Presenter: Jack Bauer
Commission Agenda Item No. 13
Nomination for Oil and Gas
Lease – Harris 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 interest the Department owns at Sheldon Lake State Park at the minimum standard fees or greater.
II. Discussion: A request has been made to the Department requesting nomination of mineral interest at Sheldon Lake State Park for a Board for Lease sale offering. The request has been for six tracts totaling approximately 1,926.96 acres of surface and minerals in Sheldon Lake State Park.
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, approximately 1,926.96 surface and mineral acres out of Sheldon Lake 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. The income from the bonus bid and delay rental will be dedicated to Sheldon Lake State Park. This action will not be considered a precedent.”