1-1 By: Sims S.B. No. 964
1-2 (In the Senate - Filed March 11, 1993; March 15, 1993, read
1-3 first time and referred to Committee on Natural Resources;
1-4 April 2, 1993, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 7, Nays 0; April 2, 1993,
1-6 sent to printer.)
1-7 COMMITTEE VOTE
1-8 Yea Nay PNV Absent
1-9 Sims x
1-10 Truan x
1-11 Armbrister x
1-12 Barrientos x
1-13 Bivins x
1-14 Brown x
1-15 Carriker x
1-16 Lucio x
1-17 Montford x
1-18 Ratliff x
1-19 Shelley x
1-20 COMMITTEE SUBSTITUTE FOR S.B. No. 964 By: Sims
1-21 A BILL TO BE ENTITLED
1-22 AN ACT
1-23 relating to the location, survey, sale, and lease of vacant and
1-24 unsurveyed public school land and certain public boundaries and
1-25 related fees.
1-26 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-27 SECTION 1. Subchapter E, Chapter 51, Natural Resources Code,
1-28 is amended to read as follows:
1-29 SUBCHAPTER E. SALE AND LEASE OF VACANCIES
1-30 Sec. 51.171. SALE AND LEASE OF VACANT LAND. (a) Vacant and
1-31 unsurveyed public school land shall be located, sold, and leased
1-32 under this subchapter, except:
1-33 (1) submerged lands within tidewater limits;
1-34 (2) all islands, flats, and emergent lands within
1-35 tidewater limits;
1-36 (3) natural lakes; and
1-37 (4) riverbeds, including channels and islands in
1-38 riverbeds, above tidewater limits.
1-39 (b) This subchapter does not alter or diminish the public
1-40 domain status of the surface estate of riverbeds and channels and
1-41 islands in riverbeds that are located above tidewater limits.
1-42 Sec. 51.172. DEFINITIONS. In this subchapter:
1-43 (1) "Applicant" means any person who files an
1-44 application. The term may include a good-faith claimant.
1-45 (2) "Application" means an application to purchase or
1-46 lease a vacancy under this subchapter.
1-47 (3) "Good-faith claimant" means a person who:
1-48 (A) occupies or uses or whose predecessors in
1-49 interest have occupied or used a vacancy for purposes other than
1-50 exploring for or removing oil, gas, sulphur, other minerals, or
1-51 geothermal resources from the vacancy or who leases or otherwise
1-52 conveys to another person a purported right to explore for or
1-53 remove oil, gas, sulphur, another mineral, or geothermal resources
1-54 from the vacancy;
1-55 (B) has had, or whose predecessors in interest
1-56 have had, the vacancy enclosed or within definite recognized
1-57 boundaries and in possession for a period of 10 or more years with
1-58 a good-faith belief that the vacancy was included within the
1-59 boundaries of a survey or surveys that were previously titled,
1-60 awarded, or sold under circumstances that would have vested title
1-61 in the vacancy if it were actually located within the boundaries of
1-62 the survey or surveys;
1-63 (C) is the owner of land adjoining a vacancy on
1-64 which no application has previously been filed; or
1-65 (D) holds under a good-faith claimant or is
1-66 entitled to a distributive share of any title acquired under an
1-67 application made by a good-faith claimant.
1-68 (4) "Interest" means any right or title in or to real
2-1 property, whether affecting the surface, subsurface, or mineral
2-2 estate, including:
2-3 (A) fee simple title;
2-4 (B) a determinable fee created under a mineral
2-5 lease or conveyance or otherwise;
2-6 (C) a royalty, nonparticipating royalty, or
2-7 overriding royalty interest;
2-8 (D) a remainder or reversionary interest; or
2-9 (E) an interest arising under a lien.
2-10 (5) "Interested person" means:
2-11 (A) a person who may own or who claims any
2-12 interest in land claimed to be vacant or in any land adjoining or
2-13 overlapping that land as determined from the records of the land
2-14 office, the records of the county clerk's office, and the tax
2-15 records of the county or counties in which the land claimed to be
2-16 vacant is located;
2-17 (B) any other person who asserts a right to or
2-18 interest in the land claimed to be vacant and who is known to the
2-19 applicant or whose identity could be ascertained by the applicant
2-20 with the exercise of reasonable diligence;
2-21 (C) the attorney general; or
2-22 (D) the applicant.
2-23 (6) "Vacancy" means an area of unsurveyed public
2-24 school land that:
2-25 (A) is not in conflict on the ground with land
2-26 previously titled, awarded, or sold;
2-27 (B) has not been listed on the records of the
2-28 land office as public school land; and
2-29 (C) was not, on the date of filing of an
2-30 application:
2-31 (i) subject to an earlier subsisting
2-32 application by an applicant or good-faith claimant; or
2-33 (ii) the subject of pending litigation
2-34 brought by the state to recover the land.
2-35 Sec. 51.173. APPLICATION. (a) To purchase or lease a
2-36 vacancy, a person must file an application. The filing of an
2-37 application commences a proceeding under this subchapter. The
2-38 applicant must file the application with the county surveyor of the
2-39 county in which all or part of the land claimed to be vacant is
2-40 located. If the county does not have a county surveyor, the
2-41 application must be filed with the county clerk.
2-42 (b) The application must:
2-43 (1) describe the land that is claimed to be vacant;
2-44 (2) state whether the applicant is a good-faith
2-45 claimant;
2-46 (3) state whether the applicant seeks to purchase the
2-47 vacancy or obtain a mineral lease on the vacancy;
2-48 (4) state the name and last known address of all
2-49 interested persons; and
2-50 (5) provide any other information that the
2-51 commissioner requires by rule.
2-52 (c) The commissioner by rule shall set an application filing
2-53 fee in an amount of not less than $5. The applicant shall pay the
2-54 filing fee to the county surveyor or county clerk at the time the
2-55 application is filed.
2-56 (d) The county surveyor or county clerk shall mark the exact
2-57 date and hour of filing on the original and a duplicate copy of the
2-58 application and shall return a marked copy to the person filing the
2-59 application. The original shall be recorded in a book kept for
2-60 that purpose separate from the deed or real property records.
2-61 (e) Priority among applications covering the same land
2-62 claimed to be vacant is determined by the time of filing indicated
2-63 by the date and hour marked on the application by the county
2-64 surveyor or county clerk.
2-65 Sec. 51.174. FILING APPLICATION WITH COMMISSIONER. (a) The
2-66 applicant shall file with the commissioner a copy of the
2-67 application with the county surveyor's or clerk's mark indicating
2-68 the time of filing not later than the 10th day after the
2-69 application is filed with the county surveyor or clerk. The
2-70 applicant shall include a filing fee set by the commissioner in an
3-1 amount of not less than $100. If the 10th day after filing falls
3-2 on a Saturday, Sunday, or state or federal holiday, the application
3-3 may be filed on the next regular business day following the 10th
3-4 day.
3-5 (b) The commissioner shall mark the date of filing on the
3-6 application and assign a file number to the application.
3-7 (c) An applicant who does not file the application with the
3-8 commissioner in the time provided in this section or pay the filing
3-9 fee waives all rights under the application.
3-10 (d) The commissioner may refuse to accept for filing an
3-11 application that:
3-12 (1) has material omissions;
3-13 (2) does not describe the land claimed to be vacant
3-14 adequately for the land to be located on the ground; or
3-15 (3) describes as vacant land that has been finally
3-16 adjudicated in a court of this state or of the United States not to
3-17 be vacant.
3-18 Sec. 51.175. DEPOSIT. (a) If an applicant is not a
3-19 good-faith claimant, the commissioner shall estimate the costs of
3-20 proceeding under the application, including the costs of a survey
3-21 made by a licensed state land surveyor or the county surveyor, the
3-22 preparation of copies and working sketches by the land office, the
3-23 mailing or publication of notices and copies, and other similar
3-24 costs, excluding allocable costs of salaries and overhead expended
3-25 by the land office in actually conducting a hearing or preparing
3-26 orders and proposals for decision.
3-27 (b) The commissioner shall notify the applicant in writing
3-28 of the estimated costs and the applicant shall make a deposit with
3-29 the commissioner in the amount of the estimated costs.
3-30 (c) If at any time the commissioner determines that the
3-31 funds on deposit are insufficient to pay the costs of the
3-32 proceeding, the commissioner shall estimate the additional amount
3-33 required and shall notify the applicant in writing to make a
3-34 supplemental deposit of the estimated amount. The notice must be
3-35 dated.
3-36 (d) The applicant shall make an initial deposit or a
3-37 supplemental deposit not later than the 30th day after the date of
3-38 the written notice to make the deposit. The commissioner shall
3-39 cancel the application if the applicant does not make a required
3-40 deposit within the prescribed time. Cancellation terminates all
3-41 rights under that application.
3-42 Sec. 51.176. APPEAL OF AMOUNT OF DEPOSIT. (a) An applicant
3-43 may appeal the amount of an initial deposit or supplemental deposit
3-44 determined by the commissioner in the manner provided for the
3-45 appeal of agency decisions under the Administrative Procedure and
3-46 Texas Register Act (Article 6252-13a, Vernon's Texas Civil
3-47 Statutes).
3-48 (b) If the applicant does not pay the amount determined by
3-49 the district court on or before the 15th day after the judgment of
3-50 the district court becomes final and nonappealable, the
3-51 commissioner shall cancel the application. Cancellation terminates
3-52 all rights under that application.
3-53 Sec. 51.177. DISPOSITION OF DEPOSITS. (a) The commissioner
3-54 shall deposit all initial and supplemental deposits received under
3-55 this subchapter to the credit of a separate trust account in the
3-56 treasury. The treasurer, on the commissioner's order, shall make
3-57 disbursements from that account for purposes authorized by this
3-58 subchapter.
3-59 (b) After proceedings on an application are concluded and
3-60 all expenditures authorized under this subchapter are paid, the
3-61 commissioner shall provide the applicant a complete statement of
3-62 all deposits and expenditures and shall remit to the applicant any
3-63 balance remaining from the deposit or supplemental deposits made by
3-64 the applicant.
3-65 Sec. 51.178. APPOINTMENT OF SURVEYOR. (a) Not later than
3-66 the 60th day after the date on which the required deposit is paid,
3-67 the commissioner shall appoint a licensed state land surveyor or
3-68 the county surveyor of the county in which all or a part of the
3-69 land claimed to be vacant is located to make a survey of that land.
3-70 (b) The fees and expenses paid for the survey are those
4-1 provided by law. If the fees and expenses are not provided by law,
4-2 the commissioner and surveyor shall make an agreement as to the
4-3 fees and expenses reasonable for the work to be performed.
4-4 (c) The fees and expenses shall be paid by the applicant,
4-5 and may be paid from the initial deposit or any supplementary
4-6 deposits made by the applicant under this subchapter.
4-7 Sec. 51.179. NOTICE TO INTERESTED PERSONS. (a) Not later
4-8 than the 10th day after the date on which the commissioner appoints
4-9 the surveyor, the commissioner shall give notice by certified mail,
4-10 return receipt requested, to all interested persons at the last
4-11 known address. The notice shall contain:
4-12 (1) the date of the notice;
4-13 (2) a statement that a vacancy application has been
4-14 made;
4-15 (3) the name, address, and telephone number of the
4-16 surveyor appointed to make the survey;
4-17 (4) a statement that the survey may begin any time
4-18 after the 20th day after the date of the notice;
4-19 (5) a statement that an interested party is entitled
4-20 to:
4-21 (A) observe the conduct of the survey;
4-22 (B) receive a copy of the final survey report
4-23 and other documents filed by the surveyor; and
4-24 (C) participate in the vacancy proceeding;
4-25 (6) a true and legible copy of the application; and
4-26 (7) other information the commissioner by rule may
4-27 prescribe.
4-28 (b) If the location of an interested person is unknown or if
4-29 a notice is returned as unclaimed or undeliverable, the
4-30 commissioner shall publish notice as prescribed by the Texas Rules
4-31 of Civil Procedure. If notice by publication is made, the survey
4-32 may not begin and further proceedings may not be held until the
4-33 30th day after publication is completed.
4-34 (c) If the applicant, another interested person, or the
4-35 surveyor shows that the delay required by Subsection (b) of this
4-36 section may materially affect the accuracy of the survey because of
4-37 destruction, alteration, or removal of natural features, monuments,
4-38 or witness objects, or for other good cause, the commissioner may
4-39 order the survey to proceed. Notice of the request to proceed with
4-40 the survey and of any order issued in response to the request shall
4-41 be mailed first class to all interested persons.
4-42 Sec. 51.180. WAIVER OF NOTICE. (a) An interested person
4-43 may waive service of the notice required by Section 151.179 of this
4-44 code by filing with the commissioner a sworn affidavit stating the
4-45 person's intent to waive notice. The affidavit shall state that
4-46 the person executing the waiver has been provided with a true copy
4-47 of the application filed with the commissioner.
4-48 (b) The affidavit may also state clearly the interested
4-49 person's intent to waive all further notice of the vacancy
4-50 proceedings. If the affidavit states this intent, it must also
4-51 state prominently and clearly that the interested person is aware
4-52 that waiving the right to further notice may result in the loss of
4-53 the opportunity to appear and to contest the application.
4-54 (c) The commissioner by rule may prescribe the form and
4-55 specific content of the affidavit described in this section,
4-56 including additional information to be included.
4-57 Sec. 51.181. SURVEY. (a) Except when notice by publication
4-58 is required, at any time after the 20th day after the date of the
4-59 notice required by Section 51.179(a) of this code, the surveyor
4-60 shall begin the survey of the land claimed to be vacant.
4-61 (b) The surveyor shall prepare and file in the land office:
4-62 (1) a detailed written report of all aspects of the
4-63 survey, including record research conducted, survey corners
4-64 recovered in the course of the field survey, and details of
4-65 boundary construction using recovered corners;
4-66 (2) field notes in the form and content prescribed by
4-67 law, describing the land and the lines and corners surveyed;
4-68 (3) a complete plat depicting in detail the survey
4-69 results;
4-70 (4) the names and addresses of all persons who have
5-1 possession of the land described in the application and a
5-2 description of the lands occupied by those persons; and
5-3 (5) the names and addresses of all persons who have or
5-4 claim any interest in the land.
5-5 (c) The surveyor shall file the report required by this
5-6 section not later than the 140th day after the date of the notice
5-7 required by Section 51.179(a) of this code. If notice by
5-8 publication is required and the commissioner has not ordered the
5-9 survey to proceed, the surveyor shall file the report not later
5-10 than the 170th day after the date on which notice by publication is
5-11 completed. If the commissioner has ordered the survey to proceed,
5-12 the surveyor shall file the report not later than the 140th day
5-13 after the date of the commissioner's order.
5-14 (d) For good cause shown, the commissioner by written order
5-15 may extend the time for filing the survey. The order shall state
5-16 the cause for the extension and shall be included in the record. A
5-17 single order may not extend the time for filing by more than 60
5-18 days.
5-19 (e) An interested person at the person's own expense may
5-20 have any surveying done that the person considers desirable, but a
5-21 survey report, plat, or field notes based on a survey made by a
5-22 person not qualified by law to survey public lands in this state
5-23 may not be admitted into evidence in a vacancy proceeding or filed
5-24 in the land office.
5-25 (f) The surveyor shall serve a true copy of the survey
5-26 report, field notes, plat, and all other documents filed by the
5-27 surveyor on each interested person, including those named in the
5-28 survey report, by certified mail, return receipt requested, on the
5-29 same day that the survey report is filed in the land office. The
5-30 survey report shall include a certificate of the fact of that
5-31 service.
5-32 Sec. 51.182. ADDITIONAL INTERESTED PERSONS. (a) All
5-33 persons named in the survey report as occupying or as having or
5-34 claiming any interest in the land described in the application
5-35 shall be included in the proceeding as interested persons and shall
5-36 be provided notice as prescribed by this subchapter.
5-37 (b) An application may not be canceled or a proceeding
5-38 terminated because of the discovery of an additional interested
5-39 person unless the commissioner finds that the person filing the
5-40 application knowingly and intentionally omitted the name of the
5-41 person from the application.
5-42 Sec. 51.183. EXCEPTIONS. An interested person may file
5-43 exceptions to the survey report, field notes, and plat not later
5-44 than the 30th day after the date the survey report is filed in the
5-45 land office. A person filing exceptions shall serve a true copy on
5-46 all interested persons and on the surveyor by certified mail,
5-47 return receipt requested. The exceptions shall include a
5-48 certificate of the fact of that service.
5-49 Sec. 51.184. ADDITIONAL SURVEYS. (a) The commissioner or
5-50 the land office staff may consult with the surveyor. The
5-51 commissioner, after notice to the interested persons, may direct
5-52 the surveyor to make additional surveys, to investigate as the
5-53 commissioner considers necessary, and to prepare supplemental
5-54 reports, plats, and field notes the commissioner requires.
5-55 (b) The surveyor shall provide copies of all reports, plats,
5-56 field notes, and other information resulting from additional
5-57 surveys and investigation to all interested persons.
5-58 (c) An interested person may file exceptions or other
5-59 responses not later than the 20th day after the surveyor files the
5-60 required documents with the land office.
5-61 (d) Service of additional documents and exceptions or
5-62 responses to those documents shall be made as provided by Sections
5-63 51.181 and 51.183 of this code.
5-64 Sec. 51.185. ACTION ON APPLICATION. (a) Not later than the
5-65 90th day after the date on which the surveyor files the survey
5-66 report and other documents required to be filed, the commissioner
5-67 shall either deny the application as provided by Section 51.186 of
5-68 this code or hold a hearing to determine whether a vacancy exists.
5-69 (b) Except as provided by Section 51.192 of this code, the
5-70 commissioner may not find that a vacancy exists unless a hearing is
6-1 held.
6-2 (c) The commissioner shall decide all issues raised or that
6-3 could be raised by the application and any exceptions or responses
6-4 to the application, including the existence of a vacancy, the
6-5 boundaries of a vacancy, and the status and rights of any
6-6 interested person as a good-faith claimant or prior applicant.
6-7 (d) The commissioner may not decide in a proceeding on an
6-8 application any claim of the state or permanent school fund for
6-9 damages arising from trespass, the removal or use of minerals or
6-10 geothermal resources, mispayment of proceeds from the sale or use
6-11 of minerals or geothermal resources, damages to the soil,
6-12 vegetation, or other life or habitat, and similar or related
6-13 claims. Those claims may be asserted by the commissioner in
6-14 administrative proceedings under rules adopted by the commissioner
6-15 or through suit brought by the attorney general at the request of
6-16 the commissioner.
6-17 (e) Evidence or testimony regarding the existence or extent
6-18 of mineral development or other economic use of land claimed to be
6-19 vacant may not be introduced or considered, unless that evidence or
6-20 testimony is relevant to determine the existence or boundaries of
6-21 the alleged vacancy or the status of a person as a good-faith
6-22 claimant.
6-23 Sec. 51.186. DENIAL OF APPLICATION. (a) If, after
6-24 reviewing the survey report, any supplemental reports, any
6-25 exceptions to the reports, all pertinent publicly available records
6-26 of the land office and the state archives, and land office staff
6-27 recommendations, the commissioner decides that the land claimed to
6-28 be vacant is not vacant, the commissioner may enter an order
6-29 denying the application. The order shall contain findings of fact,
6-30 conclusions of law, and other matters the commissioner considers
6-31 appropriate.
6-32 (b) The commissioner shall promptly send a true copy of the
6-33 order denying the application to the applicant by certified mail,
6-34 return receipt requested.
6-35 (c) The commissioner shall place in the file assigned to the
6-36 application the original order, all materials filed by the
6-37 surveyor, all exceptions and responses to the surveyor's filings,
6-38 all memoranda provided to the commissioner by the land office
6-39 staff, a list of all files and records of the land office and state
6-40 archives examined by the staff or commissioner in connection with
6-41 the application, and all other relevant papers.
6-42 (d) An interested person may request a rehearing and appeal
6-43 the commissioner's order as provided by the Administrative
6-44 Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas
6-45 Civil Statutes) and by rules adopted by the commissioner consistent
6-46 with that Act. If rehearing is not requested, the order becomes
6-47 final on the 30th day after the date it is signed. If rehearing is
6-48 requested and denied, the order becomes final on the date that time
6-49 for appeal to the district court expires. If appeal is taken, the
6-50 order becomes final on the date that a judgment disposing of the
6-51 order becomes final.
6-52 (e) When the commissioner's order denying the vacancy is
6-53 final, all rights under the application are terminated.
6-54 Sec. 51.187. EFFECT OF FINAL ORDER. (a) A final order of
6-55 the commissioner under this subchapter is conclusive with respect
6-56 to the land described in the application. A final order of the
6-57 commissioner does not have the effect of stare decisis.
6-58 (b) The cancellation, withdrawal, abandonment, or
6-59 termination of an application, the refusal of the commissioner to
6-60 accept an application for filing, or the order or judgment of any
6-61 court resulting in or affecting such an action has no effect on a
6-62 subsequent determination of whether any land described in the
6-63 application is vacant.
6-64 (c) A decision of the commissioner issued before September
6-65 1, 1993, that denies a vacancy application or letter of inquiry is
6-66 not conclusive as to the existence or nonexistence of a vacancy.
6-67 Sec. 51.188. RULEMAKING; VENUE OF APPEALS. (a) A hearing
6-68 under this subchapter and further proceedings arising from the
6-69 hearing shall be conducted in accordance with the Administrative
6-70 Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas
7-1 Civil Statutes) and rules adopted by the commissioner consistent
7-2 with that Act.
7-3 (b) Appeal of a final order of the commissioner is to a
7-4 district court of the county in which the land claimed to be vacant
7-5 or a part of that land is located. The district court shall review
7-6 the commissioner's order under the substantial evidence rule.
7-7 Sec. 51.189. COMMISSIONER'S ORDER. (a) If it appears to
7-8 the commissioner that the alleged vacancy is not in conflict with
7-9 land previously titled, awarded, or sold by the state or its
7-10 predecessor sovereigns, the commissioner shall enter an order
7-11 declaring the existence of a vacancy and determining all other
7-12 issues.
7-13 (b) If it appears to the commissioner that the land claimed
7-14 to be vacant is not vacant, the commissioner shall enter an order
7-15 denying the application and determining all other issues.
7-16 (c) The commissioner shall base the order on the testimony
7-17 and other competent evidence presented at the hearing, the
7-18 surveyor's filings and all supplements to those filings, any
7-19 exceptions or responses to the surveyor's filings and all
7-20 supplements to those filings, and the publicly available records of
7-21 the land office and the state archives. The commissioner and the
7-22 examiner or examiners who conduct hearings on the application may
7-23 consult with the land office staff and the surveyor to the extent
7-24 permitted by the Administrative Procedure and Texas Register Act
7-25 (Article 6252-13a, Vernon's Texas Civil Statutes). The record
7-26 shall include a list of the names and titles of all staff
7-27 consulted, a list of the files and documents of the land office and
7-28 state archives examined, and a copy of all memoranda provided to
7-29 the examiners or commissioner by the land office staff or by the
7-30 surveyor.
7-31 (d) The order shall contain:
7-32 (1) findings of fact;
7-33 (2) conclusions of law;
7-34 (3) a field note description of the land, if any,
7-35 found to be vacant sufficient to locate it on the ground and other
7-36 elements required by law;
7-37 (4) an accurate plat of the land, if any, found to be
7-38 vacant consistent with the field notes and prepared by the surveyor
7-39 or a licensed state land surveyor on the land office staff; and
7-40 (5) other matters the commissioner considers
7-41 appropriate.
7-42 (e) The commissioner's order may adopt, without restating,
7-43 the findings of fact and conclusions of law stated in a proposal
7-44 for decision prepared by the examiner or examiners who conducted
7-45 the hearings and any opinion or statement contained in that
7-46 proposal for decision.
7-47 Sec. 51.190. DETERMINATION OF BOUNDARIES; REOPENING.
7-48 (a) In determining the boundaries and size of a vacancy, the
7-49 commissioner is not restricted to a description of the land claimed
7-50 to be vacant that is provided by the applicant, the surveyor, or an
7-51 interested party. The commissioner shall adopt the description of
7-52 a vacancy that best describes the vacancy and is consistent with
7-53 the information available under this section.
7-54 (b) If in determining the boundaries and size of a vacancy,
7-55 it becomes apparent to the commissioner that persons who have not
7-56 been named as interested persons and who have not been served
7-57 notice of the proceeding under the application may be affected by
7-58 the finding that a vacancy exists at the location and with the
7-59 boundaries believed by the commissioner to conform to the record,
7-60 the proceeding shall be reopened and the persons affected shall be
7-61 joined as interested persons and given an opportunity to
7-62 participate adequately in the proceeding. This subsection does not
7-63 require the refiling of an application or the conduct of a new
7-64 survey by the surveyor.
7-65 Sec. 51.191. GOOD-FAITH CLAIMANT STATUS. (a) An applicant
7-66 or interested person who wishes to assert status as a good-faith
7-67 claimant may file notice of claim of good-faith status at any time
7-68 before the 20th day preceding the date on which the first hearing
7-69 before the commissioner begins. The notice of claim of good-faith
7-70 status shall state the grounds for the claim and describe the land
8-1 claimed to be affected by the good-faith status. The notice shall
8-2 be filed in the land office and served on all interested persons by
8-3 certified mail, return receipt requested.
8-4 (b) Filing notice of claim of good-faith status is not an
8-5 admission by the person asserting the claim that a vacancy exists.
8-6 Sec. 51.192. ORDER WITHOUT NOTICE AND HEARING. (a) An
8-7 applicant who asserts status as a good-faith claimant may present
8-8 evidence to the commissioner that:
8-9 (1) the good-faith claimant owns all of the land and
8-10 interests in land completely surrounding the land claimed to be
8-11 vacant;
8-12 (2) there is no subsisting prior application covering
8-13 the land described in the good-faith claimant's application;
8-14 (3) no previous application has been made covering the
8-15 land described in the good-faith claimant's application; and
8-16 (4) the good-faith claimant meets all other
8-17 requirements of a good-faith claimant.
8-18 (b) If the commissioner finds that the evidence presented is
8-19 accurate, further notice to other persons is not required and, on
8-20 acceptance for filing by the commissioner of a survey made by a
8-21 licensed state land surveyor or the county surveyor of the county
8-22 in which the land claimed to be vacant or a part of that land is
8-23 located, the commissioner may enter an order declaring the
8-24 existence of the vacancy and determining the good-faith status of
8-25 the applicant.
8-26 (c) For purposes of this section, land claimed to be vacant
8-27 and surrounded by lands owned only by the good-faith claimant and
8-28 the state is considered to be surrounded completely by land owned
8-29 by the good-faith claimant.
8-30 (d) Two or more persons may jointly apply as good-faith
8-31 claimants under this section if together they meet the requirements
8-32 of Subsection (a) of this section.
8-33 (e) A person who would have been an interested person under
8-34 an application made under this subchapter by a person other than a
8-35 good-faith claimant may move to set aside an order entered under
8-36 this section by filing a written motion with the commissioner not
8-37 later than the second anniversary of the date of that order. The
8-38 person shall serve a true copy of the motion by certified mail,
8-39 return receipt requested, on the applicant and all persons holding
8-40 or claiming under the applicant.
8-41 (f) The commissioner shall set aside an order issued under
8-42 this section finding that a vacancy exists if, after notice and
8-43 hearing, the commissioner finds that the person asserting rights
8-44 under this section, at the time the order declaring the vacancy was
8-45 entered, did not:
8-46 (1) qualify as a good-faith claimant under this
8-47 subchapter;
8-48 (2) own all of the land and interests in land
8-49 surrounding the land claimed to be vacant; or
8-50 (3) meet another material requirement of this section.
8-51 (g) The commissioner on the commissioner's own motion may
8-52 set aside an order after notice and hearing as required by
8-53 Subsections (e) and (f) of this section.
8-54 (h) If the order is set aside, the commissioner shall reopen
8-55 the proceeding on the application and conduct the reopened
8-56 proceeding in the same manner as proceedings on other applications.
8-57 (i) The issues in a reopened proceeding are limited to the
8-58 status of the applicant as a good-faith claimant entitled to rights
8-59 under this section and the rights of any other person as an
8-60 applicant or good-faith claimant.
8-61 (j) An application of a good-faith claimant who does not own
8-62 all of the land and interests in land completely surrounding the
8-63 land claimed to be vacant is treated as an application under other
8-64 sections of this subchapter.
8-65 Sec. 51.193. SALE OR LEASE OF VACANCY. (a) When a vacancy
8-66 has been established by final order, the school land board may sell
8-67 or lease the vacancy as provided by this subchapter.
8-68 (b) The board shall set the sale price and other terms and
8-69 conditions as in all other sales of other lands dedicated to the
8-70 permanent school fund. The sale price may not be less than the
9-1 fair market value as determined by an appraisal conducted by the
9-2 land office.
9-3 (c) The fee prescribed in Section 32.110(a) of this code
9-4 applies to all sales and leases made under this subchapter.
9-5 (d) The board may allow a credit against the sale price in
9-6 an amount not to exceed the actual cost of the survey paid by an
9-7 applicant or good-faith claimant if:
9-8 (1) the purchaser is a person exercising a
9-9 preferential right to purchase under this subchapter;
9-10 (2) the board has reserved all mineral and geothermal
9-11 leasing rights; and
9-12 (3) the board finds that the fair market value of the
9-13 mineral estate is equal to or exceeds 50 percent of the amount of
9-14 the credit.
9-15 Sec. 51.194. CONDITIONS OF SALE; MINERAL AWARDS. (a) In
9-16 all sales, the board shall reserve to the permanent school fund all
9-17 oil, gas, sulphur, geothermal resources, and other minerals and
9-18 shall determine the manner in which those minerals and geothermal
9-19 resources are to be leased.
9-20 (b) Before the sale of a vacancy, the land office shall
9-21 prepare and present to the board a study of the mineral prospects
9-22 and value of the vacancy, taking into consideration the size and
9-23 configuration of the vacancy, its location with respect to other
9-24 surrounding and nearby tracts, the proximity of mineral production,
9-25 and the likelihood of future mineral leasing and development. The
9-26 study shall include a recommendation as to the method most
9-27 advantageous to the state by which the vacancy could be leased.
9-28 (c) The board shall review the study and land office
9-29 recommendations and shall determine whether:
9-30 (1) the state shall retain all leasing rights and the
9-31 vacancy shall be leased as provided in Subchapter B, Chapter 52,
9-32 and Subchapters B and E, Chapter 53, of this code; or
9-33 (2) the owner of the soil shall be designated to
9-34 execute leases as the agent of the state subject to the rights,
9-35 obligations, and liabilities of Subchapter F, Chapter 52, and
9-36 Subchapter C, Chapter 53, of this code.
9-37 (d) If the board determines that the owner of the soil shall
9-38 act as agent under Subsection (c)(2) of this section, the board
9-39 shall establish the division of bonus, rental, and royalty between
9-40 the permanent school fund and the owner of the soil. The portion
9-41 to be paid to the owner of the soil may not be less than 20 percent
9-42 or more than 50 percent. The board may establish different
9-43 portions to be paid to the owner of the soil for the lease of
9-44 different substances.
9-45 (e) If the board provides for lease by the owner of the soil
9-46 under Subsection (c)(2) of this section, the original purchaser is
9-47 a good-faith claimant, and the vacancy was established under an
9-48 application made by a person other than a good-faith claimant, the
9-49 board shall award the applicant a perpetual nonparticipating
9-50 royalty of not less than 1/32 or more than 1/16 of the value of all
9-51 oil, gas, and other minerals produced.
9-52 (f) If the board determines that the state shall retain all
9-53 leasing rights as provided in Subsection (c)(1) of this section,
9-54 the board shall award:
9-55 (1) to an applicant other than a good-faith claimant,
9-56 a perpetual nonparticipating royalty of 1/32 of the value of oil,
9-57 gas, and other minerals produced; and
9-58 (2) to a good-faith claimant purchasing the vacancy, a
9-59 nonparticipating royalty of 1/32 of the value of oil, gas, and
9-60 other minerals produced.
9-61 (g) If a preferential right to obtain the first mineral
9-62 lease on a vacancy is exercised, the applicant, whether or not a
9-63 good-faith claimant, is entitled to a royalty credit equal to 1/4
9-64 of the royalty retained by the state under the lease for a period
9-65 of five years from the date of first production under the first
9-66 lease awarded.
9-67 Sec. 51.195. PREFERENTIAL RIGHT OF GOOD-FAITH CLAIMANT.
9-68 (a) A good-faith claimant has a preferential right to purchase or
9-69 lease the portion of a vacancy subject to the good-faith claim.
9-70 (b) A good-faith claimant may exercise the preferential
10-1 right by filing a notice of intent to purchase or lease, on a form
10-2 prescribed by the board, not later than the 90th day after the date
10-3 the order establishing the vacancy becomes final. The good-faith
10-4 claimant shall describe in the notice the portion of the vacancy
10-5 the good-faith claimant seeks to purchase or lease. The good-faith
10-6 claimant shall mail a copy of the notice to the applicant and to
10-7 all other interested persons who have asserted status as good-faith
10-8 claimants.
10-9 (c) All preferential rights held by a good-faith claimant
10-10 expire if the good-faith claimant does not file the notice of
10-11 intent within the time prescribed by Subsection (b) of this section
10-12 or does not complete the purchase or lease within 60 days after the
10-13 board sets the terms of the purchase or lease. For good cause
10-14 shown, the board may extend the time to complete the purchase or
10-15 lease by a period not to exceed 90 days.
10-16 (d) A good-faith claimant exercising a preferential right
10-17 shall repay to the applicant the applicant's reasonable expenses
10-18 incurred in determining the existence of a vacancy, excluding
10-19 filing and attorney's fees, not later than the date on which the
10-20 sale or purchase by the good-faith claimant is completed. Failure
10-21 to pay the expenses cancels the preferential right of the
10-22 good-faith claimant.
10-23 Sec. 51.196. PREFERENTIAL RIGHT OF APPLICANT OTHER THAN
10-24 GOOD-FAITH CLAIMANT. (a) On the expiration of the preferential
10-25 right of a good-faith claimant to purchase or lease or if there is
10-26 no good-faith claimant, an applicant who is not a good-faith
10-27 claimant has a preferential right to purchase or lease all or any
10-28 portion of the vacancy.
10-29 (b) An applicant may exercise the preferential right by
10-30 filing a notice of intent to purchase or lease, on a form
10-31 prescribed by the board, not later than the 90th day after the date
10-32 on which the rights of the good-faith claimant expire. The
10-33 applicant shall describe in the notice the portion of the vacancy
10-34 the applicant seeks to purchase or lease. The applicant shall mail
10-35 a copy of the notice to all other interested persons asserting
10-36 status as good-faith claimants.
10-37 (c) All preferential rights held by an applicant expire if
10-38 the applicant does not file the notice of intent within the time
10-39 prescribed by Subsection (b) of this section or does not complete
10-40 the purchase or lease within 60 days after the date on which the
10-41 board sets the terms of the purchase or lease. For good cause
10-42 shown, the board may extend the time to complete the purchase or
10-43 lease by a period not to exceed 90 days.
10-44 Sec. 51.197. RIGHTS ASSIGNABLE. An applicant or good-faith
10-45 claimant may assign all rights in a vacancy or land claimed to be
10-46 vacant. The assignment must be in writing. The assignor shall
10-47 record the assignment in the real property records of the county or
10-48 counties in which the vacancy or land claimed to be vacant is
10-49 located and file a certified copy of the recorded assignment in the
10-50 land office.
10-51 Sec. 51.198. LEASE TERMS UNDER PREFERENTIAL RIGHTS. The
10-52 board shall prescribe terms for preferential purchases or leases
10-53 consistent with this subchapter. The board may not grant a
10-54 preferential lease with a royalty of less than 1/8 of the value of
10-55 all oil, gas, and sulphur produced or less than five percent of the
10-56 value of all geothermal resources and all other minerals produced.
10-57 Sec. 51.199. EFFECT OF PRIOR CONVEYANCES. (a) A mineral
10-58 lease, surface lease, deed, or any other conveyance of any interest
10-59 in land executed by a good-faith claimant before the date of
10-60 completion of a sale or lease under this subchapter does not give
10-61 the grantee under that conveyance any interest in or to the vacancy
10-62 or its minerals.
10-63 (b) A title to land or an interest in land acquired from the
10-64 state under a preferential right does not pass as after-acquired
10-65 title under a covenant of general warranty, description, or other
10-66 provision contained in a conveyance executed before the date of
10-67 completion of a sale or lease under this subchapter.
10-68 Sec. 51.200. RULEMAKING AUTHORITY. (a) The commissioner
10-69 may adopt rules consistent with this subchapter relating to
10-70 applications to purchase or lease vacancies and the determination
11-1 of the existence of vacancies.
11-2 (b) The board may adopt rules consistent with this
11-3 subchapter relating to the sale and lease of vacancies.
11-4 <Sec. 51.171. ><Sale and Lease of Vacant Land><. Vacant and
11-5 unsurveyed public school land except riverbeds, channels, islands,
11-6 lakes, bays, and other areas in tidewater limits shall be sold and
11-7 leased under the provisions of this subchapter.>
11-8 <Sec. 51.172. ><Definitions><. In this subchapter:>
11-9 <(1) "Good-faith claimant" and "claimant" mean any
11-10 person:>
11-11 <(A) who occupies or uses or has previously
11-12 occupied or used or whose predecessors in interest have occupied or
11-13 used a vacancy for purposes other than exploring for or removing
11-14 oil, gas, sulphur, or other minerals from the vacancy; and>
11-15 <(B) who has himself or whose predecessors in
11-16 interest had the vacancy enclosed or within definite recognized
11-17 boundaries and in possession for a period of 10 years with a
11-18 good-faith belief that the vacancy was included inside the
11-19 boundaries of the survey or surveys that were previously titled,
11-20 awarded, or sold under circumstances that would have vested title
11-21 in the vacancy if it were actually located within the boundaries of
11-22 the survey or surveys whose boundaries are recognized boundaries in
11-23 the community.>
11-24 <(2) "Vacancy" means an area of unsurveyed public
11-25 school land that:>
11-26 <(A) is not in conflict on the ground with land
11-27 previously titled, awarded, or sold;>
11-28 <(B) has not been listed on the records of the
11-29 land office as public school land; and>
11-30 <(C) was, on the date of filing, neither subject
11-31 to an earlier subsisting application to purchase or lease by a
11-32 discoverer or claimant nor involved in pending litigation brought
11-33 by the state to recover the land.>
11-34 <(3) "Applicant" means any person, other than a
11-35 good-faith claimant, who discovers and files an application to
11-36 purchase or lease a vacancy.>
11-37 <Sec. 51.174. ><Purchase of Vacancy by Adjoining Landowner><.
11-38 If the owner of the land adjoining an alleged vacancy files an
11-39 application to purchase the vacancy and no application to purchase
11-40 or lease the vacancy has been previously filed, the owner of the
11-41 adjoining land, who otherwise qualifies as a good-faith claimant,
11-42 shall be considered a good-faith claimant regardless of the length
11-43 of time he has owned the adjoining land or has enclosed the vacancy
11-44 or has had it within definite recognized boundaries and in
11-45 possession with the belief that the vacancy was included within his
11-46 survey.>
11-47 <Sec. 51.175. ><Application to Purchase or Lease a Vacancy><.
11-48 (a) An applicant who claims that a vacancy exists and who desires
11-49 to purchase or lease the vacancy shall file with the county
11-50 surveyor in the county in which any part of the vacancy is located
11-51 a sworn written application in duplicate to purchase or lease the
11-52 vacancy.>
11-53 <(b) The application shall:>
11-54 <(1) describe the land that is claimed to be vacant;>
11-55 <(2) state the desire of the applicant to purchase or
11-56 lease the land under the provisions of this chapter;>
11-57 <(3) give the names and addresses of any owners or
11-58 claimants of land or any interest in land or of leases on,
11-59 adjoining, overlapping, or including the land claimed to be vacant
11-60 as far as can be determined from the records of the land office and
11-61 the county clerk's office in the county in which the land is
11-62 located and the tax records of the county in which the land is
11-63 located;>
11-64 <(4) give the names and addresses of any persons who,
11-65 from facts known to the applicant, assert any right to the alleged
11-66 vacant land; and>
11-67 <(5) state that the applicant knows of no other
11-68 claimants than those listed.>
11-69 <Sec. 51.176. ><Filing Fee><. At the time the application is
11-70 filed, the applicant shall pay to the county surveyor a filing fee
12-1 set by the board of not less than $5.>
12-2 <Sec. 51.177. ><Filing Application With County><. (a) The
12-3 county surveyor shall mark the exact date and hour of filing on the
12-4 original and duplicate copy of each application and shall return
12-5 one copy of the application to the applicant and shall record the
12-6 other copy in a book kept for that purpose.>
12-7 <(b) If the county does not have a county surveyor, the
12-8 preliminary filing of the application shall be with the county
12-9 clerk. The county clerk shall record the application in a book
12-10 kept for that purpose and not in the deed records.>
12-11 <Sec. 51.178. ><Filing Application With Commissioner><.
12-12 (a) Within 10 days after the application is filed with the county
12-13 surveyor, the copy of the application that is returned to the
12-14 applicant shall be filed with the commissioner.>
12-15 <(b) The commissioner shall mark the date of filing on the
12-16 application.>
12-17 <(c) The applicant shall pay to the commissioner a filing
12-18 fee set by the commissioner in an amount not less than $100.>
12-19 <(d) Failure to file the application with the commissioner
12-20 in the time provided by this section and to pay the filing fee
12-21 constitutes a waiver of all rights under the application.>
12-22 <(e) As between applicants, priority dates from the time of
12-23 filing the application with the county surveyor.>
12-24 <Sec. 51.179. ><Deposit><. (a) The commissioner shall notify
12-25 the applicant by letter of the estimated cost of proceeding under
12-26 the application, and within 30 days after the date of the
12-27 commissioner's letter, the applicant shall make a deposit with the
12-28 commissioner to pay the cost of the work that may be necessary to
12-29 comply with the request contained in the application.>
12-30 <(b) On failure to make the deposit required under this
12-31 section, all rights under the application are lost.>
12-32 <Sec. 51.180. ><Insufficient Deposit><. (a) If the deposit is
12-33 insufficient, the applicant shall be requested by letter to make a
12-34 further deposit of an amount determined by the commissioner.>
12-35 <(b) If the further deposit is not made within 30 days after
12-36 the date of the letter, work shall be discontinued and the
12-37 application canceled with the cancellation endorsed on the
12-38 application.>
12-39 <(c) On cancellation, the right to purchase or lease the
12-40 vacancy under the application is lost.>
12-41 <Sec. 51.181. ><Appeal of Amount of Deposit><. (a) The
12-42 applicant is entitled to appeal the estimated cost determined by
12-43 the commissioner to a district court in Travis County by giving
12-44 written notice to the commissioner within 15 days after receiving
12-45 the estimated cost from the commissioner as provided in Sections
12-46 51.179 through 51.180 of this code.>
12-47 <(b) The applicant has 15 days after the district court
12-48 enters its decision in which to pay the amount ordered by the
12-49 court's decision.>
12-50 <Sec. 51.182. ><Deposits as Trust Fund><. Deposits provided
12-51 under Sections 51.179 through 51.180 of this code shall be a
12-52 special trust fund to be used only for the purpose authorized by
12-53 this subchapter.>
12-54 <Sec. 51.183. ><Statement and Refund of Remaining Deposit><. As
12-55 soon as the total expense properly charged against the deposit is
12-56 determined, the commissioner shall render a complete statement to
12-57 the applicant together with any balance remaining from the deposit.>
12-58 <Sec. 51.184. ><Notice of Intention to Survey><. (a) After the
12-59 application is filed with the commissioner and the deposit is made,
12-60 the commissioner shall mail a notice of intention to survey to all
12-61 persons named as interested persons in the application at the
12-62 addresses provided in the application and to the attorney general.>
12-63 <(b) The notices shall be deposited in the post office in
12-64 Austin at least 10 days before the date set for the beginning of
12-65 the survey.>
12-66 <Sec. 51.185. ><Appointment of Surveyor><. (a) The
12-67 commissioner shall appoint a surveyor to make the survey in
12-68 accordance with the notice of intention to survey.>
12-69 <(b) The surveyor shall be a surveyor licensed by the state
12-70 or the county surveyor of the county in which the vacancy or part
13-1 of the vacancy is located.>
13-2 <(c) The fees and expenses paid for the survey shall be the
13-3 same as provided by law, and if the fees and expenses are not
13-4 provided by law, the commissioner and surveyor shall make an
13-5 agreement as to fees and expenses that shall not be more than an
13-6 amount that is reasonable for the work performed.>
13-7 <(d) The fees and expenses shall be paid by the applicant.>
13-8 <Sec. 51.186. ><Survey Report><. (a) Except as provided in
13-9 Subsection (b) of this section, a written report of the survey,
13-10 together with field notes describing the land and the lines and
13-11 corners surveyed and a plat showing the results of the survey,
13-12 shall be filed in the land office within 120 days from the filing
13-13 of the application.>
13-14 <(b) The commissioner may extend the time for filing the
13-15 survey if good cause is shown. The cause for extension of time
13-16 shall be stated in writing and filed as part of the record of the
13-17 proceedings. An extension of time may not be more than 60 days.>
13-18 <(c) The survey report shall give the names and post-office
13-19 addresses of all persons who have possession of the land described
13-20 in the application and of all persons found by the surveyor who
13-21 have or claim any interest in the land.>
13-22 <Sec. 51.187. ><Personal Survey><. Any interested party at his
13-23 own expense may have any surveying done that he considers
13-24 desirable.>
13-25 <Sec. 51.188. ><Hearing and Notice><. (a) Within 60 days after
13-26 the surveyor makes his report, a hearing may be held before the
13-27 commissioner to determine whether or not there is a vacancy.>
13-28 <(b) The date for the hearing shall be provided in the
13-29 notice that the commissioner shall give to all persons thought to
13-30 be interested parties and to all persons shown by the record of the
13-31 proceeding to be interested parties, including the attorney
13-32 general.>
13-33 <(c) The notice of the hearing shall be deposited at the
13-34 post office in Austin at least 10 days before the date set for the
13-35 hearing.>
13-36 <(d) At the hearing, the state and each interested party,
13-37 whether or not he received notice, is entitled to be heard.>
13-38 <(e) The hearing shall be conducted in accordance with the
13-39 provisions of the Administrative Procedure and Texas Register Act
13-40 (Article 6252-13a, Vernon's Texas Civil Statutes).>
13-41 <Sec. 51.189. ><Determination of Vacancy by Commissioner><.
13-42 (a) If it appears to the commissioner that the alleged vacancy is
13-43 not in conflict with land previously titled, awarded, or sold by
13-44 the state, he shall give prompt notice of this finding to the
13-45 applicant and to all persons who were previously identified as
13-46 interested parties.>
13-47 <(b) After the notice is given under Subsection (a) of this
13-48 section, and subject to the preferential right of a good-faith
13-49 claimant, the applicant is entitled for 120 days to purchase or
13-50 lease the portion of the land that is determined to be vacant at a
13-51 price set by the board as provided in this code and with the same
13-52 royalty reservation as provided in Section 51.201 of this code.>
13-53 <(c) No award may be made by the commissioner unless a
13-54 hearing is held, and no presumption may obtain in a suit involving
13-55 the existence of a vacancy as a result of the action of the
13-56 commissioner in this respect.>
13-57 <Sec. 51.190. ><Purchase or Lease by Applicant><. (a) If there
13-58 is no good-faith claimant or if no good-faith claimant exercises
13-59 his preferential right within the time allowed, the applicant is
13-60 entitled to purchase or lease, according to his application, the
13-61 vacancy for which he made application and which is found to exist.>
13-62 <(b) Consideration shall be determined by the board as
13-63 provided in this subchapter, but without consideration of potential
13-64 mineral value.>
13-65 <Sec. 51.191. ><Suit to Recover Land><. A good-faith claimant
13-66 of a vacant or unsurveyed tract of land has 30 days after the sale
13-67 or lease of the land to the applicant to institute suit to set
13-68 aside the sale or lease of the land. If the suit is not instituted
13-69 within the 30-day period by the good-faith claimant, he loses all
13-70 preferential rights to purchase or lease the land.>
14-1 <Sec. 51.192. ><Denial of Vacancy by Commissioner><. (a) If
14-2 the commissioner decides that the area alleged to be vacant is not
14-3 vacant, he shall endorse this decision on the application and file
14-4 it with his finding.>
14-5 <(b) The commissioner shall promptly notify the applicant of
14-6 his decision by registered mail and shall file all reports and
14-7 papers received in connection with the application.>
14-8 <(c) After the commissioner takes all action provided under
14-9 Subsections (a) and (b) of this section, he shall take no further
14-10 action with respect to the application unless the existence of the
14-11 alleged vacancy is determined by a court of competent jurisdiction.>
14-12 <(d) Within 90 days after the commissioner's decision is
14-13 mailed, unless the applicant files suit in a district court in a
14-14 county in which part of the alleged vacancy is located to litigate
14-15 the question of the existence of a vacancy, the applicant's
14-16 application and all preference rights acquired to purchase or lease
14-17 the alleged vacancy become null and void.>
14-18 <Sec. 51.193. ><Preferential Right of Good-Faith Claimant><.
14-19 (a) A good-faith claimant who ascertains that a vacancy exists or
14-20 that a claimed vacancy may exist or who has been notified by the
14-21 commissioner that a vacancy has been found to exist on land claimed
14-22 by him shall have a preferential right to purchase or lease the
14-23 vacancy at any time until 90 days after a decision of the
14-24 commissioner declaring the existence of a vacancy.>
14-25 <(b) The good-faith claimant may purchase or lease the
14-26 vacancy by submitting a written application to the commissioner for
14-27 the purchase or lease of the vacancy and by furnishing to the
14-28 commissioner satisfactory proof that he is a good-faith claimant.>
14-29 <(c) The good-faith claimant is entitled to purchase or
14-30 lease the portion of the land that is vacant at the price set by
14-31 the board subject to the royalty reservations provided in this
14-32 subchapter which are effective on the date the application is
14-33 filed.>
14-34 <Sec. 51.194. ><Term of Preferential Right><. A good-faith
14-35 claimant has a preferential right to purchase the land alleged or
14-36 adjudicated to be vacant until 90 days after the final judicial
14-37 determination of the existence of the vacancy.>
14-38 <Sec. 51.195. ><Effect of Good-Faith Claimant's Application><.
14-39 The application of a good-faith claimant may not be used or
14-40 considered as an admission on his part that a vacancy exists.>
14-41 <Sec. 51.196. ><Procedure for Purchase or Lease by Good-Faith
14-42 Claimant><. (a) On the date a good-faith claimant's application is
14-43 filed, if there is no valid and subsisting application previously
14-44 filed by an applicant covering the alleged vacancy, the application
14-45 of the good-faith claimant shall be filed and shall be accompanied
14-46 by:>
14-47 <(1) a filing fee set by the commissioner in an amount
14-48 not less than $1;>
14-49 <(2) a written report of a surveyor licensed by the
14-50 state or by the county surveyor of any county in which all or part
14-51 of the alleged vacancy is located;>
14-52 <(3) field notes describing the land and the lines and
14-53 corners surveyed;>
14-54 <(4) a plat showing the results of the survey; and>
14-55 <(5) any proof that will show to the satisfaction of
14-56 the commissioner that the applicant is a good-faith claimant.>
14-57 <(b) The good-faith claimant may file his application to
14-58 purchase or lease and within 120 days from the date of filing the
14-59 application with the commissioner have a survey made of the alleged
14-60 vacancy and file the report, field notes, and plat in the land
14-61 office together with proof that he is a good-faith claimant.>
14-62 <(c) If it appears to the commissioner that the alleged
14-63 vacancy is not in conflict with land previously titled, awarded, or
14-64 sold by the state, the commissioner shall grant the application
14-65 under the provisions of this subchapter. Before the application is
14-66 granted, the commissioner may hold a hearing at which interested
14-67 persons may appear.>
14-68 <Sec. 51.197. ><Failure to Exercise Preferential Right Within
14-69 Certain Time><. (a) If the good-faith claimant does not exercise
14-70 his preferential right to purchase within 90 days after a decision
15-1 of the commissioner under the provisions of this subchapter, the
15-2 applicant shall be awarded an oil, gas, and mineral lease on not
15-3 more than seven-eighths of the minerals.>
15-4 <(b) The consideration for the lease shall not be less than
15-5 $1 an acre, and the lease shall be for a primary term set by the
15-6 board of not more than five years.>
15-7 <(c) The lease shall be subject to other consideration and
15-8 terms required by the board and the preferential right of a
15-9 good-faith claimant until 90 days after final judicial
15-10 determination under Section 51.194 of this code.>
15-11 <Sec. 51.198. ><Repayment of Applicant's Expenses><. Within 90
15-12 days after the commissioner declares the vacancy to exist, the
15-13 good-faith claimant shall repay to the applicant the expenses
15-14 incurred in determining the existence of a vacancy, except filing
15-15 fees, as provided in this subchapter or the good-faith claimant
15-16 will lose all preferential rights to purchase or lease the land.>
15-17 <Sec. 51.199. ><Judicial Determination of Good-Faith Claimant><.
15-18 If the commissioner fails to determine whether or not there is a
15-19 good-faith claimant or if his decision is questioned by an
15-20 applicant or by a person asserting to be a good-faith claimant, the
15-21 issue shall be determined in any suit brought under this subchapter
15-22 to determine the existence of the alleged vacancy.>
15-23 <Sec. 51.200. ><Rights of Holders of Title and Holders of
15-24 Interests in Title of a Claimant><. (a) If all owners holding title
15-25 under the claimant or an interest in the title under which the
15-26 claimant claims to be a good-faith claimant accept the provisions
15-27 of this section and contribute their proportionate part of the
15-28 royalty reserved to the state and the royalty awarded to the
15-29 applicant, the purchase by the good-faith claimant under the
15-30 preferential right inures distributively to their benefit.>
15-31 <(b) The royalty reservations shall be deducted
15-32 distributively and proportionately from the mineral interest of
15-33 each owner including mineral leases if the area is under a mineral
15-34 lease.>
15-35 <(c) As a condition of this subchapter, the good-faith
15-36 claimant receiving the patent or award or for whose benefit a
15-37 patent or award is received shall recognize the proportionate
15-38 interests of other owners who benefit by the award of the
15-39 preferential right.>
15-40 <(d) The consideration for the purchase shall be determined
15-41 by the board without considering the potential value of minerals or
15-42 any improvements located on the vacancy but shall not be less than
15-43 $1 an acre. The state retains the right to recover from the party
15-44 or parties liable the market value when produced of all oil, gas,
15-45 sulphur, or other minerals that may have been produced from the
15-46 area before the effective date of the patent or award less an
15-47 offset to the operator for the actual cost of development and
15-48 production.>
15-49 <(e) No mineral lease executed by a good-faith claimant
15-50 before filing the vacancy claim may give the lessee any interest in
15-51 or to the vacancy.>
15-52 <(f) No title to land or to a mineral interest in land
15-53 acquired from the state under a preferential right may be held to
15-54 pass as after-acquired title because of any covenant of general
15-55 warranty, description, or other provision contained in any
15-56 conveyance executed before the date of award under the preferential
15-57 right.>
15-58 <Sec. 51.201. ><Reservation of Minerals><. (a) If a good-faith
15-59 claimant purchases a vacancy located within five miles of a well
15-60 producing oil, gas, or other minerals in commercial quantities, not
15-61 less than a free royalty of one-eighth of all oil, gas, sulphur,
15-62 and other minerals shall be reserved to the state.>
15-63 <(b) If a vacancy that is not covered by Subsection (a) of
15-64 this section is sold, not less than a free royalty of one-sixteenth
15-65 of all oil and gas production and one-eighth of all sulphur and
15-66 other minerals shall be reserved to the state.>
15-67 <(c) If a good-faith claimant fails to exercise his
15-68 preferential right to purchase a vacancy within 90 days after the
15-69 commissioner determines the existence of the vacancy, the mineral
15-70 interest reserved by the state shall be not less than a free
16-1 royalty of one-eighth of the oil and gas and not less than a free
16-2 royalty of one-sixth of the sulphur and other minerals.>
16-3 <(d) The state shall reserve not less than a free royalty of
16-4 one-eighth of all oil, gas, sulphur, and other minerals on
16-5 vacancies that are leased by the state as determined by the board.>
16-6 <(e) An oil, gas, or other mineral lease on land in which
16-7 the state reserves a free royalty interest is not effective until a
16-8 certified copy of the recorded lease is filed in the General Land
16-9 Office.>
16-10 <Sec. 51.202. ><Mineral Reservations Under Sale Made to
16-11 Claimant After 90-Day Deadline><. If a good-faith claimant does not
16-12 exercise his preferential right to purchase until after 90 days
16-13 after the decision of the commissioner determining the existence of
16-14 a vacancy, the sale made to the claimant shall be subject to a
16-15 reservation to the state of not less than a free royalty of
16-16 one-eighth of all oil, gas, sulphur, and other minerals and subject
16-17 to any lease made by the state to the applicant.>
16-18 <Sec. 51.203. ><Royalty for Applicant><. If there is a valid
16-19 subsisting application previously filed by an applicant on the date
16-20 that the good-faith claimant files his application to purchase
16-21 under a preferential right, and if the good-faith claimant
16-22 exercises his preferential right to purchase within 90 days after
16-23 the commissioner's decision under this subchapter, a free royalty
16-24 of one-sixteenth of all oil, gas, sulphur, and other minerals that
16-25 may be produced from the land shall be added to the royalty
16-26 interest reserved to the state and shall be awarded by the state to
16-27 the applicant. The free royalty shall be deducted proportionately
16-28 from the good-faith claimant's award.>
16-29 <Sec. 51.205. ><Appeal><. (a) A person who is aggrieved by any
16-30 action taken by the commissioner under the provisions of this
16-31 subchapter or with reference to any application to purchase or
16-32 lease a vacancy may institute suit in the district court of any
16-33 county in which part of the land is located to try the issues of
16-34 boundary, title, ownership of any alleged vacancy involved, and
16-35 preferential rights of the person.>
16-36 <(b) Within 30 days after the suit is filed, the plaintiff
16-37 shall have a certified copy of the original petition served on the
16-38 attorney general and the commissioner by the sheriff or a constable
16-39 of Travis County and shall have the officer's return filed with the
16-40 papers in the suit.>
16-41 <(c) Whether the attorney general answers or intervenes in
16-42 the suit or institutes a suit, the venue of all suits following the
16-43 filing of the application shall be in the county in which the land
16-44 or part of the land is located.>
16-45 <(d) If the litigation is prosecuted to a final judgment,
16-46 the judgment is binding on the state.>
16-47 <(e) The attorney general must intervene on behalf of the
16-48 state in suits brought under this section.>
16-49 <(f) The suit must be filed in accordance with the
16-50 provisions of the Administrative Procedure and Texas Register Act
16-51 (Article 6252-13a, Vernon's Texas Civil Statutes) relating to
16-52 appeals from agency decisions.>
16-53 SECTION 2. Section 118.161, Local Government Code, is
16-54 amended to read as follows:
16-55 Sec. 118.161. Fee Schedule. A county surveyor shall collect
16-56 the following fees:
16-57 (1) for recording the field notes and plat of a survey
16-58 for a tract of land, providing copies of field notes, plats, or
16-59 other papers or records, and certifying any copies, the same amount
16-60 collected by the county clerk of the county as a filing fee;
16-61 (2) for surveying a tract of land or designating a
16-62 homestead:
16-63 (A) the actual expenses incurred, including all
16-64 expenses of making the survey, preparing a survey report, field
16-65 notes, plat, and other documents required by law, and filing those
16-66 documents in the records of the county surveyor or the General Land
16-67 Office; and
16-68 (B) any fees for surveying services agreed on by
16-69 the county surveyor and the person seeking the services; and
16-70 (3) for filing an application to purchase or lease a
17-1 vacancy or for surveying a vacancy, the amounts provided by
17-2 Subchapter E, Chapter 51, Natural Resources Code. <Inspecting and
17-3 recording the field notes and plat of a survey for any tract of
17-4 land:>
17-5 <(A) less than one-third of a league ..... $1.00>
17-6 <(B) one-third of a league ............... $2.00>
17-7 <(C) more than one-third of a league ..... $3.00>
17-8 <(2) Recording surveys and plats required by law to be
17-9 placed on the map of a new county, for each 100
17-10 words ................................... $0.20>
17-11 <(3) Examination of papers and records in his office
17-12 at the request of any person ............ $0.25>
17-13 <(4) Copies of all field notes and plats, or other
17-14 papers or records in the office, for each 100
17-15 words, including certificate ............ $0.20>
17-16 <(5) Surveying of any tract of land, including all
17-17 expenses in making the survey, and returning
17-18 the plat and field notes of the survey:>
17-19 <(A) for each English lineal mile actually
17-20 run ............................... $3.00>
17-21 <(B) for less than one English lineal mile
17-22 run ............................... $2.50>
17-23 <(6) Services in designating a homestead, including
17-24 pay for chain carriers, for each day's
17-25 service ................................ $5.00>
17-26 SECTION 3. Section 72.006(b), Local Government Code, is
17-27 amended to read as follows:
17-28 (b) A surveyor appointed under this chapter is entitled to
17-29 receive the actual expenses incurred in making the survey and any
17-30 fees for surveying services agreed on by the surveyor and the
17-31 counties <$3 for each mile surveyed>.
17-32 SECTION 4. Section 21.078(a), Natural Resources Code, is
17-33 amended to read as follows:
17-34 (a) The plane coordinate values for a point on the earth's
17-35 surface, to be used in expressing the position or location of the
17-36 point in the appropriate zone, of either system, shall consist of
17-37 two distances, expressed in U.S. Survey Feet and decimals of a
17-38 foot when using the Texas Coordinate System of 1927 and expressed
17-39 either in meters and decimals of a meter or in U.S. Survey Feet or
17-40 decimals of a foot when using the Texas Coordinate System of 1983.
17-41 SECTION 5. The change in law made by this Act applies only
17-42 to an application to purchase or lease a vacancy under Subchapter
17-43 E, Chapter 51, Natural Resources Code, that is filed with a county
17-44 surveyor or county clerk on or after the effective date of this
17-45 Act.
17-46 (b) An application filed before that date is governed by the
17-47 law in effect on the date the application is filed, and the former
17-48 law is continued in effect for that purpose.
17-49 SECTION 6. This Act takes effect September 1, 1993.
17-50 SECTION 7. The importance of this legislation and the
17-51 crowded condition of the calendars in both houses create an
17-52 emergency and an imperative public necessity that the
17-53 constitutional rule requiring bills to be read on three several
17-54 days in each house be suspended, and this rule is hereby suspended.
17-55 * * * * *
17-56 Austin,
17-57 Texas
17-58 April 2, 1993
17-59 Hon. Bob Bullock
17-60 President of the Senate
17-61 Sir:
17-62 We, your Committee on Natural Resources to which was referred S.B.
17-63 No. 964, have had the same under consideration, and I am instructed
17-64 to report it back to the Senate with the recommendation that it do
17-65 not pass, but that the Committee Substitute adopted in lieu thereof
17-66 do pass and be printed.
17-67 Sims,
17-68 Chairman
17-69 * * * * *
17-70 WITNESSES
18-1 FOR AGAINST ON
18-2 ___________________________________________________________________
18-3 Name: Stroud C. Kellely x
18-4 Representing: Tx General Land Office
18-5 City: Austin
18-6 -------------------------------------------------------------------
18-7 Name: C. B. Thomson (Ben) x
18-8 Representing: Tx General Land Office
18-9 City: Austin
18-10 -------------------------------------------------------------------
18-11 Name: Charles Hensley x
18-12 Representing: Tx Parks & Wildlife Dept.
18-13 City: Austin
18-14 -------------------------------------------------------------------