At Mazurek and Holliday, PC we make it our goal to give you more. More information, more opportunities, more value. Part of this goal is to ensure we provide our clients with the information that may have an effect on their business as soon as it is known. To that end we wanted to provide you with a summary of the recent actions taken by the Texas General Land Office (“GLO”) regarding the leasing of county roads.
On or after September 1, 2017, when entering into an Oil and Gas Lease covering the minerals under a county road, or lands associated with a county roadway, a lessee must make payment of the bonus directly to the county in which the land is located. See, Texas Natural Resources Code Section 32.201 (j).
The GLO has provided a “County Road Bonus Form”, which is used to verify that the county has received the bonus payment. Further, a lease will be issued only after the School Land Board approves the lease and the bonus payment has been made to the county and the receipt and verification of payment is received at the GLO. There are other fees that are still paid to the GLO, including a statutory sales fee equal to 1.5% of the bonus payment and an application fee. Below are some specific guidelines for leasing county roads:
- If the applicant for the county road lease is not the adjacent mineral owner, then the adjacent mineral owner must execute a waiver of its preferential rights to lease.
- As you might expect, no surface use is allowed under the provisions of the county road lease.
- The county road lease provides pooling authority. The following must be provided to the GLO within 30 days of the Designation of Pooled Unit being filed of record:
– Completed State Right of Way and/or County Road Unit Designation form;
– Copy of recorded original Designation of Pooled Unit and any corrections or amendments;
– Copy of unit plat with State and County tracts included in the Designation of Pooled Unit highlighted;
– $500.00 Unit Processing Fee; payable to the Commissioner of the Texas GLO.