Office of House Bill AnalysisH.B. 1494
By: Alexander
Energy Resources


The E.B. LaRue, Jr. Survey in Henderson County encompasses 29 acres.  While
the School Land Board (board) controls its mineral rights, the surface
rights to the land are in private hands and have been sold several times.
The current landowner would like to develop the land, but is reluctant
because he does not own the mineral rights.  H.B. 1494 authorizes the
board, if in the best interest of the permanent school fund, to sell
mineral rights, other than oil and gas, to the present surface owner of the
E.B. LaRue, Jr. Survey in Henderson County.  


It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 


SECTION 1.  (a) Authorizes the School Land Board (board) to sell the
minerals, other than oil and gas, dedicated to the permanent school fund
under, in, or on either of certain tracts in Henderson County to a
qualified applicant as provided by this Act if the board determines that
the sale is in the best interests of the permanent school fund.  

(b) Provides that a person, to qualify as an applicant, must be a natural
person who owns the entire surface estate in either of two specified tracts
in the E.B. LaRue, Jr. Survey in Henderson County; occupies or uses the
surface of either tract for purposes other than conveying or developing
minerals or geothermal resources from the tract; and submits an application
and information as required by the board to determine qualifications. 

(c) Provides that the sale of minerals, other than oil and gas, must be at
the minerals' fair market  value as determined by the board and on terms
and conditions the board determines to be in the best interest of the
permanent school fund.  Authorizes the board to retain up to a
one-sixteenth free royalty interest in the minerals to protect the state's
interests if the minerals are leased or developed at a later date. 

(d) Provides that the person applying to purchase minerals other than oil
and gas must submit a written application to the board not later than the
first anniversary to the effective date of this Act. 

SECTION 2.Emergency clause.
  Effective date: upon passage.