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OFFICE OF THE AlTORNEY GENERAL OF TEXAS 

AUSTIN 

RoWable Baeuam Gilea 

ck~l3lener General Ianu Osrio. 

Avatln, Texas 
Honorable Besoom Cilea, Page & 

of Seo. I! of Blook &E7, publlo aolmol land in r2wme Qosstf, 

TeXMl. you stata that aooordw ts Information furaiehed 

to you Is aortain letters, It has developed that Selfreonf 

Oil Oaapany hae only a l/l6 umlIvIde& latere8t in the 160 

aorea daaoribed in tha iaos of ths lease. In Joar letter 

you enolosed a photostatlo oopy of 8uah loaae. Shah leasa 

raoltaa a oonslderatlon of $4,~.00 oasb In haad paid and 

further provides for an annual delayrenW of #M&00. 

Suoh lease la exeauted br Saltmount 0j.l 0-q 

for Itself and as agent for the State of Texas.* 

"aoting 

Paragraph 9 of aala lease reads aa fsllous: 

=If said lessor owns a Xe88 Interwit 3.8 

tha leased premlaea thas the Sntlre and uuUI-~ 

rided iea almple estate, or ns interest thereIn, 

then the ropltlas, rsntala and other weep 

herein provided for &all bs pa14 lea8or only 

Is the proportion uhioh 10886r*a int8mat, ii 

may* bear8,tS tim whole amtl undIvIdea fsa,* 

You 8tate that one-half oi.the $4 008,oO bsm 

was paid luta your 0rii08 at the time thl8 ied8e ma 8Qpa. 

and that the 188aeea have paid to the State In lMB U~.is 

1959 only ,a $S.OO rental, whlsb PAtal Is at the iwtwof 

SO cent8 per aare for IO mores. 

The fIrs$ queatlon proaentetl br your lost-,&s 

whether or not'undu ths provi8ion8.ot Artiabs JJN’r aad 

M6t3,oommonlykaownaatbr8ollnqpl8hnnt Aot,amoun8r 

of &in pndI~I4e13 latereat in lsml ineluded wIthI+ oal& Aot 

18 authorized t0 e%WOUte an Oil sad gas lease, 88 age& 

Sor the State of Texas. 

ArtiOle 536V prOtide 4t8 m&IW8t 

Vh8 State hereby OOWtItUta8 the ownor of 

t$e soil Its agent for thO+rpoaea hqeln ~aaaed, 

and in imuaideratifm thUeiOT wiiapuirhu d 

rests In the own&m oi~the so$i an undlvlhd 

rsrtsan-sixteen of all eIl aa& gps rhiah &as 

bean underelop~ an6 t&e value sf t&e mims t&Rat 

maybe uposan#~wIbhintha stnmprd andwcsurrayed pub116 frsa ashci@$ 18lld,urd SrsWs landrr, 

aed petrtIon8 oa suok ssrveya-m+! **Thea m%amal 

clasal?IoatIon or mImril, lCI86rVll$fQP, mbfeot 

tothetems oitblalsw- %WlaraainiagMdi-~ 

vlded portlon~o~ 8aid ou a# .ms sod its Wajim 
Honorable Basoom Gllea, Page ~3 

is hereby reserved for the we of and benefit 

of tha pub110 school fund and tha aeraral asylum 

funda.a 

Article 5988 provides aa'followar 

*The owner of said lend Is herebJr authoriaed to sell or lease ta rn7 p818011, fim ar 

oorporatlon the oil and gas that may be thereon 

or thereIn upon suah tarma and oondltlozu as aueh 

ownqr meiy d8en beat, aubjeot only to th8 provisions hereof, and ha may have a aeoond llea 

tharean to aeoure the paymant of 8ny aam We Mm. 

All 18aSaS and 8ale8 80 wde 8hSll be 688igtUbiO. 

1Bo oil or gas rights shall be sold or leanod 

hereunder for laaa thsn tan oent8 per aore par 

year plus royalty, and the feaaee or puraha8er 

shall In every u8ae pay the atate tan SW88 per 

more per year 0r sales and rental81 and fn oaae 

of prodnotion 8-1 pay the State tha uuUWld0d 

one-8ixteenth~of-the value ot the oil alld~(lar nserved here& and 1Ike awtmta to the owmr~a$ ~. 

the Sal.* 

These atatutoa war8 oonatrued In @raena vr RDbIaoa, 8 S. R. (ad) MS, as oonatftuting the awnor of %b* 

l ur fa o e and roll a@ the agent of the Bta8e far tka pup000 

of exaeutiog oil and gas lea8e upan 8wh.luLd, the agentc8 

oomp8naation for hi8 aerrIosand fort&& of the 8FEfaOO 

tim the right ta reoelve Ron th8 laas8e one-h8lf of 

the bonw, omi-half of the rental8 abare 10 a8Bta per 

aore, and one-half of tha royalty 8tlpulated In tha loa88. 

It was there further held that t&e owwr of the 6011 did 

not by the terms of the RelIaqulabmeat Aot, baame th8 

owner of any portion of the mInen18 ta auah lurd. 

The Ralinqui8klant Aat nakea IIQ eapra88 pro-. 

tIaIea for h situation auoh as tha or&e preaen8od 3.~ yet~ 

letter. me statute 8hply provides t&it "the CBWner Qt 

the 8oll* is oonatituted the Btetala agentr for th8 pprAlthough the In8entIoo of tha LagIalaturq 

%Pr~~i to the mituatlon In question &cl not elearXy 

expressed upon the faoe of tha 8t8tutet that intentlOX% 

aan be asaertaiaed, wa believe by a oon&tdaratiolP of tha 

history preoedlng thi l&alat~a and l&a g*~saral pwpOaea 

and reatalta whloh the legla1atlan was istanded to aaaanplIah. 

In Greene i. Roblsen, ClUprcl, 8he ~Upl?UN dam 

summed UD tho faots ahlah brfmght aba&t t&a ezkaotmm~ Of Qhe 
Honorable Baanom Oilea, Page 4 

Rsllnqulahmant Aot and the purposes vrhjoh It was lntonded 

to aooompllah In the following worda: 

WTherefora tha very fir8t WOti8 Of thi8 

Ylneral Aat of 1919 dlscloaad that one of tha 

p~oaea of the Aot Wa8 !to prowte the aotlre 

ao-oparation of.tha owner OS the aoIl.* Thi8 

aall ettantlon to the aoadItIona that wde It 

dealrable to aaoura th6 aooperatlon of the awner of the 80% The State had sold tha lend, 

tha soil with all that goes wlth It, to the ptuahmer thereof, and wau under obligation to 

proteot him in the uao and 8njoymant of what it 

had sold him; and thI8 the state had failed to 

do. 

*T.h8ra ma a dual or double owner8hIp 

of the laad, the aurfaoe estate and th8 alner@ 

estate, eaoh antagonIstSa to an4 aonfllotiry 

with the other. Th@XO -8 110 pXOVi8iOll Or 

law for the prat8otlon of th8 owner ~of the 

soil In his paaoaable anjoyaent and posaesaloa~, 

of his property. The derelopmnt of an oil ?Iild~ 

on it would beg aIaastraua to him and utterly 

desfruotire of hi8 property. Thkafora the 

attitude of owner8 of the 8ohool an4 aaylua 

lands Ohrmqhout the state was praatloally oaa 

of anwd resUNuxn0e. The OOEiditiOn8 were I@uSoal to any effort at de+alopoPmt, end the stata 

was not realSsing on its mineral estate ia the8e 

lands. The purpose of the aat was to wet thla 

praotlaal situation. Indeed, tha rights of 

poaaeaelon and user of tha land as a whole by 

both the owner of the 8011 and the ovmer of tha 

mlnerala, thay baing joint eunera of the land, am 

mutual and ~blended. As in ather joint Owgus$pS, 

neoeasarlly there must be oooparatlon. 

joint owners do sot oaoperete, oonfuatin is b@oBd 

to arise, tha purpoaas and efforta of~aaah a%% 

j0opardieod 8nd destroy& and the state supfwa 

loss, not 0nl.y ta Its mlaara~ ant&a, but lflcawise a8 a sovarelga In tha adninistratlon at 

just&e. The Legfslature haa brou&t- about this 

dealred result In a, lawtul mnnar by raqtlrIn@ 
Honorable Basooni Qilea, Page 5 

the purohaaer of the oil and gas to oompeneat* the owner or the soil ror the use ha 

rakes of the eurfaoe, Independent of the 

price he prays r0r the minerale. % oompensate8 said ovmer for ths lnetltable dama&sn 

or 0ii erpl0mti05 ati 0p0miion. The landowner aoqubes PO set&e In the oil and gas. 

Be simply has a rl&ht to teooiva the ompenaation rr0a the 1444ee out 0r the leasee* 

prodaotlon as the 8tate provides.* 

Keeptn& in mind tb’puqmm or the Lsgfr$atue 

in enaotin(( the Relinqniabmeat Aot a$ stated ia Greey 1. 

Boblaon, l upra, we feel no hesitation fn aonstralng soeh 

Aot as authorlzfng an6 mpowerfng each omer or an..undir&led interest in%he surfaoe or.the land lnoludod W 

the Act to,aot a4 agent ror the State Sn exeeutlng * 

lease upon thut proportion 0r the nlnerals that the OpaiL' 

*idea ownet*s interest bear4 to th4 eatita traot. To 

hold otherwbe waald mault In bringing aboat a ait&a$$& 

wImra%n the owaer cri a mall fraotlonal ondirlded.ln~t, 

la a large traot of land ooul4 d4ieat t&e eontmll' @?=? 

pose snd lntent)on 0r the RelrOquWhment Aot by fu 

or reruaing to join in .an oif. -a g46 laa8e~ oorsrlq %k 

amtire tract. Buoh Tallare or relbal BII the purt of omo 

or the awnera or UL undirided fnkreat mi@t noult'f!cen 

a legal diaabblllty to 80%. or berraame oi abseaas fmm tb 

utate oroountry,orbeo4nae 0r raihmto agr8erifhtb 

othsr mmom of umllvided interests or rfth,tho pmqwwl 

lseaw~upoh the uwouat of bemw; mntalu, or royal$r 

to be paid for the leacre, or kauuse or 8ny one er a number.of other mason8 which 'it %s ?tnnw$eesury hero'ta 

emumrate. 

rr a heldiaq ooatrary to this opiaioa wars ma&a, 

it oola rollorthat ii any 056 0r snub ~me333 rclxea aiz 

reraeed ror'sny mamu to join the oil and gas lsade rdtlt 

ethsr cmwm or podltided flttamsta, thg reoulb nesessar%ly 

ad be that the mberals mmed by the State wmiid -in 

anleased and undeveloped untir,by paxtition, or Otbmtirre, 

the non-oonseitl~ mer*e interest eau.LQ be segregated from 

the rezW.nder of ttm traot, Ue ure unable to .egree thut ruoh 

a remalt war tnteaded br ear shag 69 permlttad ta Walt 
IiOnOr8ble Basoom Giles, Page 6 

rram the Relinquishment Act. On tbs contrary, ws believe 

that 4 rcas4uable 8hd iair oonstruotion Of the Aot i8 that 

eaah ouner Is authorized to lease, on behalf of the State, 

that proportion of the 011 and gas which bears the sam 

ratio to all of the oil end gas 48 suoh cwner*s undivided 

intesest in the surfacre and soil beers to the whole surfaoe 

and soil. 

In the-reoent oase of Bumble Oil k Refining, 

Oompany v. Lloyd, 108 S. W. (Zd) 2lS. o@lkion by .the Court, 

or 0ivIl Appeals, at Beaumont, with wrIti at error refuaea 

by the Supreme Gourt, there was Involved the Validity of 

sn 011 and gas lease exeaated by 4 8urvirIug husband on 

sohool lands In whloh the minerals haa been rewrrkd to 

the State, the aurraoe of whIoh lands oonetituted oollllPmlty 

property or one Vela end his first riie. Vela*s rIr#t rife 

died leaving survlviag ohlldren 4s her heira at lm. Upon 

the death OS Vel.a*s first wife, her one-half Interest In 

the aurfaoe of the land passed by desoent and dlatr,rtbatioa 

to bar ohlldren;and they. theraupm, beoame tenanti’ia 

ooeaon with Vela, the surviving husband, in She owqrah% and 

paamessIon of the aurfaoe. The oil and $gars lease 0x13 e&d 

by V&a, after the death of hi6 first rife, WAS not ~oxaaut@ 

by the surviving ohildren. 

The Gourt upheld the oontan%ion of the aurvIrIn~ 

husband's lessee, Eumble Oil t Rerinlng company* ana adju+ed 

that woh lease4 held a valid lease u on the full 14aseholil 

Interest in the entire traot oi laad % question, by rlrtuo 

or its lease from the surviring hueband. Although the 

oplnlon or the o4urt.i~ ohletly b48sQ upon the power og 4 

osmunity survivor to still and dispose or 00mity pr%- 

perty, however, the reasoning of the opln1on of the Cdurt 

is suoh 48 to olearly lndioate that In the absenoe,ot suoh 

speoial power as ia vested In a emunIty su.r*lvor, the 

agenay to lease qould be rested In the various owner8 of 

undivided interest in proportion to their r@speative interests. 

With respeot to the partloular lease which yuu 

enolosed In your letter, you are advised that, in cmr 

opinloti, the provls~ions of pangrapE (1 i3r da leasa do nc+t 

operate 00 es to reduos the bonru, rentals and royalty pa - 

able to the Stats. Paragraph 9 o$ the lease skmply provi x 48 
Honorable Baaoom Giles, Page I 

that iI tha lessor ovina e less iaterest in the leased 

prembes thm~elrtire and roe d.m,ple estate, then the 

payments t8na6r the lease 4hall b4 r4au4ed aooordlngly, 

?JnAw, all of the deoI8Ions in thl.8 Bt8te, it IS settled 

that the State of Tows PSRR~RE tha cawaer of all or the 

oil aml.gas underlying the land aorered by the BelinquI8hment Aot until the exeoutlon oi 4 valid oil and gas luse 

t hemoa. The reel lessor or the oil ana &as 144se exeeuted by SaNaonnt 011 Camps4 is the State or Taxa+ a&ix& 

through one or itr egents,~the Saltmount Oil Company. 8ee 

Cmeae v. Roblson, 0 S. H. (ed) 665; Qolqultt 1. 0uI.i 

Proauotion uQmpRn.y, se s. 

s. x. (2) 709. 

w. (tit%) 035t Lesmr v. Garner, SO 

The lessor, the Stats of Texas, doee not 

own a *L*as interest irr the leuaed premfsee than the sntks 

aad a3 8i+ple 8statea in8efm.a~ ths iub#eet a4ttwFor 

the lease, tha oil and @a, is eano~ed,,%W. being tr+a, 

no erwnds exllet rar the epplfo4iXok Or pa+graph D ef 

the lease, and the obliitetion or tb lessee to pay ths $ull 

bow, urnpal rental and royelty is not lessened OP 4ffoetod 

by mas~a oi the iaot timt the 8tzte*8 a&cant, Saltu~unN 

Oil Gmpany, ems only an aadirfdad iaterest in th&Iwmf@qa 

ana wil. 

We will rartm state t&&i S.4 the ,avent at 80~ 

futun tlmw, tbs wners or the mhinlng unaiviaea iatqrl Bk in the traot or land rhoald eonfinn or ratifyl QT 

@thermlao uiter inte or bind themnel+aa by the lea66 exedated by Saltmmmt Oil Company. tban.the ‘Stats of Texas 

will be entitled to one-Bali or the bon#w paid to mob 

Other ourutrfs eoonsiaeratlon ror their exeautian, rstitiaation or oonrinmtion of 44iB 14486. Ii n~0h -r~ 

exeoute new and separate leases, l&s State of Texas rflZ 

be entitled tc one-beli of the benua, rentals andtimz;,Y. 

ptsid under those leaeea. These oonaDmlaeu a 

with the prlns$ples annoonsed ia Low Aore 0 IF cmapa4 *. 

Wayne, 78 Y. 3. 300, and ti barnham vr ES* Oil CO., 147 

6. W. 3:0, Za both of whioh oases It was held that one tenant 

&I oomon.oould l4wro-lly aseoute aa oil 48x8 gas leaee ripon 

land la whioh ouoh tsnant in uommfim owned otiy 8fl undittpti. 

%nteretlt. 

Tcqare aooordl5&y 4d~issB that yda 4333 autlloal~ 

ts rile aad eecept an 0U aad gas leaae esesatea trsil@ tha 
Honorable B&soon Gilee, Page 8 

Relinqulehment Aot by a eurfaoe owner who owns only 

an undivided Interest. 

However, with respeot to the partioular 

lease fn.quee&lon (desoribed ln paragraph S of this 

opinion) it la 0111: opinfon that auoh lease ie now subject to forfeiture and termination beoause of the 

lessee's failrue either to drill or to pay tha rental 

provided for in paragraph 5 of the lease. See Artiale 5292, Revlaed Civil Statutea,JO28. 

Youra very truly 

A!WORREY ORRERAL OF TEXAS 

n APPROVED OPlNlON COMMlTTEE