Texas Administrative Code › Title 31 - NATURAL RESOURCES AND CONSERVATION › Part 4 - SCHOOL LAND BOARD › Chapter 155 - LAND RESOURCES › Subchapter C - EXPLORATION AND DEVELOPMENT OF GEOTHERMAL ENERGY AND ASSOCIATED RESOURCES ON PERMANENT SCHOOL FUND LAND › Section 155.42 - Mining Leases on Properties Subject to Prospect

Current through Reg. 49, No. 28; July 12, 2024
(a) Lands subject to lease. Those tracts of
				  land subject to prospect permit are subject to lease under this section. See
				  §
										155.40
				  of this title (relating to Definitions; Exploration and Development
				  Guide).
(b) Lease application
				  requirements and procedures.
(1) In an
				  application for prospect permit on a state tract, an applicant may indicate
				  that geothermal energy and related resources are located on the state tract and
				  request an immediate issuance of a lease on that tract. A lease may be issued
				  to the applicant in lieu of a prospect permit if the commissioner determines
				  that geothermal energy and related resources are located on the state tract, if
				  applicant's application for prospect permit was received first under §
											155.41(b)(5)
				  of this title (relating to Prospect Permits on State Fee Lands), and if the SLB
				  approves the application.
(2) At
				  any time during the effective period of a prospect permit, the permittee may
				  submit an application to lease the area covered by the prospect permit or a
				  designated portion thereof.
(3)
				  Application to lease shall include:
(A) An
				  identification of the applicant's prospect permit(s);
(B) The date of issuance of the prospect
				  permit(s);
(C) A description of the
				  tract(s) of land which identifies the area to be leased by section number, part
				  of the section or survey to be leased, block number, township number, and/or
				  certificate number, if applicable, survey name, number of acres contained in
				  the section, and county or counties in which the land lies and, if land trade
				  lands, the name and address of surface owner of record in the tax assessor's
				  office;
(D) The name, address,
				  phone number, and taxpayer ID number of a non-corporate applicant;
(E) The corporate name, phone number,
				  taxpayer ID number, address, the name of the officer authorized to execute
				  permits and leases, and written evidence confirming that a corporate applicant
				  is not delinquent in paying its franchise taxes;
(F) Statement of the applicant's proposed
				  lease terms; and
(G) Field notes
				  describing the area to be leased, if such area is less that that covered by the
				  prospect permit and cannot be accurately described as a part of the section,
				  such as NE/4. The field notes must be prepared either by a licensed state land
				  surveyor or the elected or appointed county surveyor of the county in which the
				  land is located pursuant to Texas Natural Resources Code §
												21.011.
(4) The TPWD may review the
				  leasing of lands whose surface is owned or leased by TPWD or is subject to a
				  conservation easement in favor of TPWD, but whose minerals are subject to lease
				  under this section. Within 10 days of receipt of an application to lease on
				  such lands, the GLO shall notify the executive director of TPWD.
(5) The application to lease shall be
				  accompanied by a filing fee prescribed by § 1.3 of this title (relating to
				  Fees) and the proposed lease bonus payment that shall not be less than $2.00
				  per acre.
(6) In order to fully
				  evaluate the application to lease, GLO staff may request that an applicant
				  submit additional information, including information about the proposed mining
				  operation.
(7) Each application to
				  lease shall be subject to the approval of SLB in order to determine whether the
				  lease is in the best interest of the state by considering the following:
(A) Whether the proposed lease terms and
				  conditions are in conformity with the Texas Natural Resources Code, § 141
				  et seq., and this subchapter;
(B)
				  Whether the proposed lease terms are comparable to the best leases in the area
				  which cover the same mineral or minerals;
(C) Whether the proposed lease terms are
				  compatible with other valuable uses of the leased premises; and
(D) Whether the lease terms adequately
				  compensate the PSF for the loss of other valuable uses of the leased
				  premises.
(8) If the SLB
				  rejects an application to lease, the applicant will be notified and will be
				  advised of the specific reasons for the denial.