One of the primary responsibilities of the Texas General Land Office is earning as much money as possible for the Permanent School Fund (PSF). Through its mineral leasing program, the Land Office leases state land to oil, gas and mining companies for exploration and development. The Land Office typically receives a royalty of 20 to 25 percent from any oil or gas produced from leases of state land. The Land Office can take this royalty in cash, or in the case of the State Power Program, in actual oil and gas. The State Power Program then converts this oil and gas into electricity, which is then provided at highly competitive rates to public customers like schools and government agencies. As a result, the State Power Program earns money for the PSF while providing substantial savings in electricity costs to our public customers. The Land Office also leases state lands to companies to mine other minerals, including coal, lignite, sulfur, salt, potash, shell, sand and gravel.