Untitled Texas Attorney General Opinion

B:Y GENERAL AS Honorable Bascom Giles Commissioner General Land Office Austin, Texas Dear Sir: Opinion No. O-5700 Re: Power of Commissioner of General Land Office to accept for filing or to approve mineral lease with pool- ing clause. Reference ts made to your letter of recent date to which you attached a copy of an oil and gas lease relating thereto. Your letter is as follows: “There has been tendered to this department for filing the en- closed mineral lease. This lease was executed by the land owner on a small tract of scrap land sold under Chapter 271, Acts of the 42nd Legislature, Regular Session, 1931. This law and the application to purchase provide for a reservation to the State of a free royalty of l/8 of the sulphur and l/l6 of the other minerals. “The lease in paragraph five (5) thereof provides for pooling or combining this tract with other tracts whether owned by the les- see or not for the purpose of creating drilling units, and as to the payment of royalty the lease provides as follows: “‘In the event production of oil, gas, or other minerals is ob- tained upon any unit or units created hereunder Lessor shall receive and will accept on account of any such production, regardless of whe- ther or not such pro,duction is on any part of the land herein above described, a royalty equal to such portion of a l/8 royalty as the number of acres out of this lease and included in any such operating unit bears to the total number of acres included in the respective op- erating unit. ’ “If the above provision in the lease is binding on the State, the State would share in the production from the unit on the basis of l/8 of the sulphur and l/16 of all other minerals figured in the proportion that the acreage in this tract bears to the total acreage in the unit. Honorable Bascom Giles, Page 2 - O-5700 With the above facts in mind, I would like to have% %enef&I:~f~~!:‘~~ ” ;; ,..IY’ .x,,i ,;<:I :.: ,‘,’ ~,,,.I.I ,’; / your opinion on the following question: “(1) Does the Commissioner of the General Land Office have the legal authority to file in this office or to:gijli~o’i~‘a~‘~in2~al.‘l.~g~~ such as the above providing for a combination of a tra&“m’whYch-‘the State has a mineral interest fixed by law with othe&racts,, ‘in’whtch~’ the State has no interest, in order to form a drilling unit,?’ ,’ Case (1o2 s w ZQ7), Sales Act of 1931) as fixing the and l/16 of all &her minerals, of the Bonus and rental for a lease executed l$‘thelan$’ owner, We have also followed this con- ‘It i;.,~~hl:ib~ttck~‘~$rt.bi ise’c’t’,dn.i~,~f’~iiusi’Bil~ qbrd~idCs bls ,fol- lows : .~i ~; .,/. ,,;t; ~i::jiii, ‘,::,,; ‘,iI/,i ~:,~, “: : :’ : ;‘):: : ,““i’,‘i ;“ProvibedT ‘however, that’nothing ‘in this Act shali be construed ““a’s,i%m’dvingfrom oi’~ntcrfering,wtth tlie”rtghts and ‘powers of the ” sur’fac’e ‘own& ofian,di:sold ‘or to ‘be hereafter’ s’old ~by the State, with “a ‘min&ap ~re’servation,, to act. as’ agent of’the State in making’ and exe- cuting mineral leases covering and ‘a’ffecting ,such lands, but the auth- ority of such surface owner shaDremain the same as provided by law, a~nd’