OFFICE OF THE ATTORNEY GENERAL OF TEXAS 

AUSTIN 

xonorablo Baroai Oil.8 

o~rai Land orrioa 

Au&in, Taxaar 

Dear sir: opln.lon HO. o-7269 

Re t '0; tg g~;afloner 

orri00 authorized tm Or 

the rxlating rtat to 

to aoorpt 

4 

t Ml I1 

oontraot a no ea e 

aad rile a~ 8 , und r 

th*n raots? 

we l a in raor%pt 

17, 1946, Psharrln IOU rrqur 

big d3tb 0r r00t8: 

purportad to amend and oorrsot the oridnal lease 

to inoludr the acreage ae shown by the oorraOted 

r idd noteand mbsaqurnt rurtry. Th PrlmarY 
non. Baaocll @ilam, FR8.2 

tam p# wn orI&IMl lwar ma) for l tam of aawn 

(7) furs trca lhr 8, 1939. ha annual rantala hats 

barn r~oalvod am doa on Um abotr rIOI& laarr and 

kh8 UIY r~~inad on ohm raoorda or thla 0rria 

thrm* 8b priyrf tam am l valid laaaa, ~006nIz44 

l a oorrrlng thr*m apaaltird the-in. 

“On krah 19, 19.46, Ye Y. bro la l otfng Indlrla ua uar nd a m l gmt r0r thr stats or 48x88, l oradd 

l xotbr Inatruent whIoh I8 tltlad, Wnandnrnt, Uatirloation an 1Crt~nrIe3.l 0r Frllcary Term 0r oil and Qaa 

Laaacl.* t hIa Iaatruarat, tagethrr mI$h tha aonaI4aratlona naltod theraIn ma rcaalrad In tha Oarural 

Land orri00, on Jun. b, 19454, 

“I l ttaoh hax’oto a photoatatio oopy of thr Imtrumeat and InvIta your attontlon t6 tha raot that this Inatrumnt ~8 anaatad prior to tha rrglratlon date ot the 

orlgbml la&me. In rlar oi thaae faota am outllmd, I 

raapaotitllly l a k war o p I~Ioon a the nPllaIng atatanan~~ 

“1, Tha rxtrnalon oontraot Mvlng barn l faoutad 

prior to tha taminatlon 4atr of thr orkim;&tmfe,:4 tha ,mlmary tehp na havIn(5 

l uth&Isad Mdrr th8 l xlatI* l tatutaa, to aompt thr rxtrnalon cmtraot am a naw lrara and rilr am mehe 

%a rullnquhhmsnt Mi la eodiil~d in ~~rnon~a Annatatad dltil Statute. In Artlolaa 536746. htlolr 5368 Ir?tolrrd 

har&ln raadm a. fcdl~a t 

*TM ounor of maid land, Ia Wrabg authorized to 

aeelan; laaa? to cay parson, iIm or 00 

!r 

a ‘p 

oration tha 

that may ba thmor! or then ZI upon auoh 

trnaa an oondltlona am auoh o8nar ny darn baat, aubfeat onl 

i 

to tim prov~aIona hereof, and hr mny bavr a 

arooad 1 an thrroon to aaoaza tha plymat oi any sum 

duo hil. All lraae6 and ralaa ao aabe aball be anal&nl bla . lo oil or gas rIghSa ahall be aold or lward hareanarr rot 1088 than ton sent8 par aon psr l ar plus 

royalty’, and the laaaar or purohaaar l hnll I n rvrry oaw 

py tbr Strto tan ornta pex aopI par Imar 0r aalas and 

ntwim 

tha old 1 ridad 

aad In same or produotlon shall PI the Statr 

ma-rfrtarnth oi #hr ralloa of thm 011 and 

gas raasmd herein, and llln amoumta to tha cwnar ot 

tha soil. (Aota 2nd 0,s. 1919, paga 249) .* 

The nl0tlOMhip Or th@ SW0 UUI it0 a&$0+ IS WOu 

dIaouuad in Jrdg8 %riOea Opiai68 Of th@ ~PNM ‘oU=t, $.fk 
I1118 t* *tam; 195 8. % 24 123, pW0 1)). 

Win dlstlnotlon 110. in th. vary fbrt Wmt the 

Stata 0r fw -8 Cbtrr* plnolpl and that u an 

WOBt Of th. std@ tha arthod Or hl. Pl-OOadU~ iB 

~lllng th. tinar.l u%8ta in the laid was tired bt 

the 1 Ialaturr aa motidad !a the Ballnqaiahunt 

A.8. 2. b a w mo h an l ge& w tha rovlalma0r 

that aot and not on *a baala or ocm a! dorrtlon or 

nhothar hr uoald br danllot in laaln& tha laad or 

raald mot be. lie ram no mro l alaokd on-that basis 

aa an agent than ha mm aalsotod m that basis bt 

tha stat8 am an l wardrr of tha laud in qusation. 

It would harm km eardad to hk what&r ulnt or 

alnnar In him mathod ot d.ala. Lilawiao 0.t.a 

b.c.mo the rurlhoe ownor and amot of tho state wlthout ragard to whatlaar hr would k d.rrl1.t In hIa 

duty or whather hr would not bo danllot. Tho land 

was l nrdd to hlr puraualit to tha atato~a hanata~dlng pollay and the atitr, I8 l rllin& thraqh U Ita 

rOara l 8t.t.. protaotad hia in th# l njo)Plnt of 

him aurl’aoa l atatr and oomponaatrd hk OP thr basis 

tlxod by the loglalatura in tho WInquIlrhmant *at.. 

Tb Supnma %wt in tha O~H of BapIre ha and &ol 

Company vs. Stats, 47 2). R. 2d 255-272, 1ntuport.d t&a above 

statute laths r0umog mt 

“Tlr ml0 Ia also wrll l rttlul that &a&l.- 

01~ grmta 0r pro arty rights and prlrllogau arat 

b oonstmod l trl 

“p”I 

In rare or the hat0 on 

grounds 0r pub110 

r 

107, and wh.teu Ia sot w- 

. uirwal1.t gnBk in OlOW and rxplIaIt t.N L 

w P thhald. 8ny l bl&ulty or obaourit~ In Uu torw 

or tlm l tatuto must oporato ti favor of tho state.* 

Xn aaaordaao. with th. above IntupntatIona ard in 

l barnco or statutory authority ranted the yrnt, tha atato 

wad not bo bomd by a ODnbraO t or r ~ta na Il ontarod n into 

by th agent .nd tlu luaor prlcr to the tuelnatlon of tho 

18.88. 

3i. l r. aot in l ooord with the 1Otbr Opinion Of 

tho Bonorrbl. Qradr Qmndlor , wrItSan on the l4th 3ay of 

cocaabar 19s. whorain b etated tbt thr 4iWt or the 

atatr had tha r-t to gent an orl&il 1-0, also ham 

the authority to rxacpta .n .xknaion, and roar Pa in 

ocmflIpt hemwith la hanbr overruled. 
Th8 supram Court or this Stato in Umar ~0. @amar, 

50 i.m. 26 773, oltad with l ppm81 Ln %to vs. UagnolIa, 173 

8.w. 2d 186, oonrlnad tha rl.&tr or tho want 2r tb atrto t0 

the tams or the laaao, aaku tba followi~ laaeoWrT 

*In oar opinion, tha sot, whan f8irly and roaacnably oonatruad, aloo mana t&t Ul dnonla not alaposed or &o with tho title Of tb land, aubjort t& the 

provIaloru or the mot. That whan a ralld and blntllng 

loaeo or oonvayanoo of tha mInarUa Is mods by the 

owner or .tha land, am the agent oi tha state, than In 

that atont ha raoalros tba foreoI= amount8 am oomparnation ror him aanl.oaa. Elm share of tha rankle, 

royeltIaa, and bonuaoa dorI,vod from the laaoa l xcoukd 

by him broom4 property rl&ta du* the period or time 

for whloh the lease tuna. i’rlor to the mnldng or tha mInoral 1aaaa~ the owner 0r the land has no right to assor contay a4 mlnaral &t&a Iu the property. It Is 

the Intention of the law that the, otmor of the land shall 

be the a ant of tha #tat+ to l xoouta mlnaral l~aaa. Whenaver a mf noral 3o r a r l roouutaa by a prior ownor tormIua- 

. tos, Thor than ownar of th land beo~caue thr a&#&t, of tha 

state with authority to mall or laaaa the oil and gas 

mInora rl&hta, am prorldod for in the Rollnqulahmont 

ht.” 

Vo Pdloretand the &lInquiahnnnt iot aa Intarpratod by 

tha Tons oourta In the above l numaratad oaaaa to hold that tha 

aurfaoo owor 

2 

the duly oonatltutod l gant of the stats ror the 

purpwa 0r 0x0 utbg an ordinary 0oaimroIU 0i.l and gas laaaa 

laaaIng ~th 08l and gas l atato In and under him surfa l atata. 

‘%a t the l uriaoo uanara ahara crl the ronala, royaltIaa, and 

boatma krlrrd fran tha lraao oxaoutd br hla b a o mo l pro rty 

rI&ht .during tha por:‘.od or tlma ror w&ieh thr loaao rune. &tat 

whanarar tha mriaOa cwnor, ooting am 8gant ai tha eta to In aooordanoo with tha protIsIo~ and l ph& of tha ~linquIahMnt 

not, aa Intorprotad by the aaaoa and am lpDdifIod by tho sub 

sequent rok or the LogIalnturo, ham oxauutrd a valid oil and 

gas loaao tar the state l ab the mm ia tiled In the Oonor81 

LIAIU¶ offloe, ho ham tharaby l xlmuatod him atatutorl l uthtarIty 

to aot theroarter am agent or tha l tbta until the tox!mInatIon 

dat@ of sa.Id ~aaa, or during any tIM -Id l@U@ Ii in full 

roroa and l rr00t. Or eouruo, tha aurf’aoo ounu at the l x p lr - 

ation data or tha loaaa or at auoh tlm whan tharr Is IY) valid 

1aa.o ooterbg tha oil and gas mlnoral l atak In aad andor 

hia landal ha boooami# ‘the duly OOnditUtM l g@nt Oi tb @tat@ 

mdor the ~lInquIahment Aot far tho purpona or l zooutIa8 a 

new oil and gas 18~88. It Is our opinion thoraMn, that W 

attomptod 1ea.o oontraot entered Inb botwoan th* l urfioa OIIJLr 
and thm larmr o? tb mtatr ducl.nij the lit8 or poudoxwy of 

thr plr1mz-y lrera ir voldrbh as 8galnat public p8l%w, as 

th:-;;mt~o* ownar th8n laob authority to art a* War& for 

. 

In tho oaae ti Wats v. LBagnolia, sup=, this prinaipla lw stated In the following lwuaga: 

9% etate ir not nquimd to ratlfy or adopt 

the unanthorimd act of itr 8up;,o8od rgont but ray 

npu4lstr tbas aa umuthorlzad and 88k that-they any 

ba sot asldo and held ior mu&ht. khan ths l eont has 

rxoradod authority thr oppornito perty is not rntltlrd 

to hsto the eontract an#orosd to tho extant tlat t.ha 

agent had authority to ad. 2 ‘Tex. Jur. 547, prrgrepb 145 Emnts v. Fuqne, lC2 hx. 4c)o. bonnor. 

‘I. U~alda Xational Bank, 156 3.“. 1092 . . .” 

liowsrsr, in reply to your qu8stlon, uwlrr t&3 faotr 

horn prrrented, thr origbial laaro and the priaary tom nm? 

h a r inl xg r lmd - fho mar agrnt still being tho owner GS tba 

land ana now having authority to enter into a nm lease, you 

are arrtborlza4 under the exlstl,y, statutrs to alrot to aoorpt 

the pPrportad sxtanrion cmtmot A# a new lrera or a8 an offer 

to rntar into a new leam. If the first altornetiva is 8oleoted 

by you, you are nqulred to glv’s it th same oara rnd scrutiny 

aoeordo4 an orl&ml lmsa. It the letter rltaruatlvr is ohosan 

m nm lease wit!: the tama of the extonslon oontmot exh2bbdied 

themin aunt br propend an4 prosent to yco aa %aml8sloner 

of tba General zan4 0fZlor ror your afprovlll. 

ahis Gpinion 16 oonflna4 to th8 particular iRots 

oWted by yai.