's orders under the substantial evidence
   22-1  rule.
   22-2        Sec. 51.187.  COMMISSIONER'S ORDER.  <PERSONAL SURVEY.>  <Any
   22-3  interested party at his own expense may have any surveying done
   22-4  that he considers desirable.>
   22-5        (a)  If it appears to the commissioner that the alleged
   22-6  vacancy is not in conflict with land previously titled, awarded, or
   22-7  sold by the state or its predecessor sovereigns, the commissioner
   22-8  shall enter an order declaring the existence of a vacancy and
   22-9  determining all other issues.
  22-10        (b)  If it appears to the commissioner that the land alleged
  22-11  to be vacant is not vacant, the commissioner shall enter an order
  22-12  denying the application and determining all other issues.
  22-13        (c)  The commissioner shall base the order on the testimony
  22-14  and other competent evidence presented at the hearing, the
  22-15  surveyor's filings and all supplements thereto, any exceptions or
  22-16  responses to the surveyor's filings and all supplements thereto,
  22-17  the publicly available records of the General Land Office and the
  22-18  State Archives.  The commissioner and the examiner or examiners
  22-19  designated to conduct hearings on the application may consult with
  22-20  the staff of the General Land Office and the surveyor appointed to
  22-21  the extent that such consultation is permitted by the Texas
  22-22  Register and Administrative Procedures Act, art.  6262-13a, Tex.
  22-23  Rev. Civ. Stat.  The record shall include a list of the names and
  22-24  titles of all staff consulted, a list of the files and documents of
  22-25  the General Land Office and State Archives examined, and a copy of
   23-1  all memoranda provided to the examiners or commissioner by the
   23-2  staff of the General Land Office or the appointed surveyor.
   23-3        (d)  The order shall contain, in addition to any other matter
   23-4  the commissioner deems appropriate, the following:
   23-5              (1)  findings of fact;
   23-6              (2)  conclusions of law;
   23-7              (3)  a field note description of the land, if any,
   23-8  found to be vacant, sufficient to locate it on the ground, and
   23-9  containing such other elements as are required by law; and
  23-10              (4)  an accurate plat of the land, if any, found to be
  23-11  vacant, such plat being consistent with the field notes and
  23-12  prepared either by the appointed surveyor or a Licensed State Land
  23-13  Surveyor on the staff of the General Land Office.
  23-14        (e)  The commissioner's order may adopt, without restating
  23-15  them, the findings of fact and conclusions of law set forth in a
  23-16  proposal for decision prepared by the appointed examiner or
  23-17  examiners, together with any opinion or statement contained in such
  23-18  proposal for decision.
  23-19        (f)  In determining the boundaries and size of any vacancy,
  23-20  the commissioner shall not be restricted to any description of the
  23-21  land claimed to be vacant whether put forward by the applicant,
  23-22  surveyor, or an interested party, but rather the commissioner shall
  23-23  adopt the description of any vacancy that best describes such a
  23-24  vacancy and is consistent with the information available under this
  23-25  section.  If in determining the boundaries and size of a vacancy,
   24-1  it becomes apparent to the commissioner that persons who have not
   24-2  been named as interested persons and have not been served with
   24-3  notice of the proceeding under the application may be affected by
   24-4  the finding that a vacancy exists at the location and with the
   24-5  boundaries believed by the commissioner to conform to the record,
   24-6  the proceeding shall be reopened and the persons so affected shall
   24-7  be joined as interested parties and afforded the opportunity to
   24-8  participate adequately in the proceeding.  This subsection shall
   24-9  not be construed to require the refiling of an application or the
  24-10  conduct of an new survey by the surveyor.
  24-11        Sec. 51.188.  GOOD FAITH CLAIMANT STATUS.  <HEARING AND
  24-12  NOTICE.>  <(a)  Within 60 days after the surveyor makes his report,
  24-13  a hearing may be held before the commissioner to determine whether
  24-14  or not there is a vacancy.>
  24-15        <(b)  The date for the hearing shall be provided in the
  24-16  notice that the commissioner shall give to all persons thought to
  24-17  be interested parties and to all persons shown by the record of the
  24-18  proceeding to be interested parties, including the attorney
  24-19  general.>
  24-20        <(c)  The notice of the hearing shall be deposited at the
  24-21  post office in Austin at least 10 days before the date set for the
  24-22  hearing.>
  24-23        <(d)  At the hearing, the state and each interested party,
  24-24  whether or not he received notice, is entitled to be heard.>
  24-25        <(e)  The hearing shall be conducted in accordance with the
   25-1  provisions of the Administrative Procedure and Texas Register Act
   25-2  (Article 6252-13a, Vernon's Texas Civil Statutes).>
   25-3        (a)  An applicant or interested party who wishes to assert
   25-4  status as a good faith claimant may do so by a filing notice of
   25-5  claim of good faith status at any time prior to twenty days before
   25-6  the commencement of the first hearing before the commissioner.  The
   25-7  notice of claim of good faith status shall set forth the basis for
   25-8  the claim and a description of the land asserted to be affected by
   25-9  the good faith status.  Such notice shall be filed in the General
  25-10  Land Office and served on all interested parties by certified mail,
  25-11  return receipt requested.
  25-12        (b)  The filing of a notice of claim of good faith status is
  25-13  not an admission on the part of the person asserting the claim that
  25-14  a vacancy exists.
  25-15        Sec. 51.189.  ORDER WITHOUT NOTICE AND
  25-16  HEARING.  <DETERMINATION OF VACANCY BY COMMISSIONER.>  <(a)  If it
  25-17  appears to the commissioner that the alleged vacancy is not in
  25-18  conflict with land previously titled, awarded, or sold by the
  25-19  state, he shall give prompt notice of this finding to the applicant
  25-20  and to all persons who were previously identified as interested
  25-21  parties.>
  25-22        <(b)  After the notice is given under Subsection (a) of this
  25-23  section, and subject to the preferential right of a good-faith
  25-24  claimant, the applicant is entitled for 120 days to purchase or
  25-25  lease the portion of the land that is determined to be vacant at a
   26-1  price set by the board as provided in this code and with the same
   26-2  royalty reservation as provided in Section 51.201 of this code.>
   26-3        <(c)  No award may be made by the commissioner unless a
   26-4  hearing is held and no presumption may obtain in a suit involving
   26-5  the existence of a vacancy as a result of the action of the
   26-6  commissioner in this respect.>
   26-7        (a)  An applicant who asserts status as a good faith claimant
   26-8  may present evidence to the commissioner that:
   26-9              (1)  the good faith claimant owns all of the land and
  26-10  interests in land completely surrounding the land claimed to be
  26-11  vacant,
  26-12              (2)  there is no subsisting prior application covering
  26-13  the land described in the good faith claimant's application,
  26-14              (3)  no previous application has been made covering the
  26-15  land described in the good faith claimant's application, and
  26-16              (4)  the good faith claimant meets all other
  26-17  requirements of a good faith claimant.
  26-18        (b)  If the commissioner finds that the evidence presented is
  26-19  accurate, no further notice shall be required to be sent to any
  26-20  person and, upon the acceptance for filing by the commissioner of a
  26-21  survey made by a Licensed State Land Surveyor or the county
  26-22  surveyor of the county in which the land claimed to be vacant or a
  26-23  part thereof is located, the commissioner may enter an order
  26-24  declaring the existence of the vacancy and determining the good
  26-25  faith status of the applicant.
   27-1        (c)  For purposes of this section, land claimed to be vacant
   27-2  and surrounded by lands owned only by the good faith claimant and
   27-3  the state and no others shall be deemed to be surrounded completely
   27-4  by land owned by the good faith claimant.
   27-5        (d)  Two or more persons may jointly apply as good faith
   27-6  claimants under this section if together they meet the requirements
   27-7  of subsection (a) of this section.
   27-8        (e)  The commissioner or any person who would have been
   27-9  entitled to the status of an interested person under an application
  27-10  made under other sections of this subchapter may move to set aside
  27-11  an order entered under this section by filing a written motion with
  27-12  the commissioner within two years of the date of the order sought
  27-13  to be set aside.  The person so moving shall serve a true copy of
  27-14  the motion by certified mail, return receipt requested, on the
  27-15  applicant and all persons holding or claiming under the applicant.
  27-16        (f)  The commissioner shall set aside an order issued under
  27-17  this section finding that a vacancy exists if, after notice and
  27-18  hearing the commissioner finds that the person asserting the rights
  27-19  granted by this section did not, at the time the order declaring
  27-20  the vacancy was entered:
  27-21              (1)  qualify as a good faith claimant under this
  27-22  subchapter;
  27-23              (2)  own all of the land and interests in land
  27-24  surrounding the land claimed to vacant; or
  27-25              (3)  meet any other material requirement of this
   28-1  section.
   28-2        (g)  If the order is set aside, the commissioner shall reopen
   28-3  the proceeding on the application and conduct the reopened
   28-4  proceeding in the same manner as proceedings on other applications.
   28-5        (h)  The issues in a reopened proceeding shall be limited to
   28-6  the status of the applicant as a good faith claimant entitled to
   28-7  the rights provided under this section and the rights of any other
   28-8  party as either an applicant or good faith claimant.
   28-9        (i)  An application of a good faith claimant not owning all
  28-10  of the land and interests in land completely surrounding the land
  28-11  claimed to be vacant shall proceed as with other applications.
  28-12        Sec. 51.190.  SALE OR LEASE OF VACANCY.  <PURCHASE OR LEASE
  28-13  BY APPLICANT.>  <(a)  If there is no good-faith claimant or if no
  28-14  good-faith claimant exercises his preferential right within the
  28-15  time allowed, the applicant is entitled to purchase or lease,
  28-16  according to his application, the vacancy for which he made
  28-17  application and which is found to exist.>
  28-18        <(b)  Consideration shall be determined by the board as
  28-19  provided in this subchapter, but without consideration of potential
  28-20  mineral value.>
  28-21        (a)  When a vacancy has been established by final order, the
  28-22  School Land Board shall have authority to sell or lease the vacancy
  28-23  as provided in this subchapter.
  28-24        (b)  The board shall set the sale price and other terms and
  28-25  conditions as in all other sales of other lands dedicated to the
   29-1  permanent school fund.  The sale price shall not be less than the
   29-2  fair market value as determined by an appraisal conducted by the
   29-3  General Land Office.
   29-4        (c)  The fee prescribed in Section 32.110(a) of this code
   29-5  applies to all sales and leases made under this subchapter.
   29-6        (d)  The board may allow a credit against the sale price in
   29-7  an amount not to exceed the actual cost of the survey paid by an
   29-8  applicant or good faith claimant if:
   29-9              (1)  the purchaser is a person exercising a
  29-10  preferential right to purchase under this subchapter;
  29-11              (2)  the board has reserved all mineral and geothermal
  29-12  leasing rights; and
  29-13              (3)  the board finds that the fair market value of the
  29-14  mineral estate is equal to or exceeds fifty percent of the amount
  29-15  of the credit.
  29-16        Sec. 51.191.  CONDITIONS OF SALE; MINERAL AWARDS.  <SUIT TO
  29-17  RECOVER LAND.>  <A good-faith claimant of a vacant or unsurveyed
  29-18  tract of land has 30 days after the sale or lease of the land to
  29-19  the applicant to institute suit to set aside the sale or lease of
  29-20  the land.  If the suit is not instituted within the 30-day period
  29-21  by the good-faith claimant, he loses all preferential rights to
  29-22  purchase or lease the land.>
  29-23        (a)  In all sales, the board shall reserve to the permanent
  29-24  school fund all oil, gas, sulphur, geothermal resources, and all
  29-25  other minerals and shall determine the manner in which such
   30-1  minerals and geothermal resources are to be leased.
   30-2        (b)  Prior to the sale of any vacancy, the General Land
   30-3  Office shall prepare and present to the board a study of the
   30-4  mineral prospects and value of the vacancy, taking into
   30-5  consideration the size and configuration of the vacancy, its
   30-6  location with respect to other surrounding and nearby tracts, the
   30-7  proximity of mineral production, and the likelihood of future
   30-8  mineral leasing and development.  The study shall include a
   30-9  recommendation as to the most advantageous method to the state by
  30-10  which the vacancy could be leased.
  30-11        (c)  Subject to any subsisting rights held by a good faith
  30-12  claimant, other applicant, or any person to whom such rights have
  30-13  been assigned, and taking into consideration the study and
  30-14  recommendations of the land office, the board shall specify the
  30-15  manner in which the vacancy is to be leased from the following:
  30-16              (1)  retain all leasing rights and provide that the
  30-17  vacancy shall be leased as provided in Subchapter B, Chapter 52,
  30-18  and Subchapters B and E, Chapter 53, of this Code; or
  30-19              (2)  provide that the owner of the soil shall be
  30-20  designated to execute leases as the agent of the state subject to
  30-21  the rights, obligations, and liabilities of Subchapter F, Chapter
  30-22  52, and Subchapter C, Chapter 53, of this Code.  The board shall
  30-23  establish the division of bonus, rental, and royalty between the
  30-24  permanent school fund and the owner of the soil.  The portion to be
  30-25  paid to the owner of the soil shall be not less than twenty
   31-1  percent, nor more than fifty percent.  The board may establish
   31-2  different portions to be paid to the owner of the soil for the
   31-3  lease of different substances.
   31-4        (d)  If the board provides for lease by the owner of the
   31-5  soil, the original purchaser is a good faith claimant, and the
   31-6  vacancy was established pursuant to an application made by a person
   31-7  not a good faith claimant, the board shall award the applicant a
   31-8  perpetual non-participating royalty of not less than 1/32 nor more
   31-9  than 1/16.
  31-10        (e)  If the board determines that the state shall retain all
  31-11  leasing rights as provided in this section, the board shall award:
  31-12              (1)  a perpetual 1/32 non-participating royalty to an
  31-13  applicant other than a good faith claimant;
  31-14              (2)  a 1/32 non-participating royalty to a good faith
  31-15  claimant purchasing the vacancy.
  31-16        (f)  In all instances in which the preference right to obtain
  31-17  the first mineral lease on the vacancy is exercised, the applicant,
  31-18  whether or not a good faith claimant, shall be entitled to a
  31-19  royalty credit equal to 1/4 of the royalty retained by the state
  31-20  under the lease for a period of five years from the date of first
  31-21  production under the first lease awarded.
  31-22        Sec. 51.192.  PREFERENTIAL RIGHT OF GOOD FAITH
  31-23  CLAIMANT.  <DENIAL OF VACANCY BY COMMISSIONER.>  <(a)  If the
  31-24  commissioner decides that the area alleged to be vacant is not
  31-25  vacant, he shall endorse this decision on the application and file
   32-1  it with this finding.>
   32-2        <(b)  The commissioner shall promptly notify the applicant of
   32-3  his decision by registered mail and shall file all reports and
   32-4  papers received in connection with the application.>
   32-5        <(c)  After the commissioner takes all action provided under
   32-6  Subsections (a) and (b) of this section, he shall take no further
   32-7  action with respect to the application unless the existence of the
   32-8  alleged vacancy is determined by a court of competent jurisdiction.>
   32-9        <(d)  Within 90 days after the commissioner's decision is
  32-10  mailed, unless the applicant files suit in a district court in a
  32-11  county in which part of the alleged vacancy is located to litigate
  32-12  the question of the existence of a vacancy, the applicant's
  32-13  application and all preference rights acquired to purchase or lease
  32-14  the alleged vacancy become null and void.>
  32-15        (a)  A good faith claimant shall have a preferential right to
  32-16  purchase or lease that portion of a vacancy subject to the good
  32-17  faith claim.
  32-18        (b)  A good faith claimant shall exercise the preferential
  32-19  right by filing a notice of intent to purchase or lease not later
  32-20  than the ninetieth day after the order establishing the vacancy
  32-21  becomes final.  The board shall prescribe the form of the notice of
  32-22  intent.  The good faith claimant shall describe in the notice the
  32-23  portion of the vacancy the good faith claimant seeks to purchase or
  32-24  lease.  The good faith claimant shall mail a copy of the notice to
  32-25  any applicant and to all other interested parties asserting status
   33-1  as good faith claimants.
   33-2        (c)  All preferential rights held by a good faith claimant
   33-3  shall expire upon the failure of a good faith claimant either to
   33-4  file the notice of intent within the time prescribed or to complete
   33-5  the purchase or lease within sixty days after the board sets the
   33-6  terms of the purchase or lease.    The board may, upon a showing of
   33-7  good cause, extend the time to complete the purchase or lease for a
   33-8  period not exceeding ninety days.
   33-9        (d)  A good faith claimant exercising a preference right
  33-10  shall repay to the applicant the reasonable expenses incurred in
  33-11  determining the existence of a vacancy other than filing and
  33-12  attorney's fees not later than the date on which the sale or
  33-13  purchase by a good faith is completed.  The failure to pay such
  33-14  expenses shall cancel the preference right of the good faith
  33-15  claimant.
  33-16        (e)  If there is no good faith claimant, an applicant shall
  33-17  have the same preference right to lease or purchase as a good faith
  33-18  claimant under the procedures set out in this section.
  33-19        Sec. 51.193.  PREFERENTIAL RIGHT OF APPLICANT OTHER THAN GOOD
  33-20  FAITH CLAIMANT.  <PREFERENTIAL RIGHT OF GOOD-FAITH CLAIMANT.>
  33-21  <(a)  A good-faith claimant who ascertains that a vacancy exists or
  33-22  that a claimed vacancy may exist or who has been notified by the
  33-23  commissioner that a vacancy has been found to exist on land claimed
  33-24  by him shall have a preferential right to purchase or lease the
  33-25  vacancy at any time until 90 days after a decision of the
   34-1  commissioner declaring the existence of a vacancy.>
   34-2        <(b)  The good-faith claimant may purchase or lease the
   34-3  vacancy by submitting a written application to the commissioner for
   34-4  the purchase or lease of the vacancy and by furnishing to the
   34-5  commissioner satisfactory proof that he is a good-faith claimant.>
   34-6        <(c)  The good-faith claimant is entitled to purchase or
   34-7  lease the portion of the land that is vacant at the price set by
   34-8  the board subject to the royalty reservations proved in this
   34-9  subchapter which are effective on the date the application is
  34-10  filed.>
  34-11        (a)  Upon the expiration of the preferential rights of a good
  34-12  faith claimant to purchase or lease, an applicant who is not a good
  34-13  faith claimant shall have a preferential right to purchase or lease
  34-14  all or any portion of the vacancy.
  34-15        (b)  An applicant shall exercise the preferential right by
  34-16  filing a notice of intent to purchase or lease not later than the
  34-17  ninetieth day after the rights of a good faith claimant expire.
  34-18  The board shall prescribe the form of the notice of intent.  The
  34-19  applicant shall describe in the notice the portion of the vacancy
  34-20  the applicant seeks to purchase or lease.  The applicant shall mail
  34-21  a copy of the notice to all other interested persons asserting
  34-22  status as good faith claimants.
  34-23        (c)  All preferential rights held by an applicant shall
  34-24  expire upon the failure of the applicant either to file the notice
  34-25  of intent within the time prescribed or to complete the purchase or
   35-1  lease within sixty days after the terms of the purchase or lease by
   35-2  the board.  The board may, upon a showing of good cause, extend the
   35-3  time to complete the purchase or lease for a period not exceeding
   35-4  ninety days.
   35-5        Sec. 51.194.  RIGHTS ASSIGNABLE.  <TERM OF PREFERENTIAL
   35-6  RIGHT.>  <A good-faith claimant has a preferential right to
   35-7  purchase the land alleged or adjudicated to be vacant until 90 days
   35-8  after the final judicial determination of the existence of the
   35-9  vacancy.>
  35-10        An applicant or good faith claimant may assign all rights in
  35-11  a vacancy or land claimed to be vacant in writing.  The assignor
  35-12  shall record the assignment in the real property records of the
  35-13  county or counties in which the land subject to an application is
  35-14  located and file a certified copy of the assignment in the General
  35-15  Land Office.
  35-16        Sec. 51.195.  LEASE TERMS UNDER PREFERENCE RIGHTS.  <EFFECT
  35-17  OF GOOD-FAITH CLAIMANT'S APPLICATION.>  <The application of a
  35-18  good-faith claimant may not be used or considered as an admission
  35-19  on his part that a vacancy exists.>
  35-20        The board shall prescribe terms for preferential purchases or
  35-21  leases consistent with the provisions of this subchapter.  The
  35-22  board may not grant a preferential lease with a royalty of less
  35-23  than 1/8 on oil, gas, and sulphur, or less than five percent on
  35-24  geothermal resources and all other minerals.
  35-25        Sec. 51.196.  EFFECT OF PRIOR CONVEYANCES.  <PROCEDURE FOR
   36-1  PURCHASE OR LEASE BY GOOD-FAITH CLAIMANT.>  <(a)  On the date a
   36-2  good-faith claimant's application is filed, if there is no valid
   36-3  and subsisting application previously filed by an applicant
   36-4  covering the alleged vacancy, the application of the good-faith
   36-5  claimant shall be filed and shall be accompanied by:>
   36-6              <(1)  a filing fee set by the commissioner in an amount
   36-7  not less than $1;>
   36-8              <(2)  a written report of a surveyor licensed by the
   36-9  state or by the county surveyor of any county in which all or part
  36-10  of the alleged vacancy is located;>
  36-11              <(3)  field notes describing the land and the lines and
  36-12  corners surveyed;>
  36-13              <(4)  a plat showing the results of the survey; and>
  36-14              <(5)  any proof that will show to the satisfaction of
  36-15  the commissioner that the applicant is a good-faith claimant.>
  36-16        <(b)  The good-faith claimant may file his application to
  36-17  purchase or lease and within 120 days from the date of filing the
  36-18  application with the commissioner have a survey made of the alleged
  36-19  vacancy and file the report, field notes, and plat in the land
  36-20  office together with proof that he is a good-faith claimant.>
  36-21        <(c)  If it appears to the commissioner that the alleged
  36-22  vacancy is not in conflict with land previously titled, awarded, or
  36-23  sold by the state, the commissioner shall grant the application
  36-24  under the provisions of this subchapter.  Before the application is
  36-25  granted, the commissioner may hold a hearing at which interested
   37-1  persons may appear.>
   37-2        (a)  No mineral lease, surface lease, deed or other
   37-3  conveyance of any nature of any interest in land executed by a good
   37-4  faith claimant prior to the completion of a sale or lease under
   37-5  this subchapter shall give the grantee thereunder any interest in
   37-6  or to the vacancy or the minerals therein.
   37-7        (b)  No title to land or any interest in land acquired from
   37-8  the state under a preferential right shall be held to pass as
   37-9  after-acquired title under any covenant of general warranty,
  37-10  description, or other provision contained in any conveyance
  37-11  executed prior to the date of the completion of a sale or lease
  37-12  under this subchapter.
  37-13        Sec. 51.197.  RULEMAKING AUTHORITY.  <FAILURE TO EXERCISE
  37-14  PREFERENTIAL RIGHT WITHIN CERTAIN TIME.>  <(a)  If the good-faith
  37-15  claimant does not exercise his preferential right to purchase
  37-16  within 90 days after a decision of the commissioner under the
  37-17  provisions of this subchapter, the applicant shall be awarded an
  37-18  oil, gas, and mineral lease on not more than seven-eighths of the
  37-19  minerals.>
  37-20        <(b)  The consideration for the lease shall not be less than
  37-21  $1 an acre, and the lease shall be for a primary term set by the
  37-22  board of not more than five years.>
  37-23        <(c)  The lease shall be subject to other consideration and
  37-24  terms required by the board and the preferential right of a
  37-25  good-faith claimant until 90 days after final judicial
   38-1  determination under Section 51.194 of this code.>
   38-2        (a)  The commissioner may promulgate rules consistent with
   38-3  this subchapter relating to applications to purchase or lease
   38-4  vacancies and the determination of the existence of vacancies.
   38-5        (b)  The board may promulgate rules consistent with this
   38-6  subchapter relating to the sale and lease of vacancies.
   38-7        SECTION 2.  Sections 51.198 through 51.206, Tex. Nat. Res.
   38-8  Code, inclusive, are repealed.
   38-9        SECTION 3.  Section 118.16, Local Government Code, is amended
  38-10  to read as follows:
  38-11        Sec. 118.161.  Fee Schedule.  A county surveyor shall collect
  38-12  the following fees:
  38-13              <(1)  Inspecting and recording the field notes and plat
  38-14  of a survey for any tract of land:>
  38-15                    <(A)  less than one-third of a league ..... $1.00>
  38-16                    <(B)  one-third of a league ............... $2.00>
  38-17                    <(C)  more than one-third of a league ..... $3.00>
  38-18              <(2)  Recording surveys and plats required by law to be
  38-19  placed on the map of a new county, for each 100 words ....... $0.20>
  38-20              <(3)  Examination of papers and records in his office
  38-21  at the request of any person ................................ $0.25>
  38-22              <(4)  Copies of all field notes and plats, or other
  38-23  papers or records in the office, for each 100 words, including
  38-24  certificate ................................................. $0.20>
  38-25              <(5)  Surveying of any tract of land, including all
   39-1  expenses in making the survey, and returning the plat and field
   39-2  notes of the survey:>
   39-3                    <(A)  for each English lineal mile actually run
   39-4  ............................................................. $3.00>
   39-5                    <(B)  for less than one English lineal mile run
   39-6  ............................................................. $2.50>
   39-7              <(6)  Services in designating a homestead, including
   39-8  pay for chain carriers, for each day's service ............. $5.00>
   39-9        (a)  For recording the field notes and plat of a survey for
  39-10  any tract of land, providing copies of field notes, plats or other
  39-11  papers or records, and certifying any copies, the same amount
  39-12  collected by the county clerk of the county.
  39-13        (b)  For surveying any tract of land or designating a
  39-14  homestead, including all expenses in the making of the survey,
  39-15  preparation of a survey report, field notes, plat, and other items
  39-16  required by law, and filing the same in the records of the county
  39-17  surveyor or the General Land Office, the actual expenses incurred
  39-18  and such fees for surveying services as may be agreed upon between
  39-19  the county surveyor and the person seeking the services.
  39-20        (c)  For filing an application to purchase or lease a vacancy
  39-21  or for surveying a vacancy, the amounts provided in Subchapter E,
  39-22  Chapter 51, Natural Resources Code.
  39-23        SECTION 4.  Section 72.006(b), Local Government Code, is
  39-24  amended to read as follows:
  39-25        (b)  A surveyor appointed under this chapter is entitled to
   40-1  receive <($3 for each mile surveyed)> the actual expenses incurred
   40-2  in conducting the survey and such fees for surveying services as
   40-3  may be agreed upon between the surveyor and the counties.
   40-4        SECTION 5.  Section 21.078(a), Natural Resources Code, is
   40-5  amended to read as follows:
   40-6        (a)  The plane coordinate values for a point on the earth's
   40-7  surface, to be used in expressing the position or location of the
   40-8  point in the appropriate zone, of either system, shall consist of
   40-9  two distances, expressed in U. S.  Survey Feet and decimals of a
  40-10  foot when using the Texas Coordinate System of 1927 and expressed
  40-11  either in meters and decimals of a meter or in U. S.  Survey Feet
  40-12  or decimals of a foot when using the Texas Coordinate System of
  40-13  1983.
  40-14        SECTION 6.  This Act shall become effective on September 1,
  40-15  1993.
  40-16        SECTION 7.  EMERGENCY.  The importance of this legislation
  40-17  and the crowded condition of the calendars in both houses create an
  40-18  emergency and an imperative public necessity that the
  40-19  constitutional rule requiring bills to be read on three several
  40-20  days in each house be suspended, and this rule is hereby suspended.