_., . -- 

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 unpatented mineral reserved 

rohool lands aad ml&ted questions. 

In your rsoent latter you gava UI oertain facts, which may be suamarisod l followa: 

Section 8, Blook 140, T. & 5. T. L. Ry. Co. Survey, Peoos Qunty, 

whioh ie mineral reserve school land, NW Bold to Clinton D. Barry im 1914. 

During 1924, Mr. Berry sold this land to the Ortsx Company, an Oregon corporation which does not have P permit to do business in Texas. All intsrert 

haa been paid to the State by the Ortsr Company, but no principal has 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 Corporation onn this land? 

"2. Can thir Corporation execute a 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 oorporitioa to purohaae nohool lands ha* bee8 the 

subjwt of many Aot8 of our Legirlature. He refer you to the following: 

The Aat of April 1, 1887, providwt 
Honorable Basoom Gilar (O-5963) Pago 2. 

” 

. 0 o and in no mm+. shall sala bo made to a 

oorperetioa either foreign or dcssasticg and a11 salss 

to a 8ottler shall b upon the axpress condition that 

any sale, transfer, or convayanos of such land to a 

oorpor‘tion, eitbr immediate or ramate, shall ipso 

facto terminate the title of the purohaser, and such 

land snrll bc ierfoited so %im Smke wimmut w-oatry, 

and kooms again a parr of tne particular funa to whioh 

it formerly belonged." 

The Aot of April 8, 1889, contains essentially the sama provisions 

with rsference to forfeiture of land sold by a purchaser to a corporation bsfors I patent is issued. 

Article 4287 of the Revised Statutas of 1895 makes the same proviaion for forfoituro kfon patwt as the Aot of April 8, 1889" 

The hot of ~sy 23, 189Y, providing for tha sale of isolated and 

dataohsd lands im certain counties, expressly excepts corporations as a 

possible purchaser. 

The Act of Nay 16, 1907, provides that no corporation shall purchase any laad under the provisions of such Aqt. 

The last sentence of Artiole 5452, B. C. S., 1911, provides that no 

corporation shall purchase any land under tha provisions of the Chaptsr on 

#alas of public fraa sohool and l rylum land*. 

Ths Act of April 3, lYlY, oxprwsly provided tnat mo corporation 

mall puronare any 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 Sandstone Campany aortain lands in 7fard County had the lagal 

affect, upon deliverytheroof, of forfeitlag the sals by ths State to Daniel 

J. Rogora and of terminating ipso fauto, without judioial ascartairnnemt and 

without any action whatever upon his part, ths title of Rogers to said land, 

thereby ro-iwestiag the Stats with full title to said land to be held in 

trust for the publia school fundo 

On January 19, 1910, Jaws1 P. Lightfoot, then Attorney Gsnsral, in 

a letter opinion to Ron. J. T. Robisoa , Coxmiasionsr of the General Land 
,--.- - 

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

Offio6, .dvi#ed him th.t ho could not fil6 . tr.n‘f#r of nia‘ #aotion# of 

school land la U6bb .nd L. 8.110 counti## to T#x.# Land .nd LivsLitook Ccmpsny; .ti OB July 18, 1910, h6 .dvinsd Mr. Roblsoa ';lmt ho could not 

tr.n#for a#rt.im rchool l.nd# not yet p.tsnt#d to B.mtow Irrig.tion Cenpaw. 

On ?d.y 23, 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 . sub6titute purahasar 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 aonvoy6d by 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$mmir6iorer oftho Goar.1 Lpnd 

Offior, .dvit#d him th.t . foreign oorpor.tion h.# not the right to be subrtitutod OP 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 .I mip6r.l gnziag lad, urd ala0 advised him that tho tond#r#d 

oonv#y.no# from th6 puroh#E#r to the foreign corporation 6hould not k 

fil#d or rooognisod by him 16 aoxwoyanoo. 

Art1016 1533, R.C.S. of 16x.1, 1926, providoa th.t foreign corpor- 

.tiom# .r# .uthorieod to hold, pUrOh60, 6611, m0rtg.g‘ or oth6rwire conv6y 

such reel aat.te and per6on.l emtrte .6 th6 purpo66r of #uch oorpOr.tioB m.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 corporation to 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‘ 

purpo666 within 15 y6rrs frcmtho time of .cqui#ition. Acoording to your 

16ttrr, th6 Ortox Company h.6 n6v6r h.d . pennit to do busin in Tox.‘ 

.nd it .cquir#d thl6 l.nd la 1924, 60 it cannot be raid th.t it hold8 the 

##a16 for the purpose6 of 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.qy v. 'forroll, 100 S.K 134, the 

Supreme Court said that it -6 nov6r intondod th.t .w land aubjoct to 

cl.66ific.tioa 86 agricu1tur.I or gr.zi#g land should bs sold to. torpor- 

&ion, oithw directly or indirootly. 

k .B6-r yOUr first qUOEtiO# .I fOllOW6: 

Th.t thi6 corporation ir not the "ownor of tho soil' .6 contaw 

platsd by Article 5367. 'Ah expre#a no CpiaiOn .6 to th6 .uthority of thi6 

oorpor.tio# to oxocuto . deed conv#yimg lupd iadofc.riblc title to urothor 

of the 6urf.w right6, but we are of the opinion that this oorpor.tioa c.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 r6cogaitioa by you n.y be 

conrtruod .I .n attsmptod aivar upon your prt of the Stat6'6 right to 

compl.in of the f.flure of this oorporation to .116m.t6 this property within the period of 15 ys.rs from the time of ecquisition referred to 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 tendorcd you, nor aoccpt tha bonus money. 

Trusting th.t the .bovc fully .acwurc your que#tionr, m .r6 

Your6 vely 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 BPVB Chairmem