Untitled Texas Attorney General Opinion

OFFICE OF THE ATTORNEY GENERAL OF TEXAS AUSTIN xonorablo Baroai Oil.8 o~rai Land orrioa Au&in, Taxaar Dear sir: opln.lon HO. o-7269 Re t '0; tg g~;afloner orri00 authorized tm Or the rxlating rtatto to aoorpt t Ml I1 oontraot a no ea e aad rile a~ 8 , und r th*n raots? 4 we la in raor%pt 17, 1946, Psharrln IOU rrqur big d3tb 0r r00t8: purportad to amend and oorrsot the oridnal lease to inoludr the acreage ae shown by the oorraOted r idd noteand mbsaqurnt rurtry. Th PrlmarY non. Baaocll @ilam, FR8.2 tam p# wn orI&IMl lwar ma) for l tam of aawn (7) furs trca lhr 8, 1939. ha annual rantala hats barn r~oalvod am doa on Um abotr rIOI& laarr and kh8 UIY r~~inad on ohm raoorda or thla 0rria thrm* 8b priyrf tam am l valid laaaa, ~006nIz44 la oorrrlng thr*m apaaltird the-in. “On krah 19, 19.46, Ye Y. b r o la lotfng Indlrl- a ua ur a nda mlgmt r0r thr stats or 48x88, loradd lxotbr Inatruent whIoh I8 tltlad, Wnandnrnt, Uatirl- oation an 1Crt~nrIe3.l 0r Frllcary Term 0r oil and Qaa Laaacl.* t hIa Iaatruarat, tagethrr mI$h tha aonaI4ara- tlona naltod theraIn ma rcaalrad In tha Oarural Land orri00, on Jun. b, 19454, “I lttaoh hax’oto a photoatatio oopy of thr Imtru- meat and InvIta your attontlon t6 tha raot that this In- atrumnt ~8 anaatad prior to tha rrglratlon date ot the orlgbml la&me. In rlar oi thaae faota am outllmd, I raapaotitllly la kwar o p I~Io on a the nPllaIng atatanan~~ “1, Tha rxtrnalon oontraot Mvlng barn lfaoutad prior to tha taminatlon 4atr of thr orki- m;&tmfe,:4 tha ,mlmary tehp na havIn(5 luth&Isad Mdrr th8 lxlat- I* ltatutaa, to aompt thr rxtrnalon cm- traot am a naw lrara and rilr am mehe %a rullnquhhmsnt Mi la eodiil~d in ~~rnon~a Anna- tatad dltil Statute. In Artlolaa 536746. htlolr 5368 Ir?tolrrd har&ln raadm a. fcdl~a t *TM ounor of maid land, Ia Wrabg authorized to aeelan; laaa? to cay parson, iIm or 00 oration tha a that may ba thmor! or then ‘p ZI upon auoh trnaa an !r oondltlona am auoh o8nar ny darn baat, aub- feat onl to tim prov~aIona hereof, and hr mny bavr a arooad 1 i an thrroon to aaoaza tha plymat oi any sum duo hil. All lraae6 and ralaa ao aabe aball be anal&n- lbla . lo oil or gas rIghSa ahall be aold or lward hare- anarr rot 1088 than ton sent8 par aon psr lar plus royalty’, and the laaaar or purohaaar lhnll I n rvrry oaw py tbr Strto tan ornta pex aopI par Imar 0r aalas and ntwim aad In same or produotlon shall PI the Statr tha old 1ridad ma-rfrtarnth oi #hr ralloa of thm 011 and gas raasmd herein, and llln amoumta to tha cwnar ot tha soil. (Aota 2nd 0,s. 1919, paga 249) .* The nl0tlOMhip Or th@ SW0 UUI it0 a&$0+ IS WOu dIaouuad in Jrdg8 %riOea Opiai68 Of th@ ~PNM ‘oU=t, $.fk I1118 t* *tam; 195 8. % 24 123, pW0 1)). Win dlstlnotlon 110. in th. vary fbrt Wmt the Stata 0r fw -8 Cbtrr* plnolpl and that u an WOBt Of th. std@ tha arthod Or hl. Pl-OOadU~ iB ~lllng th. tinar.l u%8ta in the laid was tired bt the 1 Ialaturr aa motidad !a the Ballnqaiahunt A.8. 2. b a w mo h an lg e & w tha rovlalma0r that aot and not on *a baala or ocma!dorrtlon or nhothar hr uoald br danllot in laaln& tha laad or raald mot be. lie ram no mro lalaokd on-that basis aa an agent than ha mm aalsotod m that basis bt tha stat8 am an lwardrr of tha laud in qusation. It would harm km eardad to hk what&r ulnt or alnnar In him mathod ot d.ala. Lilawiao 0.t.a b.c.mo the rurlhoe ownor and amot of tho state wlth- out ragard to whatlaarhr would k d.rrl1.t In hIa duty or whather hr would not bo danllot. Tho land was lnrdd to hlr puraualit to tha atato~a hanata~d- lng pollay and the atitr, I8 lrllin& thraqh U Ita rOara l8t.t.. protaotad hia in th# l njo)Plnt of him aurl’aoa latatr and oomponaatrd hk OP thr basis tlxod by the loglalatura in tho WInquIlrhmant *at.. Tb Supnma %wt in tha O~H of BapIre ha and &ol Company vs. Stats, 47 2). R. 2d 255-272, 1ntuport.d t&a above statute laths r0umog mt “Tlr ml0 Ia also wrll lrttlul that &a&l.- 01~ grmta 0r pro arty rights and prlrllogau arat b oonstmod ltrl In rare or the hat0 on grounds 0r pub110 “p”I 107, and wh.teu Ia sot w- . uirwal1.t gnBk r in OlOW and rxplIaIt t.N L P w thhald. 8ny l bl&ulty or obaourit~ In Uu torw or tlm ltatuto must oporato ti favor of tho state.* Xn aaaordaao. with th. above IntupntatIona ard in lbarnco or statutory authority ranted the yrnt, tha atato wad not bo bomd by a ODnbraO t or r ~ta na Io lntarod n into by th agent .nd tlu luaor prlcr to the tuelnatlon of tho 18.88. 3i. lr. aot in looord with the 1Otbr Opinion Of tho Bonorrbl. Qradr Qmndlor , wrItSan on the l4th 3ay of cocaabar 19s. whorain b etated tbt thr 4iWt or the atatr had tha r-t to gent an orl&il 1-0, also ham the authority to rxacpta .n .xknaion, and roar Pa in ocmflIpt hemwith la hanbr overruled. Th8 supram Court or this Stato in Umar ~0. @amar, 50 i.m. 26 773, oltad with lppm81 Ln %to vs. UagnolIa, 173 8.w. 2d 186, oonrlnad tha rl.&tr or tho want 2r tb atrto t0 the tams or the laaao, aaku tba followi~ laaeoWrT *In oar opinion, tha sot, whan f8irly and roaacn- ably oonatruad, aloo mana t&t Ul dnonla not ala- posed or &o with tho title Of tb land, aubjort t& the provIaloru or the mot. That whan a ralld and blntllng loaeo or oonvayanoo of tha mInarUa Is mods by the owner or .tha land, am the agent oi tha state, than In that atont ha raoalros tba foreoI= amount8 am oom- parnation ror him aanl.oaa. Elm share of tha rankle, royeltIaa, and bonuaoa dorI,vod from the laaoa lxcoukd by him broom4 property rl&ta du* the period or time for whloh the lease tuna. i’rlor to the mnldng or tha mIn- oral 1aaaa~ the owner 0r the land has no right to ass- or contay a4 mlnaral &t&a Iu the property. It Is the Intention of the law that the, otmor of the land shall be the a ant of tha #tat+ to lxoouta mlnaral l~aaa. When- aver a mf noral 3o r a rlroouutaa by a prior ownor tormIua- . tos, Thor than ownar of th land beo~caue thr a&#&t, of tha state with authority to mall or laaaa the oil and gas mInora rl&hta, am prorldod for in the Rollnqulahmont ht.” Vo Pdloretand the &lInquiahnnnt iot aa Intarpratod by tha Tons oourta In the above lnumaratad oaaaa to hold that tha aurfaoo owor the duly oonatltutod lgant of the stats ror the purpwa 0r 0x02 utbg an ordinary 0oaimroIU 0i.l and gas laaaa laaaIng ~th 08l and gas latato In and under him surfa latata. ‘%a t the luriaoo uanara ahara crl the ronala, royaltIaa, and boatma krlrrd fran tha lraao oxaoutd br hla b a o mo l pro rty rI&ht .during tha por:‘.od or tlma ror w&ieh thr loaao rune. &tat whanarar tha mriaOa cwnor, ooting am 8gant ai tha eta to In ao- oordanoo with tha protIsIo~ and lph& of tha ~linquIahMnt not, aa Intorprotad by the aaaoa and am lpDdifIod by tho sub sequent rok or the LogIalnturo, ham oxauutrd a valid oil and gas loaao tar the state lab the mm ia tiled In the Oonor81 LIAIU¶ offloe, ho ham tharaby lxlmuatod him atatutorl luthtarIty to aot theroarter am agent or tha ltbta until the tox!mInatIon dat@ of sa.Id ~aaa, or during any tIM -Id l@U@ Ii in full roroa and lrr00t. Or eouruo, tha aurf’aoo ounu at the lx p lr - ation data or tha loaaa or at auoh tlm whan tharr Is IY) valid 1aa.o ooterbg tha oil and gas mlnoral latak In aad andor hia landal ha boooami# ‘the duly OOnditUtM lg@nt Oi tb @tat@ mdor the ~lInquIahment Aot far tho purpona or lzooutIa8 a new oil and gas 18~88. It Is our opinion thoraMn, that W attomptod 1ea.o oontraot entered Inb botwoan th* lurfioa OIIJLr and thm larmr o? tb mtatr ducl.nij the lit8 or poudoxwy of thr plr1mz-y lrera ir voldrbh as 8galnat public p8l%w, as th:-;;mt~o* ownar th8n laob authority to art a* War& for . In tho oaae ti Wats v. LBagnolia, sup=, this prin- aipla lw stated In the following lwuaga: 9% etate ir not nquimd to ratlfy or adopt the unanthorimd act of itr 8up;,o8od rgont but ray npu4lstr tbas aa umuthorlzad and 88k that-they any ba sot asldo and held ior mu&ht. khan ths leont has rxoradod authority thr oppornito perty is not rntltlrd to hsto the eontract an#orosd to tho extant tlat t.ha agent had authority to ad. 2 ‘Tex. Jur. 547, prr- grepb 145 Emnts v. Fuqne, lC2 hx. 4c)o. bonnor. ‘I. U~alda Xational Bank, 156 3.“. 1092 . . .” liowsrsr, in reply to your qu8stlon, uwlrr t&3 faotr horn prrrented, thr origbial laaro and the priaary tom nm? h a r ing lx r lmd-fho mar agrnt still being tho owner GS tba land ana now having authority to enter into a nm lease, you are arrtborlza4 under the exlstl,y, statutrs to alrot to aoorpt the pPrportad sxtanrion cmtmot A# a new lrera or a8 an offer to rntar into a new leam. If the first altornetiva is 8oleoted by you, you are nqulred to glv’s it th same oara rnd scrutiny aoeordo4 an orl&ml lmsa. It the letter rltaruatlvr is ohosan m nm lease wit!: the tama of the extonslon oontmot exh2bbdied themin aunt br propend an4 prosent to yco aa %aml8sloner of tba General zan4 0fZlor ror your afprovlll. ahis Gpinion 16 oonflna4 to th8 particular iRots oWted by yai.