texas permanent university fund

The State Attorney General in 1978 issued an opinion that interest accruing in the PUF should be used to pay outstanding bonds and finance permanent educational improvements, per the PUF constitution. In Texas, formula funding took a sizable hit in 2011 and hasn't rebounded. Sec. Permanent University Fund Investment Policy Statement (continued) UTIMCO 03/01/2020 4 PUF return, Asset Class allocations, and downside volatility targets are . (c) The commissioner is chairman of the board. Transferred from Natural Resources Code, Section 51.293 and amended by Acts 2007, 80th Leg., R.S., Ch. September 1, 2007. Print. An offense under this subsection is a Class A misdemeanor. (d) If a report, affidavit, supporting document, or other instrument required to be filed under Section 66.77 or Section 66.80 is not filed when due, a penalty accrues in the amount set by the board but not less than $10 per document for each 30-day period of delinquency or fractional part thereof. (a) At the expiration of the primary term of a lease, if production of oil or gas has not been obtained on the leased premises, but drilling operations are being conducted in good faith and in a good and workmanlike manner, the lessee may apply in writing to extend the lease for a period of 30 days. (c) Agreements providing for the payment of compensatory royalty must be approved by the board. 66.06 by Acts 1987, 70th Leg., ch. Education", "Tuition Policy Advisory Committee - Tuition-Related Questions and Answers", "Harvard's Status as Richest School Faces a Contender From Texas", "Chairman of UT regents defends bonuses for investment staff", "Zimmerman Appoints Cathy Iberg President of UTIMCO", "Stephen F. Austin State University to join University of Texas System", From the Oil Field to the Classroom (Infographic), https://en.wikipedia.org/w/index.php?title=Permanent_University_Fund&oldid=1154535137, Pages with non-numeric formatnum arguments, Articles with dead external links from March 2018, Articles with permanently dead external links, Articles with dead external links from June 2016, Short description is different from Wikidata, Articles with unsourced statements from February 2009, Creative Commons Attribution-ShareAlike License 4.0, Public Lands, Mineral Rights, Land Use Rights, Texas A&M University System Administration, University of Texas System Administration, This page was last edited on 13 May 2023, at 04:14. The Available University Fund is defined by Article VII, Section 18 of the Texas Constitution (the "Constitutional Provision") to consist of distributions from the investment income of the Permanent University Fund. (2) "Institution" and "institutional fund" have the meanings assigned by Chapter 163, Property Code. [5], The terms of the annexation of the Republic of Texas in 1845 meant that Texas kept its public lands. If the royalty is not paid within 30 days after the due date, a penalty of an additional five percent is imposed. With the approval of the comptroller, the board of regents of The University of Texas System may appoint one or more commercial banks, depository trust companies, or other entities to serve as a custodian or custodians of the permanent university fund's securities with authority to hold the money realized from those securities pending completion of an investment transaction if the money held is reinvested within one business day of receipt in investments determined by the board of regents. 3, eff. (b) The applicant shall submit with the application a fee in an amount set by the board of not less than $7.50 for each acre in the lease requested to be extended. Amended by Acts 1997, 75th Leg., ch. (e) If the board has elected to take royalty in kind, the board may elect that delivery of the correct amount of oil or gas shall be at the wellhead, at the oil and gas separator, into a pipeline connected at the well, or at such other location as may be specified in a royalty in kind provision in the lease or other agreement. It's long past time the Texas PUF (Permanent University Fund) is dispersed more evenly among ALL Texas state funded universities, not just the University of Texas and Texas A&M systems. Notice shall be properly given when mailed to the last known address of the lessee based on the records of the board of regents or, if the records do not contain an address, to any address that may reasonably be determined to be an address for the lessee. The board of regents has the sole and exclusive management and control of all minerals, other than oil and gas, in lands set aside and appropriated to, or acquired by the permanent university fund. The substitute regent member shall exercise all the powers, duties, and responsibilities of the absent regent member during the conduct of the meeting for which he was appointed. Austin, Texas, 78701. 66.61. The Permanent University Fund (PUF) is a public endowment contributing to the support of eligible institutions of The University of Texas and The Texas A&M University Systems. The PUF does not provide any funding to other public Universities in the State of Texas. 66.62. The penalty shall be recovered on behalf of the board of regents in a civil action by the attorney general. Sept. 1, 1997. 66.08. [2] In 1947, after World War II and during the education boom from the Servicemen's Readjustment Act of 1944, a constitutional amendment was passed that authorized the issuance of $15 million in AUF bonds, $10 million to the UT System and $5 million to the Texas A&M System.[4]. On submission of an application by all lessees under the lease in the form required by the board and payment of any applicable fee set by the board, the board may amend a lease that does not include provisions required by Sections 66.71, 66.72, and 66.73 to include those provisions in the form adopted by the board at the time the lease is amended. PAYMENTS; DISPOSITION. (k) A person who constructs, maintains, owns, or possesses a facility or structure on university land without the proper easement or lease is liable to the board of regents for the costs of removing that facility or structure. We did what we thought was right. Sec. (c) The primary term of a lease shall not exceed 10 years. (f) An agreement for the payment of compensatory royalty shall provide that compensatory royalty be paid at the royalty rate provided in the lease and shall provide that compensatory royalty be paid on the market value of production from the well located on non-university lands or university lands leased at a lesser royalty situated within 1,000 feet of or draining the leased premises. By clicking on I Agree below, each viewer acknowledges and agrees to the limitations of this information that are described on this page. The TUF is similar to the Permanent University Fund that the University of Texas and Texas A&M systems currently have access to, Smith said. Sept. 1, 1971. THE UNIVERSITY OF TEXAS SYSTEM PERMANENT UNIVERSITY FUND INVESTMENT POLICY STATEMENT Purpose The Permanent University Fund (the "PUF") is a public endowment contributing to the . The following are all available beneficiaries, as of 2022, of the Available University Fund, which distributes the annual dividends and returns of the Permanent University Fund. In 1876, the Texas Constitution set aside land in West Texas to support The University of Texas and Texas A&M systems of higher education. But as the economic upheaval. 654), Sec. The next institution to be added is Stephen F. Austin State University (SFA), which joins the UT System starting with the 202324 academic year. (a) The board of regents shall employ and compensate personnel to assist the board in the performance of its powers and duties under this subchapter or may assign employees of The University of Texas System to those duties. Mineral income generated by PUF Lands consists primarily of bonuses and rentals from the periodic sale of mineral leases, and royalties on gross revenues from oil, gas, and sulphur production. (a) Royalty as stipulated in the lease and all other amounts due under this subchapter shall be paid to the board of regents at Austin, Travis County, Texas. 1024, art. (b) The board may provide by rule that the royalty rate for qualifying reservoirs may be reduced to not less than one-sixteenth (6.25 percent). 66.67. During this broadcast, you can support this Page by sending Stars, a digital gift. The PUF exclusively serves institutions in the University of TexasSystem, which receives two-thirds of its proceeds, and the TexasA&M System, which receives the remaining one-third. LEASE PROVISIONS. The board shall give written notice to each lessee whose leasehold interest may be forfeited. [4] In 1931, the legislature authorized UT Regent-requested bonds to improve UT Austin's buildings and campus in general. 66.71. (e) Nothing in an agreement for the payment of compensatory royalty shall relieve the lessee of the obligation of reasonable development or of the obligation to drill offset wells, obtain suitable regulatory relief, propose appropriate pooling or unitization arrangements, or conduct other activities to protect the leased premises from drainage as to other producing horizons. The objective of the Fund is to provide a sustainable source of financing for the University of Texas and the Texas A&M University systems. The Permanent University Fund (PUF) is one of our states most unique, important, and enduring competitive advantages. (b) Forfeiture is not the exclusive remedy. LIEN; ABANDONED PERSONAL PROPERTY. SHUT-IN ROYALTY. (d) The notice shall state that land is to be offered for lease or a contract for development and that a person may obtain a publication from The University of Texas System offices that describes the land offered and the minimum terms. Sec. (c) A royalty payment is timely made if the payment is deposited in a postpaid, properly addressed wrapper, with a post office or official depository under the care and custody of, and postmarked by, the United States Postal Service before the applicable due date. PERMANENT UNIVERSITY FUND. Added by Acts 1999, 76th Leg., ch. Sec. (b) The board shall set by rule the date for making royalty payments and for filing any reports, documents, or other records required to be filed by this section. The board, in reviewing a plan, and the lessee, in implementing a plan, may be assisted by the United States Department of Agriculture Soil Conservation Service. PROTECTION FROM DRAINAGE; COMPENSATORY ROYALTIES. "It is past time to equitably fund all of the state's higher education institutions that came into existence after 1883; the State of Texas certainly possesses the wealth and resources to do so," said Representative Burrows. (b) If oil or gas is discovered in paying quantities on any tract covered by a lease, the lease as to that tract shall remain in force as long as oil and gas is produced in paying quantities from the tract, provided that the other provisions of this subchapter are complied with by the lessee. Sec. A 1988 constitutional amendment eliminated all investment restrictions related to the PUF for the UT board of directors in favor of adopting the "prudent person" standard for all investments, which was subsequently amended in 1999 to the "prudent investor" standard for investments. [12] Grazing leases and other surface rights income are distributed to the AUF. May 23, 1995; Acts 1997, 75th Leg., ch. LEASE TERMS. 1, Sec. Sec. On 7 February 2008, after months of study, the UT board of regents authorized an increase in AUF annual transfers, from 4.75% of the PUF value to 5.00%, citing recent PUF growth of more than 10% per year and unrest over the large annual increases in tuition at UT Austin. (4) "Oil and gas" means crude oil, natural gas, and all substances, including other hydrocarbons, produced in association with crude oil and natural gas. The Constitution allows the UT System to issue bonds guaranteed by the AUF in an amount equal to 20% of the book value of the PUF. The Permanent University Fund and Available University Fund This issue brief describes the Permanent University Fund (PUF) and the Available University Fund (AUF), particularly as used and administered by The University of Texas System. The attorney general, at the request of the board of regents, may bring suit for damages or specific performance, or both, or other remedy, at law or in equity. When it is impracticable to establish such lines and corners as originally surveyed, or when such sections have not been actually surveyed on the ground, the blocks shall be surveyed or resurveyed and divided into surveys of sections and fractional sections, and as many corners thereof as may be necessary for the identification shall be permanently marked. Readers are cautioned not to assume that any information has been updated beyond the Dated Date unless a document expressly states that it constitutes an . [3] The 1894 discovery of oil in Corsicana, Texas and the 1901 discovery of oil at Spindletop in Beaumont, Texas, began a subsequent oil boom in Texas and the western U.S.[6] In 1901, the Texas Legislature authorized UT Austin to "sell, lease and otherwise control" oil and mineral rights for PUF land. (4) "Qualifying reservoir" means a reservoir having an average daily per well production equal to or less than 15 barrels of oil equivalent during a period established by the board by rule and underlying either: (B) a pooled unit including a qualifying property. Acts 2011, 82nd Leg., R.S., Ch.
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