Oklahoma § 70-4301 - Oil and gas mining leases - Terms - Bids - Use of

§ 70-4301. Oil and gas mining leases - Terms - Bids - Use of

proceeds.

The Board of Regents of any state educational institution in the

State System may sell and execute oil and gas leases, and other

mining leases, on any of the lands of the State of Oklahoma under

the control of the Board of Regents, whenever in the judgment of the

Board such leasing of the lands will not interfere with the use to

which the lands are being used by the state and will not injure the

buildings or other property situated on tracts adjoining the lands

Oklahoma Statutes - Title 70. Schools

leased, all sales to be made on a basis of a retained royalty of not

less than one-eighth (1/8) of all of the oil, gas and other minerals

produced therefrom, and such additional cash bonus as may be

procured. All such leases shall contain a provision that in the

event of the discovery of natural gas, such gas shall be furnished

free of charge to any state educational institution located or

thereafter located upon the lands covered by the lease. Such leases

shall be sold only after advertisement for a period of three (3)

weeks in a legal newspaper published and of general circulation in

the county in which the lands are located. Sales shall be made to

the highest and best bidder, and all bids for any tract shall be

presented to the Board of Regents of the institution in sealed

envelopes and shall all be opened and considered at the same time.

The Board of Regents shall have the right to reject any and all of

the bids submitted, and again readvertise the lease or leases for

sale. The Board of Regents may make and promulgate such additional

rules and regulations as it may deem necessary and for the best

interest of the state in facilitating the sale of the leases. All

monies derived from the sale of such leases, and from any royalties

subsequently accruing, shall be deposited in the State Treasury and

credited to a special fund for the institution, to be used by the

institution upon approval by its Board of Regents for capital

improvements, including buildings, repairs and modernization,

classroom and laboratory equipment, and for such other purposes as

may be approved by the State Regents.

Laws 1965, c. 396, § 1301.