Surface Holdings Available for Lease
Mineral Holdings Available for Lease
THE TEXAS A&M UNIVERSITY SYSTEM
NOTICE OF SALE OF OIL & GAS LEASE
The Board of Regents of The Texas A&M University System (“TAMUS”), pursuant to provisions of V.T.C.A., Education Code, Chapter 85, as amended, and subject to all policies and regulations promulgated by the Board of Regents, offers for sale at public auction in Room 743, The Texas A&M University System, Moore-Connally Building, 301 Tarrow, College Station, Texas, at 10:00 a.m., Wednesday, November 19, 2014, an oil and gas lease on the following described land in Brazos County, Texas. The property offered for lease consists of approximately 4,716 gross acres, more or less, insofar as such acreage covers depths not currently held by production, as generally depicted in the following map.
NOTE: The attached map is for general reference purposes only. The boundary lines are approximate. TAMUS provides the map "as is" with the understanding that it is not guaranteed to be accurate, correct or complete. There are no warranties, expressed or implied, accompanying the map.
TWO TRACTS/TWO LEASES:
The auctioned acreage will be divided into two (2) tracts, as more particularly described in the following legal descriptions.
The successful bidder will be required to execute a separate lease for each tract in a form substantially similar to the following lease.
MINIMUM LEASE TERMS:
Each lease will obligate lessee to drill and complete a well every 18 months during the primary term, for a total of two (2) wells during the primary term of each lease.
The minimum lease terms, which apply to this acreage, are as follows:
1. Bonus: No less than $5,000 per net mineral acre
2. Royalty: 25%
3. Primary Term: Three (3) years
4. Pre-paid Delay Rental: $50 per acre
5. Net Mineral Acres: 4,667, more or less (including executive rights)
6. Well Commitment: One (1) well completed every 18 months for each lease
The only two items which may be bid up at the auction are the Bonus and the Royalty. All other terms are set and non-negotiable.
THE LEASE WILL BE WITHOUT WARRANTY OF ANY KIND. Each bidder will be required to conduct its own due diligence to confirm title to, and availability of, the mineral interests being leased.
POTENTIAL WELL PAD LOCATIONS and RESTRICTED SURFACE USE LOCATIONS:
As a courtesy, TAMUS has identified several potential well pad locations and restricted surface use locations, depicted on the attached maps.
You are advised that the Potential Well Pad Locations shown are NOT guaranteed locations, and the depiction of the currently-known surface areas that are being considered by TAMUS for near-term development activities are NOT the only restricted surface areas. It is the responsibility of the bidder to satisfy itself as to the suitability and availability of well pad locations either on TAMUS property (including existing well sites) or off TAMUS property prior to the auction. THE USE OF THE PROPERTY FOR UNIVERSITY, AIRPORT AND OTHER PURPOSES WILL LIMIT THE AVAILABILITY OF WELL PAD LOCATIONS. Exact well pad locations are subject to existing and future uses and all applicable laws and regulations and will be determined after the Oil & Gas Lease is executed.
NOTE: The attached maps are for general reference purposes only. The boundary lines are approximate. TAMUS provides the maps "as is" with the understanding that they are not guaranteed to be accurate, correct or complete. There are no warranties, expressed or implied, accompanying the maps
Companies planning to bid at the auction must designate one (1) spokesperson (Bidder) with authority to act on behalf of the Company during the auction. The spokesperson/Bidder will be required to register by filling out and signing the following Bidder Registration Form on behalf of the Company. Individuals, brokers and agents must disclose the name of their principal, if any, on the Bidder Registration Form for the registration to be valid. All Bidder Registration Forms must be received by TAMUS by 5:00 p.m. CST on Monday, November 17, 2014.
Link 8 BidderRegistrationForm_FINAL.pdf
On the day of the auction, prior to bidding at the auction, each Bidder must sign the following Bidder Certification Statement, binding the Company to the terms thereof.
Link 9 BidderCertificationStatement_FINAL.pdf
Due to limited capacity, only the registered Bidder and two (2) associates will be permitted in the auction room.
The successful Bidder/Company shall pay 25% of the bonus amount by 5:00 pm the day of the auction. The balance shall be paid within 24 hours after notification that the bid has been accepted. All payments shall be by certified check, cashier’s check or wire transfer. Failure to pay the balance of the amount bid will result in forfeiture of the 25% paid.
REJECTION OF BIDS:
The Texas A&M University System RESERVES THE RIGHT TO REJECT ANY AND ALL BIDS. Should TAMUS reject all bids, the bid bonus will be returned to you if you are the successful bidder.
Questions concerning the November 19, 2014 auction or oil and gas leases on other TAMUS land should be directed to:
System Real Estate Office
The Texas A&M University System
301 Tarrow, 6th Floor
College Station, Texas 77840-7896