Oklahoma § 74-2219 - Oil and gas leases - Mining leases - Sale and execution

§ 74-2219. Oil and gas leases - Mining leases - Sale and execution

A. The Commission may offer for sale, sell and execute oil and

gas leases, and other mineral and mining leases, on any of the lands

of the state under the control and supervision of the Commission,

provided, the development of land for the purpose leased shall not

unduly interfere with the purpose for which the land is being used

by the state.

B. The Commission may promulgate additional rules, as are

necessary and for the best interest of the state to facilitate the

sale of the leases. The Chair of the Commission shall execute the

leases for and on behalf of the Commission, and the Chair shall be

liable on the official bond for failure to faithfully discharge such

Oklahoma Statutes - Title 74. State Government

duties. The sale of leases shall be made upon the basis of a

retained royalty of not less than one-eighth (1/8) of all oil, gas,

casinghead gas, and other minerals produced from the lands covered

by the leases and any additional cash bonus procured. Provided,

however, if the state owns less than one hundred percent (100%) of

the oil, gas, casinghead gas and other minerals covered by any such

lease, the royalty retained shall not be less than one-eighth (1/8)

of the mineral interest.

C. All leases shall contain a provision that in the event of

the discovery of natural gas, the gas shall be furnished free of

charge to any state institution now or hereafter located upon the

lands covered by the lease. 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. A sale shall be made to the highest and best

bidder and all bids shall be in sealed envelopes which shall be

opened and considered at the same time. The Commission may reject

any and all bids and readvertise any leases for sale.

D. Revenues derived from the sale of oil and gas leases and

other mineral leases shall be dedicated to the improvement of state

park facilities and property to include, but not limited to, the

conservation, protection, and rehabilitation of state parkland, the

preservation of historic properties under the jurisdiction of the

Commission, and master planning of state park properties.

Added by Laws 2005, c. 363, § 20, eff. Nov. 1, 2005.