One of the primary responsibilities of the Texas General Land Office is to lease the vast land and mineral holdings for energy and mineral development, with the proceeds going to the Permanent School Fund to help pay for public education.
Since inception, the Texas General Land Office has deposited more than $11 billion into the states Permanent School Fund from oil and gas production on PSF lands.
This wealth of oil and gas makes the Texas General Land Office the only state agency that actually brings in more money than it costs the taxpayers.
Oil and gas leases on PSF lands generate more revenue than any other source of income for the public education endowment. Managing these leases well is one of the Land Office's core functions.
Leases for oil and gas development occur both onshore and offshore. Typically, the Land Office receives about 20 to 25 percent royalty from oil or gas produced from our leases on state land. The Land Office can take this royalty in cash or in actual oil and gas, which can be sold competitively to public entities as gas or electricity.