LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
74th Regular Session
April 10, 1995
TO: Honorable Steve Holzheauser, Chair IN RE: House Bill No. 2477
Committee on Energy Resources By: Turner, Bob
House of Representatives
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on House Bill No.
2477 (Relating to authorizing the School Land Board to allow
owners of the soil to waive agency rights and to lease oil, gas,
and other minerals in, on, and under mineral classified lands.)
this office has determined the following:
The bill would amend Chapters 52 and 53, Natural Resources Code,
to allow the School Land Board to lease oil, gas and minerals
directly to the surface owner of land for which the owner acts as
the state's agent under the Relinquishment Act, providing that
the surface owner waives his right to one-half of the benefits of
the lease, i.e. bonus, royalty, and rental. The bill would also
provide that if the owner of the soil obtains leases from other
surface owners, the terms of the lease with the Permanent School
Fund (PSF) would be at least as favorable as any other comparable
lease on the tract.
Although the General Land Office has indicated that the bill
would increase the amount of oil and gas property available for
lease and result in additional PSF revenue, it is unable to
accurately estimate the amount. In addition, the one-half share
of the state's royalty, bonus and rental income forfeited by
surface owners who choose to develop their own Relinquishment Act
properties would represent additional revenue for the PSF. The
exact amount of this revenue gain, however, cannot be calculated.
No fiscal implication to units of local government is
anticipated.
The fiscal implication to the State cannot be determined.
Source: General Land Office and Veterans' Land Board
LBB Staff: JK, KW, DF