Presenter: Mike Herring

Commission Agenda Item No. 11
Nomination for Oil and Gas Lease
Brazos Bend State Park – Fort Bend County
Fort Griffin State Historical Park – Shackelford County
August 1998

I. Discussion: The Department has been requested to nominate portions of two tracts of land for oil and gas leasing. The tracts are Brazos Bend State Park in Fort Bend County and Fort Griffin State Historical Park in Shackelford County, shown on the maps in Exhibit A. The Department owns all the minerals under the tracts, or approximately 1,650 net mineral acres and 506 net mineral acres, respectively.

Staff recommends the Commission continue its policy of requiring a minimum cash bonus bid of $150 per acre and a fixed royalty of 25 percent, with a $10 per acre delay rental for a 3-year lease. It is also recommended that both leases be subject to the restrictions shown at Exhibit B.

II. 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, the Department's mineral interest in the land shown in Exhibit A, Brazos Bend State Park and Fort Griffin State Historical Park, at $150 per acre with a 25 percent royalty, $10 per acre rental, and a 3-year term, incorporating the restrictions set out in Exhibit B."

Attachments - 3

1. Exhibit A - Maps (Available upon request.)
2. Exhibit B - Conditions
3. Exhibit C - Fiscal Note (Available upon request.)

Commission Agenda Item No. 11
Exhibit B

Restriction on Drilling

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. 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.