Sealed bid sales - held generally every four months by the School Land Board - are one of the ways the Texas General Land Office earns billions of dollars for the state's Permanent School Fund.
During a sealed bid sale, the Land Office allows an oil or gas company to make a cash offer for the right to explore and produce hydrocarbons on a particular piece of Permanent School Fund property. The company offering the highest up-front payment, or bonus, is awarded the lease. The Land Office will also receive a percentage of any production from the lease, called a royalty.
By asking companies to make their bids without being able to know what the other, if any, bids may be, the Land Office ensures that the sale will earn as much as possible for the school children of Texas. The Land Office's quarterly lease sales typically bring in hundreds of millions of dollars for the Permanent School Fund.
Lease sales are held in January, April, July and October. Sales are usually held on the first Tuesday of the month.
Got a prospect?
Find out how to nominate Permanent School Fund property for an oil or gas lease. Please view the "Nominating Procedures" posted on this page. A sample nomination letter is included as well.