Texas Administrative Code › Title 31 - NATURAL RESOURCES AND CONSERVATION › Part 1 - GENERAL LAND OFFICE › Chapter 13 - LAND RESOURCES › Subchapter C - GROUNDWATER LEASING › Section 13.31 - Leasing Procedures

Current through Reg. 49, No. 28; July 12, 2024
(a) Permanent
				  school fund lands may be leased for the exploration or development of
				  groundwater resources through either a sealed bid procedure or through direct
				  negotiation, at the discretion of the commissioner. Municipalities and other
				  providers of public water supplies may be given a priority preference to lease
				  permanent school fund lands for development of a municipal or domestic water
				  supply.
(b) A party interested in
				  leasing permanent school fund lands for the exploration or development of
				  groundwater resources may submit a lease application. Alternatively, the
				  commissioner or GLO staff may nominate a tract or tracts for inclusion in a
				  sealed bid lease sale. A tract proposed for lease or nominated shall be
				  described in sufficient detail that it can be identified and evaluated by
				  interested parties. The commissioner will determine the lease procedure to be
				  followed after considering interest in a tract and the best interest of the
				  State.
(1) Contents of Application. A party
				  interested in leasing permanent school fund lands for the exploration or
				  development of groundwater resources shall submit an application to the GLO on
				  forms approved by the commissioner. An acceptable application shall include the
				  following information:
(A) Name, address, and
				  phone number of the person or entity submitting the application. For applicants
				  other than natural persons, an organizational charter or certificate and
				  related documentation of its current authority to conduct business in Texas and
				  the name and official capacity of an authorized representative or agent shall
				  also be provided.
(B) A description
				  of the permanent school fund lands sought to be leased.
(C) A description of the purpose of the lease
				  and the activities to be undertaken or conducted on the leased
				  premises.
(D) A map on a scale
				  adequate to show the location of the proposed lease. State tract numbers and
				  names of rivers, streams, and lakes shall be shown where applicable. Location
				  of project features should be depicted to the extent such information is
				  available.
(E) A business plan that
				  describes the various phases of a groundwater development project, including
				  exploration and analysis, regulatory compliance, project budget and financing
				  alternatives, marketing, development and production, right of way acquisition,
				  and transportation and delivery. The plan should also detail the expertise
				  available to evaluate scientific data and information and to assure that the
				  permitted uses can be conducted in a manner consistent with sound engineering
				  and management principles.
(F) Such
				  other financial and background information about the proposed lessee, related
				  entities, principals, or guarantors as may be requested by the commissioner to
				  evaluate the application, the creditworthiness and experience of the applicant,
				  or the potential viability of the proposed project.