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### E EY GENERAL OF TEXAS

Honorable Baacorn

Gi1.s Conmissioner,General Land Offia. Austin, Texas Dow Sir: Opinion No. O-6963 Rer Whether a foreign oorporatioa, without a pwmit to do bueinws in Tear, **o.n axecute**  **.n** oil and gas lease a8 age& of thm Stat*, under the Boli~qui&ment Act, upon unpatentedmineral reserved rohool lands aad ml&ted questions. Inyour rsoent latteryou gava UI oertain facts,which may be suamarisod l followa:

Section 8, Blook 140, T. & 5. T. L. Ry. Co. Survey, Peoos Qunty, whioh iemineral reserve school land,NW Bold to ClintonD. Barry im 1914. During 1924,Mr. Berry sold this land to the Ortsx Company,an **Oregon** corporationwhich does not have P permit to do business in Texas. All intsrert haa been paid to the Stateby the Ortsr Company,but no principalhas ever been paid. On February 8, 1944,the Ortex Compaq, for itself as ago&. of the St&to of Tozag, executed an oil and gar lease to Humble Oil & Refining C~lpny, P Taxa corporation,oovering the H.WY.l/4 of this property. Humble Oil & Refining Ccmpamy h&a tendered you a copy of the leas*, together with its cheek for #800.00,whioh ir half of the bonus, and hare requested that **YOU** aooept **thin** cheek and flle the ham.

You rsquost our opinion 0% the folloning questiaasr "1. Can and does this Corporationonn this land? "2. Can thir Corporationexecutea valid leasr on this laad and &ould v. l pproro and file the l.a8., a copy of whioh ir enclo~ad?" The right of a oorporitioato purohaae nohool lands ha* bee8 the subjwt ofmany Aot8 of our Legirlature. He refer you to the following:

The Aat of April 1, 1887, providwtHonorable BasoomGilar (O-5963)Pago 2.

**”**

**. 0**  o and in no mm+. shall sala bomade to a oorperetioaeither foreign or dcssasticg and a11 salss to a 8ottler shallb upon the axpress conditionthat any sale,transfer, or convayanosof such land to a oorpor‘tion,eitbr immediate **or** ramate, shall ipso facto terminatethe title of the purohaser,and **such** land snrll bc ierfoited so %im Smke wimmut w-oatry, and kooms again a parr of tne particularfuna to whioh it formerly belonged." The Aot of April 8, 1889, contains essentially the sama provisions with rsference to forfeitureof land sold by a purchaser to a corporationbsfors I patent is issued.

Article 4287 of the Revised Statutas of 1895makes the same proviaion for forfoituro kfon patwt as the Aot 

### ofApril 8, 1889"

The hot of ~sy 23, 189Y,providing for tha sale of isolated and dataohsd lands im certain counties,expressly excepts corporationsas a possiblepurchaser.

The Act of Nay 16, 1907, providesthat no corporation shallpurchase any laad underthe provisions of suchAqt.

The last sentence of Artiole 5452, B. C. S., 1911, providesthat no corporationshall purchase any landunder tha provisions of the Chaptsr on #alas of public fraa sohool and 

### l rylum land*. ThsAct of April 3, lYlY, oxprwsly provided tnat mo corporation mall puronareany land under suon Aot.

Artlola 5306,R. C. S. of TOXPI, 1926, providasthat no sale of any land sot apart for the benefit of the public free schools,etc., shall be sold to corporations.

Many former Attorneys GoneraL havs written opinions upon various opinions upon various phases of your quo&ions.

On Ssptogbor 3, 1909, Jo-1 P. Lightfoot, then Attorney General, in a latter opinion to J. T. Robiror , Coxnnlssionsr of the General Land Offics, addead him that a transfer sxeoutod by Daniel J. Rogers, conveying to Pocos SandstoneCampany aortain lands in 7fard Countyhad the lagal affect, upon deliverytheroof, of forfeitlagthe sals by ths State to Daniel J. Rogora and of terminating ipso fauto,without judioialascartairnnemt and without any actionwhatever upon his part, ths title of Rogers to said land, thereby ro-iwestiag the Statswith full title to said land to be held in trust for the publia school fundo

On January 19, 1910, Jaws1P. Lightfoot, thenAttorney Gsnsral, in a letter opinion to Ron. J. T. Robisoa ,Coxmiasionsrof the General Land,--.- -

Honor.bl# B.#oom Gil## (O-5963)Page 3.

Offio6, .dvi#ed him th.t ho couldnot fil6 . tr.n‘f#r of nia‘ #aotion# of school land la U6bb .nd L. 8.110 counti##to T#x.# Land .nd LivsLitookCcmpsny; .ti OB July 18, 1910, h6 .dvinsdMr. Roblsoa ';lmt ho could not tr.n#for a#rt.im rchool l.nd# not yet p.tsnt#d to B.mtow Irrig.tionCenpaw. On ?d.y23, 1911, J#ml P. Lightfoot, th6a Attorn#y G6n6r.1, in 6 letter opinion to Hon. J. B. Walksr, Acting Camirsionsr of tb# G6nsr.l L.nd Offloo, .dvir#d him not to .ocspt . corporation .6 . sub6titutepurahasar of any 6cbool l.ud wh.tsoav#r.

On January 18, 1912,,Ja,6. D. W.lth.11, th#n Attorwy G6aer.1, im

. 16tter opinion to Hon. J. T, RobisoB, CanrmiEEiOn#r of th6 Gensnl Iand Offic#, .dvised him not to rocept p dood fra6 a puroh.rsr to. oorporation, **or** i66u#pnf#Xt to **6uoh** oOrpOr.tiOn.

On Fobru.ry 26, 1913, B. F. Loonoy, th6a Attarwy Go.er.1, 18. l#tt6r opinion to Hon. J. T. RoblEon, Commi,s#ioner of the Gen6r.l L.nd Offioo, .dvi#od himth.t lud aonvoy6dby a puroh.E#r to . oorporation n.6 subj‘ot to forfeiturn bytho pl.in lmgwg6 of &rticl# 4287, R.C.S., 1925. On July 19, 1920, C. P. Cunton, then Attorney Goner& in . l#tt#r opinion to Hon. J. T. Robi#o+ C$mmir6ioreroftho Goar.1 Lpnd Offior, .dvit#d him th.t . foreign oorpor.tionh.# not the right to be subrtitutodOP the book6 end rvcord# of the Goner.1 L.ad Cffio6. nnd thEr#by to b#reoogni6od by the St8t9, 16 . purch#rer from the StPto of l.nd ol.#- rifi#d .Imip6r.l gnziag lad, urd ala0 advisedhim that tho tond#r#d oonv#y.no#from th6 **puroh#E#r** to the foreign corporation 6hould not k fil#d or rooognisodby him 16 aoxwoyanoo.

Art1016 1533,R.C.S. of 16x.1, 1926, providoath.t foreign corpor- .tiom# .r# .uthorieodto hold, **pUrOh60,** 6611,m0rtg.g‘ or oth6rwire conv6y such **reel** aat.te and per6on.l emtrte .6 th6 purpo66r of #uch oorpOr.tioBm.y roquiro cad to t.ko, hold md oonv#y Euoh otbr prop6rty, n.1, peroon.1,or mixed, .#m.y be roqui#it# for such corporationto acquire in order to obt.in or 66cUrOth6 payment of any i!ad#btOdn666 or ll.bili%y due, or Which m.y bocm~ due, or bsloagi8g to, th6 corporation.

Article 1554, R.C.S. of T6x#6, 1925, provides th.t foreign corpor.tion# 6h.11 a1ien.t‘ .ll r6.1 property 60 .aquirod not nooo66ary for it‘ purpo666within 15 y6rrs frcmtho time of .cqui#ition. Acoording to your 16ttrr, th6 Ortox Companyh.6 n6v6r h.d . pennit to do busin in Tox.‘ .nd it .cquir#dthl6 l.nd la 1924, 60 it cannotbe raid th.t it hold8 the ##a16 for the purpose6of such~corpor.)io8...d the 15 y6.r period for alion6tiOa h.‘ expir6d.

Articles 5367-6382,R.C.S. of 1926,make th6 ovmor oftho 8011 the .gElat

Of tho %t‘ for the pUrp666 Of 6XOOUtirg oil .ad g66 10.666.Honor.ble B.scom Gil61 (O-5963)Page 4.

In Lufkir Lend & Ltmbsr Ca6p.qyv. 'forroll, 100 S.K 134, the Supreme Court said that it -6 nov6r intondodth.t .w land aubjoctto cl.66ific.tioa86 agricu1tur.I or gr.zi#g land shouldbs sold to. torpor- &ion, oithw directly or indirootly.

k .B6-r yOUr first qUOEtiO# .I fOllOW6: Th.t thi6 corporationir not the "ownor of tho soil' .6 contaw platsd by Article 5367. 'Ahexpre#a no CpiaiOn .6 to th6 .uthority of thi6 oorpor.tio#to oxocuto . deed conv#yimg lupdiadofc.riblctitle to urothor of the 6urf.w right6, butwe are of the opinion that this oorpor.tioac.ne not b6 roeogairred by you .6 the 

### ownor of thi6 property, forto do co would allow it to bbco6u, ia sff6ct, . purchrror frcmtho Strte,which $6 

### cond6mnsd by .ll r.lo6 statute* since 1887, .nd ruch r6cogaitioaby you n.y be conrtruod .I .n attsmptodaivar upon your prt of the Stat6'6 right to compl.inof the f.flure of this oorporationto .116m.t6 this propertywithin the period of 15ys.rs from the time of ecquisition referredto ia Article 1534, supr..

WE .n#wer your second **qUe#tiOa** .I fOllOR#r That this corporation c.nrot 6x#cuto . vplid lease Onthi6 lpnd, PC .gent of th. State of Tex.6, and thrt you should not approve and file the 16.10 tendorcdyou, nor aoccpttha bonusmoney.

Trusting th.t the .bovc fully .acwurcyour que#tionr,m .r6 Your6vely truly

ATTORNEY GESERAL OF lXXAS 

# %’ /d 9!hOS,

B. kgg.n, Jro Thos. B, %ggan, Jr.

Assistant APPROVBD OCT 4, 1944 /6/ GROVER SEI&ERS ATTOFOZEY

GEMBHAL OF TEXAS TBD:BTt.grr APPROVED Opinion Ccmmittsa By BPVBChairmem