CHAPTER 85. ADMINISTRATION OF THE TEXAS A & M UNIVERSITY SYSTEM

State Codes and Statutes

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EDUCATION CODE

TITLE 3. HIGHER EDUCATION

SUBTITLE D. THE TEXAS A & M UNIVERSITY SYSTEM

CHAPTER 85. ADMINISTRATION OF THE TEXAS A & M UNIVERSITY

SYSTEM

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 85.01. DEFINITIONS. In this chapter:

(1) "System" or "university system" means The Texas A & M

University System.

(2) "Board" means the board of regents of The Texas A & M

University System.

Acts 1971, 62nd Leg., p. 3191, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971. Amended by Acts 1975, 64th Leg., p. 598, ch. 247,

Sec. 1, eff. Sept. 1, 1975.

SUBCHAPTER B. ADMINISTRATIVE PROVISIONS

Sec. 85.11. BOARD OF REGENTS. The government of the university

system is vested in a board of nine regents appointed by the

governor with the advice and consent of the senate.

Acts 1971, 62nd Leg., p. 3192, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971. Amended by Acts 1975, 64th Leg., p. 598, ch. 247,

Sec. 2, eff. Sept. 1, 1975.

Sec. 85.12. QUALIFICATIONS; TERMS. Each member of the board

shall be a qualified voter; and the members shall be selected

from different portions of the state. The members hold office for

staggered terms of six years, with the terms of three expiring

February 1 of odd-numbered years.

Acts 1971, 62nd Leg., p. 3192, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971. Amended by Acts 1983, 68th Leg., p. 2837, ch. 484,

art. III, Sec. 2, eff. June 19, 1983.

Sec. 85.13. CERTIFICATE OF APPOINTMENT. The secretary of state

shall forward a certificate to each regent within 10 days after

his appointment, notifying him of the fact of his appointment. If

any person so appointed and notified fails for 10 days to give

notice to the governor of his acceptance, his appointment shall

be deemed void and his place shall be filled as in the case of a

vacancy.

Acts 1971, 62nd Leg., p. 3192, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971. Amended by Acts 1975, 64th Leg., p. 598, ch. 247,

Sec. 3, eff. Sept. 1, 1975.

Sec. 85.14. CHAIRMAN OF BOARD. The board shall elect from its

members a chairman of the board, who shall call the board

together for the transaction of business whenever he deems it

expedient.

Acts 1971, 62nd Leg., p. 3192, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971. Amended by Acts 1975, 64th Leg., p. 599, ch. 247,

Sec. 4, eff. Sept. 1, 1975.

Sec. 85.15. EXPENSES OF REGENTS. The regents shall serve

without compensation but are entitled to reimbursement for actual

expenses incurred in attending board meetings and in transacting

the official business of the board.

Acts 1971, 62nd Leg., p. 3192, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971. Amended by Acts 1975, 64th Leg., p. 599, ch. 247,

Sec. 5, eff. Sept. 1, 1975.

Sec. 85.16. SEAL. The board may make and use a common seal.

Acts 1971, 62nd Leg., p. 3192, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971.

Sec. 85.17. SYSTEM CENTRAL ADMINISTRATION OFFICE; EXECUTIVE

OFFICER. (a) The central administration office of the

university system shall provide oversight and coordination of the

activities of each component institution within the system.

(b) The board shall appoint a chief executive officer of the

university system and determine the chief executive officer's

term of office, salary, and duties.

organization of the university system and the appointment of a

chief administrative officer for each component institution,

agency, and service, within the system.

(d) The chief executive officer is responsible to the board for

the general management and success of the university system, and

the board may delegate authority, establish guidelines, and

cooperate with the executive officer to carry out that

responsibility. The chief executive officer may delegate his

authority if approved by the board.

(e) In addition to other powers and duties provided by this code

or other law, the central administration office of the system

shall recommend necessary policies and rules to the governing

board of the system to ensure conformity with all laws and rules

and to provide uniformity in data collection and financial

reporting procedures.

Added by Acts 1989, 71st Leg., ch. 464, Sec. 2, eff. June 14,

1989.

Sec. 85.18. MANDATORY VENUE. (a) Venue for a suit filed

against the board or a member of the board in the member's

official capacity is in Brazos County.

(b) Venue for a suit filed against The Texas A&M University

System, any component of The Texas A&M University System, or

any officer or employee of The Texas A&M University System is

in the county in which the primary office of the chief executive

officer of the system or component, as applicable, is located.

suit or liability that may be asserted by an entity or individual

described by this section.

(d) In case of a conflict between this section and any other

law, this section controls.

(e) The changes in law made by the adoption of this section

apply only to an action brought on or after September 1, 2003.

Added by Acts 2003, 78th Leg., ch. 1266, Sec. 4.10, eff. June 20,

2003.

SUBCHAPTER C. POWERS AND DUTIES OF BOARD

Sec. 85.21. GENERAL POWERS AND DUTIES. (a) The board shall

make bylaws, rules, and regulations it deems necessary and proper

for the government of the university system and its institutions,

agencies, and services. The board shall regulate the course of

study and prescribe the course of discipline necessary to enforce

the faithful discharge of the duties of the officers, faculty,

and students.

(b) The board is specifically authorized, upon terms and

conditions acceptable to it, to accept and administer gifts,

donations, grants, and endowments, from any source, for use by

the system or any of the components of the system. The board may

retain such funds in local fund accounts.

Acts 1971, 62nd Leg., p. 3191, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971. Amended by Acts 1983, 68th Leg., p. 2053, ch. 377,

Sec. 1, eff. June 17, 1983.

Sec. 85.22. EXPENDITURES. All expenditures may be made by order

of the board and shall be paid on warrants from the comptroller

based on vouchers approved by the president of the board or by

some officer or officers designated by him in writing to the

comptroller.

Acts 1971, 62nd Leg., p. 3192, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971.

Sec. 85.23. PERMANENT IMPROVEMENTS; CONTRACTS; LAND

TRANSACTIONS. The board may enter into an agreement with any

person for the purchase, sale, lease, lease-purchase,

acquisition, or construction of permanent improvements and may

purchase, sell, lease, lease-purchase, encumber, or contract with

reference to the divesting or encumbering title to lands and

other appurtenances for the construction of the permanent

improvements. However, no debt or liability shall be incurred by

the State of Texas under this section.

Acts 1971, 62nd Leg., p. 3193, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971. Amended by Acts 2001, 77th Leg., ch. 774, Sec. 1,

eff. Sept. 1, 2001.

Sec. 85.24. UTILITIES. (a) The board from time to time may

improve and equip existing central power plants and may

construct, acquire, improve, and equip steam plants and additions

to them, and the board may acquire land for these purposes for

the institutions under its control, when the total cost, type of

construction, capacity, and plans and specifications have been

approved by the board. As used in this subsection, "steam plants"

does not include electrical generating facilities, but "central

power plants" does include electrical generating facilities.

(b) The board from time to time may construct, extend, and

improve the water systems, sewer systems, or both, for any or all

institutions under its control, when the total cost, type of

construction, capacity, and plans and specifications have been

approved by the board.

electricity, or any or all of those services from the power and

steam plant or plants and other facilities located at each

institution to any or all dormitories, kitchens and dining halls,

hospitals, student activity buildings, gymnasiums, athletic

buildings and stadiums, the dormitory for help, laundry, and

other buildings or facilities that may have been or may be

constructed at each institution, and may determine the amount to

be charged as a part of the maintenance and operation expense of

those buildings or facilities for the service or services. The

board may allocate the cost of furnishing the services to

revenue-producing buildings and facilities and to other buildings

and facilities at the institutions. The board may pledge the net

revenues from the amounts thus received for the services to pay

the principal of and interest on, and to create and maintain the

reserve for, the negotiable revenue bonds issued for the purpose

of constructing, acquiring, improving, extending, or equipping

the power and steam plants, or additions thereto, or other

facilities, and may secure the bonds additionally by pledging

rentals, rates, charges, and fees for the use or availability of

all or any property, buildings, structures, activities,

operations, or facilities, of any nature, which may be fixed and

collected from all or any designated part of the students

enrolled in the institution or institutions or from others in the

amounts and in the manner determined and provided by the board in

the resolution authorizing the issuance of the bonds.

Acts 1971, 62nd Leg., p. 3193, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971.

Sec. 85.25. LANDS AND MINERAL INTERESTS. (a) The board is

vested with the sole and exclusive management and control of

lands and mineral interests under its jurisdiction and that may

be acquired by it.

(b) The board may grant, sell, lease, or otherwise dispose of

the lands and mineral interests under its jurisdiction that do

not comprise any portion of the original main campus of Texas

A&M University to other units or agencies of government, or

to any individual, group of individuals, corporation, or other

entity under terms and conditions it deems best in the public

interest.

(c)(1) Except as authorized by existing law, any grant, sale, or

lease of the surface estate of the original main campus property

must be approved by Act of the legislature.

(2) The board is hereby authorized to grant The Former Students

Association of Texas A&M University a lease of surface area

not to exceed eight acres on the original main campus for use by

the association to construct and occupy a building for use

consistent with the association's stated purposes.

(3) The board is further authorized to grant to the Texas

A&M Foundation a lease of surface area not to exceed eight

acres on the original main campus for use by the foundation to

construct and occupy a building for use consistent with the

foundation's stated purposes.

(4) The board is authorized to enter into an agreement,

including a ground lease, for construction of an office,

laboratory, and classroom building to be funded by a donor, on a

site not to exceed five acres on the original main campus. The

agreement shall provide that title to the building shall be

transferred to the board upon completion.

(d) For the purposes of this section, the original main campus

of Texas A&M University comprises that certain 748 acres,

more or less, bounded by Texas Avenue, George Bush Drive,

Wellborn Road, and University Drive in College Station, Texas.

(e) Proceeds received from the grant, sale, lease, or other

disposition of surface interests covered by this section may be

retained in local funds subject to disposition by the board for

any lawful purpose.

(f) This section is cumulative of existing statutes relating to

the authority of the board to lease for oil, gas, sulphur,

mineral ore, and other mineral developments, and otherwise to

buy, sell, and lease certain lands under its jurisdiction and

supervision.

(g) This section does not cover any lands or minerals held by

the general land office.

Acts 1971, 62nd Leg., p. 3194, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971. Amended by Acts 1983, 68th Leg., p. 851, ch. 198,

Sec. 1, eff. Aug. 29, 1983; Acts 1991, 72nd Leg., ch. 338, Sec.

1, eff. Aug. 26, 1991.

Amended by:

Acts 2005, 79th Leg., Ch.

462, Sec. 1, eff. June 17, 2005.

Acts 2007, 80th Leg., R.S., Ch.

739, Sec. 1, eff. June 15, 2007.

Acts 2009, 81st Leg., R.S., Ch.

478, Sec. 1, eff. June 19, 2009.

Sec. 85.26. LEASES AND EASEMENTS; RIGHTS-OF-WAY FOR ELECTRIC

LINES, PIPELINES, IRRIGATION CANALS, ETC. (a) The board may

execute leases and grant easements for rights-of-way for

telephone, telegraph, electric transmission, and power lines, for

oil pipelines, gas pipelines, sulphur pipelines, water pipelines

and other electric lines and pipelines of any nature whatsoever,

and for irrigation canals, and laterals, and may execute

easements or leases for the erection and maintenance of electric

substations, pumping stations, loading racks, tank farms, and

other structures, and may execute easements for rights-of-way to

the Texas Department of Transportation, to any county in the

state, or to any corporation, group, organization, firm, or

individual for highway or roadway purposes, on or across any

lands belonging to the state and under the control of the board,

if the board in its discretion deems it apparent that the

interest of the state can best be served by the granting of the

easements and leases.

(b) Each easement granted under this section shall be on forms

approved by the attorney general and shall include a complete

description of the land on which the easement is to be granted,

the period of time covered by the easement, the amount of money

to be paid by the grantee to the grantor, or other consideration

for the granting of such easement. It shall also specify the

terms and conditions, penalties for failure to comply with its

provisions, and other pertinent information necessary and

desirable to effect a complete understanding of the transaction.

easement for right-of-way for highway or roadway purposes which

may be for an indefinite term shall be limited to a term of not

longer than 10 years, but any such easement may be renewed by the

board.

(d) All income received by the board under the provisions of

this section shall be accounted for and used in the same manner

as other money available to the part of the system to which the

land from which the easement is granted is assigned.

(e) No person, firm, group, organization, agency, or corporation

shall hereafter construct any telephone, telegraph, transmission,

or electric line, pipeline, electric substation, tank farm,

loading rack, pumping station, irrigation canal or lateral,

highway, or roadway of the kind and character enumerated in

Subsection (a) of this section, across or on any section or part

of a section of land of the character described in Subsection (a)

of this section, who has not obtained a proper easement as

provided by this section; or continue in possession of any such

land without obtaining from the board a grant of a right-of-way

easement or other easement across or on such land where the

telephone, telegraph, transmission, or electric lines, pipelines,

or any other transmission or pipelines, electric substation, tank

farm, loading rack, or pumping station, irrigation canal or

lateral, highway, or roadway is to constructed. Any person, firm,

group, organization, agency, or corporation violating this

subsection shall be liable for a penalty of $100 for each day of

the violation, to be recovered by the attorney general.

Acts 1971, 62nd Leg., p. 3194, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971. Amended by Acts 1995, 74th Leg., ch. 165, Sec.

22(31), eff. Sept. 1, 1995.

Sec. 85.27. FLOOD CONTROL EASEMENTS. The board may convey flood

control easements over land under its jurisdiction and control to

water control and improvement districts of this state. No flood

control easement shall be conveyed unless the board receives from

the district reasonable consideration for the conveyance. The

conveyance shall be under the terms and conditions that the board

deems in the best interest of the university system.

Acts 1971, 62nd Leg., p. 3195, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971.

Sec. 85.28. AIRPORTS. (a) The board may construct or otherwise

acquire an airport for any institution within the system. It may

maintain and operate the airports in connection with the teaching

of courses in aeronautical engineering and for purposes in

cooperation with the national defense program and for other

purposes which will not interfere with those uses.

(b) The board may acquire by purchase, lease, gift,

condemnation, or otherwise, and may use, operate, and maintain

any kind of property or property interest necessary or convenient

to the exercise of powers under this section. The power of

eminent domain shall be exercised in the manner provided by

general law, including Title 52, Revised Civil Statutes of Texas,

1925, as amended, except that the board shall not be required to

give bond for appeal or bond for costs.

Acts 1971, 62nd Leg., p. 3195, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971.

Sec. 85.29. RESEARCH AND EXPERIMENTATION FOR TEXAS DEPARTMENT OF

TRANSPORTATION. (a) The department may contract with the

university system or a component or agency of the university

system to conduct research relating to transportation, including

the economics, planning, design, construction, maintenance, or

operation of transportation facilities.

(b) An agreement entered into under this section is not subject

to Chapter 771, Government Code.

part of the university system based on vouchers or claims

submitted by the system through the department covering

reasonable fees and charges for services rendered by members of

the staff of the system to the department and for equipment and

materials necessary for research and experimentation under a

contract entered into under this section.

(d) The comptroller shall pay warrants issued under this section

against any funds appropriated by the legislature to the

department. The payments made to the system shall be credited and

deposited to local institutional funds under its control.

(e) In this section:

(1) "Department" means the Texas Department of Transportation.

(2) "Transportation facilities" means highways, turnpikes,

airports, railroads, including high-speed railroads, bicycle and

pedestrian facilities, waterways, pipelines, electric utility

facilities, communication lines and facilities, public

transportation facilities, port facilities, and facilities

appurtenant to other transportation facilities.

Acts 1971, 62nd Leg., p. 3195, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971. Amended by Acts 1995, 74th Leg., ch. 165, Sec.

22(32), eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 382, Sec.

1, eff. May 28, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 5.21,

eff. Sept. 1, 1997.

Sec. 85.30. DONATIONS AND TRUSTS. (a) Donations of property

may be made and accepted by the board for the purpose of

establishing or assisting in the establishment of a

professorship, chair, or scholarship in the university system or

any of its component institutions or for creating in the

university system or any of its component institutions any trust

for any lawful, educational, or charitable purpose, either

temporarily or permanently, and the donations or trusts thereby

created will be governed by the rules prescribed by this section.

(b) The legal title to the property shall be vested in the board

acting as an entity, or the State of Texas, to be held in trust

for the purpose under any directions, limitations, and provisions

that may be declared in the donation or trust agreement, not

inconsistent with the objectives and proper management of the

system or its component institutions.

title to the property shall thereafter be transmitted from the

trustee in continued succession, to be held for and appropriated

to the declared purposes.

(d) The donor may declare and direct the person or class of

persons who shall receive the benefit of the donation and the

manner of their selection.

(e) The declarations, directions, and limitations shall not be

inconsistent with the objects and proper management of the system

or its institutions.

(f) The title to the property donated shall be received, and the

trust conferred in the donation shall be assumed, subject to laws

that may be passed and carried into effect from time to time

which may be necessary to prevent the loss of or damage to the

property donated or an abuse or neglect of the trust so as to

defeat, materially change, or prevent the objects of the

donation.

(g) Copies of the donation shall be filed with the board.

Added by Acts 1983, 68th Leg., p. 2053, ch. 377, Sec. 2, eff.

June 17, 1983.

Sec. 85.31. FUNDS RECEIVED FOR TRUST SERVICES. (a) The board

may at its discretion charge administrative fees for services

rendered in the management and administration of any trust estate

under the control of the system or any component of the system.

(b) Funds received pursuant to such charges may be deposited in

an appropriate system or university account and may be expended

by the board for any purpose of the system.

Added by Acts 1983, 68th Leg., p. 2053, ch. 377, Sec. 2, eff.

June 17, 1983.

Sec. 85.32. EMINENT DOMAIN. (a) The board may exercise the

power of eminent domain to acquire any real property that the

board considers necessary and proper to carry out its powers and

duties.

(b) The board shall exercise the power of eminent domain in the

manner prescribed by Chapter 21, Property Code, except that the

board is not required to deposit a bond or the amount equal to

the award of damages by the special commissioners under Sections

21.021(a)(2) and (3), Property Code.

Added by Acts 2001, 77th Leg., ch. 774, Sec. 2, eff. Sept. 1,

2001.

SUBCHAPTER D. LEASE OF LANDS FOR OIL, GAS, AND OTHER MINERAL

DEVELOPMENT

Sec. 85.51. AUTHORITY TO LEASE. (a) The board may lease for

oil, gas, sulphur, mineral ore, and other mineral developments

all lands and mineral interests under its control, owned or in

the future acquired by the state for the use of the university

system.

(b) The board shall offer oil and gas leases at public auction,

by sealed bid, by negotiated agreement, or through any other

means that the board considers to be in the best interest of the

university system.

Acts 1971, 62nd Leg., p. 3196, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971. Amended by Acts 2003, 78th Leg., ch. 1266, Sec.

4.09, eff. June 20, 2003.

Sec. 85.52. SALE OF MINERAL ORE IN PLACE. Mineral ore located

in and on the land may also be sold in place by the board at not

less than the fair market value as determined by the same methods

as are provided for leasing of lands under this subchapter for

development of the minerals in the lands.

Acts 1971, 62nd Leg., p. 3196, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971.

Sec. 85.53. TRACTS, LOTS, BLOCKS. The board may cause the lands

to be surveyed or subdivided into tracts, lots, or blocks that

will, in its judgment, be most conducive and convenient to

facilitate the advantageous sale of lease for oil, gas, sulphur,

mineral ore, and other minerals, and may make maps and plats that

may be thought necessary to carry out the purposes of this

subchapter. The board may obtain authentic abstracts of title to

all the lands as it deems necessary from time to time, and may

take any steps necessary to perfect a merchantable title to the

lands in the State of Texas.

Acts 1971, 62nd Leg., p. 3196, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971.

Sec. 85.54. PLACING LEASES ON MARKET; ADVERTISING. (a)

Whenever, in the opinion of the board, there is a demand for the

purchase of oil, gas, sulphur, mineral ore, or other mineral

leases on any tract or part of any tract of land that will

reasonably insure an advantageous sale, the board shall place the

oil, gas, sulphur, mineral ore, or other mineral leases on the

land on the market in any tract or tracts, or any part thereof,

that the board may designate.

(b) The board shall cause to be advertised a brief description

of the land from which the oil, gas, sulphur, mineral ore, or

other minerals is proposed to be leased. The advertisement shall

be made by inserting in two or more papers of general circulation

in this state; and in addition the board may, in its discretion,

cause the advertisement to be placed in an oil and gas journal

published in and out of the state, mail copies of the proposals

to the county judge of the county where the lands are located,

and mail copies of the proposals to other persons the board

thinks would be interested.

Acts 1971, 62nd Leg., p. 3196, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971.

Sec. 85.55. PUBLIC AUCTION; BIDS; ACCEPTANCE; REJECTION;

PAYMENTS. (a) The board may sell the lease or leases to the

highest bidder at public auction, at Texas A & M University,

in College Station, at any hour between 10 a.m. and 5 p.m.

(b) The board may reject all bids. However, the highest bidder

shall pay to the board on the day of the sale 25 percent of the

bonus bid, and the balance of the bid shall be paid to the board

within 24 hours after notification that the bid has been

accepted. Payments shall be in cash, certified check, or

cashier's check, as the board may direct. Failure to pay the

balance of the amount bid will forfeit to the board the 25

percent paid.

thereof. No bids shall be accepted which offer less than the fair

market price per ton for the mineral ore or a royalty of less

than one-eighth of the gross production of oil, gas, sulphur, and

other minerals in the land bid upon, and this minimum royalty may

be increased at the discretion of the board. Every bid shall

carry the obligation to pay an amount not less than $1 per acre

for delay in drilling or development. The amount shall be fixed

by the board in advance of the advertisement and shall be paid

every year for five years unless in the meantime production in

paying quantities is had upon the land or the land is re-leased

by the lessee.

Acts 1971, 62nd Leg., p. 3197, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971.

Sec. 85.56. SUBSEQUENT PROCEDURE IF NO BIDS ACCEPTED. If no bid

is accepted by the board at the public auction, any subsequent

procedure for the sale of oil, gas, sulphur, mineral ore, and

other mineral leases shall be in the manner prescribed by this

subchapter.

Acts 1971, 62nd Leg., p. 3197, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971.

Sec. 85.57. WITHDRAWAL OF LAND ADVERTISED. The board may

withdraw any lands advertised for lease or for the sale of

mineral ore in place.

Acts 1971, 62nd Leg., p. 3197, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971.

Sec. 85.58. ACCEPTANCE OF BIDS; AWARD OF LEASE. (a) If in the

opinion of the board any one of the bidders has offered a

reasonable and proper price for any tract and not less than the

price fixed by the board, the lands advertised may be leased for

oil, gas, sulphur, mineral ore, and other mineral purposes under

the provisions of this subchapter and any regulations the board

may prescribe which are not inconsistent with the provisions of

this subchapter.

(b) On acceptance of a bid, the board shall prepare a lease

contract. The bid and a copy of the lease contract shall be filed

in the general land office.

Acts 1971, 62nd Leg., p. 3197, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971.

Sec. 85.59. EXPLORATORY TERM; EXTENSION; OTHER PROVISIONS OF

LEASE. (a) The exploratory term of the lease as determined by

the board prior to the promulgation of the advertisement shall in

no case exceed five years, and each lease shall provide that the

lease will terminate at the expiration of its exploratory term

unless by unanimous vote of members of the board the lease may be

extended for a period of three years. The lease may be extended

if the board finds that there is likelihood of oil, gas, sulphur,

mineral ore, and other minerals being discovered by lessees, and

that the lessees have proceeded with diligence to protect the

interest of the state. However, if oil, gas, sulphur, mineral

ore, and other minerals are being produced in paying quantities

from the premises, the lease shall continue in force and effect

as long as the oil, gas, sulphur, mineral ore, and other minerals

are being so produced. No extension under this subsection may be

made by the board until the last 30 days of the original term of

the lease.

(b) When, in the discretion of the board, it is deemed for the

best interest of the state to extend a lease issued by the board,

the board by unanimous vote may extend the lease for a period not

to exceed three years, on the condition that the lessee shall

continue to pay yearly rental as provided in the lease and any

additional terms the board may see fit and proper to demand. The

board may extend the lease and execute an extension agreement.

regulations the board may prescribe to preserve the interest of

the state, not inconsistent with the provisions of this

subchapter.

Acts 1971, 62nd Leg., p. 3197, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971.

Sec. 85.60. DISCONTINUANCE OF YEARLY PAYMENTS; TERMINATION FOR

NONPRODUCTION. When the royalties amount to as much as the

yearly payments as fixed by the board, the yearly payments may be

discontinued. If before the expiration of five years oil, gas,

sulphur, mineral ore, and other minerals have not been produced

in paying quantities, the lease shall terminate unless extended

as provided by this subchapter.

Acts 1971, 62nd Leg., p. 3198, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971.

Sec. 85.61. OPERATIONS UNDER LEASE: EFFECT ON RENTAL PAYMENTS,

TERM OF LEASE. If, during the term of any lease issued under the

provisions of this subchapter, the lessee is engaged in actual

drilling and mining operations for the discovery of oil, gas,

sulphur, mineral ore, and other minerals on land covered by any

such lease, no rentals shall be payable as to the tract on which

the operations are being conducted as long as the operations are

proceeding in good faith; and if oil, gas, sulphur, mineral ore,

and other minerals are discovered in paying quantities on any

tract of land covered by any lease, then the lease as to that

tract shall remain in force as long as oil, gas, sulphur, mineral

ore, and other minerals are produced in paying quantities from

the tract.

Acts 1971, 62nd Leg., p. 3198, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971.

Sec. 85.62. PRORATION OR REDUCTION OF PRODUCTION. When, in the

discretion of the board, it is for the best interest of the state

to prorate or reduce production of any land, the board may

execute the necessary contract to carry out that purpose.

Acts 1971, 62nd Leg., p. 3198, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971.

Sec. 85.63. INTERFERENCE WITH SURFACE USES. No lease for oil,

gas, sulphur, mineral ore, and other minerals shall be made by

the board which will permit the drilling or mining for oil, gas,

sulphur, mineral ore, and other minerals within 300 feet of any

building on the land without the consent of the board. A lease on

any experimental station or farm shall provide that the

operations for oil, gas, sulphur, mineral ore, and other minerals

shall not in any way interfere with use of the land as an

experimental station and shall not cause the abandonment of the

property or its use for experimental farm purposes; and the

lessee shall drill, mine, and carry on his operations in such a

way as not to cause the abandonment of the property for

experimental farm purposes, and any such leased property shall be

subject to the use by the State of Texas for all experimental

purposes and the board shall continue to operate the experimental

station.

Acts 1971, 62nd Leg., p. 3198, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971.

Sec. 85.64. PROTECTION FROM DRAINAGE. In every case where the

area in which oil, gas, sulphur, mineral ore, and other minerals

sold shall be contiguous or adjacent to lands which are not lands

belonging to and held by the university system, the acceptance of

the bid and the sale made thereby shall constitute an obligation

on the owner to adequately protect the land leased from drainage

from the adjacent lands to the extent that a reasonably prudent

operator would do under the same and similar circumstances. In

cases where the area in which the oil, gas, sulphur, mineral ore,

and other minerals are sold is contiguous to other lands

belonging to and held by the university system which have been

leased or sold at a lesser royalty, the owner shall likewise

protect the land from drainage from the lands so leased or sold

for a lesser royalty. On failure to protect the land from

drainage as herein provided, the sale and all rights thereunder

may be forfeited by the board in the manner provided in this

subchapter for forfeitures.

Acts 1971, 62nd Leg., p. 3199, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971.

Sec. 85.65. RIGHTS OF PURCHASER; ASSIGNMENT; RELINQUISHMENT.

(a) Title to all rights purchased may be held by the owners as

long as the area produces oil, gas, sulphur, mineral ore, and

other minerals in paying quantities.

(b) All rights purchased may be assigned. All assignments shall

be filed in the general land office as prescribed by rule,

accompanied by 10 cents per acre for each acre assigned and the

filing fee as prescribed by rule. An assignment shall not be

effective unless filed as required by rule. An assignment shall

not relieve the assignor of any liabilities or obligations

incurred prior to the assignment.

released to the state at any time by recording a release

instrument in the county or counties in which the tract is

located. Releases must also be filed with the chairman of the

board and the general land office, accompanied by the filing fee

prescribed by rule. A release shall not relieve the owner of any

obligations or liabilities incurred prior to the release.

(d) The board shall authorize the laying of pipeline, telephone

line, and the opening of roads as deemed reasonably necessary for

and incident to the purpose of this subchapter.

Acts 1971, 62nd Leg., p. 3199, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971. Amended by Acts 1987, 70th Leg., ch. 948, Sec. 35,

eff. Sept. 1, 1987.

Sec. 85.66. ROYALTY PAYMENTS; INSPECTION OF RECORDS; REPORT OF

LAND COMMISSIONER. (a) If oil or other minerals are developed

on any of the lands leased by the board, the royalty or money as

stipulated in the sale shall be paid to the general land office

at Austin on or before the last day of each month for the

preceding month during the life of the rights purchased, and

shall be set aside in the state treasury as specified in Section

85.70 of this code. The royalty or money paid to the general land

office shall be accompanied by the sworn statement of the owner,

manager, or other authorized agent showing the gross amount of

oil, gas, sulphur, mineral ore, and other minerals produced and

saved since the last report, the amount of oil, gas, sulphur,

mineral ore, and other minerals produced and sold off the

premises, and the market value of the oil, gas, sulphur, mineral

ore, and other minerals, together with a copy of all daily

gauges, or vats, tanks, gas meter readings, pipeline receipts,

gas line receipts and other checks and memoranda of the amounts

produced and put into pipelines, tanks, vats, or pool and gas

lines, gas storage, other places of storage, and other means of

transportation.

(b) The books and accounts, receipts and discharges of all

wells, tanks, vats, pools, meters, pipelines, and all contracts

and other records pertaining to the production, transportation,

sale, and marketing of oil, gas, sulphur, mineral ore, and other

minerals shall at all times be subject to inspection and

examination of any member of the board or any duly authorized

representative of the board.

the board on or before the 10th day of each month a report of all

receipts from the lease or sale of oil, gas, sulphur, mineral

ore, and other minerals turned into the state treasury, as

provided by Section 85.70 of this code, of the preceding month.

(d) Each lease shall contain a provision enabling the Board, at

its discretion, to require that payment of royalty, as stipulated

in the lease, be in kind. The Board shall have all powers

necessary to negotiate and execute sales contracts or any other

instruments necessary for the disposition of any royalty taken in

kind. Such other reasonable provisions, not inconsistent with

this subchapter, that will facilitate the efficient and equitable

payment of royalty in kind may be included in the lease by the

Board.

Acts 1971, 62nd Leg., p. 3199, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971. Amended by Acts 1973, 63rd Leg., p. 846, ch. 382,

Sec. 1, eff. Aug. 27, 1973; Acts 1989, 71st Leg., ch. 105, Sec.

8, eff. Sept. 1, 1989.

Sec. 85.67. FORFEITURE; OTHER REMEDIES; LIEN. (a) If the owner

of the rights acquired under this subchapter fails or refuses to

make the payment of any sum due thereon, either as rental,

royalty on production, or other payment, within 30 days after

same becomes due, or if the owner or his authorized agent makes

any false return or false report concerning production, royalty,

drilling, or mining, or if the owner fails or refuses to drill

any offset well or wells in good faith, as required by his lease,

or if the owner or his agent refuses the proper authority access

to the records and other data pertaining to the operations under

this subchapter, or if the owner or his authorized agent fails or

refuses to give correct information to the proper authorities, or

fails or refuses to furnish the log of any well within 30 days

after production is found in paying quantities, or if any of the

material terms of the lease are violated, the lease is subject to

forfeiture by the board by an order entered upon the minutes of

the board reciting the facts constituting the default and

declaring the forfeiture.

(b) The board may have suit instituted for forfeiture through

the attorney general.

after the declaration of forfeiture, the lease may, at the

discretion of the board and on such terms as it may prescribe, be

reinstated.

(d) In case of violation by the owner of the lease contract, the

remedy of the state by forfeiture is not the exclusive remedy,

but suit for damages or specific performance, or both, may be

instituted.

(e) The state shall have a first lien upon all oil, gas,

sulphur, mineral ore, and other minerals produced upon the leased

area and upon all rigs, tanks, vats, pipeline, telephone lines,

and machinery and appliances used in the production and handling

of oil, gas, sulphur, mineral ore, and other minerals produced

thereon, to secure any amount due from the owner of the lease.

Acts 1971, 62nd Leg., p. 3200, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971.

Sec. 85.68. FILING OF RECORDS. All surveys, files, records,

copies of sale and lease contracts, and all other records

pertaining to the sales and leases hereby authorized, shall be

filed in the general land office and constitute archives thereof.

Acts 1971, 62nd Leg., p. 3201, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971.

Sec. 85.69. PAYMENTS; DISPOSITION. Payments under this

subchapter shall be made to the commissioner of the general land

office at Austin, who shall transmit to the comptroller all

royalties, lease fees, rentals for delay in drilling or mining,

and all other payments, including all filing assignments and

relinquishment fees, to be deposited in the state treasury as

provided by Section 85.70 of this code.

Acts 1971, 62nd Leg., p. 3201, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971. Amended by Acts 1989, 71st Leg., ch. 105, Sec. 9,

eff. Sept. 1, 1989; Acts 1997, 75th Leg., ch. 1423, Sec. 5.22,

eff. Sept. 1, 1997.

Sec. 85.70. CERTAIN MINERAL LEASES; DISPOSITION OF MONEY;

SPECIAL FUNDS; INVESTMENT. (a) Except as provided by Subsection

this subchapter shall be deposited in the state treasury to the

credit of a special fund to be known as The Texas A&M

University System Special Mineral Investment Fund. With the

approval of the comptroller, the board of regents of The Texas

A&M University System may appoint one or more commercial

banks, depository trust companies, or other entities to serve as

custodian or custodians of the Special Mineral Investment Fund's

securities with authority to hold the money realized from those

securities pending completion of an investment transaction if the

money held is reinvested within one business day of receipt in

investments determined by the board of regents. Money not

reinvested within one business day of receipt shall be deposited

in the state treasury not later than the fifth day after the date

of receipt. In the judgment of the board, this special fund may

be invested so as to produce an income which may be expended

under the direction of the board for the general use of any

component of The Texas A&M University System, including

erecting permanent improvements and in payment of expenses

incurred in connection with the administration of this

subchapter. The unexpended income likewise may be invested as

herein provided.

(b) The income from the investment of the special mineral

investment fund under Subsection (a) of this section shall be

deposited to the credit of a fund to be known as The Texas

A&M University System Special Mineral Income Fund, and shall

be appropriated by the legislature exclusively for the university

system for the purposes herein provided.

mineral development, as prescribed by this subchapter, all or

part of the land under the exclusive control of the board owned

by the State of Texas and acquired for the use of Texas A&M

University--Kingsville and its divisions. Any money received by

the board concerning such land under this subchapter shall be

deposited in the state treasury to the credit of a special fund

to be known as the Texas A&M University--Kingsville special

mineral fund, to be used exclusively for Texas A&M

University--Kingsville and its branches and divisions. Money may

not be expended from this fund except as authorized by the

general appropriations act.

Acts 1971, 62nd Leg., p. 3201, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971. Amended by Acts 1989, 71st Leg., ch. 105, Sec. 9,

eff. Sept. 1, 1989; Acts 1997, 75th Leg., ch. 227, Sec. 5, eff.

May 23, 1997; Acts 1997, 75th Leg., ch. 1311, Sec. 3, eff. Sept.

1, 1997.

Sec. 85.71. FORMS; CONTRACTS; REGULATIONS. The board shall

adopt forms and contracts and shall promulgate rules and

regulations that in its best judgment will protect the income

from lands leased under this subchapter. A majority of the board

may act in all cases, except where otherwise provided by this

subchapter.

Acts 1971, 62nd Leg., p. 3201, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971.

Sec. 85.72. EXPENSES OF EXECUTING THIS SUBCHAPTER. The expenses

of executing the provisions of this subchapter shall be paid by

warrants drawn by the comptroller on the state treasury against

the income from the special fund accumulated from leases,

rentals, royalties, and other payments.

Acts 1971, 62nd Leg., p. 3201, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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