March 13, 1967 

Honorable Hurshel R. Harding Opinion No. M-41 

County Attorney 

Parmer County Re: Whether the severed 

Farwell, Texas minerals which are 

owned by Parmer County 

as part of Its public 

school lands, located 

in Gaines and Andrews 

counties, are subject 

to taxation In the 

Dear Mr. Harding: county where located. 

In your opinion request you stated: 

“Farmer County owns minerals in Gaines 

and Andrews Counties, Texas, having sold the 

surface of these lands a number of years ago. 

Over the last several years the tax assessorcollector of one or both of these counties 

mails to Parmer County an assessment of taxes 

for the minerals which Parmer County owns.” 

We have also been advised that the above minerals 

were a part of the public lands given to Parmer County 

by the State for the endowment of Its Permanent School 

fund. These 3.ands were subsequently sold and a portion 

of the mineral estate was reserved to the county. The 

lands have been leased for a number of years and there 

was production of 011 and gas on the lands in Gaines 

County during the tax years involved here. 

You have requested our opinion as to whether the 

severed mineral estate owned by Parmer County in lands 

located in Gaines and Andrews Counties are taxable under 

Article VII, Section 6a., Constitution of Texas, and 

Article 7150a, Vernon’s Civil Statutes. 

The pertinent constitutional provisions and statutory 

enactments are as follows: 

Article VII, Section 6, Constitution of Texas. 

“All lands heretofore, or hereafter granted 

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Honorable Hurshel R. Harding, page 2 (M-41) 

to the several counties of this State for 

educational purposes, are of rightthe 

property of said counties respectively, to 

which they are granted, and title thereto 

is vested in said counties, and no adverse 

possession or limitation shall ever be 

available against the title of any county. 

Each County may sell or dispose of its 

lands in whole or in part, in manner to be 

provided by the Commissioners’ Court of the 

county.. .Said lands, and the proceeds thereof, when sold, shall be held by said counties 

alone as a trust for the benefit of public 

schools therein;. . .” 

Article VII, Section 6a, Constitution of Texas. 

“All agriculture or grazing school 

land mentioned in Section 6 of this article 

owned by any county shall be subject to 

taxation except for State purposes to the 

same extent as lands privately owned.” 

Added Nov. 2, 1926, proclamation Jan. 20, 

1927. 

Article 7150a, Vernon’s Clvll Statutes. 

“Any county in this State owning any 

land mentioned and referred to in Sectlon 

6a of Article VII of the Constitution of 

Texas. . . , is hereby authorized to pay taxes 

duly and lawfully levied on the same out of 

the County’s revenue derived from such land...” 

Article XI, Section 9, Constitution of Texas. ‘: 

“The property of counties, cities and 

towns, owned and held only for public purposes, such as.. ., and all other property 

devoted exclusively to the use and benefit 

of the public shall be exempt from forced 

sale and from taxation,...” 

Article VII, Section 6a, and Article 7150a were 

added in 1927. Prlor to that time, It was settled that 

the oublic school lands owned by the several counties 

were-not subject to taxation. baugherty v. Thompson, 

71 Tex. 192, 9 S .M. 99 (1888). That court also held 

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. 

Honorable Hurshel R. Harding, Page 3 (M-41) 

that: 

“Forbidding the taxation of the lands 

it forbids the taxation of an estate less 

than the fee,...” 

Article VII, Section 6a, read in relationto 

Article VII, Section 6, now makes all the agriculture 

and grazing school lands owned by the several counties, 

and granted to them by the State for educational purposes, subject to taxation except for State purposes. 

The question then is, does a severed mineral interest 

come within the term “all agriculture and grazing school 

land mentioned in Section 6 of this article...?” 

The history of the State’s school grants to its 

counties is set out in the interpretive commentary of 

Article VII, Section 6, and will not be repeated here. 

It is sufficient to note that these grants were generally 

made upon vacant and unsurveyed public lands. They were 

given to the counties and, therefore, were never classified by the General Land Office as being either agriculture, 

grazing or timber lands, as was required for the sale of 

public lands. It is our opinion, however, that the Legislature used the term “all agriculture and grazing school 

lands.. .‘I to distinguish between the several broad 

classifications of public lands generally made by the 

General Land Office in the sale of lands and not to distingulsh between the various estates in land. Childress 

Count v. Morton Independent School Dist.,95 S.W. 

1-p 193b) At the time of the enactme% Ai’” 

Article VII, Section’Ga, timber upon public school lands 

when sold became the personal property of the vendee, and 

was .subject to taxation. Montgomery v. Peach River Lumber 

Co., 1.17 S .W. 1061, (Tex.Clv.App. 1905 

- 

error dism.w.0.j.). 

It is not the use or classification of the land at 

the time of the assessment that is controlling here, but 

the use or classification at the time of the grant. 

Section 6 refers to “all lands heretofore or hereafter 

granted. . . ” It is the agriculture and grazing lands 

granted to counties by the State that are made taxable. 

The estate to be taxed is the entire fee of the land. 

Article 7146 V.C.S.; Humble 011 and Refining Co. v. State 

S W 2d 5s 560 (Tex.Ci A 

casi <he co&t said: (P. %O 

m, error ref. ) . In that 

“Until, however, the mineral estate has 

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. . 

Honorable Hurshel R. Harding, page 4 (M-41) 

been severed, the rendition of the land 

carries with it the value of the entire 

estate .‘I 

Article 7146, Vernon’s Civil Statutes, defines “Real 

Property” as lncludlng the land itself and all mines 

and minerals in and under the same. 

Article XIV, Section 7, of the Texas Constitution 

released the minerals in and under public lands to the 

owner of the soil and provided that the minerals would 

be subject to taxation as other property. 

If the minerals were taxable while a part of the 

fee title owned by Parmer County, what is there within 

Section 6a of Article VII that would exempt them when 

severed? Section 6a, specifically provides!,that the 

enumerated school lands shall be taxable. .to the 

same extent as lands privately owned.‘! It has long 

been settled in this State that a conveyance or 

reservation of a mineral or royalty interest creates an 

interest in land that Is subject to taxation apart from 

the surface estate. Stephens County v. Mid-Kansas Oil 

& Gas Co., 113 Tex. 160 254 S W 290 (1923); State r 

Downman, 134 S.W. 787, tTex.Civ.App., 1911 error ref., 

-1 US 353); Sheffield v. R”,g$ v. 124 Stakes Tex 290 li6 77 Tex. S W. 

2d 1021 80 S.W.2d 

LIE&, :$ g.;. $ miv.s;. 

174’S.W.2d’43 (1943); 

Jp%he&, lg;;ex. 

Ra~hara.~?k%%& Indep%ent ’ 

School Dist., 139 Tex. 532, 163 S.W.2d b31, (1942). 

Assuming that the land was at the time of the grant 

either agriculture or grazing land, it is our opinion 

that Parmer County Is liable for all taxes properly 

assessed against the mineral interest It reserved in the 

sale of its school lands. See also, Phillips Chemical 

Co. v. Dumas Independent School DlstrTct, 159 Tex. 116 

3 6 2d 362 389 (19 8 I d Attorney General’s Opinions’ 

nimber o-6693 and 0~7&?(1946). 

SUMMARY 

Assuming that the lands in question, at 

the time of the grant were either agriculture 

or grazing lands, the severed minerals which 

are owned by Parmer County as part of its 

public school lands located in Gaines and 

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. . 

Honorable Hurshel R. Harding, page 5 (M-41) 

Andrews Counties are subJect to taxation 

in the county where located under the 

terms of Article VII, Section 6a, Constitution of Texas, and Article 7150a, Vernon’s 

Civil Statutes. 

MFS :mh 

Prepared by Marvin F. Sentell 

Assistant Attorney Qeneral 

APPROVED 

OPINION COMMITTRE 

Hawthorne Phillips, Chairman 

W. V. Qeppert, Co-Chairman 

John Pettit 

kkghton E%rownlee 

Bill Allen 

STAFF LEGAL ASSISTANI' 

A. J. Carubbi, Jr. 

9 V truly yours, 

??kF 

Qkneral of Texas 

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