**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 Ret '0; tg g~;afloner 

## orri00 authorized 

## tmOr 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 la in raor%pt 17, 1946, Psharrln IOUrrqur **big d3tb**  **0r r00t8:** 

purportad to amend and oorrsot the oridnal lease to inoludr the acreage ae shown by the oorraOted ridd **noteand** mbsaqurnt rurtry. Th PrlmarYnon. 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 amdoa on Um abotr rIOI&laarr and kh8 UIY r~~inad on ohm raoorda or thla 0rria thrm* 8b priyrf tam aml valid laaaa, ~006nIz44 la oorrrlng thr*m apaaltird the-in. “Onkrah 19, 19.46, YeY. brolal otfng Indlrlauaur

and am l gmt r0r thr stats or 48x88, l oradd l xotbr Inatruent whIoh I8 tltlad, Wnandnrnt, Uatirloation an 1Crt~nrIe3.l 0r FrllcaryTerm 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 lak war o pI~Ioa

on the nPllaIng atatanan~~ “1, Tharxtrnalon 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 lxlatI* l tatutaa, to aompt thr rxtrnalon cmtraot ama nawlrara and rilr ammehe
**%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

!ra ‘poration tha that may ba thmor! or then ZIupon auoh trnaa an oondltlona am auoh o8nar ny darn baat, aubfeat onli to tim prov~aIona hereof, andhr mnybavr 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 lar plus royalty’, and the laaaar **or** purohaaar l hnll In rvrry oaw py tbr Strto tan ornta pex aopI par Imar 0r aalas **and** ntwim tha old ridad 1aad In 

## sameorproduotlon shall PI the Statr ma-rfrtarnth oi #hr ralloa of thm011 and gas raasmd herein, and llln amoumtato 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 Ofth@ ~PNM ‘oU=t, $.fkI1118 t* *tam; 195 8. % 24 123, pW0 1)).
Win dlstlnotlon 110. in th. varyfbrt 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 wastired bt the 1 Ialaturr aa motidad !a the Ballnqaiahunt A.8. 2. baw mohan l ge& w tha rovlalma0r that aot and not on *a baala or ocm dorrtlon or a! nhothar hr uoald br danllot in laaln& tha laad or raald mot be. lie ram no mro l alaokd on-that basis aa anagent than ha mm aalsotod m that basis bt tha stat8 aman l

wardrr of **tha** laud in qusation. It would harmkm 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 towhatlaar hr would k d.rrl1.t In hIa duty or whather hr **would** not **bo** danllot. Tholand 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 OPthr basis tlxod by the loglalatura in tho WInquIlrhmant *at.. Tb Supnma %wt in tha O~H of BapIre ha **and** &ol Companyvs. Stats, 47 2). R. 2d 255-272, 1ntuport.d t&aabove **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, andwh.teu Ia sot w-

. uirwal1.t **gnBk** in OlOW and rxplIaIt t.N L wthhald. P 8ny 

### l **bl&ulty** or obaourit~ In Uu torw
**or tlm**  l

tatuto must oporato ti favor of tho state.* Xnaaaordaao. 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~tanaIon lntarod into **by** th agent .nd tlu luaor prlcr to the tuelnatlon of tho 18.88. 3i. lr. 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.Th8supram 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 &owith tho title Of tb land, aubjort t&the provIaloru or the mot. That whana **ralld** and blntllng loaeo or oonvayanoo of tha mInarUa Is mods by the owner or .tha land, amthe agent oi tha state, than In **that** atont ha raoalros tba foreoI= amount8 am oomparnation ror him aanl.oaa. Elmshare of tha rankle, royeltIaa, and bonuaoa dorI,vod from the laaoa l xcoukd by himbroom4 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 hasno 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 mfnoral 3o rar l roouutaa by a prior ownor tormIua-

. tos, Thorthan ownar of th land beo~cauethr a&#&t, of tha state with authority to mall **or** laaaa the oil and gas mInora rl&hta, amprorldod for in the Rollnqulahmont ht.”
VoPdloretand 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 crlthe ronala, royaltIaa, and boatma krlrrd fran tha lraao oxaoutd br hla baomo l pro rty rI&ht .during tha por:‘.odor tlma ror w&ieh thr loaao rune. &tat whanarar tha mriaOa cwnor, **ooting am**  **8gant** ai tha etato In aooordanoo with tha protIsIo~ and 

### l ph& of tha ~linquIahMnt not, aa Intorprotad by the aaaoa and amlpDdifIod by tho sub sequent rok or the LogIalnturo, hamoxauutrd a valid oil and gas loaao tar the state l abthe mm ia tiled In the Oonor81 LIAIU¶ offloe, ho hamtharaby 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. Oreouruo, **tha** aurf’aoo ounu at the 

### l xplr- 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 OIIJLrand 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? haring l xrlmd -fho mar agrntstillbeing tho owner GStba land ana now having authority to enter intoanm 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 mnm 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.