University Lands Mineral Interests is responsible for managing oil, gas and other minerals produced on the University lands. Exploration and development of these resources is promoted by the staff of University Lands by making detailed geological and engineering data available to current and potential oil and gas operators. Contracts and agreements for these operations are evaluated for subsequent approval and/or ratification by the Board of Regents or by the Board for Lease of University Lands.

Industry (lessee or permittee) operations are regularly reviewed and monitored for adherence to University Lands technical standards and requirements. To facilitate exploration and development, University Lands maintains a substantial library of well data and production data with information on all phases of well drilling and completion.

The Board for Leaseof University Lands conducts periodic Lease Sales to sell rights of exploration and development of oil and gas resources on the University lands to prospective lessees.

University Lands has management responsibility for Trust Minerals which represent mineral estate donations made directly to the UT System or its individual UT institutions. There are Trust Mineral properties located in 17 states and Canada. More than 1,023 properties are currently producing oil and gas revenue for the benefits of the recipient UT institutions.

In promoting exploration, development and production of oil, gas and minerals on PUF lands, our activities involve:

• interacting with oil and gas industry personnel and providing them with technical expertise;
• making detailed geological and engineering information on PUF lands available to all current and potential oil and gas operators;
• considering all requests for operations that will enhance oil and gas production:
  ◊ Our geologists and engineer:
  • analyze requests for contractual rights to develop water and brine resources and salt water disposal facilities on PUF lands which are necessities for drilling and producing oil and gas wells;
  • evaluate operator requests for permission to conduct secondary recovery operations, drilling and development units and pooling units.
  ◊ Following evaluation and contract negotiations, the staff makes recommendations to the Board for Lease for consideration and formal action.

In ensuring that oil and gas production is assigned to the proper leases, our activities involve reviewing all requests for permission to surface commingle or downhole commingle oil wells, to install Lease Automatic Custody Transfer equipment (LACT units), or to use off-lease storage facilities.

Permission is granted if it is deemed to be in the best interests of the UT System. All new and existing installations are inspected on a regular schedule and periodically monitored for conformance to Board for Lease rules and regulations.