g _ l .,l,

. ..,*

OFFICE OF THE AlTORNEY GENERAL OF TEXAS

**AUSTIN**

RoWable Baeuam Gilea ck~l3lener General Ianu Osrio. Avatln, TexasHonorable 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. 

### InJoarletter you enolosed a photostatlo **oopy** of 8uah loaae. Shah leasa raoltaa a oonslderatlonof $4,~.00 oasb In haad **paid** and furtherprovides 

### foran 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 

### theropltlas, rsntala **and** other **weep** herein provided for &all bs pa14 lea8or only Is the proportionuhioh **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 

### lutayour 0rii08**at** 

### the timethl8 **ied8e** 

### ma 8Qpa. and 

### that 

### the188aeea have **paid** to the State In lMB U~.is 1959 only ,a$S.OO rental,whlsb PAtal Is at 

### theiwtwof 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~I4e13latereat 

### inlsml 

### 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$e soil Its agent for thO+rpoaea hqeln ~aaaed, and in imuaideratifmthUeiOT **wiiapuirhu** d rests In the own&m oi~the so$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 itsWajimHonorable 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 

### IsherebJrauthoriaed to sell **or** lease ta 

### rn7p818011, fim ar oorporatlon the oil and gas that may be thereon or thereIn upon suah tarma and oondltlozu as aueh ownqr meiyd8enbeat, aubjeot only to 

### th8 provisions hereof, **and**ha may have a aeoond llea tharean to 

### aeourethe paymant of 8ny aam We Mm. All 18aSaS and 8ale8 80 **wde** 8hSll be **688igtUbiO.** 1Booil 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 u8aepay the atate tan SW88 per 

### moreper 

### year 0r sales and rental81 **and** fn oaae of prodnotion 8-1 **pay the**  State tha uuUWld0d 

### one-8ixteenth~of-the valueot the oil alld~(larnserved here& and 1Ike 

### awtmta to the owmr~a$ ~. 

### theSal.*


### These atatutoawar8 oonatrued In @raena vr 

### RDbIaoa, 8 S. R. (ad) MS, 

### as oonatftuting the awnor of %b* l urfaoe

**and roll**  **a@** the agent of **the** Bta8e far tka **pup000** of exaeutiog oil and gas 

### lea8eupan 

### 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. 

### Itwas there further held that t&e owwr of the 6011 did not **by** the terms of the RelIaqulabmeatAot, baame th8 owner of any portion of the

### mInen18 ta auah lurd.

The Ralinqui8klantAat nakea IIQeapra88pro-. tIaIea for h situation auoh as tha or&e preaen8od 3.~

yet~ letter. 

### me statute 8hply 

### providest&it "the CBWner Qt the 8oll* is oonatituted the Btetala **agentr** for th8 **ppr**

Although 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 legla1atlanwas istanded to aaaanplIah.

In Greene i. Roblsen, ClUprcl, 8he ~Upl?UN dam summed **UD** tho faots ahlah 

### brfmght aba&t t&a ezkaotmm~ Of QheHonorable Baanom Oilea,Page 4

Rsllnqulahmant Aot and the purposes vrhjohIt 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-oparationof.tha **owner**OS the aoIl.* Thi8 aall ettantlon to the aoadItIona that **wde** It dealrable to aaoura th6 aooperatlonof the awner 

### of the 

### 80% The State had 

### sold tha lend, tha soil with all that goeswlth 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 antagonIstSato an4 aonfllotiry with the **other.** Th@XO **-8 110** 

### pXOVi8iOll Or law for the prat8otlon of th8 owner ~ofthe soil In his paaoaable anjoyaent and posaesaloa~, 

### of his property. The derelopmnt of an oil ?Iild~
on it would begaIaastraua to him and utterly 

### desfruotireof hi8 

### property. Thkafora the attitude of owner8 of the 8ohool an4 aaylua lands Ohrmqhout the statewas 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 jointOwgus$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.yta Itsmlaara~ ant&a, but lflcawise a8 a sovarelga In tha adninistratlonat just&e. The Legfslature haa brou&t- about this dealred result In a,lawtulmnnar 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, Independentof the price he 

### praysr0r theminerale. % 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 

### the1444eeout 0r the leasee* prodaotlon as the 8tate provides.*
Keeptn& inmind 

### 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*sinterest 

### bear4to 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**  **%k** or **reruaing to**  **join in**  **.an oif.**  -a **g46 laa8e~**  **oorsrlq** 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 

### utateoroountry,orbeo4nae 0r raihmto 

### agr8erifhtb othsr mmom 

### of umllvided interests or 

### rfth,thopmqwwl lseaw~upoh 

## the**uwouat** of bemw; mntalu, or royal$r to be paid for the 

### leacre, orkauuse or 8nyone er a 

### number.of other mason8 which 'it%s ?tnnw$eesury hero'ta emumrate.


## rr a heldiaq ooatrary to 

## thisopiaioa 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**  

### anleasedand **undeveloped untir,by**  **paxtition, or**  **Otbmtirre,** the non-oonseitl~ 

### mer*e interest eau.LQ be segregated from 

### therezW.nder

of ttm traot, Ue ure unable to .egree thut ruoh a remalt war tnteaded br ear shag 69 permlttad ta WaltIiOnOr8ble Basoom Giles, Page 6

rram the Relinquishment Act. On tbs contrary,ws believe that 4 rcas4uable 8hd iair oonstruotionOf 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 

### ratioto all of the oil end gas 48 suoh cwner*s undivided **intesest in**  the surfacre and soil 

### beersto the whole surfaoe and soil.

In the-reoentoase of Bumble Oil k Refining, Oompany v. Lloyd, 108 S. W. (Zd) 2lS. o@lkion by .theCourt,

or 0ivIl Appeals, at Beaumont,with wrIti at error refuaea by the Supreme Gourt, 

### therewas Involved the Validity of **sn** 011 and gas lease exeaated by 4 8urvirIug husband on sohool lands Inwhloh 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 survlviagohlldren 4s her heira at lm. Upon the deathOS Vel.a*sfirstwife, her one-half Interest In the aurfaoe of the land passed by desoent and dlatr,rtbatioa to bar ohlldren;and they. theraupm, 

### beoametenanti’ia
ooeaonwith 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 firstrife, 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 surviringhueband. Although the oplnlon 

### or the o4urt.i~ ohletlyb48sQ upon the power og 4 osmunity survivor to still and dispose or 00mity pr%- perty, however, the 

### reasoningof the opln1on of the Cdurt is suoh 48 to olearly lndioate that In the absenoe,ot 

### suoh speoialpower as ia vested In a emunIty su.r*lvor, the agenay to lease qould be rested In thevarious owner8 of undivided interest in proportion to their 

### r@speativeinterests.
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 

### operate00 es to reduos the bonru, rentals and royalty 

### pa - able to the Stats. x Paragraph 9 o$ the lease skmply provi 48

### HonorableBaaoomGiles,Page I

that iI tha lessor ovina e less iaterest in the leased 

### prembes thm~elrtire androe d.m,ple estate,thenthe 

### paymentst8na6r the 

### lease4hallb4 r4au4ed aooordlngly, 

### ?JnAw, all of the 

### deoI8Ionsin thl.8 Bt8te, it IS settled that 

### the State

### of **Tows** 

### PSRR~REthacawaer 

### ofallor the oil aml.gas underlying the land aorered **by** the 

### BelinquI8hment Aotuntilthe exeoutlon 

### oi 4 valid oil and gas luse t hemoa. The reel 

### lessoror the oil ana &as 

### 144seexeeuted **by SaNaonnt**  

### 011Camps4 is the 

### State or Taxa+ 

### a&ix& 

### through

one or itr 

### egents,~the SaltmountOil Company. 8ee Cmeae v. Roblson,0 S. H. **(ed)** 

### 665;Qolqultt1. 0uI.i ProauotionuQmpRn.y, se s. s. x. (2)709. w. (tit%) 035tLesmr

v. Garner, SO The lessor,the Stats 

### of Texas,doee not 

### own a *L*as interestirr the leuaed**premfsee** 

### than **the** 

### sntks aad a3 8i+ple 8statea in8efm.a~ ths iub#eeta4ttwFor 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 

### lesseeto pay ths$ull bow, urnpal rental **and** royelty is not lessened OP 4ffoetod by mas~a 

### oithe iaot timt 

### the8tzte*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 

## orthe mhinlng unaiviaea iatqrl 

### Bk in the traotor land rhoald eonfinn or ratifyl QT 

### @thermlaouiter inte **or** bind themnel+aa by the lea66 exe**dated** by Saltmmmt Oil Company. tban.the**‘ Stats**  **of** Texas will be entitled 

### to one-Balior the bon#w paid to mob 

### Otherourutrfs

e oonsiaeratlon

ror their 

### exeautian,rstitiaation or oonrinmtion of 44iB 14486. Ii n~0h -r~ 

### exeoutenew and separateleases,l&sStateof TexasrflZ be entitled

## tcone-beliof 

### thebenua,rentalsandtimz;,Y. 

### ptsid underthoseleaeea. TheseoonaDmlaeu a with 

### theprlns$ples annoonsed ia Low Aore 0IF 

### cmapa4 *. Wayne, 78Y. 3. 300,and tibarnhamvr ES* Oil CO., 

### 147 6. W. 3:0, Zaboth of 

### whiohoasesIt was held thatone tenant &I oomon.oould l4wro-lly aseoute aa oil 48x8gas leaee ripon land la 

### whiohouoh tsnantin uommfim ownedotiy 

### 8fl

undittpti. %nteretlt.

Tcqare aooordl5&y 4d~issB 

### thatyda 4333 

### autlloal~
**ts** 

### rile aad **eecept** 

### an **0U aad**  

### gas leaae esesatea**trsil@ tha** Honorable B&soon Gilee,Page 8

RelinqulehmentAot by a eurfaoe ownerwho owns only an undivided Interest.

However,with respeot to the partioular lease 

### fn.quee&lon(desoribedln paragraph S of this opinion) it la 0111: opinfon that auoh lease ie now subject **to** forfeiture and terminationbeoause 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!WORREYORRERAL OF TEXAS 

# n APPROVED OPlNlON COMMlTTEE