SRC-ARR H.B. 1494 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 1494
76R2667 MI-FBy: Alexander (Nixon)
Natural Resources
4/26/1999
Engrossed


DIGEST 

The E.B. LaRue, Jr. Survey in Henderson County encompasses 29 acres. The
surface rights to the land have been sold several times. The current
landowner would like to develop the land, but is reluctant to do so because
he does not own the mineral rights. Without mineral rights, the landowner
could have homes or business which would be greatly disturbed or damaged by
mineral mining. H.B. 1494 would authorize the School Land Board to sell
mineral rights, except oil and gas, to the existing surface land owner of
the E.B. LaRue, Jr. Survey in Henderson County. 

PURPOSE

As proposed, H.B. 1494 authorizes limited rights to purchase certain
permanent school fund minerals other than oil and gas in Henderson County. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Authorizes the School Land Board (board) to sell the minerals,
other than oil and gas, dedicated to the permanent school fund under, in,
or on either of certain tracts in Henderson County to a qualified applicant
as provided by this Act if the board determines that the sale is in the
best interest of the permanent school fund. Requires a person to be a
natural person who meets certain criteria to qualify as an applicant.
Requires the sale under this Act of minerals, other than oil and gas, to be
at the fair market value of those minerals as determined by the board and
on the terms and conditions the board determines to be in the best interest
of the permanent school fund. Authorizes the board to retain up to a
one-sixteenth free royalty interest in the minerals to protect the state's
interests if the minerals are leased or developed at a later date. Requires
the person applying to purchase minerals other than oil and gas under this
Act to submit a written application to the board not later than the first
anniversary of the effective date of this Act. 

SECTION 2. Emergency clause.
                      Effective date: upon passage.