Untitled Texas Attorney General Opinion ( 1957 )

TXEEA-``OIKNEY GENERAL OP vhcxAs June 11, 1957 Honorable Earl Rudder Commlasioner, Qeneral Lana Office Austin 14, Texas Opinion No. WW-155 Re: Duties and responsibilities of various departments and agencies in the control and disposition of 011 and gas leases, and the proceeds therefrom, of University lands. Dear Sir: Your letter of Hay 15, 1957 requested the opinion of the Attorney Gneral upon the following matter: "It thus appears that there are at least five departments or agencies con- cerned with 011 and'gas leases covering University lands. In view of this fact and in view of the fact that there may be some area where responalblllty Is not clearly defined by statute, on behalf of the Board for Lease of University lands, I respectfully request that you give me your official opinion outlining In detail the specific duties and respo~elbllitles of the following departments or agencies particularly with regard to (a) the filing of reports and ln- strtimentsaffecting title to' Unlveralty 011 and gas leases, (b) receiving and accounting, ln- eluding the Initial verification of data, for royalty and other payments made under the leases, Honorable Earl Rudder, page 2 (No.NW-155) (c) poet-auditing of the leasee, (d) the adequacy of documents support- ing 011 and gas payments, and (e) amendment or extension of such leases: 1. Commlaeioner of the ffeneral Lana Office 2. Board for Leaee of University lande 3. Board of Regents of the Unl- verslty of Texas under whose. supervision the following of- fices are operated University Audit Section :: Midland Office- University lands and geology. C. oil field supervision 4. University Audit section 5. State Auditor You mentioned Articles 2603a, 2603b, 5341e, 5382c, 44l%-13, V. A. C. S., and the Appropriations Act of 1955 as having to do with these questions. None of the statutes you referred to in your letter have received judicial lnterpre- tatlon upon the points for which you requested Information. The Commissioner of the GenerallLand Office has the following statutory duties: a. He Is a member of the Board for Lease of University lands, Art. 2603a(l), V.A.C.S. b. He Is authorized to,execute leases for the Board for Lease, Art. 2603a (8)(a),V.A.C.S. C. He Is custodian for the surveys and data made under the powers granted the Board of Re ents of University of Texas, Art. 2603b? l), .V.A.C.S. d. He Is authorized to receive the full amount of bonus payments for leases, Art. 2603a(5) (S.B. 73, 55th Leg.) V.A.C.S. - - Honorable Earl Rudder, page 3 (No. WW-155) e. He Is authorized to execute 011 and gas leases and Is dirroted to keep a cop thereof in his filee, Art. 2603a T 8) (a), V.A.C.S. f. He la’airectea to extelicl leasee under’ certain conditions, Art. 2603a (8)(b), V.A.C.S. \ g. He la directed to receive shut-in gas paymenta, Art. 2603a (8b) (Id),V.A.C.S. h. He Is directed to receive royalty'pay- ments under leases and'may Inspect the records of production of lessors, Art. 2603a(ll), V.A.C.S. 1. He Isdirected to receive surveys, re- cords, etc., of University lands. ii. He is directed to receive all moneys paid under 011 and gas leases Art. 2603a(l4), V.A.C.S. k. He Is directed to transmit all moneys received, except the additional one per cent special fee, to the State Treasurer for deposit to the credit of the Permanent University Fund. Art. 2603a (14), V.A.C.S. 1. He is directed to transmit the addl- tional one per cent special fee herelnafter referred to as the 'special fee", such "sp&clal fee" being pro- vided for In Art. 2603a(l4), which statute directs that it be transmitted to the Comptroller of the University of Texas 'to be .dlsbursed according to law, and especially according to the provisions of Art. 2603a(5), V.A.C.S. The Board for Lease of University lands Is: a. Created by virtue of Art. 2603a(l), V.A.C.S. b. Entitled to receive reports of 011 and gas activities by the geologists hired by the Board of Re ents of the Unlver- slty, Art. 2603b(2's V.A.C.S. C. Confined to' roced&s for lease by Art. 2603a(4?, V.A.C.S. d. Empowered to~iease under the terms and conditions set forth In Art. 2603a(7), V.A.C.S. e. Allowed to prorate or reduce production for limited period of time, Art. 2603a (8) (c), V.A.C.S. Honorable Earl Rudder, page 4 (No.WW-155). f. Allowed to suspend the running of the term of a lease for limited periods of time under certain con- ditions, Art. 5341e, V.A.C.S. The Unlveralts Board of Renenta is given the following powers: a. It is given the duty to conduct surveys of University lands, corn-~ pile records, etc., Art. 2603b(l), V.A.C.S. b. It Is authorized to employ a geolo- gist and IS entitled to be kept.ln- formed of 011 and gas activities affecting University latidswhich this geologist discovers, A&. 2603b(2); V.A.C.S. C. It is entitled to payment by the Com- missioner of the General Land Office of the "special fee" required In addi- tion to the bonus payments In oil and gas leases of University lands.,Art. 2603a(5), V.A.C.S. d. As members of the Board of Regents any member thereof may inspect pro- dixtlon records on oil and gas leases on production, Art. 2603a(ll),V.A.C.S. e. It is entitled to receive the afore- mentioned one per cent from the Land Commlsaloner, Art. 2603a (lb), V.A.C.S. The University Audit Section is authorized by impli- cat& in Art. 2603b(3), V.A.C.S., and Ita services are paid for out of the one p&¢ in addition to the bonus to be collected as authorized by Art. 2603a(5), V.A.C.S. There ap- pears to be no statutory provisions giving the University Audit Section any special powers to dictate the type and kinds of reports and instruments affecting title or records of 011 and gas runs and It is submitted that Art. 2603a(l8) would be controlling. This subsection qlves the Board for Lease of University Lands the power to adopt such forms and contracts and. " . promulgate such rules and regulations not Inconsistent with the terms of this act, as In its judgment will best effectuate the purpose of this act and best protect the University, Its lands, and income therefrom." Thus, it Is our opinion that the University Audit Section is rele- gated to audit, rather than accounting duties. . - Honorable Earl Rudder, page 5 (No.WW-155) The State Au itor is authorized under Art. 4413a(13) V.A.C.S., Art..& A C S and Art 4413a(22) VA C-S.:, to conduct audits, indep&d&C if'the poweis illvested'in'tie Land Commlsaloner, Board of Regents of the Univeralty df Texas, or Board for Lease of University Lands. SUMMARY The duties and responsibilities of the various State agencies with refer- ence to the leasing of University lands for 011 and gas, and the disposltlon of the proceeds realized therefrom, are governed by the provisions'of Art. 5341e, V.A.C.S., Art. 5382c,V.A.C.S., Art.2603a, V.A.C.S. Art. 2603b, V.A.C.S., and Art. 4413a(l3j, V.A.C.S. Yours very truly, WILL WILSON Attorney General of Texas APPROVED: OPINION COMMITTEE H. Qrady Chandler, Chairman J. W. Wheeler Byron Fullerton Richard Wells REVIEWED FOR THE ATTORNEY caN.lqAL: Geo. P. Blackburn