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This flowchart illustrates the process of leasing Land Trade Lands in Texas. The [[Texas General Land Office]] (GLO) administers leases on Land Trade Lands through Title 31 of the Texas Administrative Code [[31 TAC, Part 4, Chapter 155, Subchapter C Exploration and Development of Geothermal Energy and Associated Resources on Permanent School Fund Land | 31 TAC 155.42]].
Land Trade Lands are defined in the Texas Administrative Code as “Lands, the surface of which have been sold or traded with both mineral rights and leasing rights retained by the state.” [[31 TAC, Part 4, Chapter 155, Subchapter C Exploration and Development of Geothermal Energy and Associated Resources on Permanent School Fund Land | 31 TAC 155.40(a)(3)]].
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==3-TX-f.1 – Has the Mineral Estate Been Severed from the Surface Estate?==
All fee tract geothermal leasing must go through a bid sale process. A "fee tract" in Texas means that the mineral estate and the surface estate have been severed (commonly known as a “split estate”). Areas where the estates have not been severed will go through a regular leasing process through the GLO.
==3-TX-f.2 – Lease Nomination ==
The GLO holds four mineral lease sales each year. In order to request that a state-owned tract be offered at a lease sale, the tract must be nominated. The developer must submit nominations in writing by the deadline set prior to each lease sale.
The developer is required to submit a $100 fee with any nomination they submit. Nomination fees are non-refundable. [[31 TAC, Part 4, School Land Board | 31 TAC 151.2]]
==3-TX-f.3 – Does GLO/SLB Accept the Nomination?==
The GLO may choose to accept or reject a nomination to place a tract up for bid.
==3-TX-f.4 – Sealed Bid==
After the GLO has received a sealed bid it may not be revoked or withdrawn by the developer. The bid must include a separate check for an amount equal to 1.5% of the bid payable to the commissioner as a special fee. If the developer is unsuccessful in getting the lease, this special fee will be refunded.
If the developer is successful with their bid, but fails or refuses to make payment within 30 days the developer is not entitled to a sale of or lease on the tract covered by the bid and the cash bonus will be forfeited automatically. The SLB then has the option to offer the tract to the next highest bidder. [[31 TAC, Part 4, School Land Board | 31 TAC 151.2(d)]].
==3-TX-f.5 – Application to Lease and Associated Documents==
The developer must provide a completed application. An application to lease must include:
*An identification of the developer’s prospect permit(s);
*The date of issuance of the prospect permit(s);
*A description of the tract(s) of land which identifies the area to be leased by section number, part of the section or survey to be leased, block number, township number, and/or certificate number, if applicable, survey name, number of acres contained in the section, and county or counties in which the land lies;
*The name and address of the surface owner of record in the tax assessor’s office;
*The name, address, phone number, and taxpayer ID number of a non-corporate applicant;
*The corporate name, phone number, taxpayer ID number, address, the name of the officer authorized to execute permits and leases, and written evidence confirming that a corporate applicant is not delinquent in paying its franchise taxes;
*Statement of developer’s proposed lease terms; and
*Field notes describing the area to be leased, if such area is less than that covered by the prospect permit and cannot be accurately described as a part of the section. The field notes must be prepared either by a licensed state land surveyor or the elected or appointed county surveyor of the county in which the land is located pursuant to Texas Natural Resources Code Sec. 21.011. [[31 TAC, Part 4, Chapter 155, Subchapter C Exploration and Development of Geothermal Energy and Associated Resources on Permanent School Fund Land | 31 TAC 155.42]]
==3-TX-f.6 – Review Application Materials for Completeness==
The GLO will review the application materials to ensure that all necessary components are present.
==3-TX-f.7 – Is the Application Complete?==
The GLO may request that the developer submit additional information in order to fully evaluate the application.
==3-TX-f.8 – Is the Bid/Lease Determined to be in the Best Interest of the State?==
The GLO may reject a lease if it determines that it is not in the best interest of the state. The GLO will consider:
*Whether the proposed lease terms and conditions are in conformity with the Texas Natural Resources Code;
*Whether the proposed lease terms are comparable to the best leases in the area which cover the same mineral or minerals;
*Whether the proposed lease terms are compatible with other valuable uses of the leased premises; and
*Whether the lease terms adequately compensate for the loss of other valuable uses of the leased premises. [[31 TAC, Part 4, Chapter 155, Subchapter C Exploration and Development of Geothermal Energy and Associated Resources on Permanent School Fund Land | 31 TAC 155.42(b)(7)]]
==3-TX-f.9 – Geothermal Lease==
The geothermal lease must be in a form prescribed and furnished by the GLO and must include the provisions the commissioner considers necessary for the protection of the interests of the state. When the application to lease is approved, a lease will be prepared with the appropriate terms and conditions, signed by the commissioner, affixed with the seal of the GLO, and delivered to the developer.
==3-TX-f.10 – Notify Surface Owner of Lease, If Necessary==
The GLO must notify the surface owner that the lease has been issued if the surface owner requests such notice in writing. [[31 TAC, Part 4, Chapter 155, Subchapter C Exploration and Development of Geothermal Energy and Associated Resources on Permanent School Fund Land | 31 TAC 155.43(b)(3)]]
==3-TX-f.11 – Report Status of Project to Texas Legislature==
During the first 30 days of each regular session of the legislature, the commissioner must report on the status of the exploration, development, and production of geothermal energy and associated resources under the land governed by Tex. Nat. Rec. Code Sec. 141 Subchapter C. ([[TNRC, Title 5, Chapter 141 Geothermal Resources | TNRC Sec. 141.079]]).
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[[31 TAC, Part 4, School Land Board | 31 TAC 151.2]]; [[31 TAC, Part 4, Chapter 155, Subchapter C Exploration and Development of Geothermal Energy and Associated Resources on Permanent School Fund Land | 31 TAC 155.43(b)(3)]]; [[31 TAC, Part 4, Chapter 155, Subchapter C Exploration and Development of Geothermal Energy and Associated Resources on Permanent School Fund Land | 31 TAC 155.42]]; [[TNRC, Title 5, Chapter 141 Geothermal Resources | TNRC Sec. 141.079]]
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Surface ManagerSurface OwnerMineral ManagerMineral OwnerActivityEncroachmentEnvironmentalLocationLand Use PlanGeothermal LeaseHazardous WasteImpactsFacilityFundingManagedPlannedPower PlantTransmissionTransportation
DrillingExplorationGeophysicsLeasingPower Plant DevelopmentWell Abandonment
can be described as
CogenerationSmall Power ProductionIndependent Power ProductionWholesale CustomerFERC ExemptedFERC LicensedUnderground StorageAbove-Ground StorageTemporary Water RequirementPermanent Water RequirementDrinking Water Providing
ActiveNoApplicant Is Lessee
Capacity Exceeds 20 MWCapacity Under 20 MWCapacity Is 50 MWCapacity Exceeds 50 MWCapacity Under 100 MWPUC Certification
Historic PropertiesNative American Historic PropertyNative Hawaiian Historic PropertyNational Register Historic PropertyHistoric Property (Alteration)AirportMigratory BirdsBald Or Golden EagleMarine Mammals Or HabitatFederal Endangered SpeciesFarmland Or LivestockMilitary LandWaters Of The USNavigable WatersWild Or Scenic RiverWetlands By Dregging Or FillingGroundwater By DischargeStorm WaterWater Discharge To WellWater Discharge To LandWater Point Source DischargeWaste Water Associated With Only GeothermalReceived State 401 WQ CertHas Not Received 401 WQ CertAir QualityAir Quality From ConstructionAir Quality From OperationSolid Waste
Line Capacity Under 200 kVLine Capacity Exceeds 50 kVWithin NIETCCAISO GridExempt Per GO 131 D III B 1Not Exempt From CEQAPUC CertificationProject Under GO 131 D II B 2
Assessment CompletedImpact SignificantImpact Likely SignificantAnalysis Impacts AdverseAnalysis Impacts Not AdverseNo Best Interests FindingNo Categorical ExclusionNo Determination Of NEPA AdequacyPrior State AnalysisNo Prior State AnalysisProcess Not Complete For DrillingExtraordinary Circumstances
Interconnection AgreementPre-Application Process
State Highway ROW
Exceeds Max Length Or Load
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