1-1     By:  Uher (Senate Sponsor - Armbrister)              H.C.R. No. 242
 1-2           (In the Senate - Received from the House May 11, 2001;
 1-3     May 11, 2001, read first time and referred to Committee on Finance;
 1-4     May 11, 2001, reported favorably by the following vote:  Yeas 8,
 1-5     Nays 0; May 11, 2001, sent to printer.)
 1-6                         HOUSE CONCURRENT RESOLUTION
 1-7           WHEREAS, Gulf Marine Institute of Technology alleges that:
 1-8                 (1)  on August 27, 1986, the General Land Office
 1-9     executed a surface and subsurface lease agreement with Seagull
1-10     Energy E & P, Inc., for the purpose of oil and gas production;
1-11                 (2)  Gulf Marine Institute of Technology negotiated
1-12     with Seagull Energy E & P, Inc., to transfer Seagull's inactive oil
1-13     and gas lease and platform to Gulf Marine Institute of Technology
1-14     for mariculture purposes;
1-15                 (3)  in its formal surface lease application dated July
1-16     23, 1998, Gulf Marine Institute of Technology fully disclosed to
1-17     the General Land Office its intended use of the platform for
1-18     mariculture research and development;
1-19                 (4)  as a condition of the lease assignment, the
1-20     General Land Office required Gulf Marine Institute of Technology to
1-21     post a $2.6 million performance bond to ensure that it would
1-22     dismantle and remove the mariculture platform complex upon
1-23     completion of the project;
1-24                 (5)  Gulf Marine Institute complied with the request to
1-25     provide a performance bond;
1-26                 (6)  on September 19, 1998, the General Land Office
1-27     approved and accepted the performance bond, and the assignment of
1-28     the lease from Seagull Energy E & P, Inc., to Gulf Marine Institute
1-29     of Technology became effective;
1-30                 (7)  Seagull Energy E & P, Inc., was required to plug,
1-31     abandon, and remove all production equipment from the platform;
1-32                 (8)  on May 12, 1999, the General Land Office notified
1-33     Gulf Marine Institute of Technology that it no longer had the right
1-34     to use the platform and was given the final deadline of May 26,
1-35     2000, to dismantle the platform;
1-36                 (9)  by approving the assignment of the lease to Gulf
1-37     Marine Institute of Technology, the General Land Office entered
1-38     into a contractual relationship with Gulf Marine Institute of
1-39     Technology with the understanding that the platform would be used
1-40     for mariculture research and development purposes; and
1-41                 (10)  the General Land Office has breached its
1-42     contractual agreement with Gulf Marine Institute of Technology by
1-43     suddenly claiming that the lease is terminated because the oil and
1-44     gas wells were plugged and abandoned and by requiring the platform
1-45     to be removed; now, therefore, be it
1-46           RESOLVED by the Legislature of the State of Texas, That Gulf
1-47     Marine Institute of Technology be granted permission to sue the
1-48     State of Texas and General Land Office subject to Chapter 107,
1-49     Civil Practice and Remedies Code; and, be it further
1-50           RESOLVED, That the suit authorized by this resolution shall
1-51     be brought in Travis County; and, be it further
1-52           RESOLVED, That the total of all damages awarded in the suit
1-53     authorized by this resolution, including any court costs,
1-54     attorney's fees, and prejudgment interest awarded under law, may
1-55     not exceed $3 million, that Gulf Marine Institute of Technology may
1-56     not plead an amount in excess of that amount in a suit authorized
1-57     by this resolution, and that this is the total amount that may be
1-58     recovered with respect to the contractual agreement that is the
1-59     subject of this resolution in all actions brought with respect to
1-60     that agreement; and, be it further
1-61           RESOLVED, That the commissioner of the General Land Office be
1-62     served process as provided by Section 107.002(a)(3), Civil Practice
1-63     and Remedies Code.
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