TWE.L%ITORNEYGENERAL
OF TEZXAS
AUSTIN, TEXAS 78711
June 22, 1977
Honorable Bob Armstrong Opinion No. H- 1017
General Land Office
Austin, Texas 78701 Re: Whether the School
Land Board may trade for
land pursuant to article
5421c-13 V.T.C.S., and
retain leasing rights.
Dear Mr. Armstrong:
You have requested our opinion regarding the authority
of the School Land Board to retain leasing rights in lands
traded pursuant to article 5421c-13, V.T.C.S. That statute
provides, in section l(a):
The School Land Board in conjunction with
the General Land Office is authorized to
trade fee and lesser interests in Public
Free School Fund Lands for fee and lesser
interests in lands not dedicated to the
Public Free School Fund upon a decision
by the School Land Board and the Commis-
sioner of the General Land Office that
such trade or trades are in the best public
interest of the People of Texas. Such trade
or trades may be made either for the purpose
of aggregating sufficient acreage of con-
tiguous lands to create a manageable unit:
for acquiring lands having unique biological,
geological, cultural, or recreational value:
or to create a buffer zone for the enhance-
ment of already existing public land, facil-
ities, or amenities. Such trades shall be
on an appraised value basis (such appraisal
to be made by appraisers of the General Land
Office and concurred in by the School Land
Board, and such appraisal shall be conclu-
sive proof of the value of the land). The
trades shall be for land of at least equal
value. The State of Texas shall retain the
subsurface mineral rights to oil and gas
wherever practical and in all events when
p. 4197
Honorable Bob Armstrong - page 2 (H-1017)
there is oil and gas production within fifty
(50) miles of such State land. Such trades
shall be by a deed to be signed jointly by
the Commissioner of the General Land Office
and the Governor. Failure of the Governor
to sign such a deed constitutes his veto
of the proposed trade, and the proposed
trade shall not be made.
You ask whether the statute's directive that the state "retain
subsurface mineral rights to oil and gas" includes a reserva-
tion of leasing rights.
Article 5367, et seq., V.T.C.S., the so-called "Relin-
quishment Act," enacted 1919, conveys to the surface owner
of all public free school lands as an agent of the state "an
undivided fifteen-sixteenths of all oil and gas which has been
undeveloped and the value of the same" on all such lands.
Greene v. Robison, 8 S.W.Zd 655 (Tex. 1928). Its purpose was
"to connect the surface owner more closely and less unprofitably
with the development of the minerals." Norman v. Giles, 219
S.W.Zd 678, 681 (Tex. 1949). The surface owner is authorized
to sell or lease the oil and gas found thereon. V.T.C.S. art.
5368.
Article 5421c-13, Section 4, however, which was enacted
in 1973, provides that "la111 other laws or parts of laws
in conflict with this Act are repealed to the extent of the
conflict." In our opinion, when the circumstances of article
5421c-13 are applicable, that statute, by requiring the state's
retention of subsurface mineral rights, must be deemed to pre-
vail over the Relinquishment Act in the event of any conflict.
Accordingly, it is our opinion that the reservation to the
State of Texas of subsurface mineral rights in lands traded
pursuant to article 5421c-13 includes a reservation of leasing
rights.
SUMMARY
Article 5421c-13, V.T.C.S., prevails over
conflicting provisions of the Relinquishment
Act, article 5367, et seq., V.T.C.S., and
as a result, the reservation to the State
P. 4198
Honorable Bob Armstrong - page 3 (H-1017)
of Texas of subsurface mineral rights to
oil and gas traded pursuant to article
5421c-13 includes a reservation of leasing
rights.
Very truly yours,
Attorney General of Texas
APPROVED:
C. ROBERT HEATH, Chairman
Opinion Committee
p. 4199