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Commissioners of the Land Office report record distributions, flag invasive‑species and well‑plugging needs
Summary
The Commissioners of the Land Office told the committee they achieved record distributions driven by a strong permanent fund and mineral auctions, and urged restoration of prior appropriations to tackle invasive woody species, orphan well plugging and IT/field staffing shortfalls.
Dan Whitmarsh, secretary for the Commissioners of the Land Office (CLO), told the Appropriations Subcommittee on Education the agency had a strong year, reporting record distributions of about $145.2 million to beneficiaries driven by a large permanent fund and strong oil, gas and land auction results.
Whitmarsh said the agency is asking the legislature to restore an appropriation level cut in recent years and to authorize funding for several priorities, including management of invasive woody species on trust lands and plugging of orphan wells identified on CLO property.
Nut graf: CLO officials told lawmakers the trust's investment portfolio has grown and that environmental and stewardship needs on trust lands now require additional staff and targeted one‑time funding to remediate orphan wells and control invasive vegetation.
Key points included a request to restore roughly $8.4 million the agency lost during earlier budget reductions and to invest in IT upgrades and field staffing; Whitmarsh said field staffing had fallen from nine to seven and that additional positions would help steward 727,000 surface acres. He noted the portfolio had grown toward $3 billion in assets.
The agency reported approximately 500 orphan wells on trust land that will need plugging and remediation; Whitmarsh said CLO is working with partners and exploring options such as salvage allowances or contractors that can remediate sites while recovering salvage materials.
Members also discussed recent legislative change to the Production Revenue Standards Act (PRSA). Whitmarsh described PRSA amendments that limit the agency's ability to pursue prior underpayments to a five‑year lookback period (matching broader statutory limits); he said the change was appropriate and aligned CLO with other agencies' limits. "Now we are, and I think rightfully so, our agency... we're now limited to the 5 years like everyone else," he said.
Senators asked about office and commercial real estate in CLO's portfolio and how an executive branch push for more on‑site work could affect space needs. John Fisher, assistant secretary, said CLO owns and manages several office properties — including floors in the Strata Tower and holdings in Tulsa — and that the agency is actively selling some office assets while increasing industrial and small retail exposure to diversify returns.
Whitmarsh asked the committee to consider restoring staff FTEs and to allow flexible use of some fund balances for stewardship needs. He told members the trust had historically prioritized distributions to schools without standing restrictions beyond prudent trust management.
Ending: Committee members thanked CLO staff; senators signaled continued oversight of CLO requests and an interest in how the agency would prioritize remediation of orphan wells and invasive‑species control.
