Presenter: Corky Kuhlmann
Commission Agenda Item No. 10
Nomination for Oil and Gas Lease
Smith County and Hidalgo 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 TPWD mineral interest for lease at Tyler State Park and Las Palomas WMA, Kiskadee Unit at the minimum standard fees or greater.
II. Discussion: Minerals owned by or held in trust for Texas Parks and Wildlife Department (TPWD) may be leased by the Board for Lease for Parks and Wildlife Lands under Natural Resources Code § 34.051 for the purpose of prospecting or exploring for and mining, producing, storing, caring for, transporting, preserving, selling, and disposing of the oil, gas, or other minerals. State lands are typically offered for lease sale at scheduled intervals. The Board for Lease has traditionally respected recommendations of the Texas Parks and Wildlife Commission (Commission) relative to leasing minerals owned by TPWD. The Board for Lease has received a nomination at Tyler State Park and Las Palomas WMA for a lease sale offering. The purpose of this Commission Item is to alert the Commission to this nomination and seek recommendations for the Board for Lease. The lease request is for Tyler State Park which totals approximately 993.5 acres in Smith County and 0.38 acre of the Kiskadee Unit, Las Palomas WMA, Hidalgo County, Texas.
Staff recommends the Commission approve the lease to the Board for Lease of Parks and Wildlife Lands at 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 no surface occupancy and off site directional drilling only.
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 993.5 acres being all of Tyler State Park, and 0.38 acre of the Kiskadee Unit, Las Palomas WMA, at a minimum of $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."
Attachments - 2
Restriction on Activities
This Exhibit contains terms and conditions staff recommends be included in an oil and gas lease covering the area of Tyler State Park and 0.38 acre of the Kiskadee Unit, Las Palomas WMA. These terms and conditions, if approved by the Commission, shall be forwarded to the Board for Lease of Parks and Wildlife Lands:
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. Otherwise, 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.