MIDLAND -- The Board for Lease of University Lands (BFL) awarded 262 oil and gas leases covering 115,339 acres and received total bonuses of more than $43 million in its 114th sale on October 22.
The high bid of $1,241,391 was offered by Windsor Permian LLP on a 656.3-acre tract in Andrews County, which also accounted for the highest bid at $1,891 per acre. The average per-acre bid on the leases awarded in the sale was $373. Approximately 115,339 acres were leased, bringing the total University Lands under lease to 1,099,743 acres.
John D. White, vice chairman of the Board for Lease and the Texas A&M University representative, chaired the meeting. Printice L. Gary and James D. Dannenbaum, University of Texas System regents and members of the Board for Lease, were present at the meeting.
Vice Chairman White of Houston praised the work of the University Lands staff for its efficiency. “This has been another exceptional lease sale which has generated a significant amount of money for the support of higher education in the state of Texas. It is very enjoyable to represent the Texas A&M System on the Board for Lease of University Lands, which is responsible for these oil and gas lease sales.”
The top five bidders were Windsor Permian, LLC ($11,326,502); Samson Lone Star, LLC ($9,468,910); Mayne & Mertz, Inc. ($4,655,589); Henry Resources, LLC ($3,951,360); and Pioneer Natural Resources USA, Inc. ($3,678,118).
The Board for Lease is composed of the Commissioner of the General Land Office and regents from the UT System and Texas A&M University System. Oil and gas bonuses and royalties earned from University Lands are deposited in the Permanent University Fund, a constitutionally-created endowment that benefits institutions in the two university systems.
The board is responsible for overseeing the oil and gas activities on 2.1 million acres of Permanent University Fund lands spread across 19 West Texas counties. This land was dedicated to the UT System by the state of Texas in the latter part of the 19th century. Over the years, these activities have directly generated more than $3.65 billion held as an endowment trust for The University of Texas System and Texas A&M University System.
Information about these sales may be obtained from the office of University Lands, P.O. Box 553, Midland, Texas 79702-0553, telephone (432) 684-4404, and fax (432) 682-7456. Additional information about University Lands, including oil and gas production and well data, is available online.
About the University of Texas System
The University of Texas System is one of the nation’s largest higher education systems, with nine academic campuses and six health institutions. The UT System has an annual operating budget of $11.5 billion (FY 2009) including $2.5 billion in sponsored programs funded by federal, state, local and private sources. Student enrollment exceeded 194,000 in the 2007 academic year. The UT System confers more than one-third of the state's undergraduate degrees and educates nearly three-fourths of the state's health care professionals annually. With more than 81,000 employees, the UT System is one of the largest employers in the state.
