By Uher H.C.R. No. 242
77R9537 MDR-D
HOUSE CONCURRENT RESOLUTION
1-1 WHEREAS, Gulf Marine Institute of Technology alleges that:
1-2 (1) on August 27, 1986, the General Land Office
1-3 executed a surface and subsurface lease agreement with Seagull
1-4 Energy E & P, Inc., for the purpose of oil and gas production;
1-5 (2) Gulf Marine Institute of Technology negotiated
1-6 with Seagull Energy E & P, Inc., to transfer Seagull's inactive oil
1-7 and gas lease and platform to Gulf Marine Institute of Technology
1-8 for mariculture purposes;
1-9 (3) in its formal surface lease application dated July
1-10 23, 1998, Gulf Marine Institute of Technology fully disclosed to
1-11 the General Land Office its intended use of the platform for
1-12 mariculture research and development;
1-13 (4) as a condition of the lease assignment, the
1-14 General Land Office required Gulf Marine Institute of Technology to
1-15 post a $2.6 million performance bond to ensure that it would
1-16 dismantle and remove the mariculture platform complex upon
1-17 completion of the project;
1-18 (5) Gulf Marine Institute complied with the request to
1-19 provide a performance bond;
1-20 (6) on September 19, 1998, the General Land Office
1-21 approved and accepted the performance bond, and the assignment of
1-22 the lease from Seagull Energy E & P, Inc., to Gulf Marine Institute
1-23 of Technology became effective;
1-24 (7) Seagull Energy E & P, Inc., was required to plug,
2-1 abandon, and remove all production equipment from the platform;
2-2 (8) on May 12, 1999, the General Land Office notified
2-3 Gulf Marine Institute of Technology that it no longer had the right
2-4 to use the platform and was given the final deadline of May 26,
2-5 2000, to dismantle the platform;
2-6 (9) by approving the assignment of the lease to Gulf
2-7 Marine Institute of Technology, the General Land Office entered
2-8 into a contractual relationship with Gulf Marine Institute of
2-9 Technology with the understanding that the platform would be used
2-10 for mariculture research and development purposes; and
2-11 (10) the General Land Office has breached its
2-12 contractual agreement with Gulf Marine Institute of Technology by
2-13 suddenly claiming that the lease is terminated because the oil and
2-14 gas wells were plugged and abandoned and by requiring the platform
2-15 to be removed; now, therefore, be it
2-16 RESOLVED by the Legislature of the State of Texas, That Gulf
2-17 Marine Institute of Technology be granted permission to sue the
2-18 State of Texas and General Land Office subject to Chapter 107,
2-19 Civil Practice and Remedies Code; and, be it further
2-20 RESOLVED, That the commissioner of the General Land Office be
2-21 served process as provided by Section 107.002(a)(3), Civil Practice
2-22 and Remedies Code.