By:  Shelley                                          S.B. No. 1481
       73R8134 SMH-F
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the location, survey, sale, and lease of vacant and
    1-3  unsurveyed public school land and certain public boundaries and
    1-4  related fees.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  Subchapter E, Chapter 51, Natural Resources Code,
    1-7  is amended to read as follows:
    1-8              SUBCHAPTER E.  SALE AND LEASE OF VACANCIES
    1-9        Sec. 51.171.  SALE AND LEASE OF VACANT LAND.  (a)  Vacant and
   1-10  unsurveyed public school land shall be located, sold, and leased
   1-11  under this subchapter, except:
   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; and
   1-16              (4)  riverbeds, including channels and islands in
   1-17  riverbeds, above tidewater limits.
   1-18        (b)  This subchapter does not alter or diminish the public
   1-19  domain status of the surface estate of riverbeds and channels and
   1-20  islands in riverbeds that are located above tidewater limits.
   1-21        Sec. 51.172.  DEFINITIONS.  In this subchapter:
   1-22              (1)  "Applicant" means any person who files an
   1-23  application.  The term may include a good-faith claimant.
   1-24              (2)  "Application" means an application to purchase or
    2-1  lease a vacancy under this subchapter.
    2-2              (3)  "Good-faith claimant" means a person who:
    2-3                    (A)  occupies or uses or whose predecessors in
    2-4  interest have occupied or used a vacancy for purposes other than
    2-5  exploring for or removing oil, gas, sulphur, other minerals, or
    2-6  geothermal resources from the vacancy or who leases or otherwise
    2-7  conveys to another person a purported right to explore for or
    2-8  remove oil, gas, sulphur, another mineral, or geothermal resources
    2-9  from the vacancy;
   2-10                    (B)  has had, or whose predecessors in interest
   2-11  have had, the vacancy enclosed or within definite recognized
   2-12  boundaries and in possession for a period of 10 or more years with
   2-13  a good-faith belief that the vacancy was included within the
   2-14  boundaries of a survey or surveys that were previously titled,
   2-15  awarded, or sold under circumstances that would have vested title
   2-16  in the vacancy if it were actually located within the boundaries of
   2-17  the survey or surveys;
   2-18                    (C)  is the owner of land adjoining a vacancy on
   2-19  which no application has previously been filed; or
   2-20                    (D)  holds under a good-faith claimant or is
   2-21  entitled to a distributive share of any title acquired under an
   2-22  application made by a good-faith claimant.
   2-23              (4)  "Interest" means any right or title in or to real
   2-24  property, whether affecting the surface, subsurface, or mineral
   2-25  estate, including:
   2-26                    (A)  fee simple title;
   2-27                    (B)  a determinable fee created under a mineral
    3-1  lease or conveyance or otherwise;
    3-2                    (C)  a royalty, nonparticipating royalty, or
    3-3  overriding royalty interest;
    3-4                    (D)   a remainder or reversionary interest; or
    3-5                    (E)  an interest arising under a lien.
    3-6              (5)  "Interested person" means:
    3-7                    (A)  a person who may own or who claims any
    3-8  interest in land claimed to be vacant or in any land adjoining or
    3-9  overlapping that land as determined from the records of the land
   3-10  office, the records of the county clerk's office, and the tax
   3-11  records of the county or counties in which the land claimed to be
   3-12  vacant is located;
   3-13                    (B)  any other person who asserts a right to or
   3-14  interest in the land claimed to be vacant and who is known to the
   3-15  applicant or whose identity could be ascertained by the applicant
   3-16  with the exercise of reasonable diligence;
   3-17                    (C)  the attorney general; or
   3-18                    (D)  the applicant.
   3-19              (6)  "Vacancy" means an area of unsurveyed public
   3-20  school land that:
   3-21                    (A)  is not in conflict on the ground with land
   3-22  previously titled, awarded, or sold;
   3-23                    (B)  has not been listed on the records of the
   3-24  land office as public school land; and
   3-25                    (C)  was not, on the date of filing of an
   3-26  application:
   3-27                          (i)  subject to an earlier subsisting
    4-1  application by an applicant or good-faith claimant; or
    4-2                          (ii)  the subject of pending litigation
    4-3  brought by the state to recover the land.
    4-4        Sec. 51.173.  APPLICATION.  (a)  To purchase or lease a
    4-5  vacancy, a person must file an application.  The filing of an
    4-6  application commences a proceeding under this subchapter.  The
    4-7  applicant must file the application with the county surveyor of the
    4-8  county in which all or part of the land claimed to be vacant is
    4-9  located.  If the county does not have a county surveyor, the
   4-10  application must be filed with the county clerk.
   4-11        (b)  The application must:
   4-12              (1)  describe the land that is claimed to be vacant;
   4-13              (2)  state whether the applicant is a good-faith
   4-14  claimant;
   4-15              (3)  state whether the applicant seeks to purchase the
   4-16  vacancy or obtain a mineral lease on the vacancy;
   4-17              (4)  state the name and last known address of all
   4-18  interested persons; and
   4-19              (5)  provide any other information that the
   4-20  commissioner requires by rule.
   4-21        (c)  The commissioner by rule shall set an application filing
   4-22  fee in an amount of not less than $5.  The applicant shall pay the
   4-23  filing fee to the county surveyor or county clerk at the time the
   4-24  application is filed.
   4-25        (d)  The county surveyor or county clerk shall mark the exact
   4-26  date and hour of filing on the original and a duplicate copy of the
   4-27  application and shall return a marked copy to the person filing the
    5-1  application.  The original  shall be recorded in a book kept for
    5-2  that purpose separate from the deed or real property records.
    5-3        (e)  Priority among applications covering the same land
    5-4  claimed to be vacant is determined by the time of filing indicated
    5-5  by the date and hour marked on the application by the county
    5-6  surveyor or county clerk.
    5-7        Sec. 51.174.  FILING APPLICATION WITH COMMISSIONER.  (a)  The
    5-8  applicant shall file with the commissioner a copy of the
    5-9  application with the county surveyor's or clerk's mark indicating
   5-10  the time of filing not later than the 10th day after the
   5-11  application is filed with the county surveyor or clerk.  The
   5-12  applicant shall include a filing fee set by the commissioner in an
   5-13  amount of not less than $100.  If the 10th day after filing falls
   5-14  on a Saturday, Sunday, or state or federal holiday, the application
   5-15  may be filed on the next regular business day following the 10th
   5-16  day.
   5-17        (b)  The commissioner shall mark the date of filing on the
   5-18  application and assign a file number to the application.
   5-19        (c)  An applicant who does not file the application with the
   5-20  commissioner in the time provided in this section or pay the filing
   5-21  fee waives all rights under the application.
   5-22        (d)  The commissioner may refuse to accept for filing an
   5-23  application that:
   5-24              (1)  has material omissions;
   5-25              (2)  does not describe the land claimed to be vacant
   5-26  adequately for the land to be located on the ground; or
   5-27              (3)  describes as vacant land that has been finally
    6-1  adjudicated in a court of this state or of the United States not to
    6-2  be vacant.
    6-3        Sec. 51.175.  DEPOSIT.  (a)  If an applicant is not a
    6-4  good-faith claimant, the commissioner shall estimate the costs of
    6-5  proceeding under the application, including the costs of a survey
    6-6  made by a licensed state land surveyor or the county surveyor, the
    6-7  preparation of copies and working sketches by the land office, the
    6-8  mailing or publication of notices and copies, and other similar
    6-9  costs, excluding allocable costs of salaries and overhead expended
   6-10  by the land office in actually conducting a hearing or preparing
   6-11  orders and proposals for decision.
   6-12        (b)  The commissioner shall notify the applicant in writing
   6-13  of the estimated costs and the applicant shall make a deposit with
   6-14  the commissioner in the amount of the estimated costs.
   6-15        (c)  If at any time the commissioner determines that the
   6-16  funds on deposit are insufficient to pay the costs of the
   6-17  proceeding, the commissioner shall estimate the additional amount
   6-18  required and shall notify the applicant in writing to make a
   6-19  supplemental deposit of the estimated amount.  The notice must be
   6-20  dated.
   6-21        (d)  The applicant shall make an initial deposit or a
   6-22  supplemental deposit not later than the 30th day after the date of
   6-23  the written notice to make the deposit.  The commissioner shall
   6-24  cancel the application if the applicant does not make a required
   6-25  deposit within the prescribed time.  Cancellation terminates all
   6-26  rights under that application.
   6-27        Sec. 51.176.  APPEAL OF AMOUNT OF DEPOSIT.  (a)  An applicant
    7-1  may appeal the amount of an initial deposit or supplemental deposit
    7-2  determined by the commissioner in the manner provided for the
    7-3  appeal of agency decisions under the Administrative Procedure and
    7-4  Texas Register Act (Article 6252-13a, Vernon's Texas Civil
    7-5  Statutes).
    7-6        (b)  If the applicant does not pay the amount determined by
    7-7  the district court on or before the 15th day after the judgment of
    7-8  the district court becomes final and nonappealable, the
    7-9  commissioner shall cancel the application.  Cancellation terminates
   7-10  all rights under that application.
   7-11        Sec. 51.177.  DISPOSITION OF DEPOSITS.  (a)  The commissioner
   7-12  shall deposit all initial and supplemental deposits received under
   7-13  this subchapter to the credit of a separate trust account in the
   7-14  treasury.  The treasurer, on the commissioner's order, shall make
   7-15  disbursements from that account for purposes authorized by this
   7-16  subchapter.
   7-17        (b)  After proceedings on an application are concluded and
   7-18  all expenditures authorized under this subchapter are paid, the
   7-19  commissioner shall provide the applicant a complete statement of
   7-20  all deposits and expenditures and shall remit to the applicant any
   7-21  balance remaining from the deposit or supplemental deposits made by
   7-22  the applicant.
   7-23        Sec. 51.178.  APPOINTMENT OF SURVEYOR.  (a)  Not later than
   7-24  the 60th day after the date on which the required deposit is paid,
   7-25  the commissioner shall appoint a licensed state land surveyor or
   7-26  the county surveyor of the county in which all or a part of the
   7-27  land claimed to be vacant is located to make a survey of that land.
    8-1        (b)  The fees and expenses paid for the survey are those
    8-2  provided by law.  If the fees and expenses are not provided by law,
    8-3  the commissioner and surveyor shall make an agreement as to the
    8-4  fees and expenses reasonable for the work to be performed.
    8-5        (c)  The fees and expenses shall be paid by the applicant and
    8-6  may be paid from the initial deposit or any supplementary deposits
    8-7  made by the applicant under this subchapter.
    8-8        Sec. 51.179.  NOTICE TO INTERESTED PERSONS.  (a)  Not later
    8-9  than the 10th day after the date on which the  commissioner
   8-10  appoints the surveyor, the commissioner shall give notice by
   8-11  certified mail, return receipt requested, to all interested persons
   8-12  at the last known address.  The notice shall contain:
   8-13              (1)  the date of the notice;
   8-14              (2)  a statement that a vacancy application has been
   8-15  made;
   8-16              (3)  the name, address, and telephone number of the
   8-17  surveyor appointed to make the survey;
   8-18              (4)  a statement that the survey may begin any time
   8-19  after the 20th day after the date of the notice;
   8-20              (5)  a statement that an interested party is entitled
   8-21  to:
   8-22                    (A)  observe the conduct of the survey;
   8-23                    (B)  receive a copy of the final survey report
   8-24  and other documents filed by the surveyor; and
   8-25                    (C)  participate in the vacancy proceeding;
   8-26              (6)  a true and legible copy of the application; and
   8-27              (7)  other information the commissioner by rule may
    9-1  prescribe.
    9-2        (b)  If the location of an interested person is unknown or if
    9-3  a notice is returned as unclaimed or undeliverable, the
    9-4  commissioner shall publish notice as prescribed by the Texas Rules
    9-5  of Civil Procedure.  If notice by publication is made, the survey
    9-6  may not begin and further proceedings may not be held until the
    9-7  30th day after publication is completed.
    9-8        (c)  If the applicant, another interested person, or the
    9-9  surveyor shows that the delay required by Subsection (b) of this
   9-10  section may materially affect the accuracy of the survey because of
   9-11  destruction, alteration, or removal of natural features, monuments,
   9-12  or witness objects, or for other good cause, the commissioner may
   9-13  order the survey to proceed.  Notice of the request to proceed with
   9-14  the survey and of any order issued in response to the request shall
   9-15  be mailed first class to all interested persons.
   9-16        Sec. 51.180.  WAIVER OF NOTICE.  (a)  An interested person
   9-17  may waive service of the notice required by Section 51.179 of this
   9-18  code by filing with the commissioner a sworn affidavit stating the
   9-19  person's intent to waive notice.  The affidavit shall state that
   9-20  the person executing the waiver has been provided with a true copy
   9-21  of the application filed with the commissioner.
   9-22        (b)  The affidavit may also state clearly the interested
   9-23  person's intent to waive all further notice of the vacancy
   9-24  proceedings.  If the affidavit states this intent, it must also
   9-25  state prominently and clearly that the interested person is aware
   9-26  that waiving the right to further notice may result in the loss of
   9-27  the opportunity to appear and to contest the application.
   10-1        (c)  The commissioner by rule may prescribe the form and
   10-2  specific content of the affidavit described in this section,
   10-3  including additional information to be included.
   10-4        Sec. 51.181.  SURVEY.  (a)  Except when notice by publication
   10-5  is required, at any time after the 20th day after the date of the
   10-6  notice required by Section 51.179(a) of this code, the surveyor
   10-7  shall begin the survey of the land claimed to be vacant.
   10-8        (b)  The surveyor shall prepare and file in the land office:
   10-9              (1)  a detailed written report of all aspects of the
  10-10  survey, including record research conducted, survey corners
  10-11  recovered in the course of the field survey, and details of
  10-12  boundary construction using recovered corners;
  10-13              (2)  field notes in the form and content prescribed by
  10-14  law, describing the land and the lines and corners surveyed;
  10-15              (3)  a complete plat depicting in detail the survey
  10-16  results;
  10-17              (4)  the names and addresses of all persons who have
  10-18  possession of the land described in the application and a
  10-19  description of the lands occupied by those persons; and
  10-20              (5)  the names and addresses of all persons who have or
  10-21  claim any interest in the land.
  10-22        (c)  The surveyor shall file the report required by this
  10-23  section not later than the 140th day after the date of the notice
  10-24  required by Section 51.179(a) of this code.  If notice by
  10-25  publication is required and the commissioner has not ordered the
  10-26  survey to proceed, the surveyor shall file the report not later
  10-27  than the 170th day after the date on which notice by publication is
   11-1  completed.  If the commissioner has ordered the survey to proceed,
   11-2  the surveyor shall file the report not later than the 140th day
   11-3  after the date of the commissioner's order.
   11-4        (d)  For good cause shown, the commissioner by written order
   11-5  may extend the time for filing the survey.  The order shall state
   11-6  the cause for the extension and shall be included in the record.  A
   11-7  single order may not extend the time for filing by more than 60
   11-8  days.
   11-9        (e)  An interested person at the person's own expense may
  11-10  have any surveying done that the person considers desirable, but a
  11-11  survey report, a plat, or field notes based on a survey made by a
  11-12  person not qualified by law to survey public lands in this state
  11-13  may not be admitted into evidence in a vacancy proceeding or filed
  11-14  in the land office.
  11-15        (f)  The surveyor shall serve a true copy of the survey
  11-16  report, field notes, plat, and all other documents filed by the
  11-17  surveyor on each interested person, including those named in the
  11-18  survey report, by certified mail, return receipt requested, on the
  11-19  same day that the survey report is filed in the land office.  The
  11-20  survey report shall include a certificate of the fact of that
  11-21  service.
  11-22        Sec. 51.182.  ADDITIONAL INTERESTED PERSONS.  (a)  All
  11-23  persons named in the survey report as occupying or as having or
  11-24  claiming any interest in the land described in the application
  11-25  shall be included in the proceeding as interested persons and shall
  11-26  be provided notice as prescribed by this subchapter.
  11-27        (b)  An application may not be canceled or a proceeding
   12-1  terminated because of the discovery of an additional interested
   12-2  person unless the commissioner finds that the person filing the
   12-3  application knowingly and intentionally omitted the name of the
   12-4  person from the application.
   12-5        Sec. 51.183.  EXCEPTIONS.  An interested person may file
   12-6  exceptions to the survey report, field notes, and plat not later
   12-7  than the 30th day after the date the survey report is filed in the
   12-8  land office.  A person filing exceptions shall serve a true copy on
   12-9  all interested persons and on the surveyor by certified mail,
  12-10  return receipt requested.  The exceptions shall include a
  12-11  certificate of the fact of that service.
  12-12        Sec. 51.184.  ADDITIONAL SURVEYS.  (a)  The commissioner or
  12-13  the land office staff may consult with the surveyor.  The
  12-14  commissioner, after notice to the interested persons, may direct
  12-15  the surveyor to make additional surveys, to investigate as the
  12-16  commissioner considers necessary, and to prepare supplemental
  12-17  reports, plats, and field notes the commissioner requires.
  12-18        (b)  The surveyor shall provide copies of all reports, plats,
  12-19  field notes, and other information resulting from additional
  12-20  surveys and investigation to all interested persons.
  12-21        (c)  An interested person may file exceptions or other
  12-22  responses not later than the 20th day after the surveyor files the
  12-23  required documents with the land office.
  12-24        (d)  Service of additional documents and exceptions or
  12-25  responses to those documents shall be made as provided by Sections
  12-26  51.181 and 51.183 of this code.
  12-27        Sec. 51.185.  ACTION ON APPLICATION.  (a)  Not later than the
   13-1  90th day after the date on which the surveyor files the survey
   13-2  report and other documents required to be filed, the commissioner
   13-3  shall either deny the application as provided by Section 51.186 of
   13-4  this code or hold a hearing to determine whether a vacancy exists.
   13-5        (b)  Except as provided by Section 51.192 of this code, the
   13-6  commissioner may not find that a vacancy exists unless a hearing is
   13-7  held.
   13-8        (c)  The commissioner shall decide all issues raised or that
   13-9  could be raised by the application and any exceptions or responses
  13-10  to the application, including the existence of a vacancy, the
  13-11  boundaries of a vacancy, and the status and rights of any
  13-12  interested person as a good-faith claimant or prior applicant.
  13-13        (d)  The commissioner may not decide in a proceeding on an
  13-14  application any claim of the state or permanent school fund for
  13-15  damages arising from trespass, the removal or use of minerals or
  13-16  geothermal resources, mispayment of proceeds from the sale or use
  13-17  of minerals or geothermal resources, damages to the soil,
  13-18  vegetation, or other life or habitat, and similar or related
  13-19  claims.  Those claims may be asserted by the commissioner in
  13-20  administrative proceedings under rules adopted by the commissioner
  13-21  or through suit brought by the attorney general at the request of
  13-22  the commissioner.
  13-23        (e)  Evidence or testimony regarding the existence or extent
  13-24  of mineral development or other economic use of land claimed to be
  13-25  vacant may not be introduced or considered, unless that evidence or
  13-26  testimony is relevant to determine the existence or boundaries of
  13-27  the alleged vacancy or the status of a person as a good-faith
   14-1  claimant.
   14-2        Sec. 51.186.  DENIAL OF APPLICATION.  (a)  If, after
   14-3  reviewing the survey report, any supplemental reports, any
   14-4  exceptions to the reports, all pertinent publicly available records
   14-5  of the land office and the state archives, and land office staff
   14-6  recommendations, the commissioner decides that the land claimed to
   14-7  be vacant is not vacant, the commissioner may enter an order
   14-8  denying the application.  The order shall contain findings of fact,
   14-9  conclusions of law, and other matters the commissioner considers
  14-10  appropriate.
  14-11        (b)  The commissioner shall promptly send a true copy of the
  14-12  order denying the application to the applicant by certified mail,
  14-13  return receipt requested.
  14-14        (c)  The commissioner shall place in the file assigned to the
  14-15  application the original order, all materials filed by the
  14-16  surveyor, all exceptions and responses to the surveyor's filings,
  14-17  all memoranda provided to the commissioner by the land office
  14-18  staff, a list of all files and records of the land office and state
  14-19  archives examined by the staff or commissioner in connection with
  14-20  the application, and all other relevant papers.
  14-21        (d)  An interested person may request a rehearing and appeal
  14-22  the commissioner's order as provided by the Administrative
  14-23  Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas
  14-24  Civil Statutes) and by rules adopted by the commissioner consistent
  14-25  with that Act.  If a rehearing is not requested, the order becomes
  14-26  final on the 30th day after the date it is signed.  If a rehearing
  14-27  is requested and denied, the order becomes final on the date that
   15-1  time for appeal to the district court expires.  If appeal is taken,
   15-2  the order becomes final on the date that a judgment disposing of
   15-3  the order becomes final.
   15-4        (e)  When the commissioner's order denying the vacancy is
   15-5  final, all rights under the application are terminated.
   15-6        Sec. 51.187.  EFFECT OF FINAL ORDER.  (a)  A final order of
   15-7  the commissioner under this subchapter is conclusive with respect
   15-8  to the land described in the application.  A final order of the
   15-9  commissioner does not have the effect of stare decisis.
  15-10        (b)  The cancellation, withdrawal, abandonment, or
  15-11  termination of an application, the refusal of the commissioner to
  15-12  accept an application for filing, or the order or judgment of any
  15-13  court resulting in or affecting such an action has no effect on a
  15-14  subsequent determination of whether any land described in the
  15-15  application is vacant.
  15-16        (c)  A decision of the commissioner issued before September
  15-17  1, 1993, that denies a vacancy application or letter of inquiry is
  15-18  not conclusive as to the existence or nonexistence of a vacancy.
  15-19        Sec. 51.188.  RULEMAKING; VENUE OF APPEALS.  (a)  A hearing
  15-20  under this subchapter and further proceedings arising from the
  15-21  hearing shall be conducted in accordance with the Administrative
  15-22  Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas
  15-23  Civil Statutes) and rules adopted by the commissioner consistent
  15-24  with that Act.
  15-25        (b)  Appeal of a final order of the commissioner is to a
  15-26  district court of the county in which the land claimed to be vacant
  15-27  or a part of that land is located.  The district court shall review
   16-1  the commissioner's order under the substantial evidence rule.
   16-2        Sec. 51.189.  COMMISSIONER'S ORDER.  (a)  If it appears to
   16-3  the commissioner that the alleged vacancy is not in conflict with
   16-4  land previously titled, awarded, or sold by the state or its
   16-5  predecessor sovereigns, the commissioner shall enter an order
   16-6  declaring the existence of a vacancy and determining all other
   16-7  issues.
   16-8        (b)  If it appears to the commissioner that the land claimed
   16-9  to be vacant is not vacant, the commissioner shall enter an order
  16-10  denying the application and determining all other issues.
  16-11        (c)  The commissioner shall base the order on the testimony
  16-12  and other competent evidence presented at the hearing, the
  16-13  surveyor's filings and all supplements to those filings, any
  16-14  exceptions or responses to the surveyor's filings and all
  16-15  supplements to those filings, and the publicly available records of
  16-16  the land office and the state archives.  The commissioner and the
  16-17  examiner or examiners who conduct hearings on the application may
  16-18  consult with the land office staff and the surveyor to the extent
  16-19  permitted by the Administrative Procedure and Texas Register Act
  16-20  (Article 6252-13a, Vernon's Texas Civil Statutes).  The record
  16-21  shall include a list of the names and titles of all staff
  16-22  consulted, a list of the files and documents of the land office and
  16-23  state archives examined, and a copy of all memoranda provided to
  16-24  the examiners or commissioner by the land office staff or by the
  16-25  surveyor.
  16-26        (d)  The order shall contain:
  16-27              (1)  findings of fact;
   17-1              (2)  conclusions of law;
   17-2              (3)  a field note description of the land, if any,
   17-3  found to be vacant, sufficient to locate it on the ground, and
   17-4  other elements required by law;
   17-5              (4)  an accurate plat of the land, if any, found to be
   17-6  vacant consistent with the field notes and prepared by the surveyor
   17-7  or a licensed state land surveyor on the land office staff; and
   17-8              (5)  other matters the commissioner considers
   17-9  appropriate.
  17-10        (e)  The commissioner's order may adopt, without restating,
  17-11  the findings of fact and conclusions of law stated in a proposal
  17-12  for decision prepared by the examiner or examiners who conducted
  17-13  the hearings and any opinion or statement contained in that
  17-14  proposal for decision.
  17-15        Sec. 51.190.  DETERMINATION OF BOUNDARIES; REOPENING.  (a)
  17-16  In determining the boundaries and size of a vacancy, the
  17-17  commissioner is not restricted to a description of the land claimed
  17-18  to be vacant that is provided by the applicant, the surveyor, or an
  17-19  interested party.  The commissioner shall adopt the description of
  17-20  a vacancy that best describes the vacancy and is consistent with
  17-21  the information available under this section.
  17-22        (b)  If in determining the boundaries and size of a vacancy
  17-23  it becomes apparent to the commissioner that persons who have not
  17-24  been named as interested persons and who have not been served
  17-25  notice of the proceeding under the application may be affected by
  17-26  the finding that a vacancy exists at the location and with the
  17-27  boundaries believed by the commissioner to conform to the record,
   18-1  the proceeding shall be reopened and the persons affected shall be
   18-2  joined as interested persons and given an opportunity to
   18-3  participate adequately in the proceeding.  This subsection does not
   18-4  require the refiling of an application or the conduct of a new
   18-5  survey by the surveyor.
   18-6        Sec. 51.191.  GOOD-FAITH CLAIMANT STATUS.  (a)  An applicant
   18-7  or interested person who wishes to assert status as a good-faith
   18-8  claimant may file notice of claim of good-faith status at any time
   18-9  before the 20th day preceding the date on which the first hearing
  18-10  before the commissioner begins.  The notice of claim of good-faith
  18-11  status shall state the grounds for the claim and describe the land
  18-12  claimed to be affected by the good-faith status.  The notice shall
  18-13  be filed in the land office and served on all interested persons by
  18-14  certified mail, return receipt requested.
  18-15        (b)  Filing notice of claim of good-faith status is not an
  18-16  admission by the person asserting the claim that a vacancy exists.
  18-17        Sec. 51.192.  ORDER WITHOUT NOTICE AND HEARING.  (a)  An
  18-18  applicant who asserts status as a good-faith claimant may present
  18-19  evidence to the commissioner that:
  18-20              (1)  the good-faith claimant owns all of the land and
  18-21  interest in land completely surrounding the land claimed to be
  18-22  vacant;
  18-23              (2)  there is no subsisting prior application covering
  18-24  the land described in the good-faith claimant's application;
  18-25              (3)  no previous application has been made covering the
  18-26  land described in the good-faith claimant's application; and
  18-27              (4)  the good-faith claimant meets all other
   19-1  requirements of a good-faith claimant.
   19-2        (b)  If the commissioner finds that the evidence presented is
   19-3  accurate, further notice to other persons is not required and, on
   19-4  acceptance for filing by the commissioner of a survey made by a
   19-5  licensed state land surveyor or the county surveyor of the county
   19-6  in which the land claimed to be vacant or a part of that land is
   19-7  located, the commissioner may enter an order declaring the
   19-8  existence of the vacancy and determining the good-faith status of
   19-9  the applicant.
  19-10        (c)  For purposes of this section, land claimed to be vacant
  19-11  and surrounded by lands owned only by the good-faith claimant and
  19-12  the state is considered to be surrounded completely by land owned
  19-13  by the good-faith claimant.
  19-14        (d)  Two or more persons may jointly apply as good-faith
  19-15  claimants under this section if together they meet the requirements
  19-16  of Subsection (a) of this section.
  19-17        (e)  A person who would have been an interested person under
  19-18  an application made under this subchapter by a person other than a
  19-19  good-faith claimant may move to set aside an order entered under
  19-20  this section by filing a written motion with the commissioner not
  19-21  later than the second anniversary of the date of that order.  The
  19-22  person shall serve a true copy of the motion by certified mail,
  19-23  return receipt requested, on the applicant and all persons holding
  19-24  or claiming under the applicant.
  19-25        (f)  The commissioner shall set aside an order issued under
  19-26  this section finding that a vacancy exists if, after notice and
  19-27  hearing, the commissioner finds that the person asserting rights
   20-1  under this section, at the time the order declaring the vacancy was
   20-2  entered, did not:
   20-3              (1)  qualify as a good-faith claimant under this
   20-4  subchapter;
   20-5              (2)  own all of the land and interests in land
   20-6  surrounding the land claimed to be vacant; or
   20-7              (3)  meet another material requirement of this section.
   20-8        (g)  The commissioner on the commissioner's own motion may
   20-9  set aside an order after notice and hearing as required by
  20-10  Subsections (e) and (f) of this section.
  20-11        (h)  If the order is set aside, the commissioner shall reopen
  20-12  the proceeding on the application and conduct the reopened
  20-13  proceeding in the same manner as proceedings on other applications.
  20-14        (i)  The issues in a reopened proceeding are limited to the
  20-15  status of the applicant as a good-faith claimant entitled to rights
  20-16  under this section and the rights of any other person as an
  20-17  applicant or good-faith claimant.
  20-18        (j)  An application of a good-faith claimant who does not own
  20-19  all of the land and interests in land completely surrounding the
  20-20  land claimed to be vacant is treated as an application under other
  20-21  sections of this subchapter.
  20-22        Sec. 51.193.  SALE OR LEASE OF VACANCY.  (a)  When a vacancy
  20-23  has been established by final order, the school land board may sell
  20-24  or lease the vacancy as provided by this subchapter.
  20-25        (b)  The board shall set the sale price and other terms and
  20-26  conditions as in all other sales of other lands dedicated to the
  20-27  permanent school fund.  The sale price may not be less than the
   21-1  fair market value as determined by an appraisal conducted by the
   21-2  land office.
   21-3        (c)  The fee prescribed in Section 32.110(a) of this code
   21-4  applies to all sales and leases made under this subchapter.
   21-5        (d)  The board may allow a credit against the sale price in
   21-6  an amount not to exceed the actual cost of the survey paid by an
   21-7  applicant or good-faith claimant if:
   21-8              (1)  the purchaser is a person exercising a
   21-9  preferential right to purchase under this subchapter;
  21-10              (2)  the board has reserved all mineral and geothermal
  21-11  leasing rights; and
  21-12              (3)  the board finds that the fair market value of the
  21-13  mineral estate is equal to or exceeds 50 percent of the amount of
  21-14  the credit.
  21-15        Sec. 51.194.  CONDITIONS OF SALE; MINERAL AWARDS.  (a)  In
  21-16  all sales, the board shall reserve to the permanent school fund all
  21-17  oil, gas, sulphur, and other minerals and geothermal resources and
  21-18  shall determine the manner in which those minerals and geothermal
  21-19  resources are to be leased.
  21-20        (b)  Before the sale of a vacancy, the land office shall
  21-21  prepare and present to the board a study of the mineral prospects
  21-22  and value of the vacancy, taking into consideration the size and
  21-23  configuration of the vacancy, its location with respect to other
  21-24  surrounding and nearby tracts, the proximity of mineral production,
  21-25  and the likelihood of future mineral leasing and development.  The
  21-26  study shall include a recommendation as to the method most
  21-27  advantageous to the state by which the vacancy could be leased.
   22-1        (c)  The board shall review the study and land office
   22-2  recommendations and shall determine whether:
   22-3              (1)  the state shall retain all leasing rights and the
   22-4  vacancy shall be leased as provided in Subchapter B, Chapter 52,
   22-5  and Subchapters B and E, Chapter 53, of this Code; or
   22-6              (2)  the owner of the soil shall be designated to
   22-7  execute leases as the agent of the state subject to the rights,
   22-8  obligations, and liabilities of Subchapter F, Chapter 52, and
   22-9  Subchapter C, Chapter 53, of this code.
  22-10        (d)  If the board determines that the owner of the soil shall
  22-11  act as agent under Subsection (c)(2) of this section, the board
  22-12  shall establish the division of bonus, rental, and royalty between
  22-13  the permanent school fund and the owner of the soil.  The portion
  22-14  to be paid to the owner of the soil may not be less than 20 percent
  22-15  or more than 50 percent.  The board may establish different
  22-16  portions to be paid to the owner of the soil for the lease of
  22-17  different substances.
  22-18        (e)  If the board provides for lease by the owner of the soil
  22-19  under Subsection (c)(2) of this section, the original purchaser is
  22-20  a good-faith claimant, and the vacancy was established under an
  22-21  application made by a person other than a good-faith claimant, the
  22-22  board shall award the applicant a perpetual nonparticipating
  22-23  royalty of not less than 1/32 or more than 1/16 of the value of all
  22-24  oil, gas, and sulphur produced and not less than one percent or
  22-25  more than two percent of the value of other minerals produced.
  22-26        (f)  If the board determines that the state shall retain all
  22-27  leasing rights as provided in Subsection (c)(1) of this section,
   23-1  the board shall award:
   23-2              (1)  to an applicant other than a good-faith claimant,
   23-3  a perpetual nonparticipating royalty of 1/32 of the value of oil,
   23-4  gas, and sulphur produced and one percent of the value of other
   23-5  minerals produced; and
   23-6              (2)  to a good-faith claimant purchasing the vacancy, a
   23-7  nonparticipating royalty of 1/32 of the value of oil, gas, and
   23-8  sulphur produced and one percent of the value of other minerals
   23-9  produced.
  23-10        (g)  If a preferential right to obtain the first mineral
  23-11  lease on a vacancy is exercised, the applicant, whether or not a
  23-12  good-faith claimant, is entitled to a royalty credit equal to 1/4
  23-13  of the royalty retained by the state under the lease for a period
  23-14  of five years from the date of first production under the first
  23-15  lease awarded.
  23-16        Sec. 51.195.  PREFERENTIAL RIGHT OF GOOD-FAITH CLAIMANT.  (a)
  23-17  A good-faith claimant has a preferential right to purchase or lease
  23-18  the portion of a vacancy subject to the good-faith claim.
  23-19        (b)  A good-faith claimant may exercise the preferential
  23-20  right by filing a notice of intent to purchase or lease, on a form
  23-21  prescribed by the board, not later than the 90th day after the date
  23-22  the order establishing the vacancy becomes final.  The good-faith
  23-23  claimant shall describe in the notice the portion of the vacancy
  23-24  the good-faith claimant seeks to purchase or lease.  The good-faith
  23-25  claimant shall mail a copy of the notice to the applicant and to
  23-26  all other interested persons who have asserted status as good-faith
  23-27  claimants.
   24-1        (c)  All preferential rights held by a good-faith claimant
   24-2  expire if the good-faith claimant does not file the notice of
   24-3  intent within the time prescribed by Subsection (b) of this section
   24-4  or does not complete the purchase or lease within 60 days after the
   24-5  board sets the terms of the purchase or lease.  For good cause
   24-6  shown, the board may extend the time to complete the purchase or
   24-7  lease by a period not to exceed 90 days.
   24-8        (d)  A good-faith claimant exercising a preferential right
   24-9  shall repay to the applicant the applicant's reasonable expenses
  24-10  incurred in determining the existence of a vacancy, excluding
  24-11  filing and attorney fees, not later than the date on which the sale
  24-12  or purchase by the good-faith claimant is completed.  Failure to
  24-13  pay the expenses cancels the preferential right of the good-faith
  24-14  claimant.
  24-15        Sec. 51.196.  PREFERENTIAL RIGHT OF APPLICANT OTHER THAN
  24-16  GOOD-FAITH CLAIMANT.  (a)  On the expiration of the preferential
  24-17  right of a good-faith claimant to purchase or lease or if there is
  24-18  no good-faith claimant, an applicant who is not a good-faith
  24-19  claimant has a preferential right to purchase or lease all or any
  24-20  portion of the vacancy.
  24-21        (b)  An applicant may exercise the preferential right by
  24-22  filing a notice of intent to purchase or lease, on a form
  24-23  prescribed by the board, not later than the 90th day after the date
  24-24  on which the rights of the good-faith claimant expire.  The
  24-25  applicant shall describe in the notice the portion of the vacancy
  24-26  the applicant seeks to purchase or lease.  The applicant shall mail
  24-27  a copy of the notice to all other interested persons asserting
   25-1  status as good-faith claimants.
   25-2        (c)  All preferential rights held by an applicant expire if
   25-3  the applicant does not file the notice of intent within the time
   25-4  prescribed by Subsection (b) of this section or does not complete
   25-5  the purchase or lease within 60 days after the date on which the
   25-6  board sets the terms of the purchase or lease.  For good cause
   25-7  shown, the board may extend the time to complete the purchase or
   25-8  lease by a period not to exceed 90 days.
   25-9        Sec. 51.197.  RIGHTS ASSIGNABLE.  An applicant or good-faith
  25-10  claimant may assign all rights in a vacancy or land claimed to be
  25-11  vacant.  The assignment must be in writing.  The assignor shall
  25-12  record the assignment in the real property records of the county or
  25-13  counties in which the vacancy or land claimed to be vacant is
  25-14  located and file a certified copy of the recorded assignment in the
  25-15  land office.
  25-16        Sec. 51.198.  LEASE TERMS UNDER PREFERENTIAL RIGHTS.  The
  25-17  board shall prescribe terms for preferential purchases or leases
  25-18  consistent with this subchapter.  The board may not grant a
  25-19  preferential lease with a royalty of less than 1/8 of the value of
  25-20  all oil, gas, and sulphur produced or less than five percent of the
  25-21  value of all geothermal resources and all other minerals produced.
  25-22  The board may grant a preferential lease of coal or lignite with a
  25-23  lesser royalty if the board determines that a lesser royalty is
  25-24  necessary to promote development of coal or lignite, but the board
  25-25  may not grant a preferential lease of coal or lignite with a
  25-26  royalty of less than $0.20 for each short ton.
  25-27        Sec. 51.199.  EFFECT OF PRIOR CONVEYANCES.  (a)  A mineral
   26-1  lease, surface lease, deed, or any other conveyance of any interest
   26-2  in land executed by a good-faith claimant before the date of
   26-3  completion of a sale or lease under this subchapter does not give
   26-4  the grantee under that conveyance any interest in or to the vacancy
   26-5  or its minerals.
   26-6        (b)  A title to land or an interest in land acquired from the
   26-7  state under a preferential right does not pass as after-acquired
   26-8  title under a covenant of general warranty, description, or other
   26-9  provision contained in a conveyance executed before the date of
  26-10  completion of a sale or lease under this subchapter.
  26-11        Sec. 51.200.  RULEMAKING AUTHORITY.  (a)  The commissioner
  26-12  may adopt rules consistent with this subchapter relating to
  26-13  applications to purchase or lease vacancies and the determination
  26-14  of the existence of vacancies.
  26-15        (b)  The board may adopt rules consistent with this
  26-16  subchapter relating to sale and lease of vacancies.
  26-17        <Sec. 51.171.  SALE AND LEASE OF VACANT LAND.  Vacant and
  26-18  unsurveyed public school land except riverbeds, channels, islands,
  26-19  lakes,  bays, and other areas in tidewater limits shall be sold and
  26-20  leased under the provisions of this subchapter.>
  26-21        <Sec. 51.172.  DEFINITIONS.  In this subchapter:>
  26-22              <(1)  "Good faith claimant" and "claimant" mean any
  26-23  person:>
  26-24                    <(A)  who occupies or uses or has previously
  26-25  occupied or used or whose predecessors in interest have occupied or
  26-26  used a vacancy for purposes other than exploring for or removing
  26-27  oil, gas, sulphur, or other minerals from the vacancy; and>
   27-1                    <(B)  who has himself or whose predecessors in
   27-2  interest had the vacancy enclosed or within definite recognized
   27-3  boundaries and in possession for a period of 10 years with a
   27-4  good-faith belief that the vacancy was included inside the
   27-5  boundaries of the survey or surveys that were previously titled,
   27-6  awarded, or sold under circumstances that would have vested title
   27-7  in the vacancy if it were actually located within the boundaries of
   27-8  the survey or surveys whose boundaries are recognized boundaries in
   27-9  the community.>
  27-10              <(2)  "Vacancy" means an area of unsurveyed public
  27-11  school land that:>
  27-12                    <(A)  is not in conflict on the ground with land
  27-13  previously titled,  awarded, or sold;>
  27-14                    <(B)  has not been listed on the records of the
  27-15  land office as public school land; and>
  27-16                    <(C)  was, on the date of filing, neither subject
  27-17  to an earlier subsisting application to purchase or lease by a
  27-18  discoverer or claimant nor involved in pending litigation brought
  27-19  by the state to recover the land.>
  27-20              <(3)  "Applicant" means any person, other than a
  27-21  good-faith claimant, who discovers and files an application to
  27-22  purchase or lease a vacancy.>
  27-23        <Sec. 51.174.  PURCHASE OF VACANCY BY ADJOINING LANDOWNER.
  27-24  If the owner of the land adjoining an alleged vacancy files an
  27-25  application to purchase the vacancy and no application to purchase
  27-26  or lease the vacancy has been previously filed, the owner of the
  27-27  adjoining land, who otherwise qualifies as a good-faith claimant,
   28-1  shall be considered a good-faith claimant regardless of the length
   28-2  of time he has owned the adjoining land or has enclosed the vacancy
   28-3  or has had it within definite recognized boundaries and in
   28-4  possession with the belief that the vacancy was included within his
   28-5  survey.>
   28-6        <Sec. 51.175.  APPLICATION TO PURCHASE OR LEASE A VACANCY.
   28-7  (a)  An applicant who claims that a vacancy exists and who desires
   28-8  to purchase or lease the vacancy shall file with the county
   28-9  surveyor in the county in which any part of the vacancy is located
  28-10  a sworn written application in duplicate to purchase or lease the
  28-11  vacancy.>
  28-12        <(b)  The application shall.>
  28-13              <(1)  describe the land that is claimed to be vacant;>
  28-14              <(2)  state the desire of the applicant to purchase or
  28-15  lease the land under the provisions of this chapter;>
  28-16              <(3)  give the names and addresses of any owners or
  28-17  claimants of land or any interest in land or of leases on,
  28-18  adjoining, overlapping, or including the land claimed to be vacant
  28-19  as far as can be determined from the records of the land office and
  28-20  the county clerk's office in the county in which the land is
  28-21  located and the tax records of the county in which the land is
  28-22  located;>
  28-23              <(4)  give the names and addresses of any persons who,
  28-24  from facts known to the applicant, assert any right to the alleged
  28-25  vacant land; and>
  28-26              <(5)  state that the applicant knows of no other
  28-27  claimants than those listed.>
   29-1        <Sec. 51.176.  FILING FEE.  At the time the application is
   29-2  filed, the applicant shall pay to the county surveyor a filing fee
   29-3  set by the board of not less than $5.>
   29-4        <Sec. 51.177.  FILING APPLICATION WITH COUNTY.  (a)  The
   29-5  county surveyor shall mark the exact date and hour of filing on the
   29-6  original and duplicate copy of each application and shall return
   29-7  one copy of the application to the applicant and shall record the
   29-8  other copy in a book kept for that purpose.>
   29-9        <(b)  If the county does not have a county surveyor, the
  29-10  preliminary filing of the application shall be with the county
  29-11  clerk.  The county clerk shall record the application in a book
  29-12  kept for that purpose and not in the deed records.>
  29-13        <Sec. 51.178.  FILING APPLICATION WITH COMMISSIONER.  (a)
  29-14  Within 10 days after the application is filed with the county
  29-15  surveyor, the copy of the application that is returned to the
  29-16  applicant shall be filed with the commissioner.>
  29-17        <(b)  The commissioner shall mark the date of filing on the
  29-18  application.>
  29-19        <(c)  The applicant shall pay to the commissioner a filing
  29-20  fee set by the commissioner in an amount not less than $100.>
  29-21        <(d)  Failure to file the application with the commissioner
  29-22  in the time provided by this section and to pay the filing fee
  29-23  constitutes a waiver of all rights under the application.>
  29-24        <(e)  As between applicants, priority dates from the time of
  29-25  filing the application with the county surveyor.>
  29-26        <Sec. 51.179.  DEPOSIT.  (a)  The commissioner shall notify
  29-27  the applicant by letter of the estimated cost of proceeding under
   30-1  the application, and within 30 days after the date of the
   30-2  commissioner's letter, the applicant shall make a deposit with the
   30-3  commissioner to pay the cost of the work that may be necessary to
   30-4  comply with the request contained in the application.>
   30-5        <(b)  On failure to make the deposit required under this
   30-6  section, all rights under the application are lost.>
   30-7        <Sec. 51.180.  INSUFFICIENT DEPOSIT.  (a)  If the deposit is
   30-8  insufficient, the applicant shall be requested by letter to make a
   30-9  further deposit of an amount determined by the commissioner.>
  30-10        <(b)  If the further deposit is not made within 30 days after
  30-11  the date of the letter, work shall be discontinued and the
  30-12  application canceled with the cancellation endorsed on the
  30-13  application.>
  30-14        <(c)  On cancellation, the right to purchase or lease the
  30-15  vacancy under the application is lost.>
  30-16        <Sec. 51.181.  APPEAL OF AMOUNT OF DEPOSIT.  (a)  The
  30-17  applicant is entitled to appeal the estimated cost determined by
  30-18  the commissioner to a district court in Travis County by giving
  30-19  written notice to the commissioner within 15 days after receiving
  30-20  the estimated cost from the commissioner as provided in Sections
  30-21  51.179 through 51.180 of this code.>
  30-22        <(b)  The applicant has 15 days after the district court
  30-23  enters its decision in which to pay the amount ordered by the
  30-24  court's decision.>
  30-25        <Sec. 51.182.  DEPOSITS AS TRUST FUND.  Deposits provided
  30-26  under Sections 51.179 through 51.180 of this code shall be a
  30-27  special trust fund to be used only for the purpose authorized by
   31-1  this subchapter.>
   31-2        <Sec. 51.183.  STATEMENT AND REFUND OF REMAINING DEPOSIT.  As
   31-3  soon as the total expense properly charged against the deposit is
   31-4  determined, the commissioner shall render a complete statement to
   31-5  the applicant together  with any balance remaining from the
   31-6  deposit.>
   31-7        <Sec. 51.184.  NOTICE OF INTENTION TO SURVEY.  (a)  After the
   31-8  application is filed with the commissioner and the deposit is made,
   31-9  the commissioner shall mail a notice of intention to survey to all
  31-10  persons named as interested persons in the application at the
  31-11  addresses provided in the application and to the attorney general.>
  31-12        <(b)  The notices shall be deposited in the post office in
  31-13  Austin at least 10 days before the date set for the beginning of
  31-14  the survey.>
  31-15        <Sec. 51.185.  APPOINTMENT OF SURVEYOR.  (a)  The
  31-16  commissioner shall appoint a surveyor to make the survey in
  31-17  accordance with the notice of intention to survey.>
  31-18        <(b)  The surveyor shall be a surveyor licensed by the state
  31-19  or the county surveyor of the county in which the vacancy or part
  31-20  of the vacancy is located.>
  31-21        <(c)  The fees and expenses paid for the survey shall be the
  31-22  same as provided by law, and if the fees and expenses are not
  31-23  provided by law, the commissioner and surveyor shall make an
  31-24  agreement as to fees and expenses that shall not be more than an
  31-25  amount that is reasonable for the work performed.>
  31-26        <(d)  The fees and expenses shall be paid by the applicant.>
  31-27        <Sec. 51.186.  SURVEY REPORT.  (a)  Except as provided in
   32-1  Subsection (b) of this section, a written report of the survey,
   32-2  together with field notes describing the land and the lines and
   32-3  corners surveyed and a plat showing the results of the survey,
   32-4  shall be filed in  the land office within 120 days from the filing
   32-5  of the application.>
   32-6        <(b)  The commissioner may extend the time for filing the
   32-7  survey if good cause is shown.  The cause for extension of time
   32-8  shall be stated in writing and filed as part of the record of the
   32-9  proceedings.  An extension of time may not be more than 60 days.>
  32-10        <(c)  The survey report shall give the names and post office
  32-11  addresses of all persons who have possession of the land described
  32-12  in the application and of all persons found by the surveyor who
  32-13  have or claim any interest in the land.>
  32-14        <Sec. 51.187.  PERSONAL SURVEY.  Any interested party at his
  32-15  own expense may have any surveying done that he considers
  32-16  desirable.>
  32-17        <Sec. 51.188.  HEARING AND NOTICE.  (a)  Within 60 days after
  32-18  the surveyor makes his report, a hearing may be held before the
  32-19  commissioner to determine whether or not there is a vacancy.>
  32-20        <(b)  The date for the hearing shall be provided in the
  32-21  notice that the commissioner shall give to all persons thought to
  32-22  be interested parties and to all persons shown by the record of the
  32-23  proceeding to be interested parties, including the attorney
  32-24  general.>
  32-25        <(c)  The notice of the hearing shall be deposited at the
  32-26  post office in Austin at least 10 days before the date set for the
  32-27  hearing.>
   33-1        <(d)  At the hearing, the state and each interested party,
   33-2  whether or not he received notice, is entitled to be heard.>
   33-3        <(e)  The hearing shall be conducted in accordance with the
   33-4  provisions  of the Administrative Procedure and Texas Register Act
   33-5  (Article 6252 13a, Vernon's Texas Civil Statutes).>
   33-6        <Sec. 51.189.  DETERMINATION OF VACANCY BY COMMISSIONER.  (a)
   33-7  If it appears to the commissioner that the alleged vacancy is not
   33-8  in conflict with land previously titled, awarded, or sold by the
   33-9  state, he shall give prompt notice of this finding to the applicant
  33-10  and to all persons who were previously identified as interested
  33-11  parties.>
  33-12        <(b)  After the notice is given under Subsection (a) of this
  33-13  section, and subject to the preferential right of a good-faith
  33-14  claimant, the applicant is entitled for 120 days to purchase or
  33-15  lease the portion of the land that is determined to be vacant at a
  33-16  price set by the board as provided in this code and with the same
  33-17  royalty reservation as provided in Section 51.201 of this code.>
  33-18        <(c)  No award may be made by the commissioner unless a
  33-19  hearing is held,  and no presumption may obtain in a suit involving
  33-20  the existence of a vacancy as a result of the action of the
  33-21  commissioner in this respect.>
  33-22        <Sec. 51.190.  PURCHASE OR LEASE BY APPLICANT.  (a)  If there
  33-23  is no good-faith claimant or if no good-faith claimant exercises
  33-24  his preferential right within the time allowed, the applicant is
  33-25  entitled to purchase or lease, according to his application, the
  33-26  vacancy for which he made application and which is found to exist.>
  33-27        <(b)  Consideration shall be determined by the board as
   34-1  provided in this subchapter, but without consideration of potential
   34-2  mineral value.>
   34-3        <Sec. 51.191.  SUIT TO RECOVER LAND.  A good-faith claimant
   34-4  of a vacant or unsurveyed tract of land has 30 days after the sale
   34-5  or lease of the land to the applicant to institute suit to set
   34-6  aside the sale or lease of the land.  If the suit is not instituted
   34-7  within the 30 day  period by the good-faith claimant, he loses all
   34-8  preferential rights to purchase or lease the land.>
   34-9        <Sec. 51.192.  DENIAL OF VACANCY BY COMMISSIONER.  (a)  If
  34-10  the commissioner decides that the area alleged to be vacant is not
  34-11  vacant, he shall endorse this decision on the application and file
  34-12  it with his finding.>
  34-13        <(b)  The commissioner shall promptly notify the applicant of
  34-14  his decision by registered mail and shall file all reports and
  34-15  papers received in connection with the application.>
  34-16        <(c)  After the commissioner takes all action provided under
  34-17  Subsections (a) and (b) of this section, he shall take no further
  34-18  action with respect to the application unless the existence of the
  34-19  alleged vacancy is determined by a court of competent jurisdiction.>
  34-20        <(d)  Within 90 days after the commissioner's decision is
  34-21  mailed, unless the applicant files suit in a district court in a
  34-22  county in which part of the alleged vacancy is located to litigate
  34-23  the question of the existence of a vacancy, the applicant's
  34-24  application and all preference rights acquired to purchase or lease
  34-25  the alleged vacancy become null and void.>
  34-26        <Sec. 51.193.  PREFERENTIAL RIGHT OF GOOD FAITH CLAIMANT.
  34-27  (a)  A good-faith claimant who ascertains that a vacancy exists or
   35-1  that a claimed vacancy may exist or who has been notified by the
   35-2  commissioner that a vacancy has been found to exist on land claimed
   35-3  by him shall have a preferential right to purchase or lease the
   35-4  vacancy at any time until 90 days after a decision of the
   35-5  commissioner declaring the existence of a vacancy.>
   35-6        <(b)  The good-faith claimant may purchase or lease the
   35-7  vacancy by submitting a written application to the commissioner for
   35-8  the purchase or lease of the vacancy and by furnishing to the
   35-9  commissioner satisfactory proof that he is a good-faith claimant.>
  35-10        <(c)  The good-faith claimant is entitled to purchase or
  35-11  lease the portion of the land that is vacant at the price set by
  35-12  the board subject to the royalty reservations provided in this
  35-13  subchapter which are effective on the date the application is
  35-14  filed.>
  35-15        <Sec. 51.194.  TERM OF PREFERENTIAL RIGHT.  A good-faith
  35-16  claimant has a preferential right to purchase the land alleged or
  35-17  adjudicated to be vacant until 90 days after the final judicial
  35-18  determination of the existence of the vacancy.>
  35-19        <Sec. 51.195.  EFFECT OF GOOD FAITH CLAIMANT'S APPLICATION.
  35-20  The application of a good-faith claimant may not be used or
  35-21  considered as an admission on his part that a vacancy exists.>
  35-22        <Sec. 51.196.  PROCEDURE FOR PURCHASE OR LEASE BY GOOD-FAITH
  35-23  CLAIMANT.  (a)  On the date a good-faith claimant's application is
  35-24  filed, if there is no valid and subsisting application previously
  35-25  filed by an applicant covering the alleged vacancy, the application
  35-26  of the good-faith claimant shall be filed and shall be accompanied
  35-27  by:>
   36-1              <(1)  a filing fee set by the commissioner in an amount
   36-2  not less than $1;>
   36-3              <(2)  a written report of a surveyor licensed by the
   36-4  state or by the county surveyor of any county in which all or part
   36-5  of the alleged vacancy is located;>
   36-6              <(3)  field notes describing the land and the lines and
   36-7  corners surveyed;>
   36-8              <(4)  a plat showing the results of the survey; and>
   36-9              <(5)  any proof that will show to the satisfaction of
  36-10  the commissioner that the applicant is a good-faith claimant.>
  36-11        <(b)  The good-faith claimant may file his application to
  36-12  purchase or lease and within 120 days from the date of filing the
  36-13  application with the commissioner have a survey made of the alleged
  36-14  vacancy and file the report, field notes, and plat in the land
  36-15  office together with proof that he is a good-faith claimant.>
  36-16        <(c)  If it appears to the commissioner that the alleged
  36-17  vacancy is not in conflict with land previously titled, awarded, or
  36-18  sold by the state, the commissioner shall grant the application
  36-19  under the provisions of this subchapter.  Before the application is
  36-20  granted, the commissioner may hold a hearing at which interested
  36-21  persons may appear.>
  36-22        <Sec. 51.197.  FAILURE TO EXERCISE PREFERENTIAL RIGHT WITHIN
  36-23  CERTAIN TIME.  (a)  If the good-faith claimant does not exercise
  36-24  his preferential right to purchase within 90 days after a decision
  36-25  of the commissioner under the provisions of this subchapter, the
  36-26  applicant shall be awarded an oil, gas, and mineral lease on not
  36-27  more than seven eighths of the minerals.>
   37-1        <(b)  The consideration for the lease shall not be less than
   37-2  $1 an acre, and the lease shall be for a primary term set by the
   37-3  board of not more than five years.>
   37-4        <(c)  The lease shall be subject to other consideration and
   37-5  terms required by the board and the preferential right of a
   37-6  good-faith claimant until 90 days after final judicial
   37-7  determination under Section 51.194 of this code.>
   37-8        <Sec. 51.198.  REPAYMENT OF APPLICANT'S EXPENSES.  Within 90
   37-9  days after the commissioner declares the vacancy to exist, the
  37-10  good-faith claimant shall repay to the applicant the expenses
  37-11  incurred in determining the existence of a vacancy, except filing
  37-12  fees, as provided in this subchapter or the good-faith claimant
  37-13  will lose all preferential rights to purchase or lease the land.>
  37-14        <Sec. 51.199.  JUDICIAL DETERMINATION OF GOOD FAITH CLAIMANT.
  37-15  If the commissioner fails to determine whether or not there is a
  37-16  good-faith claimant or if his decision is questioned by an
  37-17  applicant or by a person asserting to be a good-faith claimant, the
  37-18  issue shall be determined in any suit brought under this subchapter
  37-19  to determine the existence of the alleged vacancy.>
  37-20        <Sec. 51.200.  RIGHTS OF HOLDERS OF TITLE AND HOLDERS OF
  37-21  INTERESTS IN TITLE OF A CLAIMANT.  (a)  If all owners holding title
  37-22  under the claimant or an interest in the  title under which the
  37-23  claimant claims to be a good-faith claimant accept the provisions
  37-24  of this section and contribute their proportionate part of the
  37-25  royalty reserved to the state and the royalty awarded to the
  37-26  applicant, the purchase by the good-faith claimant under the
  37-27  preferential right inures distributively to their benefit.>
   38-1        <(b)  The royalty reservations shall be deducted
   38-2  distributively and proportionately from the mineral interest of
   38-3  each owner including mineral leases if the area is under a mineral
   38-4  lease.>
   38-5        <(c)  As a condition of this subchapter, the good-faith
   38-6  claimant receiving the patent or award or for whose benefit a
   38-7  patent or award is received shall recognize the proportionate
   38-8  interests of other owners who benefit by the award of the
   38-9  preferential right. >
  38-10        <(d)  The consideration for the purchase shall be determined
  38-11  by the board without considering the potential value of minerals or
  38-12  any improvements located on the vacancy but shall not be less than
  38-13  $1 an acre.  The state retains the right to recover from the party
  38-14  or parties liable the market value when produced of all oil, gas,
  38-15  sulphur, or other minerals that may have been produced from the
  38-16  area before the effective date of the patent or award less an
  38-17  offset to the operator for the actual cost of development and
  38-18  production.>
  38-19        <(e)  No mineral lease executed by a good-faith claimant
  38-20  before filing the vacancy claim may give the lessee any interest in
  38-21  or to the vacancy.>
  38-22        <(f)  No title to land or to a mineral interest in land
  38-23  acquired from the state under a preferential right may be held to
  38-24  pass as after acquired title because of any covenant of general
  38-25  warranty, description, or other provision contained in any
  38-26  conveyance executed before the date of award under the preferential
  38-27  right.>
   39-1        <Sec. 51.201.  RESERVATION OF MINERALS.  (a)  If a good-faith
   39-2  claimant purchases a vacancy located within five miles of a well
   39-3  producing oil, gas, or other minerals in commercial quantities, not
   39-4  less than a free royalty of one eighth of all oil, gas, sulphur,
   39-5  and other minerals shall be reserved to the state.>
   39-6        <(b)  If a vacancy that is not covered by Subsection (a) of
   39-7  this section is sold, not less than a free royalty of one sixteenth
   39-8  of all oil and gas production and one eighth of all sulphur and
   39-9  other minerals shall be reserved to the state.>
  39-10        <(c)  If a good-faith claimant fails to exercise his
  39-11  preferential right to purchase a vacancy within 90 days after the
  39-12  commissioner determines the existence of the vacancy, the mineral
  39-13  interest reserved by the state shall be not less than a free
  39-14  royalty of one eighth of the oil and gas and not less than a free
  39-15  royalty of one sixth of the sulphur and other minerals.>
  39-16        <(d)  The state shall reserve not less than a free royalty of
  39-17  one eighth of all oil, gas, sulphur, and other minerals on
  39-18  vacancies that are leased by the state as determined by the board.>
  39-19        <(e)  An oil, gas, or other mineral lease on land in which
  39-20  the state reserves a free royalty interest is not effective until a
  39-21  certified copy of the recorded lease is filed in the General Land
  39-22  Office.>
  39-23        <Sec. 51.202.  MINERAL RESERVATIONS UNDER SALE MADE TO
  39-24  CLAIMANT AFTER 90 DAY DEADLINE.  If a good-faith claimant does not
  39-25  exercise his preferential right to purchase until after 90 days
  39-26  after the decision of the commissioner determining the existence of
  39-27  a vacancy, the sale made to the claimant shall be subject to a
   40-1  reservation to the state of not less than a free royalty of one
   40-2  eighth of all oil, gas, sulphur, and other minerals and subject to
   40-3  any lease made by the state to the applicant.>
   40-4        <Sec. 51.203.  ROYALTY FOR APPLICANT.  If there is a valid
   40-5  subsisting application previously filed by an applicant on the date
   40-6  that the good-faith claimant files his application to purchase
   40-7  under a preferential right, and if the good-faith claimant
   40-8  exercises his preferential right to purchase within 90 days after
   40-9  the commissioner's decision under this subchapter, a free royalty
  40-10  of one sixteenth of all oil, gas, sulphur, and other minerals that
  40-11  may be produced from the land shall be added to the royalty
  40-12  interest reserved to the state and shall be awarded by the state to
  40-13  the applicant.  The free royalty shall be deducted proportionately
  40-14  from the good-faith claimant's award.>
  40-15        <Sec. 51.205.  APPEAL.  (a)  A person who is aggrieved by any
  40-16  action taken by the commissioner under the provisions of this
  40-17  subchapter or with reference to any application to purchase or
  40-18  lease a vacancy may institute suit in the district court of any
  40-19  county in which part of the land is located to try the issues of
  40-20  boundary, title, ownership of any alleged vacancy involved, and
  40-21  preferential rights of the person.>
  40-22        <(b)  Within 30 days after the suit is filed, the plaintiff
  40-23  shall have a certified copy of the original petition served on the
  40-24  attorney general and the commissioner by the sheriff or a constable
  40-25  of Travis County and shall have the officer's return filed with the
  40-26  papers in the suit.>
  40-27        <(c)  Whether the attorney general answers or intervenes in
   41-1  the suit or institutes a suit, the venue of all suits following the
   41-2  filing of the application shall be in the county in which the land
   41-3  or part of the land is located.>
   41-4        <(d)  If the litigation is prosecuted to a final judgment,
   41-5  the judgment is binding on the state.>
   41-6        <(e)  The attorney general must intervene on behalf of the
   41-7  state in suits brought under this section.>
   41-8        <(f)  The suit must be filed in accordance with the
   41-9  provisions of the Administrative Procedure and Texas Register Act
  41-10  (Article 6252-13a, Vernon's Texas Civil Statutes) relating to
  41-11  appeals from agency decisions.>
  41-12        SECTION 2.  Section 118.161, Local Government Code, is
  41-13  amended to read as follows:
  41-14        Sec. 118.161.  Fee Schedule.  A county surveyor shall collect
  41-15  the following fees:
  41-16              (1)  for recording the field notes and plat of a survey
  41-17  for a tract of land, providing copies of field notes, plats, or
  41-18  other papers or records, and certifying any copies, the same amount
  41-19  collected by the county clerk of the county as a filing fee;
  41-20              (2)  for surveying a tract of land or designating a
  41-21  homestead:
  41-22                    (A)  the actual expenses incurred, including all
  41-23  expenses of making the survey, preparing a survey report, field
  41-24  notes, plat, and other documents required by law, and filing those
  41-25  documents in the records of the county surveyor or the General Land
  41-26  Office; and
  41-27                    (B)  any fees for surveying services agreed on by
   42-1  the county surveyor and the person seeking the services; and
   42-2              (3)  for filing an application to purchase or lease a
   42-3  vacancy or for surveying a vacancy, the amounts provided by
   42-4  Subchapter E, Chapter 51, Natural Resources Code.  <Inspecting and
   42-5  recording the field notes and plat of a survey for any tract of
   42-6  land:>
   42-7                    <(A)  less than one-third of a league ..... $1.00>
   42-8                    <(B)  one-third of a league ............... $2.00>
   42-9                    <(C)  more than one-third of a league ..... $3.00>
  42-10              <(2)  Recording surveys and plats required by law to be
  42-11                      placed on the map of a new county, for each 100
  42-12                      words ................................... $0.20>
  42-13              <(3)  Examination of papers and records in his office
  42-14                      at the request of any person ............ $0.25>
  42-15              <(4)  Copies of all field notes and plats, or other
  42-16                      papers or records in the office, for each 100
  42-17                      words, including certificate ............ $0.20>
  42-18              <(5)  Surveying of any tract of land, including all
  42-19                     expenses in making the survey, and returning the
  42-20                     plat and field notes of the survey:>
  42-21                    <(A)  for each English lineal mile actually run
  42-22                           .................................... $3.00>
  42-23                    <(B)  for less than one English lineal mile run
  42-24                           .................................... $2.50>
  42-25              <(6)  Services in designating a homestead, including
  42-26                     pay for chain carriers, for each day's service
  42-27                     ......................................... $5.00>
   43-1        SECTION 3.  Subsection (b), Section 72.006, Local Government
   43-2  Code, is amended to read as follows:
   43-3        (b)  A surveyor appointed under this chapter is entitled to
   43-4  receive the actual expenses incurred in making the survey and any
   43-5  fees for surveying services agreed on by the surveyor and the
   43-6  counties  <$3 for each mile surveyed>.
   43-7        SECTION 4.  Subsection (a), Section 21.078, Natural Resources
   43-8  Code, is amended to read as follows:
   43-9        (a)  The plane coordinate values for a point on the earth's
  43-10  surface, to be used in expressing the position or location of the
  43-11  point in the appropriate zone, of either system, shall consist of
  43-12  two distances, expressed in U.S. Survey Feet and decimals of a foot
  43-13  when using the Texas Coordinate System of 1927 and expressed either
  43-14  in meters and decimals of a meter or in U.S. Survey Feet or
  43-15  decimals of a foot when using the Texas Coordinate System of 1983.
  43-16        SECTION 5.  (a)  The change in law made by this Act applies
  43-17  only to an application to purchase or lease a vacancy under
  43-18  Subchapter E, Chapter 51, Natural Resources Code, that is filed
  43-19  with a county surveyor or county clerk on or after the effective
  43-20  date of this Act.
  43-21        (b)  An application filed before that date is governed by the
  43-22  law in effect on the date the application is filed, and the former
  43-23  law is continued in effect for that purpose.
  43-24        SECTION 6.  This Act takes effect September 1, 1993.
  43-25        SECTION 7.  The importance of this legislation and the
  43-26  crowded condition of the calendars in both houses create an
  43-27  emergency and an imperative public necessity that the
   44-1  constitutional rule requiring bills to be read on three several
   44-2  days in each house be suspended, and this rule is hereby suspended.