TITLE 31.NATURAL RESOURCES AND CONSERVATION

Part 1. GENERAL LAND OFFICE

Chapter 13. LAND RESOURCES

The General Land Office (GLO) and the School Land Board (SLB) propose the repeal of Title 31, Part 1, Chapter 13, Subchapter F, relating to Application to Purchase or Lease Vacant and Unsurveyed Public School Land, §§13.71 - 13.86 of the Texas Administrative Code and simultaneously proposes a new Subchapter F, relating to Vacancy Process, §§13.71 - 13.83 of the Texas Administrative Code. The proposed new Subchapter F, §§13.71 - 13.83 will contain rules governing the administrative procedures for processing and investigation of vacancy applications submitted to the GLO and the terms and conditions for the sale or lease of the vacant land. These rules are proposed pursuant to new legislation that requires the GLO and the SLB to adopt rules governing the administration of the statutes and the terms and conditions for the sale or lease of vacant land in accordance with Tex. Nat. Res. Code §51.174(c).

The GLO proposes the repeal of the existing Subchapter F, relating to Application to Purchase or Lease Vacant and Unsurveyed Public School Land, §§13.71 - 13.86 of the Texas Administrative Code as all applications pending before the GLO and actions arising out of vacancy applications pending in the courts of the State of Texas that came within the purview of these rules have been finalized. The statute with which these rules originally correspond has been amended twice, most recently by S.B.1103, 79th Leg., R.S. (2005). Therefore as all applications are finalized and the statue had been amended these rules no longer have a force or effect and are no longer necessary.

The GLO and the SLB simultaneously propose the new Subchapter F, relating to Vacancy Process, §§13.71 - 13.83. The proposed new sections are pursuant to Texas S.B. 1103 79th Leg., R.S. (2005) which amended Texas Natural Resources Code, Chapter 51, Subchapter E. The Legislature amended the vacancy statute to create a more expedient and efficient administrative process for processing vacancy applications for landowners, interested and affected property interest owners, good faith claimants and applicants. These rules establish the requirements of the administrative proceedings included in the new statute.

Proposed §13.71, relating to General Provisions describes the rules applicability, delegations by the commissioner, and incorporates the Administrative Procedure Act, Chapter 2001, Texas Government Code. Proposed §13.72, relating to Definitions provides definitions for additional terms used in the rules but not defined by the statute.

The Legislature's amendment of Texas Natural Resources Code, Chapter 51, Subchapter E included additional deadlines to the GLO's administrative process for processing vacancy applications. The new statute allows for extension of the deadlines under Tex. Nat. Res. Code §51.174(b) and new proposed §13.73, relating to Extension of Deadlines explains how requests for extensions shall be submitted and granted. The rule also allows the Commissioner to suspend such the deadlines in the statute for good cause or extreme circumstances outlined in the proposed rule.

The new statute significantly amended the application process and proposed §13.74 relating to Application Process explains the GLO's initial processing of the vacancy application and when a vacancy application may be refused for filing and dismissed without prejudice. The new statute greatly increased the definition of property interests under which a person now may be defined as a Necessary Party to the vacancy application and process. Proposed §13.75, relating to Exceptions to Application, explains how the Necessary Parties may file their exceptions to the Vacancy Application pursuant to the new statute.

As with the previous laws governing the Vacancy process, the commissioner has the statutory authority to recover from the applicant certain costs the agency expends in processing and investigating the vacancy application. The commissioner under the new statute shall require the applicant to submit a deposit to cover the reasonable costs and proposed §13.76, relating to Deposits describes how the commissioner shall use the deposit, how the applicant may submit the requested funds to the agency, the time frame for submission of the deposit or supplemental deposits, and how failure to do so will result in the termination of that particular vacancy application.

Under the new statute the commissioner has the discretion as to the appointment of a surveyor for a particular vacancy application. If the commissioner decides a surveyor is needed, the commissioner shall appoint a licensed state land surveyor who is not associated with the vacancy application to prepare a report in accordance with the statutory requirement under Tex. Nat. Res. Code §51.185. Proposed §13.77, relating to Disqualification and Removal of an Appointed Surveyor, details the process the GLO will take if a Necessary Party submits a petition to the commissioner requesting the removal of a surveyor because of bias, prejudice or conflict of interest. The proposed rule contains the deadline for filing the exception and the form and content of the petition the Necessary Party must submit. The proposed rule details procedures for the hearing the GLO will hold to consider the petition and how the commissioner will make a determination on the petition. The proposed rule also allows the commissioner to remove a surveyor for bias, prejudice or conflict of interest on his own motion but in accordance with the requirements of this proposed section.

In order to ensure that all possible property interest owners receive notice of the vacancy application, the Legislature added a new Attorney Ad Litem requirement. If an applicant cannot provide evidence that the applicant owns all the property interests in the land surrounding the land claimed to be vacant, the commissioner must appoint an Attorney Ad Litem to ensure that all such property interest owners are identified and properly noticed. Proposed §13.78, relating to Attorney Ad Litem explains that the Ad Litem will search all property records identified in the statute, as well as any other records related to the land claimed to be vacant that in the reasonable professional judgment of the Ad Litem will ensure that all Necessary Parties are identified. The Ad Litem will present the results of his or her search to the commissioner in order for those identified parties to receive notice of the pending vacancy application. The Attorney Ad Litem will represent those parties that have not been located in accordance with the statute for the duration of the vacancy proceedings. The addition of the Attorney Ad Litem will ensure that all reasonable steps have been taken to identify any property owners that may have an interest in the land claimed to be vacant and that those parties may participate, if they so choose, in the vacancy application process.

The Legislature amended the vacancy hearing process to bring the hearings back under the Administrative Procedure Act, Chapter 2001, Texas Government Code (APA). The GLO will still hold the hearings, the State Office of Administrative Hearings will not be involved; however the GLO will use the hearing procedures under the APA to ensure that all property interest owners are accorded due process in the determination of whether a vacancy exists. Proposed §13.79, relating to Forms of Pleadings contains the requirements for pleadings that Necessary Parties may file for the hearing. Proposed §13.80, relating to Conduct of Vacancy Hearings explains that the vacancy hearings will be conducted in accordance with the APA and includes the actions that each Necessary Party may take during the hearing such as calling witnesses and the right to cross examination. Proposed §13.81, relating to Appearance of Parties at Vacancy Hearings; Representation discusses how parties may either represent themselves or have an attorney or other representative represent their interests in the vacancy hearing. This section also includes the expected conduct and decorum of all parties attending the hearings and the commissioner's ability to remove people from such hearings under certain circumstances.

As with the previous legislation governing Vacancies, the commissioner must issue a final order determining whether a vacancy exists under the pending vacancy application. Proposed §13.82, relating to Commissioner's Final Order and Record of Proceedings contains the administrative processes the commissioner and staff will follow upon the execution of the final order. All Necessary Parties will receive a copy of the Final Order and attachments. Each Final Order will contain a staff recommendation, list of documents examined and staff consulted, and findings of facts and conclusion of law. The GLO will file a Notice of Claim of Vacancy with the real property records of the County Clerk and County Surveyor no later than the 121st day of the date of the commissioner's final order in the event the commissioner determines a vacancy exists.

The Legislature expanded the definition of persons who may claim to be Good-Faith Claimants under the vacancy statute to include mineral estate holders, royalty interest holders, persons holding easements or right-of-ways in the land claimed to be vacant, and persons who used the alleged vacancy for any purpose including the exploration of oil, gas, sulphur, other minerals or geothermal resources, or persons holding title under persons described more fully in §51.172, Tex. Nat. Res. Code (Vernon Supp. 2005). Proposed §13.83, relating to Determination of Good-Faith Claimant Status explains the documentary evidence a person applying for Good-Faith Claimant Status must submit to the commissioner as well as the Good-Faith Claimant affidavit. Those documents include among others, documents establishing previous use, proof of color of title and a statement of fact supporting the good faith belief that the vacant land was within the boundaries of land to which they claimed title. If there exist multiple parties claiming Good Faith Status to the same portion of land, proposed §13.83, relating to Determination of Good-Faith Claimant Status, provides a priority of claims under which the status will be granted that accords with the description of Good-Faith Claimants under §51.172(2)(B), Tex. Nat. Res. Code (Vernon Supp. 2005). If a person is denied their Good-Faith Claimant status, under §51.193(1), that person may request a hearing regarding that determination. Proposed §13.83 states that such a hearing will be held in accordance with 31 TAC, Part 1, Chapter 2, Subchapter B, §§2.31 - 2.36 (relating to Procedures from Non-Contested Case Hearings).

These rules apply to all vacancy applications filed after June 17, 2005, the date when amended Tex. Nat. Res. Code §§51.171 - 51.195 became effective. These rules supplement the new statutes by including the necessary administrative processes the GLO staff needs in order to effectively carry out the statutory authority granted in the amended statutes.

Mr. Ben Thomson, Chief Surveyor of the General Land Office, has determined that during the first five-year period the proposed repeal and proposed new sections are in effect, there will be no fiscal implications for state or local governments. These rules do not have any fiscal impact or affect on state or local governments; the costs of preparing and filing an application to purchase or lease vacant land are borne by the applicant and the GLO processing of the applications are already accounted for in GLO budgeting.

Mr. Thomson has also determined that for each year of the first five years the proposed repeal and proposed new sections are in effect, the public will benefit from the newly established administrative deadlines resulting in a more expedient processing of the vacancy applications and the hearing procedures under the APA. There will be no effect on small businesses or local economies as the result of proposed repeal and proposed new section.

Comments on the proposed rulemaking may be submitted to Mr. Walter Talley, Texas Register Liaison, Texas General Land Office, P.O. Box 12873, Austin, TX 78711-2873, facsimile number (512) 463-6311, or email to walter.talley@glo.state.tx.us. Comments must be received by no later than thirty (30) days from the date of publication of this proposal.

Subchapter F. APPLICATION TO PURCHASE OR LEASE VACANT AND UNSURVEYED PUBLIC SCHOOL LAND

31 TAC §§13.71 - 13.86

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the General Land Office or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeals are proposed under the authority of Tex. Nat. Res. Code §51.174(c) and §51.175 Tex. Nat. Res. Code (Vernon Supp. 2005) which authorizes the commissioner to adopt rules necessary and convenient to administer the vacancy subchapter and the SLB to adopt rules for among other things establishing the preferential rights of Good-Faith Claimants under the statute respectively.

Tex. Nat. Res. Code, Sale and Lease of Vacancies, §§51.171 - 51.195, are affected by the proposed repeals.

§13.71.Purpose and Scope.

§13.72.Definitions.

§13.73.General Provisions/Exclusions.

§13.74.Application.

§13.75.Filing the Application.

§13.76.Establishing Good-Faith Status.

§13.77.Priority Among Good-Faith Claimants.

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

§13.79.Appointment of Surveyor.

§13.80.Notice of Intent To Survey.

§13.81.Disqualification of a Surveyor.

§13.82.Survey Report.

§13.83.Exceptions to Survey.

§13.84.Additional Surveys.

§13.85.Action on Application.

§13.86.Decision Without a Hearing.

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 May 5, 2006.

TRD-200602509

Trace Finley

Policy Director

General Land Office

Earliest possible date of adoption: June 18, 2006

For further information, please call: (512) 475-1859


Subchapter F. VACANCY PROCESS

31 TAC §§13.71 - 13.83

The new rules are proposed under the authority of Tex. Nat. Res. Code §51.174(c) and §51.175 Tex. Nat. Res. Code (Vernon Supp. 2005) which authorizes the commissioner to adopt rules necessary and convenient to administer the vacancy subchapter and the SLB to adopt rules for among other things establishing the preferential rights of Good-Faith Claimants under the statute respectively.

Tex. Nat. Res. Code, Sale and Lease of Vacancies, §§51.171 - 51.195, are affected by the proposed new rules.

§13.71.General Provisions.

(a) This subchapter applies to applications to purchase or lease vacant land filed on or after June 17, 2005. These rules implement Tex. Nat. Res. Code §§51.171 - 51.195, enacted Tex. S.B. 1103, 79th Leg., R.S. (2005).

(b) Previous Tex. Nat. Res. Code §§51.171 - 51.192 and regulations promulgated thereunder 31 TAC, Part 1, Chapter 13 §§13.87 - 13.94 continue to apply to applications pending before the General Land Office and actions arising out of vacancy applications pending in the courts of the State of Texas on or before June 16, 2005.

(c) The Commissioner delegates responsibility for implementing the provisions of Tex. Nat. Res. Code Chapter 51, Subchapter E to the Chief Surveyor of the General Land Office Surveying Division. Additionally, 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, with the exception of the Final Order, which must be executed by the Commissioner.

(d) These rules supplement the procedures required by the Administrative Procedure Act, Chapter 2001, Texas Government Code, which are incorporated herein by reference.

(e) To the extent that any provisions of this subchapter are in conflict with any statute or substantive rule of the Texas General Land Office, the statute or substantive rule shall control.

§13.72.Definitions.

(a) The following words and terms, when used in this subchapter, have the same meaning as set forth in Tex. Nat. Res. Code, Chapter 51, Subchapter E: Vacancy Application; Good-Faith Claimant; Interest; Necessary Party; and Vacancy. The following terms, when used in this subchapter, mean the following unless the context clearly indicates otherwise:

(1) Agency--The General Land Office.

(2) Commissioner--The Commissioner of the General Land Office.

(3) Eligible Surveyor--A duly elected county 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.

(b) The following term when used in Tex. Nat. Res. Code §51.194(d) means: Permanent Interest--An Interest established under any existing instrument or document that is not limited to a finite time period is a Permanent Interest. An Interest established under any existing instrument or document having a finite time period is not a Permanent Interest.

§13.73.Extensions of Deadlines.

(a) A request for extension of time pursuant to Tex. Nat. Res. Code §51.174(b) shall be submitted in writing to the Commissioner not less than 10 days prior to the applicable deadline. The request for extension must include the factual reason(s) for requesting the extension. The Commissioner shall make a written determination within 10 days of receiving the request for extension of time.

(b) The Commissioner may suspend any timelines set out in Tex. Nat. Res. Code Chapter 51, Subchapter E for good cause or extreme circumstances such as catastrophic events or force majeure including acts of God or the public enemy, sabotage, war, mobilization, revolution, civil unrest, riots, strikes, lockouts, fires, accidents, terrorist attacks, floods, earthquakes, hurricanes or any other natural disaster or any government action, or if a surveyor is removed in accordance with this subchapter.

§13.74.Vacancy Application Process.

(a) Applicant must submit a Vacancy Application that complies with the requirements of Tex. Nat. Res. Code §51.176 including the applicable filing fees. The Commissioner shall mark each Vacancy Application submitted with the date it is received and shall assign it a file number. The prefix "MA" (Mineral Application) shall be assigned to all Vacancy Applications to lease minerals or geothermal resources. The prefix "SF" (Scrap File) shall be assigned to all Vacancy Applications to purchase or lease the surface estate.

(b) The Commissioner may refuse to accept for filing a Vacancy Application by providing written notice to the Applicant that the Vacancy Application:

(1) has material omissions or is incomplete; and

(2) the notice shall include a reasonable period of time of not more than 30 days for Applicant to resolve any deficiencies.

(c) The Vacancy Application is Administratively Complete when all deficiencies have been resolved to the Commissioner's satisfaction. The Commissioner shall inform the Applicant in writing that the Vacancy Application is complete as provided under Tex. Nat. Res. Code §51.177(b).

(d) If deficiencies have not been resolved in the time frame provided in subsection (b)(2) of this section, such application shall be dismissed without prejudice as provided under Tex. Nat. Res. Code §51.177(d).

§13.75.Exceptions to Application.

(a) A Necessary Party may file an exception to the Vacancy Application pursuant to Tex. Nat. Res. Code §51.182 by filing:

(1) a written statement with the Commissioner setting forth the factual and legal reasons for the objection; and

(2) any documentation supporting the objection pursuant to Tex. Nat Res. Code §51.182.

(b) Only exceptions that adhere to requirements under this rule will be considered.

§13.76.Deposits.

(a) The Commissioner or his designee shall determine whether a deposit is required to evaluate and investigate the Vacancy Application. Any required deposit shall be held and accounted for pursuant to Tex. Nat. Res. Code §51.179 and shall be used only for the Agency's administrative costs, the expenses of a survey, other investigative and related costs, including attorney ad litem fees and the cost of hearings.

(b) The Commissioner or his designee has sole discretion to determine whether an expenditure is necessary and to set the amount of the initial deposit and any supplemental amounts required to be deposited by the Applicant.

(c) The Applicant shall submit the funds to the Agency in cash (including cashier checks, certified checks, money orders or electronic funds transfer). For purposes of this subchapter the deposit date shall be the date of tender.

(d) The Applicant has thirty (30) days from date of letter requesting the cost deposit or supplemental deposit(s) to submit such deposit. If the Applicant fails to deposit the initial or supplemental deposit within thirty (30) days, the Vacancy Application is terminated without prejudice, and the file wrapper will be endorsed "terminated without prejudice for failure to submit cost deposit within time prescribed by law."

(e) Termination of the Vacancy Application under this subsection terminates all rights of the Applicant under the terminated Vacancy Application.

§13.77.Disqualification and Removal of an Appointed Surveyor.

(a) Petition for Removal.

(1) Any Necessary Party may petition the Commissioner for the removal of an appointed surveyor because of bias, prejudice, or conflict of interest.

(2) The person petitioning the Commissioner shall pay all actual costs, but not less than $250.00, for processing the petition for removal including but not limited to the cost of the hearing, mailing, copying and staff time and expenses.

(3) The petition must be post marked no later than fifteen days after the date of the notice to Necessary Parties under Tex. Nat. Res. Code §51.184(c).

(4) Any petition for removal of an appointed surveyor must comply with the time limits in this subchapter. The Commissioner will not consider petitions for removal not timely received.

(b) Form and Contents of Petition. A petition to the Commissioner for removal of an appointed surveyor shall be in writing and shall contain the following information:

(1) The name and address of the Necessary Party and a succinct statement of the basis of the person's status as a Necessary Party pursuant to the definition in Tex. Nat. Res. Code §51.172(4).

(2) The appropriate SF or MA number assigned by the Agency to the pending Vacancy Application and the name of the surveyor.

(3) An allegation that the appointed surveyor exhibits bias, is prejudiced or has a conflict of interest and the factual basis for such claim or claims. Each allegation shall clearly state whether it is founded on bias, prejudice or conflict of interest. Affidavits alleging facts in support of each allegation must be appended to the petition. The Commissioner may summarily deny any petition that does not include such affidavits.

(c) The petition shall be limited to ten standard 8 1/2 by 11 inch pages and shall be typewritten in font no smaller than 12 points. In addition to the affidavits required by subsection (b)(3) of this section, other relevant documents and evidence may be appended to the petition. The total number of appended pages, including affidavits, shall not exceed fifteen.

(d) No complaint filed with Texas Board of Professional Land Surveying can be introduced in support of the petition for removal.

(e) A copy of the petition seeking removal of the surveyor shall be provided by the petitioner to the surveyor, Commissioner, and all other Necessary Parties by first class U.S. Mail.

(f) Response to Petition.

(1) A response may be filed for the purpose of joining in, urging further grounds for disqualification, or opposing the disqualification of the surveyor. A response under this subsection shall comply with the affidavit requirements of subsection (b)(3) of this section.

(2) Failure to submit a response to the petition shall not be deemed an admission of or agreement with any allegation in the petition. The Commissioner shall not consider failures to respond in determining whether a surveyor should be removed.

(3) The appointed surveyor may renounce his appointment by notifying the Commissioner who will then notify all Necessary Parties. If the surveyor renounces his appointment, the petition for removal is moot and the Commissioner shall appoint another surveyor pursuant to Tex. Nat. Res. Code §51.184.

(g) Hearing. A hearing shall be conducted within a reasonable time period and shall conform to the requirements of the applicable provisions of the Agency's hearing rules at 31 TAC, Part 1, Chapter 2, Subchapter B.

(h) Scope of Hearing. The hearing shall be limited to matters relevant to bias, prejudice or conflict of interest. The following evidence is not relevant to bias, prejudice or conflict of interest and is not admissible at a hearing to determine whether the surveyor should be removed if it relates to:

(1) the surveyor's professional competence or judgment;

(2) the substantive surveying issues in the vacancy proceeding;

(3) the surveyor's compliance with Texas Occupations Code, Title 6, Chapter 1071 or any technical standards promulgated thereunder; or

(4) the procedural irregularities in the appointment of the surveyor.

(i) Commissioner's Determination. The Commissioner shall issue his written decision within thirty days of the close of the hearing and a copy will be sent, by first class, U.S. Mail, to the surveyor, the person seeking disqualification, and all other Necessary Parties.

(j) Reconsideration and Appeal. No petition to remove a surveyor shall be reconsidered unless the Commissioner finds that relevant facts, which could not have been discovered timely through due diligence, compel the reconsideration to avoid a gross injustice. The Commissioner's decision regarding the removal of a surveyor is not a final administrative order and is not subject to appeal.

(k) The Commissioner will consider the following factors to determine whether an appointed surveyor should be disqualified because of bias, prejudice, or conflict of interest.

(1) The surveyor has made known to another person orally or in writing a personal animus against the Necessary Party or against their position in the vacancy proceeding.

(2) The surveyor has made known to another person orally or in writing a personal preference for the Necessary Parties or for their position in the vacancy proceeding.

(3) The surveyor is a relative within the second degree of consanguinity or affinity of the Applicant, Commissioner or an employee of the Agency who participates in vacancy determinations. For purposes of this subsection, "participates" means decides, approves, disapproves, recommends, gives advice, investigates, influences or takes other similar action.

(4) The surveyor agrees to accept any significant benefit, financial or otherwise, or has accepted any significant benefit, financial or otherwise, from any person interested in the outcome of the survey. Neither the acceptance of an appointment nor receipt of funds from a person required to pay for the survey constitutes a conflict of interest requiring removal.

(5) The surveyor is a relative of any person who has a significant direct or indirect financial interest in the determination of the vacancy application or in any project or enterprise dependent upon the final determination on the vacancy application.

(6) Any other factors relevant to the bias, prejudice, or conflict of interest alleged by a Necessary Party seeking removal.

(7) For purposes of this subsection, financial interest includes any ordinary investment, real property interest, including contingent or conditional interest, and other ordinary interest which monetarily benefits the surveyor or his estate presently or in the reasonably foreseeable future.

(l) Complaint Against Surveyor. The fact that a Petition for Removal of a surveyor has been filed or the actual removal of a surveyor by the Commissioner of the General Land Office shall not be a basis for any disciplinary action against that surveyor under the Texas Occupations Code, Title 6, Chapter 1071.

(m) The Commissioner on his own motion may remove a surveyor for bias, prejudice, or conflict of interest only in accordance with this section.

§13.78.Attorney Ad Litem.

(a) Upon the Commissioner's determination that an Applicant does not own all interests in the land surrounding the land claimed to be vacant, the Commissioner shall appoint an attorney ad litem to secure such identification.

(b) The attorney ad litem will conduct a thorough search of all property records identified in §51.172(4)(C) Tex. Nat. Res. Code. The attorney ad litem will also conduct a thorough search of any other records related to the land claimed to be vacant that, in the reasonable professional judgment of the attorney ad litem, will result in the identification of Necessary Parties.

(c) The attorney ad litem will produce a list, including the last known name and addresses, of all Necessary Parties identified through this search and present the list to the Commissioner.

(d) The attorney ad litem will document and, in an affidavit, attest to the actions performed during the course of the search conducted in subsection (b) of this section and the time spent performing these duties.

(e) If, after performing a diligent search as required by this subsection, the attorney ad litem determines that one or more Necessary Parties have been identified but cannot be located in accordance with §51.180 Tex. Nat. Res. Code, the ad litem will be retained to represent the interest of such parties until the Commissioner issues a Final Order for that particular Vacancy Application.

(f) The attorney ad litem appointed under this section is entitled to reasonable compensation for services in an amount set by the Commissioner to be charged as costs incurred during the investigation of a Vacancy Application under Subchapter E of the Texas Natural Resources Code.

(g) The costs incurred by the attorney ad litem shall be paid from the deposit submitted by the Applicant as required under Subchapter E of the Texas Natural Resources Code.

§13.79.Form of Pleadings.

(a) All pleadings filed under this subchapter shall contain:

(1) the name of the party filing the pleading;

(2) a concise statement of the facts and the law relied upon;

(3) a prayer stating the type of relief, action, or order desired;

(4) a certificate of service; and

(5) the signature of the party or the party's authorized representative.

(b) All pleadings shall include the style of the vacancy application assigned by the Agency.

§13.80.Conduct of Vacancy Hearings.

(a) Hearings for the determination of vacant land shall be conducted in accordance with the Administrative Procedures Act, Chapter 2001, Texas Government Code.

(b) Each Necessary Party may:

(1) file pleadings;

(2) call witnesses;

(3) offer evidence;

(4) cross-examine any witness called by any Necessary Party; and

(5) make opening and closing statements.

(c) Objections shall be timely noted in the record.

§13.81.Appearance of Parties at Vacancy Hearings; Representation.

(a) A person may represent himself or herself.

(b) A person may be represented by an attorney authorized to practice law in the State of Texas or other representative when authorized by law. As used herein, the term "representative" shall include a party's attorney of record or other representative of record, as applicable.

(c) A party's attorney of record remains the attorney of record in the absence of a formal withdrawal.

(d) A party's representative shall enter his or her appearance in the case by filing a notice of appearance with the Agency.

(e) A party's representative of record shall be copied on all notices, pleadings, and other correspondence.

(f) Not more than one representative for each party or aligned group of parties shall be heard on any question in the hearing.

(g) Party representatives shall:

(1) observe the letter and spirit of the Texas Lawyer's Creed, as adopted by the Texas Supreme Court, and the State Bar of Texas' Texas Disciplinary Rules of Professional Conduct, including those provisions concerning improper ex parte communications with the Commissioner; and

(2) advise their clients and witnesses of applicable requirements of conduct and decorum.

(h) Conduct and Decorum:

(1) Those who attend or participate in hearings should conduct themselves in a manner respectful of the conduct of public business, and conducive to orderly and polite discourse. All those in attendance shall comply with the stated directions concerning the offer of public comment and conduct decorum.

(2) In any hearing a person shall receive a first warning regarding the violation of this section and will be asked to refrain from the specific conduct in violation. Upon further violation of this section by the same person, that person may be excluded from the proceeding for such time and under such conditions as necessary to correct the situation. Violation of this section shall also be sufficient cause to recess the hearing.

§13.82.Commissioner's Final Order and Record of Proceedings.

(a) All final orders shall be in writing and shall be signed and dated by the Commissioner.

(b) The effective date of the final order is the date it is signed by the Commissioner.

(c) The Agency shall send a copy of the final order with attachments by first class mail to each Necessary Party and their representative and shall keep an appropriate record of that mailing. A Necessary Party or representative notified by mail of the final order as required by this section shall be presumed to have been notified on the date such notice is mailed.

(d) The Commissioner's final order finding "Not Vacant Land" or "Vacancy Exists" shall be retained at the Agency and must contain:

(1) Staff recommendation;

(2) List of documents examined and staff consulted; and

(3) Findings of Fact and Conclusions of Law.

(e) Findings of fact. Findings of fact shall include any and all Agency records consulted or relied upon during the vacancy process, whether introduced during the hearing or not.

(f) The Commissioner shall file the "Notice of Claim of Vacancy" as provided in Tex. Nat. Res. Code §51.188(e) in the real property records of the County Clerk and the records of the County Surveyor not earlier than the 121st day from the date of the Commissioner's final order. The "Notice of Claim of Vacancy" must contain:

(1) Final order with attachments; and

(2) Field note description.

(g) Contents of hearing record. The requirements for contents of the hearing record under §2001.060, Texas Government Code are adopted herein and also include the Commissioner's Final Order.

§13.83.Determination of Good-Faith Claimant Status.

(a) Any person asserting Good-Faith Claimant status must submit a Good-Faith Claimant affidavit in a form prescribed by the Commissioner together with the applicable filing fee.

(b) In addition a person asserting Good-Faith Claimant status shall submit the following documents:

(1) documentary evidence, including, if appropriate, affidavits, to establish past or present use or occupation of the surface or mineral estate of the land claimed to be vacant;

(2) proof of color of title or other muniment of title;

(3) documentary evidence of possession for a period of at least ten (10) years;

(4) a description of the method of enclosure and relevant information about the definite boundaries recognized in the community, including a physical description of those boundaries and evidence of their recognition; and

(5) a statement of facts supporting a good-faith belief that the vacant land was within legal boundaries that would have vested title in the person asserting Good-Faith Claimant status.

(c) If more than one interested person files a claim of Good-Faith status on land claimed to be vacant or on some portion thereof or Interest therein, and the Commissioner enters a finding that more than one claimant is a Good-Faith Claimant under Tex. Nat. Res. Code §51.172, the following shall be the priority of such claims in descending order:

(1) claimants qualifying under Tex. Nat. Res. Code §51.172(2)(B),

(2) claimants qualifying under Tex. Nat. Res. Code §51.172(2)(A),

(3) claimants qualifying under Tex. Nat. Res. Code §51.172(2)(D) with persons claiming under Tex. Nat. Res. Code §51.172(2)(B) given highest priority,

(4) claimants qualifying under Tex. Nat. Res. Code §51.172(2)(D) with persons claiming under Tex. Nat. Res. Code §51.172(2)(A) given highest priority,

(5) claimants qualifying under Tex. Nat. Res. Code §51.172(2)(C),

(6) claimants qualifying under Tex. Nat. Res. Code §51.172(2)(D) with persons claiming under Tex. Nat. Res. Code §51.172(2)(C) given highest priority.

(d) In the event the Commissioner determines there are multiple Good-Faith Claimants who desire to purchase land claimed to be vacant or some portion thereof or Interest therein, the Commissioner shall apply the priority rules set forth in subsection (c) of this section. The preferential right to purchase may be exercised as provided in Tex. Nat. Res. Code §51.194 by Good-Faith Claimants in descending order of priority.

(e) If under Tex. Nat. Res. Code §51.193 a hearing is required, such hearing will be conducted in accordance with 31 TAC, Part 1, Chapter 2, Subchapter B, §§2.31 - 2.36 (relating to Procedures for Non-Contested Case Hearings).

(f) An Applicant may assert Good-Faith Claimant status to the land claimed to be vacant or some portion thereof or Interest therein if the Applicant meets the requirements under Tex. Nat. Res. Code §51.193 and this subchapter.

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 May 5, 2006.

TRD-200602510

Trace Finley

Policy Director

General Land Office

Earliest possible date of adoption: June 18, 2006

For further information, please call: (512) 475-1859