TITLE natural-resources-and-conservation

Part I. General Land Office

Chapter 13. Land Resources

Applications to Purchase or Lease Vacant and Unsurveyed Public School Land

31 TAC §§13.71-13.86

The General Land Office (GLO) proposes new §§13.71-13.86, relating to applications to purchase or lease vacant and unsurveyed public school land under the Texas Natural Resource Code, Subchapter E. The proposed rules, upon adoption, will replace 31 TAC §1.1 (relating to Good-Faith Claimants), and §1.2 (relating to Applicants). Sections 1.1 and 1.2 will be proposed for repeal.

Spencer Reid, General Counsel, has determined that for the first five-year period the rules are in effect, there will be no anticipated fiscal implications as a result of the administration of these rules.

Mr. Reid also has determined that, for the first five-year period the rules are in effect, the public benefit anticipated as a result of administration of these rules streamline the administrative process. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the rule as proposed other than as required by law.

Interested parties may submit comments to Carol Milner, General Land Office, 1700 North Congress, Room 626, Austin, Texas 78701-1495. Comments must be submitted by 5:00 p.m. on Friday, March 13, 1998.

The new subchapter is proposed under Texas Natural Resources Code, §51.201, which authorizes the commissioner to promulgate rules relating to applications to purchase or lease vacant and unsurveyed public school land under the Texas Natural Resource Code, Subchapter E.

The Texas Natural Resources Code , Subchapter E is affected by this proposed rulemaking.

§13.71.Purpose and Scope.

This subchapter applies to the application to purchase or lease vacant and unsurveyed public school land as set forth in Texas Natural Resources Code , Chapter 51, Subchapter E.

§13.72.Definitions.

The following words and terms, when used in this subchapter, have the same meaning as set forth in Texas Natural Resources Code , Subchapter E, Chapter 51: Applicant; Application; Good-Faith Claimant; Interest; Interested Person; and Vacancy. The following terms, when used in this subchapter, mean the following unless the context clearly indicates otherwise:

Agency

- The General Land Office.

Commissioner

- The Commissioner of the General Land Office.

Eligible Surveyor

- A duly elected surveyor in a county that has an elected county surveyor or a licensed state land surveyor licensed by the Texas Board of Professional Land Surveying.

§13.73.General Provisions/Exclusions.

(a)

Delegation of powers and duties. The commissioner may delegate to one or more employees of the agency the authority to perform any action of the commissioner or the agency required or permitted by this subchapter, provided however, only the commissioner may sign final orders in contested cases (as that term is defined in the Texas Government Code, Administrative Procedures Act, Chapter 2001). In the event of the death, disability, or absence of the commissioner, the official designated by law to act in such events may sign such orders.

(b)

Exceptions to this subchapter. The commissioner may, upon written motion from an interested person or the agency, and upon notice and opportunity for hearing grant exceptions to the procedural provisions of this subchapter if the commissioner determines that such exceptions are in the interest of justice or the efficient administration of this subchapter.

§13.74.Application.

An applicant may apply to purchase or lease land claimed to be unsurveyed public school land by filing an application in the form prescribed by the commissioner.

§13.75.Filing the Application.

(a)

The commissioner shall mark each application accepted for filing with the date and hour that it is received and shall assign it a file number. The prefix "MA" (Mineral Application) shall be assigned to all applications to lease minerals or geothermal resources. The prefix "SF" (Scrap File) shall be assigned to all applications to purchase the surface estate.

(b)

The commissioner may refuse to accept for filing an application that:

(1)

has material omissions or is incomplete;

(2)

does not describe the land claimed to be vacant; or

(3)

describes as vacant land, land that has been finally adjudicated in a court of this state or of the United States not to be vacant.

§13.76.Establishing Good-Faith Status.

(a)

An applicant may assert good-faith status as to all or a portion of the land claimed to be unsurveyed public school land in the application.

(b)

An applicant or interested person may assert status as a good-faith claimant by filing a claim no later than the 20th day preceding the first date on which the hearing on the merits begins.

(1)

a claim of good-faith status shall state the grounds for the claim and describe the land subject to the applicant's or interested person's good-faith claim.

(2)

a person asserting good-faith status shall serve a copy of the notice of the claim filed with the commissioner on all interested persons by certified mail, return receipt requested. A person responsible for service shall return the original US Postal Service receipts and shall become their custodian.

(c)

An applicant or interested persons seeking good-faith status shall submit evidence of good-faith status by affidavit accompanied by certified copies of documents evidencing title. A good-faith claimant may amend an affidavit of good-faith status or file additional documents in support thereof upon the request of the commissioner or otherwise no less than 10 days preceding the date the hearing on the merits begins. Evidence of good-faith claims may include:

(1)

a certified copy of one or more recorded instruments, such as deeds, judgments, or other muniments of title;

(2)

a sworn affidavit by two disinterested third parties containing facts supporting the occupancy and use of the land claimed to be vacant by the good-faith claimant or the claimant's predecessors in interest; and

(3)

such other evidence deemed reliable by the commissioner.

§13.77.Priority Among Good-Faith Claimants.

(a)

If more than one interested person files a claim of good-faith status on land claimed to be vacant or on some portion thereof, and the commissioner enters a finding that more than one claimant is a good-faith claimant under Texas Natural Resource Code, §51.172(3), a claimant qualifying as a good-faith claimant under §51.172(3)(B) shall have priority over an applicant or good-faith claimant qualifying as a good-faith claimant under §51.172(3)(A), then a good-faith claimant under §51.172(3)(C) and a good-faith claimant under §51.172(3)(D) shall have the lowest priority among good-faith claimants.

(b)

In the event the commissioner determines there are multiple good-faith claimants who desire to purchase all or a portion of property found to be vacant, unsurveyed public land, the commissioner shall apply the priority rules set forth in (a) of this section and allocate the preference right to purchase under Texas Natural Resources Code, §51.197 among the various good-faith claimants. The preference right to purchase may be exercised as provided in Texas Natural Resources Code, §51.197.

§13.78.Deposit for Cost of Proceeding on the Application.

(a)

The commissioner shall notify the applicant, including an applicant who asserts good-faith claimant status, in writing of the requirement that the applicant make an initial deposit in the amount of the commissioner's estimated costs of proceeding under the application, including the costs of:

(1)

the surveyor;

(2)

the preparation of copies, working sketches, and the reports by the surveyor;

(3)

serving notices, including by certified mail and/or by publication, and making copies, including copies of plats; and

(4)

other costs, excluding salaries and overhead expenses, expected to be expended by the agency in investigating the existence and boundaries of unsurveyed public school land, up to, and including, the hearing on the merits of the application.

(b)

If the amount initially estimated is insufficient to pay the costs, the commissioner shall notify the applicant in writing to make a supplemental deposit in an amount estimated by the commissioner.

(c)

The applicant shall, within 30 days of the date that the commissioner's initial or supplemental estimate of the cost of proceeding under the application is mailed to the applicant:

(1)

deposit funds in the amount of the estimated cost with the agency; or

(2)

appeal the amount of an initial or supplemental deposit determined by the commissioner in the manner provided by Texas Natural Resources Code, §51.176.

(d)

If the applicant fails to deposit the initial or supplemental deposit within the prescribed time, the commissioner shall cancel the application. Cancellation terminates all rights of the applicant under the terminated application.

(e)

The applicant shall deposit funds in cash (including cashier checks, certified checks, money orders or electronic funds transfer). The deposit date shall be the date of tender.

§13.79.Appointment of Surveyor.

(a)

No later than the 60th day after the date on which the required deposit is received by the agency, the commissioner shall appoint an eligible surveyor to survey the area claimed to be vacant. The commissioner shall select among the eligible surveyors based on the following factors:

(1)

the prior experience and knowledge of an eligible surveyor with the land titles in the area of the alleged vacancy; and

(2)

the location of an eligible surveyor in relation to the location of the alleged vacancy, with preference given to those within 100 miles of the alleged vacancy.

(b)

All fees and expenses, including notices and copies, shall be paid by the applicant from the initial deposit or any supplementary deposits made by the applicant in accordance with §13.78 of this title (relating to Deposit for Cost of Proceeding on the Application).

(c)

The commissioner shall provide a statement of the disposition of deposited funds at the time and in the manner provided by Texas Natural Resources Code , §51.117(b).

§13.80.Notice of Intent to Survey.

(a)

No later than the 10th day after the date on which the commissioner appoints the surveyor, the commissioner shall give notice of intent to survey by certified mail, return receipt requested, to all interested persons at the addresses set out in the application, along with a true and legible copy of the application.

(b)

The notice shall contain:

(1)

the date of the notice;

(2)

a statement that a vacancy application has been made;

(3)

the name, address and telephone number of the surveyor appointed to make the survey;

(4)

a statement that the survey may begin any time after the 20th day after the date of the notice but may be delayed by law; and

(5)

a statement that an interested person is entitled to:

(A)

observe the conduct of the survey;

(B)

receive a copy of the final survey report and other documents filed by the surveyor; and

(C)

participate in any proceedings related to the vacancy determination.

(c)

If the location of an interested person is unknown or if notice is returned as unclaimed or undeliverable, the commissioner shall publish notice as prescribed by the Texas Rules of Civil Procedure. The foregoing does not apply if the notice is returned marked refused.

(d)

If notice by publication is made, the survey may not begin and further proceedings may not be held until the 30th day after publication is completed, provided however, upon receipt of a written request to proceed with the survey along with a statement by an interested person or the surveyor that the delay required by publication may materially affect the accuracy of the survey because of the possibility of the destruction, alteration, or removal of natural features, monuments, or witness objects, or for other good cause, the commissioner may enter a written order that the survey proceed prior to the 30th day after the date of the last publication of the notice. Notice of the request to proceed with the survey and of any order issued in response to the request shall be sent by the commissioner by first class mail to all interested persons.

(e)

The cost of providing the notices required by this subsection shall be paid by the applicant out of the initial deposit or any supplementary deposits made by the applicant in accordance with §13.78 of this title (relating to Deposit for Cost of Proceeding on the Application).

(f)

A person may waive service of notice as provided in Texas Natural Resources Code , §51.180. A waiver of notice shall be in the form prescribed by the commissioner.

§13.81.Disqualification of a Surveyor.

The commissioner may, upon written motion of an interested person and upon notice and opportunity for hearing, disqualify a surveyor on the grounds of bias, prejudice or conflict of interest. The burden shall be on the movant to prove bias, prejudice or conflict of interest.

§13.82.Survey Report.

(a)

The surveyor's report shall meet the requirement of §7.7, of this title (relating to Surveyors Report, General).

(b)

The surveyor shall file the surveyor's report with the agency within the time prescribed by law, along with a sufficient number of copies to provide copies to the applicant and all interested persons. A surveyor's report may be rejected if the appropriate number of copies does not accompany the report.

(c)

The commissioner shall serve a true copy of the survey report, field notes, plat and all other documents filed by the surveyor on each interested person, including those named in the survey report by certified mail, return receipt requested, no later than the fifth business day after the survey report is filed and accepted by the commissioner.

§13.83.Exceptions to Survey.

(a)

An interested person or the agency may file exceptions or other responses to the survey report, field notes, and plat not later than the 30th day after the date the survey is accepted by the commissioner . Any interested person, or the agency, may file a reply to exceptions no later than the 20th day after the date the exceptions are filed.

(b)

A person filing exceptions or a reply to exceptions shall include a statement that a copy has been served by US mail, return receipt requested on each interested person, the surveyor and the agency. A person shall retain the original US Postal Service receipts and become their custodian.

(c)

Neither failing to file exceptions and/or replies nor filing exceptions and/or replies to original or additional survey reports, field notes, plats, or other documents prepared by the surveyor shall in any way affect or impair the right of an applicant or interested person to make exceptions to the survey at a hearing on the merits.

§13.84.Additional Surveys.

(a)

The commissioner, after notice is sent by US certified mail return receipt requested to all interested persons, may direct the surveyor to make additional surveys, to investigate as the commissioner deems necessary, and to prepare supplemental reports, plats, and field notes.

(b)

The commissioner shall serve a true copy of any additional survey reports, field notes, plat and other information on each interested person, including those named in the survey report by US certified mail, return receipt requested, not later than the fifth business day after the survey report has been accepted for filing by the commissioner.

(c)

Any interested person may file exceptions or other responses to such additional survey reports, no later than the 20th day after the date the required documents are accepted for filing by the commissioner.

§13.85.Action on Application.

(a)

No later than the 90th day after the date on which the commissioner accepts the survey report and other documents, but in any event no later than the 180th day after the initial survey is filed, the commissioner shall:

(1)

deny the application;

(2)

hold a hearing to determine the existence and boundaries of the vacancy; or

(3)

enter a decision without a hearing in accordance with §13.86 of this title (relating to Decision Without a Hearing).

(b)

For good cause, the commissioner may, by written order, extend the time for entering an order or holding a hearing.

§13.86.Decision Without A Hearing.

(a)

After the commissioner appoints a surveyor and the surveyor has submitted the surveyor's final report, an applicant asserting good-faith status may request that the commissioner make a determination on the application without notice or hearing upon filing of evidence that:

(1)

the good-faith claimant owns all of the land and interest in land, including all mineral interests, completely surrounding the land claimed to be vacant;

(2)

there is no subsisting prior application covering the land described in the good-faith claimant's application;

(3)

no previous application has been made covering the land described in the good-faith claimant's application;

(4)

the good-faith claimant meets all other requirements of a good-faith claimant; and

(5)

no interested party has filed a notice to intervene in the proceeding.

(b)

If the commissioner finds that the evidence presented is accurate and no interested party has filed a notice to intervene, then upon the commissioner's acceptance of a final survey report by the surveyor, the commissioner may enter an order without notice to other persons declaring the land covered by the application to be vacant unsurveyed public school land if the commissioner finds that:

(1)

the applicant (or co-applicants) own all of the land and interests in land, including all mineral interests, completely surrounding the land claimed to be vacant;

(2)

there is no subsisting prior application covering the land described in the application under consideration;

(3)

no previous application has been made covering the land described in the application under consideration that has been denied on substantive grounds; and

(4)

the applicant meets all other requirements of a good-faith claimant.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on February 9, 1998.

TRD-9801833

Garry Mauro

Commissioner

General Land Office

Earliest possible date of adoption: March 22, 1998

For further information, please call: (512) 305-9129