Presenter: Mike Herring

Commission Agenda Item No. 11
Action
Nomination for Oil and Gas Lease
Sheldon Lake State Park – Harris County
January 1998

I. Discussion: The Department has been requested to nominate a portion of the tract of land known as the Sheldon Lake State Park, for oil and gas leasing. The Department owns all the minerals, approximately 2,265.87 mineral acres, under the tract.

The staff recommends the Commission continue its policy of requiring a minimum cash bonus bid of $150 per acre and a fixed royalty of 25 percent, with a $10 per acre delay rental for a 3-year lease. It is also recommended that the lease be subject to the restrictions shown in Exhibit A.

II. Recommendation: The staff recommends the Parks and Wildlife Commission adopt the following motion:

"The Executive Director is authorized to nominate for oil and gas lease to the Board for Lease for Parks and Wildlife Lands, the Department's mineral interest in the Sheldon Lake State Park, at $150 per acre with a 25 percent royalty, $10 per acre rental, and a 3-year term, incorporating the restrictions set out in Exhibit A."

Attachments – 2

1. Exhibit A – Conditions
2. Exhibit B – Fiscal Note


Commission Agenda Item No. 11
Exhibit A

Restriction on Drilling

The lease shall contain the following provision:

Any provision herein to the contrary notwithstanding, it is agreed and understood that no entry shall be permitted on the surface of the leased land. Any development of the land shall be by means of directional wells located off the leased land, or by pooling of said land with other land or leases as provided by Subchapter E, Chapter 52, Natural Resources Code.


Commission Agenda Item No. 11
Action
Nomination for Oil and Gas Lease
D.R. Wintermann Wildlife Management Area – Wharton County
January 1998

I. Discussion: The Department has been requested to nominate the tract of land known as the D. R. Wintermann Wildlife Management Area, shown on the map in Exhibit A, for oil and gas leasing. The Department owns all of the minerals under the tract, or approximately 246.364 net mineral acres.

The staff recommends the Commission continue its policy of requiring a minimum cash bonus bid of $150 per acre and a fixed royalty of 25 percent, with a $10 per acre delay rental for a 3-year lease. It is also recommended that the lease be subject to the restrictions shown in Exhibit A.

II. Recommendation: The staff recommends the Parks and Wildlife Commission adopt the following motion:

"The Executive Director is authorized to nominate for oil and gas lease to the Board for Lease for Parks and Wildlife Lands, the Department's mineral interest in the D. R. Wintermann Wildlife Management Area, at $150 per acre with a 25 percent royalty, $10 per acre rental, and a 3-year term, incorporating the restrictions set out in Exhibit A."

Attachments – 2

1. Exhibit A – Conditions
2. Exhibit B – Fiscal Note


Commission Agenda Item No. 11
Exhibit A

Restriction on Drilling

The lease shall contain the following provision:

Any provision herein to the contrary notwithstanding, it is agreed and understood that no entry shall be permitted on the surface of the leased land. Any development of the land shall be by means of directional wells located off the leased land, or by pooling of said land with other land or leases as provided by Subchapter E, Chapter 52, Natural Resources Code.


Commission Agenda Item No. 11
Action
Nomination for Oil and Gas Lease
Copper Breaks State Park – Hardeman County
January 1998

I. Discussion: The Department has been requested to nominate a portion of the tract of land known as Copper Breaks State Park, shown on the map in Exhibit A, for oil and gas leasing. The Department owns an undivided 1/4 of the 640 acre tract, or approximately 160 net mineral acres.

The staff recommends the Commission continue its policy of requiring a minimum cash bonus bid of $150 per acre and a fixed royalty of 25 percent, with a $10 per acre delay rental for a 3-year lease. It is also recommended that the lease be subject to the restrictions shown in Exhibit A.

II. Recommendation: The staff recommends the Parks and Wildlife Commission adopt the following motion:

"The Executive Director is authorized to nominate for oil and gas lease to the Board for Lease for Parks and Wildlife Lands, the Department's mineral interest in Copper Breaks State Park, at $150 per acre with a 25 percent royalty, $10 per acre rental, and a 3-year term, incorporating the restrictions set out in Exhibit A."

Attachments – 2

1. Exhibit A – Conditions
2. Exhibit B – Fiscal Note


Commission Agenda Item No. 11
Exhibit A

Restriction on Drilling

The lease shall contain the following provision:

Any provision herein to the contrary notwithstanding, it is agreed and understood that no entry shall be permitted on the surface of the leased land. Any development of the land shall be by means of directional wells located off the leased land, or by pooling of said land with other land or leases as provided by Subchapter E, Chapter 52, Natural Resources Code.


Commission Agenda Item No. 11
Action
Nomination for Oil and Gas Lease
Fort Griffin State Park – Shackelford County
January 1998

I. Discussion: The Department has been requested to nominate the tract of land known as Fort Griffin State Park for oil and gas leasing. The Department owns all the minerals under the tract, or approximately 506.17 net mineral acres.

Staff recommends the Commission continue its policy of requiring a minimum cash bonus bid of $150 per acre and a fixed royalty of 25 percent, with a $10 per acre delay rental for a 3-year lease. It is also recommended that the lease be subject to the restrictions shown at Exhibit A.

II. Recommendation: The staff recommends the Parks and Wildlife Commission adopt the following motion:

"The Executive Director is authorized to nominate for oil and gas lease to the Board for Lease for Parks and Wildlife Lands, the Department's mineral interest in Fort Griffin State Park, at $150 per acre with a 25 percent royalty, $10 per acre rental, and a 3-year term, incorporating the restrictions set out in Exhibit A."

Attachments – 2

1. Exhibit A – Conditions
2. Exhibit B – Fiscal Note


Commission Agenda Item No. 11
Exhibit A

Restriction on Drilling

The lease shall contain the following provision:

Any provision herein to the contrary notwithstanding, it is agreed and understood that no entry shall be permitted on the surface of the leased land. Any development of the land shall be by means of directional wells located off the leased land, or by pooling of said land with other land or leases as provided by Subchapter E, Chapter 52, Natural Resources Code.


Commission Agenda Item No. 11
Action
Nomination for Oil and Gas Lease
Jasper Fish Hatchery – Jasper County
January 1998

I. Discussion: The Department has been requested to nominate two tracts of land located within the acreage known as the Jasper Fish Hatchery for oil and gas leasing. The Department owns all the minerals under the two tracts, or approximately 39 net mineral acres and 23 net mineral acres.

Staff also recommends the Commission continue its policy of requiring a minimum cash bonus bid of $150 per acre and a fixed royalty of 25 percent, with a $10 per acre delay rental for a 3-year lease. It is also recommended that the lease be subject to the restrictions shown at Exhibit A.

II. Recommendation: The staff recommends the Parks and Wildlife Commission adopt the following motion:

"The Executive Director is authorized to nominate for oil and gas lease to the Board for Lease for Parks and Wildlife Lands, the Department's mineral interest in the Jasper Fish Hatchery, at $150 per acre with a 25 percent royalty, $10 per acre rental, and a 3-year term, incorporating the restrictions set out in Exhibit A."

Attachments – 2

1. Exhibit A – Conditions
2. Exhibit B – Fiscal Note


Commission Agenda Item No. 11
Exhibit A

Restriction on Drilling

The lease shall contain the following provision:

Any provision herein to the contrary notwithstanding, it is agreed and understood that no entry shall be permitted on the surface of the leased land. Any development of the land shall be by means of directional wells located off the leased land, or by pooling of said land with other land or leases as provided by Subchapter E, Chapter 52, Natural Resources Code.


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