Presenter: Jack Bauer
Commission Agenda Item No. 14
Nomination for Oil and Gas
Lease – Hardin County
I. EXECUTIVE SUMMARY: This item is a request for the recommendation by the Texas Parks and Wildlife Commission (Commission) to the Board for Lease for Parks and Wildlife Lands for the nomination of lease-sale, by bid, of certain mineral interests the Department owns at Village Creek State Park at the minimum standard fees or greater.
II. DISCUSSION: A request has been made to the Department requesting nomination of mineral interests at Village Creek State Park for a Board for Lease sale offering. The request has been for approximately 200.0 acres, of which TPWD owns 100 percent of the surface and 4/9th of the minerals. This will translate to an approximate 88-acre mineral interest.
Staff recommends minimum terms of a cash bonus of $150.00 per acre and a fixed royalty of 25 percent, with a $10.00 per acre delay rental for a 3-year lease. The lease will also include the conditions for TPWD review and approval of all surface activities.
III. RECOMMENDATION: The staff recommends the Texas 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 its mineral interest in an approximate 200.0 acre tract out of Village Creek State Park, at $150.00 per acre with a 25 percent royalty, $10.00 per acre rental, and a 3-year term, incorporating the restrictions set out in Exhibit A.”