HBA-TBM H.C.R. 242 77(R) BILL ANALYSIS Office of House Bill AnalysisH.C.R. 242 By: Uher Civil Practices 4/23/2001 Introduced BACKGROUND AND PURPOSE Gulf Marine Institute of Technology (GMIT) is a nonprofit research institute that was formed to study and implement mariculture technologies to grow native finfish and oysters using the biggest offshore oil platform in territorial waters of the State of Texas. GMIT alleges that its research was compromised by the General Land Office (GLO). According to GMIT, GLO executed a surface and subsurface lease agreement with Seagull Energy E & P, Inc. (Seagull) on August 27, 1986 for the purpose of oil and gas production. GMIT subsequently negotiated with Seagull to transfer Seagull's inactive oil and gas lease and platform to GMIT for mariculture research and development. In its formal surface lease application dated July 23, 1998, GMIT fully disclosed to GLO its intended use of the platform for mariculture research and development. As a condition of the lease assignment, GLO required GMIT to post a $2.6 million performance bond to ensure that it would dismantle and remove the mariculture platform complex upon completion of the project. On September 19, 1998, GLO approved and accepted the performance bond, and the assignment of the lease from Seagull to GMIT became effective. Seagull was required to plug, abandon, and remove all production equipment from the platform. On May 12, 1999, GLO notified GMIT that it no longer had the right to use the platform, and GMIT was given by GLO a final deadline of May 26, 2000 to dismantle the platform. GMIT alleges that by approving the assignment of the lease, GLO entered into a contractual relationship with GMIT with the understanding that the platform would be used for mariculture research and development purposes that GLO breached by claiming that the lease is terminated and requiring the platform to be removed. House Concurrent Resolution 242 grants permission to GMIT to sue the State of Texas and the General Land Office. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this resolution does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Concurrent Resolution 242 grants permission to the Gulf Marine Institute of Technology to sue the State of Texas and the General Land Office (GLO) and provides that the commissioner of GLO be served process.