(a) The land office shall review and must approve any contract entered into by a state agency for the acquisition of an annual average of 100 MCF per day or more of natural gas used to meet its energy requirements.
(b) Before approving a contract described by Subsection (a) of this section, the land office shall ensure that the agency, to meet its energy requirements, is using, to the greatest extent practical, natural gas produced from land leased from:
(1) the school land board;
(2) a board for lease other than the Board for Lease of University Lands; or
(3) the surface owner of Relinquishment Act land.

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Terms Used In Texas Natural Resources Code 31.401

  • Comptroller: means the state comptroller of public accounts. See Texas Government Code 312.011
  • Contract: A legal written agreement that becomes binding when signed.
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Month: means a calendar month. See Texas Government Code 312.011

(c) If the land office is able to substitute a contract using in-kind royalty gas from state-owned lands or using other gas for a contract under which a state agency acquires or proposes to acquire its natural gas supplies, the commissioner shall inform the comptroller each month of the amount of savings attributable to the substitution.
(d) In this section, “state agency” has the meaning assigned by Subchapter A, Chapter 572, Government Code.

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