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Natural Gas Sales

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The Public Customer Gas Program helps public customers save money on their natural gas bills by buying gas from the Land Office. Revenue earned by the program flows directly to the Texas Permanent School Fund, which helps pay for Texas public education.

Benefits of the Public Customer Gas Program:

• Competitive Pricing
Competitive Pricing
The Land Office won't sell you gas unless our price is lower. To ensure a benefit for our customers, in response to an RFP, the Land Office will not enter into an agreement with a potential customer unless the price is equal to or lower than what could otherwise be obtained by the customer.

• Purchase Natural Gas Without Bidding
Purchase Natural Gas Without Bidding
Customers can buy natural gas without a time-consuming and potentially costly bidding process, allowing them to lock in the right price at the right time. State of Texas bidding and procurement law requires a formal bid process for the procurement of goods and services which cannot be sole-sourced and cost more than $25,000 annually. Land Office sales agreements are either interagency or interlocal agreements, and are therefore exempt from the requirement for competitive bidding or requests for proposals (RFP).

• Multiple Pricing Options
Multiple Pricing Options
Customers wishing to have budget certainty can lock in fixed rates, allowing them to have a known cost for natural gas over the length of the contract. Customers with more budget flexibility can choose index pricing, allowing them to take advantage of market downturns. Customers can also choose to divide their contract between both fixed and index pricing, allowing them to take advantage of both options.

• Flexible Contract Terms
Flexible Contract Terms
The Land Office works with each customer during the establishment of a contract and throughout the term of the contract to meet their particular needs and deal with unforeseen circumstances. The agency goal is to provide energy to our customers at competitive rates.

• Wellhead to Burner Tip Gas Management
Wellhead to Burner Tip Gas Management
The Land Office supplies natural gas worry-free to its customers. We manage the supply of your gas from the delivery point to the receipt point at your facilities.

• 30-day Payment Terms
30-day Payment Terms
Customers have 30 days after receipt of an invoice to make payment. This 30-day period is longer than a typical for-profit energy provider.

• No Transportation Cost Markup
No Transportation Cost Markup
Tariff costs for gas transportation are passed through to the customers without markup by the Land Office.

• Aggregation Pricing and Imbalance Mitigation
Aggregation Pricing and Imbalance Mitigation
Unlike for-profit natural gas suppliers, we are able to aggregate multiple customer’s energy usage, balancing imbalances caused by shortages or overages in gas usage. This saves our customers money.

• Financially Secure State Agency as Your Energy Provider
Financially Secure State Agency as Your Energy Provider
In the competitive marketplace, thinly capitalized natural gas providers come and go.  The Land Office was established in 1836, and is the oldest state agency in Texas.