Bill Text: TX SB986 | 2013-2014 | 83rd Legislature | Engrossed
Bill Title: Relating to the powers and duties of the board of regents of the Texas Tech University System.
Sponsorship: Partisan Bill (Republican 2)
Status: (Engrossed - Dead) 2013-05-20 - Committee report sent to Calendars [SB986 Detail]
Download: Texas-2013-SB986-Engrossed.html
| By: Duncan | S.B. No. 986 | |
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| relating to the powers and duties of the board of regents of the | ||
| Texas Tech University System. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. The heading to Subchapter A, Chapter 109, | ||
| Education Code, is amended to read as follows: | ||
| SUBCHAPTER A. GENERAL AND ADMINISTRATIVE PROVISIONS | ||
| SECTION 2. Section 109.001, Education Code, is amended by | ||
| adding Subsection (d) to read as follows: | ||
| (d) The board may accept, retain in depositories of its | ||
| choosing, and administer, on terms and conditions acceptable to the | ||
| board, gifts, grants, or donations of any kind, from any source, for | ||
| use by the system or any of the component institutions of the | ||
| system. | ||
| SECTION 3. Sections 109.21, 109.22, and 109.23, Education | ||
| Code, are transferred to Subchapter A, Chapter 109, Education Code, | ||
| redesignated as Sections 109.002, 109.003, and 109.004, Education | ||
| Code, and amended to read as follows: | ||
| Sec. 109.002 [ |
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| control, and direction of the policies of the university system and | ||
| the component institutions are vested in a board of nine regents, | ||
| who shall be appointed by the governor with the advice and consent | ||
| of the senate. | ||
| Sec. 109.003 [ |
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| Members of the board will [ |
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| terms of three members expiring on January 31 of odd-numbered | ||
| years. [ |
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| vacancy shall be filled for the unexpired portion of the term by | ||
| appointment by the governor with the advice and consent of the | ||
| senate. | ||
| Sec. 109.004 [ |
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| SELECTION, DUTIES. The board shall appoint [ |
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| executive officer, who shall devote the officer's [ |
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| to the executive management of the university system and who shall | ||
| be directly accountable to the board for the conduct of the | ||
| university system. The board, when required by law to be the | ||
| governing body of any other state educational institution or | ||
| facility, shall also direct the chief executive officer to be | ||
| directly responsible for the executive management of that other | ||
| institution or facility. | ||
| SECTION 4. The heading to Subchapter B, Chapter 109, | ||
| Education Code, is amended to read as follows: | ||
| SUBCHAPTER B. POWERS AND DUTIES [ |
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| SECTION 5. Sections 109.41, 109.42, 109.48, and 109.54, | ||
| Education Code, are transferred to Subchapter B, Chapter 109, | ||
| Education Code, redesignated as Sections 109.051, 109.052, | ||
| 109.053, and 109.054, Education Code, and amended to read as | ||
| follows: | ||
| Sec. 109.051 [ |
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| regents has the power of eminent domain to acquire land and | ||
| improvements needed to carry out the purposes of the university | ||
| system and the component institutions. | ||
| Sec. 109.052 [ |
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| PRESIDENTS [ |
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| house or may purchase land and construct a house suitable for the | ||
| residence of the chancellor of the university system or a president | ||
| of a component [ |
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| Sec. 109.053 [ |
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| conditions, stipulations, and compensation as determined by the | ||
| board, the board may convey, dedicate, or use any other appropriate | ||
| method of conveyance to grant, convey, or dedicate rights, title, | ||
| rights-of-way, or easements involving or in connection with the | ||
| furnishing or providing of electricity, water, sewage disposal, | ||
| natural gas, telephone, telegraph, or other utility service on, | ||
| over, or through the campuses [ |
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| System and the component institutions [ |
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| chairman of the board may execute and deliver conveyances or | ||
| dedications on behalf of the university system and the component | ||
| institutions [ |
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| Sec. 109.054 [ |
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| the sole and exclusive management and control of lands set aside and | ||
| appropriated to or acquired by the institutions under its | ||
| governance. The board may lease, sell, exchange, acquire, dispose | ||
| of, and otherwise manage, control, and use the lands in any manner | ||
| and at prices and under terms and conditions the board deems best | ||
| for the interest of the institutions. However, the board may not | ||
| sell any of the original main campus of Texas Tech University | ||
| located in Lubbock, Lubbock County, unless the sale is approved by | ||
| act of the legislature. No grazing lease shall be made for a period | ||
| of more than five years. | ||
| SECTION 6. The heading to Subchapter C, Chapter 109, | ||
| Education Code, is amended to read as follows: | ||
| SUBCHAPTER C. TEXAS TECH UNIVERSITY [ |
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| SECTION 7. Section 109.01, Education Code, is transferred | ||
| to Subchapter C, Chapter 109, Education Code, and redesignated as | ||
| Section 109.101, Education Code, to read as follows: | ||
| Sec. 109.101 [ |
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| University is a coeducational institution of higher education | ||
| located in the city of Lubbock. | ||
| SECTION 8. Sections 109.43, 109.45, and 109.52, Education | ||
| Code, are redesignated as Sections 109.102, 109.103, and 109.104, | ||
| Education Code, and amended to read as follows: | ||
| Sec. 109.102 [ |
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| REGULATIONS. The board may adopt rules and regulations it deems | ||
| advisable requiring any class or classes of students to reside in | ||
| university dormitories or other buildings. | ||
| Sec. 109.103 [ |
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| establish [ |
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| history, science, and art museum. | ||
| (b) The board may provide [ |
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| part of a building [ |
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| the sole purpose of maintaining a history, science, and art museum | ||
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| Sec. 109.104 [ |
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| ENDOWMENTS. The board may accept donations, gifts, grants, and | ||
| endowments for Texas Tech University to be held for the benefit of | ||
| the institution [ |
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| SECTION 9. Subchapter D, Chapter 109, Education Code, is | ||
| amended to read as follows: | ||
| SUBCHAPTER D. MINERAL DEVELOPMENT IN UNIVERSITY LAND | ||
| Sec. 109.151 [ |
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| PROCEEDS. (a) The board may lease for oil, gas, sulphur, or other | ||
| mineral development to the highest bidder at public auction all or | ||
| part of the lands under the exclusive control of the board owned by | ||
| the State of Texas and acquired for the use of Texas Tech University | ||
| and its divisions. | ||
| (b) Any money received by virtue of this section shall be | ||
| deposited in a special fund managed by the board to be known as the | ||
| Texas Tech University special mineral fund. Money in the fund is | ||
| considered to be institutional funds, as defined by Section 51.009, | ||
| of the university and is to be used exclusively for the university | ||
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| of the fund shall be made in accordance with Section 51.0031. | ||
| Section 34.017, Natural Resources Code, does not apply to the fund. | ||
| Sec. 109.152 [ |
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| majority of the board has power to act in all cases under this | ||
| subchapter except as otherwise provided in this subchapter. | ||
| Sec. 109.153 [ |
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| (a) The board may have the lands surveyed or subdivided into | ||
| tracts, lots, or blocks which, in its [ |
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| conducive and convenient to an advantageous sale or lease of oil, | ||
| gas, sulphur, or other minerals in and under and that may be | ||
| produced from the lands; and the board may make maps and plats which | ||
| it deems necessary to carry out the purposes of this subchapter. | ||
| (b) The board may obtain authentic abstracts of title to the | ||
| lands from time to time as it deems necessary and may take necessary | ||
| steps to perfect a merchantable title to the lands. | ||
| Sec. 109.154 [ |
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| PAYMENTS. (a) Whenever in the opinion of the board there is a | ||
| demand for the purchase of oil, gas, sulphur, or other mineral | ||
| leases on any tract or part of any tract of land which can be [ |
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| reasonably expected to result in [ |
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| board shall place the oil, gas, sulphur, or other mineral leases on | ||
| the land on the market in a tract or tracts, or any part of a tract, | ||
| which the board may designate. | ||
| (b) The board shall have advertised a brief description of | ||
| the land from which the oil, gas, sulphur, or other minerals is | ||
| proposed to be leased. The advertisement shall be made by | ||
| publishing [ |
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| in this state, and in addition, the board may, in its discretion, | ||
| cause the advertisement to be placed in an oil and gas journal | ||
| published in and out of the state. The board may also mail copies of | ||
| the proposals to the county judge of the county where the lands are | ||
| located and to other persons the board believes would be | ||
| interested. The board may specify that publication of the offer by | ||
| electronic means, including an Internet posting, satisfies the | ||
| requirement for publication of the advertisement in at least two | ||
| papers of general circulation in this state. | ||
| (c) The board may sell the lease or leases to the highest | ||
| bidder at public auction [ |
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| (d) The highest bidder shall pay to the board on the day of | ||
| the sale 25 percent of the bonus bid, and the balance of the bid | ||
| shall be paid within 24 hours after the bidder is notified that the | ||
| bid has been accepted. Payments shall be made in cash, certified | ||
| check, [ |
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| directs. The failure of the bidder to pay the balance of the amount | ||
| bid will forfeit to the board the 25 percent of the bonus bid paid. | ||
| Sec. 109.155 [ |
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| DELAY RENTAL. (a) A separate bid shall be made for each tract or | ||
| subdivision of a tract. | ||
| (b) No bid shall be accepted which offers a royalty of less | ||
| than one-eighth of the gross production of oil, gas, sulphur, and | ||
| other minerals in the land bid upon. The board may increase[ |
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| this minimum royalty [ |
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| board. | ||
| (c) Every bid shall carry the obligation to pay an amount | ||
| not less than $5 [ |
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| The amount shall be fixed by the board in advance of the | ||
| advertisement. The delay rental [ |
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| year for five years unless in the meantime production in paying | ||
| quantities is had upon the land or the land is released by the | ||
| lessee. | ||
| Sec. 109.156 [ |
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| LAND. The board may reject any and all bids and may withdraw any | ||
| land advertised for lease. | ||
| Sec. 109.157 [ |
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| PROVISIONS OF LEASE. (a) If, in the opinion of the board, [ |
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| proper price for any tract, which is not less than the price set by | ||
| the board, the lands advertised may be leased for oil, gas, sulphur, | ||
| and other mineral purposes under the terms of this section and | ||
| subject to regulations prescribed by the board which are not | ||
| inconsistent with the provisions of this section. In the event no | ||
| bid is accepted by the board at public auction, any subsequent | ||
| procedure for the sale of the leases shall be in the manner | ||
| prescribed in the preceding sections. | ||
| (b) No lease shall be made by the board which will permit the | ||
| drilling or mining for oil, gas, sulphur, or other minerals within | ||
| 500 [ |
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| consent of the board. In making any lease on any experimental | ||
| station or farm, the lease shall provide that the operations for | ||
| oil, gas, and other minerals shall not in any way interfere with use | ||
| of the land for university purposes and shall not cause the | ||
| abandonment of the property or its use for experimental farm | ||
| purposes. The lease shall also provide that the lessee operating | ||
| the property shall drill and carry on the lessee's [ |
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| in such a way as not to interfere with uses [ |
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| of the property for university purposes, and the leased property | ||
| shall be subject to the use by the state for all university | ||
| purposes[ |
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| Sec. 109.158 [ |
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| determines that a satisfactory bid has been received for the oil, | ||
| gas, sulphur, or other mineral lands, it shall accept the bid and | ||
| reject all others and shall file the accepted bid in the general | ||
| land office. | ||
| (b) [ |
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| sulphur, or other minerals have not been produced in paying | ||
| quantities, the lease shall terminate unless extended as provided | ||
| in Sections 109.160 [ |
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| Sec. 109.159 [ |
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| board determines that a satisfactory bid has been received for the | ||
| oil, gas, sulphur, or other minerals, it shall make an award to the | ||
| bidder offering the highest price, and a lease shall be filed in the | ||
| general land office. | ||
| Sec. 109.160 [ |
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| EXTENSION; OTHER PROVISIONS. (a) The exploratory term of a lease | ||
| as determined by the board prior to the promulgation of the | ||
| advertisement shall not exceed five years, and each lease shall | ||
| provide that the lease will terminate at the expiration of its | ||
| exploratory term unless by unanimous vote of the board the lease is | ||
| extended for a period not to exceed [ |
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| (b) [ |
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| sulphur, or other minerals are being produced in paying quantities | ||
| from the premises, the lease shall continue in force and effect as | ||
| long as the oil, gas, sulphur, or other minerals are being so | ||
| produced. No extension may be made by the board until the last 30 | ||
| days of the original term of the lease. | ||
| (c) The lease shall include additional provisions and | ||
| regulations prescribed by the board to preserve the interest of the | ||
| state, not inconsistent with the provisions of this subchapter. | ||
| Sec. 109.161 [ |
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| discretion of the board it is deemed for the best interest of the | ||
| state to extend a lease issued by the board, the board may by | ||
| unanimous vote extend the lease for a period not to exceed three | ||
| years, on the condition that the lessee shall continue to pay yearly | ||
| rental as provided in the lease and shall comply with any additional | ||
| terms [ |
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| The board may extend the lease and execute an extension agreement. | ||
| Sec. 109.162 [ |
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| The drilling for and the production of oil, gas, and other minerals | ||
| from the lands shall be governed and controlled by the Railroad | ||
| Commission of Texas and other applicable regulatory bodies which | ||
| govern and control other fields in this state. | ||
| Sec. 109.163 [ |
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| RENT; CONTINUANCE OF LEASE; DUTY TO PREVENT DRAINAGE. (a) If | ||
| during the term of a lease issued under the provisions of this | ||
| subchapter the lessee is engaged in actual drilling operations for | ||
| the discovery of oil, gas, sulphur, or other minerals, no rentals | ||
| shall be payable as to the tract on which the operations are being | ||
| conducted as long as the operations are proceeding in a good and | ||
| workmanlike manner in a good faith attempt to produce oil, gas, | ||
| sulphur, or other minerals from the well [ |
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| (b) In the event oil, gas, sulphur, or other minerals are | ||
| discovered in paying quantities on any tract of land covered by a | ||
| lease, then the lease as to that tract shall remain in force as long | ||
| as oil, gas, sulphur, or other minerals are produced in paying | ||
| quantities from the tract. | ||
| (c) In the event of the discovery of oil, gas, sulphur, or | ||
| other minerals on any tract covered by a lease or on any land | ||
| adjoining the tract, the lessee shall conduct such operations as | ||
| may be necessary to prevent drainage from the tract covered by the | ||
| lease to properly develop the same to the extent that a reasonably | ||
| prudent individual [ |
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| circumstances. | ||
| Sec. 109.164 [ |
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| ASSIGNMENT; RELINQUISHMENT. (a) Title to all rights purchased may | ||
| be held by the lessee [ |
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| gas, sulphur, or other minerals in paying quantities. | ||
| (b) All rights purchased may be assigned. All assignments | ||
| shall be filed in the general land office as prescribed by rule, | ||
| accompanied by 10 cents per acre for each acre assigned and the | ||
| filing fee as prescribed by rule. An assignment shall not be | ||
| effective unless filed as required by rule. | ||
| (c) All rights to all or any part of a leased tract may be | ||
| released to the state at any time by recording a release instrument | ||
| in the county or counties in which the tract is located. Releases | ||
| shall also be filed with the chairman of the board and the general | ||
| land office, accompanied by the filing fee prescribed by rule. A | ||
| release shall not relieve the lessee [ |
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| liabilities incurred prior to the release. | ||
| (d) The board shall authorize any required infrastructure, | ||
| including [ |
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| opening of roads deemed reasonably necessary in carrying out the | ||
| purposes of this subchapter. | ||
| Sec. 109.165 [ |
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| REPORT OF RECEIPTS. (a) If oil, gas, or other minerals are | ||
| developed on any of the lands leased by the board, the royalty as | ||
| stipulated in the sale shall be paid to the general land office in | ||
| Austin on or before the last day of each month for the preceding | ||
| month during the life of the rights purchased. The royalty payments | ||
| shall be set aside as specified in Section 109.151 [ |
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| as provided in that section. | ||
| (b) The royalty paid to the general land office shall be | ||
| accompanied by the sworn statement of the lessee [ |
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| or other authorized agent showing the gross amount of oil, gas, | ||
| sulphur, or other minerals produced and sold off the premises and | ||
| the market value of the minerals, together with a copy of all daily | ||
| gauges, or vats, tanks, gas meter readings, pipeline receipts, gas | ||
| line receipts, and other checks and memoranda of the amounts | ||
| produced and put into pipelines, vats, tanks, or pool and gas lines | ||
| or gas storage. The books and accounts, receipts and discharges of | ||
| all wells, tanks, vats, pools, meters, and pipelines, and all | ||
| contracts and other records pertaining to the production, | ||
| transportation, sale, and marketing of the oil, gas, sulphur, or | ||
| other minerals shall at all times be subject to inspection and | ||
| examination by any member of the board or any duly authorized | ||
| representative of the board. | ||
| (c) The commissioner of the general land office shall tender | ||
| to the board on or before the 10th day of each month a report of all | ||
| receipts that are collected from the lease or sale of oil, gas, | ||
| sulphur, or other minerals and that are deposited in the special | ||
| fund as provided by Section 109.151 [ |
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| month. | ||
| Sec. 109.166 [ |
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| FORFEITURE OF RIGHTS. (a) In every case where the area in which | ||
| oil, gas, sulphur, or other minerals sold is contiguous or adjacent | ||
| to lands which are not lands belonging to and held by the | ||
| university, the acceptance of the bid and the sale made thereby | ||
| shall constitute an obligation of the lessee [ |
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| protect the land leased from drainage from the adjacent lands to the | ||
| extent that a reasonably prudent operator would do under the same | ||
| and similar circumstances. | ||
| (b) In cases where the area in which the oil, gas, sulphur, | ||
| or other minerals sold is contiguous to other lands belonging to and | ||
| held by the university which have been leased or sold at a lesser | ||
| royalty, the lessee [ |
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| from the lands leased or sold for a lesser royalty. | ||
| (c) On failure to protect the land from drainage as provided | ||
| in this section, the sale and all rights acquired may be forfeited | ||
| by the board in the manner provided in Section 109.167 [ |
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| Sec. 109.167 [ |
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| LIENS. (a) Leases granted under the provisions of this chapter | ||
| are subject to forfeiture by the board by an order entered in the | ||
| minutes of the board reciting the acts or omissions constituting a | ||
| default and declaring a forfeiture. | ||
| (b) Any of the following acts or omissions constitutes a | ||
| default: | ||
| (1) the failure or refusal by the lessee [ |
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| rights acquired under this chapter to make a payment of a sum due, | ||
| either as rental or royalty on production, within 30 days after the | ||
| payment becomes due; | ||
| (2) the making of a false return or false report | ||
| concerning production, royalty, drilling, or mining by the lessee | ||
| [ |
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| (3) the failure or refusal of the lessee [ |
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| lessee's [ |
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| as required by the lease; | ||
| (4) the refusal of the lessee [ |
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| [ |
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| and other data pertaining to the operations authorized in this | ||
| subchapter; | ||
| (5) the failure or refusal of the lessee [ |
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| lessee's [ |
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| proper authorities, or to furnish the log of any well within 30 days | ||
| after production is found in paying quantities; or | ||
| (6) the violation by the lessee [ |
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| material term of the lease. | ||
| (c) The board may, if it so desires, have suit for | ||
| forfeiture instituted through the attorney general. | ||
| (d) On proper showing by the forfeiting lessee [ |
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| within 30 days after the declaration of forfeiture, the lease may be | ||
| reinstated at the discretion of the board and upon terms prescribed | ||
| by the board. | ||
| (e) In case of violation by the lessee [ |
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| contract, the remedy of forfeiture shall not be the exclusive | ||
| remedy, and the state may institute suit for damages or specific | ||
| performance or both. | ||
| (f) The state shall have a first lien on oil, gas, sulphur, | ||
| or other minerals produced or that may be produced in the leased | ||
| area, and on all rigs, tanks, vats, pipelines, telephone lines, and | ||
| machinery and appliances used in the production and handling of | ||
| oil, gas, sulphur, or other minerals produced, to secure the amount | ||
| due from the lessee [ |
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| Sec. 109.168 [ |
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| ROYALTIES, FEES, AND RENTALS. (a) All surveys, files, copies of | ||
| sale and lease contracts, and other records pertaining to the sales | ||
| and leases authorized in this subchapter shall be filed in the | ||
| general land office and shall constitute archives. | ||
| (b) Payment of all royalties, lease fees, rentals for delay | ||
| in drilling or mining, filing fees for assignments and | ||
| relinquishments, and all other payments shall be made to the | ||
| commissioner of the general land office at Austin. The | ||
| commissioner shall transmit all payments received to the board for | ||
| deposit to the credit of the Texas Tech University special mineral | ||
| fund as provided by Section 109.151 [ |
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| Sec. 109.169 [ |
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| CONTRACTS. The board shall adopt proper forms, regulations, rules, | ||
| and contracts which, in its judgment, will protect the income from | ||
| lands leased pursuant to this subchapter. | ||
| Sec. 109.170 [ |
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| ESTATES. (a) The board may lease for oil, gas, sulphur, ore, | ||
| water, and other mineral development all land under its exclusive | ||
| control for the use of the university. The board may make and enter | ||
| into pooling agreements, division orders, or other contracts | ||
| necessary in the management and development of its land. | ||
| (b) All leases, pooling agreements, division orders, or | ||
| other contracts entered into by the board shall be on terms that the | ||
| board considers in the best interest of the university. The board | ||
| may not sell a lease for less than the royalty and rental terms | ||
| demanded at that time by the General Land Office in connection with | ||
| the sale of oil, gas, and other mineral leases of the public lands | ||
| of this state. | ||
| (c) All money received under the leases and contracts | ||
| executed for the management and development of the land, except | ||
| revenue pledged to the payment of revenue bonds or notes, shall be | ||
| deposited to the credit of a special fund created by the board. The | ||
| board shall designate a depository for the special fund and protect | ||
| the money deposited in it by the pledging of assets of the | ||
| depository in the same manner as is required for the protection of | ||
| public funds. Money deposited in the special fund may be used by | ||
| the board for the administration of the university, for payment of | ||
| principal of and interest on revenue bonds or notes issued by the | ||
| board, and for any other purpose that in the judgment of the board | ||
| may be for the good of the university. | ||
| SECTION 10. Sections 110.01, 110.02, and 110.11, Education | ||
| Code, are amended to read as follows: | ||
| Sec. 110.01. SEPARATE INSTITUTION. Texas Tech University | ||
| Health Sciences Center is a separate institution and not a | ||
| department, school, or branch of Texas Tech University but is under | ||
| the direction, management, and control of the Texas Tech University | ||
| System Board of Regents. The center is composed of a medical school | ||
| and other components assigned by law or by the coordinating board. | ||
| Sec. 110.02. CONCURRENT AND SEPARATE POWERS. The board of | ||
| regents has the same powers of governance, control, jurisdiction, | ||
| and management [ |
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| Sciences Center as it exercises [ |
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| University System and its components. However, the board shall act | ||
| separately and independently on all matters affecting the Health | ||
| Sciences Center as a separate institution. | ||
| Sec. 110.11. MEDICAL SCHOOL ADMISSION POLICIES. The board | ||
| of regents [ |
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| and regulations pertaining to the admission of students to the | ||
| medical school [ |
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| SECTION 11. The following provisions of the Education Code | ||
| are repealed: | ||
| (1) Section 109.44; | ||
| (2) Section 109.46; | ||
| (3) Section 109.47; | ||
| (4) Section 109.49; | ||
| (5) Section 110.04; and | ||
| (6) Section 110.14. | ||
| SECTION 12. This Act takes effect immediately if it | ||
| receives a vote of two-thirds of all the members elected to each | ||
| house, as provided by Section 39, Article III, Texas Constitution. | ||
| If this Act does not receive the vote necessary for immediate | ||
| effect, this Act takes effect September 1, 2013. | ||
