The Land Office leases state land to earn revenue for the Permanent School Fund. The Texas General Land Office leases state land for many purposes, including oil and gas production, agriculture, commercial development and renewable energy development.

Easements are issued by the Land Office to companies or individuals that need access through state lands. For example, an oil company needs an easement for their oil pipeline to cross a river; certain riverbeds are considered state land. Easement applications must be approved by either the School Land Board or the Commissioner (depending on the type of easement).

Minerals

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, sulphur, salt, potash, shell, sand and gravel.

Uplands

The General Land Office has responsibility for the oversight and management of approximately 700,000 acres of surface land that has been constitutionally   dedicated to the Permanent School Fund (PSF) in over one hundred Texas counties across the state. Surface leases on these lands are typically issued for agriculturally-related uses such as farming, grazing, hunting, timber production and recreation. The vast majority of the PSF acreage is located west of the Pecos River in the Trans Pecos region of Texas.

Rights of Way / Miscellaneous Easements (ME)

MEs are issued on both coastal submerged lands and state-owned uplands for projects which require a right-of-way (ROW) on, across, under, or over state-owned lands, pursuant to Texas Natural Resources Code (TNRC) §51.291. Most fees are based upon a published rate schedule and are calculated based on the length of right-of-way, the region of the state, and the outer diameter of the pipeline (if applicable). The current fee schedule for oil / gas pipelines and electric power lines are at the bottom of the applications.

ME contracts cover activities such as oil and gas pipelines, subsurface easements, water lines, power lines, communication lines, roads, and certain other structures and uses. Contracts for MEs grant the applicant use of the ROW for the purposes specified in the contract.

Failure to obtain an easement from the General Land Office (GLO) prior to beginning construction, violation of contract terms, failure to pay required fees, or failure to provide information required by the GLO may result in penalties and/or termination of the easement and removal of the structures at the expense of the property owner.

Obtaining a ROW/ME from the GLO does not exempt the applicant from complying with all other applicable local, state, and/or federal permitting requirements. See Easements page within the Energy Business website to obtain applications and exhibit instructions.

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