The location of the oil and gas properties determines where to properly perfect the Bank’s lien.
In Texas there are three basic classifications of oil and gas lands. This Chapter deals only with security interests in privately-owned onshore land.
• Privately-Owned Onshore Land. This is the most common type of loan security. A lien is perfected by filing in the Real Property Records in the county where the oil and gas properties are located.
• State and University Lands. The State of Texas either owns outright or has a Relinquishment Act interest in a large amount of the oil and gas lands located in Texas. Leases for oil and gas located on university lands are granted by the Board for Lease of University Lands. These lands may be leased either at public auction or by sealed bid. A lien is perfected by filing in the Real Property Records in the county where the oil and gas properties are located.
• Offshore Land is divided into:
o Texas Nearshore Land. Oil and gas lands located between the high tide line of the Gulf of Mexico and three (3) marine leagues (nine (9) nautical miles) from the coastline belong to the State of Texas. [Tex. Nat. Res. Code Ann. § 11.012]. Leases in Texas Gulf of Mexico waters are granted through the General Land Office and must cover both oil and gas. For filing purposes, these lands are deemed to lie in the coastal county in which they would lie if the county’s boundary extended offshore.
o Outer Continental Shelf. Outer Continental Shelf lands in the Gulf of Mexico are those lands located more than three (3) marine leagues from the coastline. These lands are owned by the federal government, which leases them through a bidding program administered by the Minerals Management Service of the U.S. Department of the Interior. The Bank’s deed of trust should be filed with the Office of Minerals Management Service in New Orleans and in every potential near-shore county.