So what should a
district do in this situation? Are there any legal requirements that prevent it
from just executing the lease? For example, let’s say a landman walks in and
hands over a mineral lease that lacks only the Board President’s signature. The
lease has a fat bonus check attached. What should a district do?
Unfortunately, no. This
one gift horse that should be looked
in the mouth, and carefully.
Well, it is correct
the notice and bidding requirements of the Texas Local Government Code would
not apply unless a District was also selling its ownership interest in the real
property itself. However, there is a completely different set of “hoops” that
school districts must jump through before executing a mineral lease, including
separate notice and bidding requirements.
After a resolution
passed, districts must comply with notice and bidding requirements before a
lease for mineral development can be lawfully executed. This means that a
notice of intention to lease the land must be published once a week for three
consecutive weeks in a newspaper of general circulation in the county.
Additionally, a public hearing must be held for consideration of bids. Notice
must be given for the hearing, and it must be held before the lease is executed.
 In this article, a
lease of oil, gas,
and/or minerals is collectively referred to as a “mineral lease.”