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Board approves mineral lease and agricultural-barn RFP; motions passed after closed session
Summary
Trustees approved leases for district-owned minerals (San Jacinto, Bonham and other sites) and authorized an RFP for an agricultural barn; the board voted after a closed session and administrators said royalties and bonus payments will flow to the district per the lease terms.
The board approved a mineral lease and related RFP items following an executive session on Aug. 26.
Administration told trustees the district issued a solicitation and received one qualified offer from Midland Petro for mineral development beneath several district properties, including the San Jacinto site. The recommended lease includes bonus payments and a 25% district royalty share, consistent with state law; administration presented expected bonus totals and an illustrative 20âyear projection of royalties and said about half the royalties could be received within the first 24 months of production. Administrators also said some mineral royalty amounts were already held in escrow for the district.
The board voted on the item after returning from closed session. The motion to approve the oil-and-gas lease and to move forward with the agricultural-barn RFP carried, and administration said they will return with contract details and, where applicable, lease documents for final ratification. Trustees did not provide detailed public tallies during the open vote beyond the chair announcing the motion passed unanimously.
Because the mineral matters and property negotiations were discussed in closed session, trustees cited legal exemptions under state open-meeting law for the private consultation and land discussion portions of their deliberations.
