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Presenter: Ted Hollingsworth

Commission Agenda Item No. 12
Nomination for Oil and Gas Lease – Nueces County
April 2004

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 certain mineral interests the Department owns at Mustang Island State Park at the minimum standard fees or greater by a bid process.

II. Discussion: A request has been made to the Department requesting nomination of mineral interests at Mustang Island State Park for a Board for Lease sale offering. The request has been for two tracts totaling approximately 1,362.23 acres of surface and minerals.

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 1,362,23 mineral acres out of Mustang Island State Park, at minimum rates of $150.00 per acre with a 25 percent royalty, $10.00 per acre delay rental, and a 3-year term, incorporating the restrictions set out in Exhibit A.”

Attachments – 3
1. Exhibit A – Restrictions
2. Exhibit B – Locator Map
3. Exhibit C – Fiscal Note

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