Section 9.21 - Leasing GuideFor exploration and development of minerals other than oil and gas, see Chapter 10 of this title, (relating to Exploration and Development of State Minerals Other than Oil and Gas).Oil and gas underlying state lands are leased in the following ways, depending on the type of land.
(1) PSF uplands, submerged lands, riverbeds and channels. PSF uplands submerged lands, riverbeds and channels are leased by the SLB under sealed bid procedures. For SLB sealed bid procedures see Texas Natural Resources Code, Chapter 32, Subchapters D and E, Chapter 52, Subchapter B, § 9.22(1) of this title, (relating to Leasing Procedures), and Chapter 151 of this title, (relating to General Rules of Practice and Procedure). For only riverbeds and channels, also see Texas Natural Resources Code, Chapter 52, Subchapter C.(2) PSF oil and gas interests owned with associated mineral leasing rights. Generally, whenever the PSF owns mineral interests coupled with leasing rights, oil and gas leases are issued by the SLB under the sealed bid procedures of paragraph (1) of this subsection. (For examples of these types of PSF mineral interests, see Texas Natural Resources Code, § 51.054(a), §32.061 (see especially historical legislative note), §33.001(g), or §51.052(h).)(3) PSF oil and gas interests owned without associated mineral leasing rights. (A) Relinquishment Act lands. Leases are generally negotiated by surface owners as agents for the state. See Texas Natural Resources Code, Chapter 52, Subchapter F, and §9.22(2), and §9.22(3). Note: Relinquishment Act lands owned by a department, board, or agency of the state, including TDCJ land, TPWD land, and highway rights-of-way land, are leased under the sealed bid procedures of paragraph (1) of this subsection. See Texas Natural Resources Code, § 32.002(d) and § 34.002(b).(B) Free royalty lands. Leases are issued by the executive right holders as the state's agents. See §9.22(4).(4) Certain state agency lands. Lands owned by the state or held in trust for the use and benefit of the state or a department, board, or agency of the state, except TPWD, TDCJ, University of Texas System, A&M University System, or Relinquishment Act lands, are leased by the SLB under the sealed bid procedures of paragraph (1) of this subsection. See Texas Natural Resources Code, §§ 32.001(4)(D), 32.002 (a)(1), (2), (6), and (7), and 32.002(d).(5) Texas Highway Department rights-of-way. Land owned by the state to construct or maintain a highway, road, street, or alley, except those subject to the Relinquishment Act, are leased through a preferential leasing system administered by the SLB. See Texas Natural Resources Code, § 32.002(a)(4) and (5), §32.002(b), (c), and (d), Chapter 32, Subchapter F, and §9.22(5).(6) TDCJ and TPWD lands, except for Relinquishment Act lands. Leases are issued by the appropriate board for lease through sealed bid procedures. See Texas Natural Resources Code, Chapter 34, and Chapter 201 of this title, (relating to Operations of the Texas Parks and Wildlife Department and Texas Department of Criminal Justice Boards for Lease).31 Tex. Admin. Code § 9.21
The provisions of this §9.21 adopted to be effective January 7, 1999, 24 TexReg 146