Travis County Commissioners Court
August 28, 2007
Item A1
Let's go to a-1. We are losing our county extension director. He's moving on to bigger and better things and he's promised that if we treat him fairly today, he'll remember to give us credit for helping him along the way when he gets to the going encity of galveston, right?
>> corpus christi.
>> that's even more golden. That is a-1, which is to receive report of monitoring visit to Travis County school lands located in throckmorton county, and take appropriate action.
>> good morning, judge, Commissioners, jeff riply, county extension director. Thank you for putting this on the agenda tow. I just made a visit to the ranch last Wednesday. It's the first time I had been in over a year. A little history. It seems from year to year we can kind of forget we own 18,820 acheners throckmorton county. But it was a land that was granted to the counties that were in existence in Texas in 1839 by the republic of Texas with the goal that income produced from that property would be used to support school districts within those counties that were in existence then. There's probably a dozen, maybe 15 counties that still own their county school lands. Down through the years some have sold. Some have sold part of it, but there's still around 15 counties that still own that property and lease it to produce income. In fact, in throckmorton county there's three. Upshire county, hole k county and -- polk county. We as a part of our agreement, the extension service, we're an independent monitor for that property. And we have a very unique lease with spade ranches. It's a lease that's been replicated by some of the other counties because it is one that's proven to be very effective. We have a surface lease with spade ranch limited and have had since 1993. They lease the grazing on the property. In turn they get to lease the hunting and fishing and recreation use of the property with the understanding that up until this past lease, 60% that have income had to be put back into the property in the form of improvements. There's been so many improvements on that property that during this last lease we dropped that to 50%. So they have to put 50% of all the income that they get from hunting, fishing, recreation, those uses on the property, back into improvements. And those improvements typically are brush control, increasing the water holding capacity by cleaning out ponds, etcetera, on the property. So that's made that property one of the best managed I think in the place. Spade ranch recently has leased the upshire county land, so they have 37,000 acres roughly now in one block there that they manage. They've only had the upshire county land for about three years, I believe. The Travis County property that they've had for 25 years will run about 35% more livestock be than the upshire county land and it's because that have conservation and the way it's been managed for the past 25 years or so. So it's been a very beneficial relationship I think for both spade ranches and for the county. We get in term of cash on the property, it's $7 per acre, which turns into about $131,740 cash income just from the surface lease on the property. And I see tamara has joined us. She probably can provide more information about the minerals, the income that we get from oil and gas lease on the property as well. I monitor the surface use of the property. That $3,100 is apportioned out to the school districts in Travis County. The Commissioners court is a custodian of the property and of the fund that come in and the Commissioners court makes the decisions regarding the use of that property. My visit found it to be in really good shape. We've come out of kind of a dry period up in the rolling plains. Most of 2006. But as you know, in 2007 it's been wet all over the state of Texas, so it was really good shape for August. I don't think I've ever seen that area quite as -- with that much vegetation and that much green in August. Sometimes there's vegetation, but it's usually a little crispy by the time this time. But I was up there last week and it's in good shape. The ranch is fully stocked. There are areas allowing to rest. That's the grazing program that they have. There's always three pad churs that are being rested, so it keeps everything in good shape. They spent about $97,000. In fact, the conserve bevation fund is kind of an ebb and flow. They'll overflow the conservation fund and then build it up. They've spent about $97,000 in brush control and cleaning out the ponds. The whole lake is supplied only by -- the whole ranch is supplied only by surface water sources, ponds, a couple of fairly large lakes. They were really start to go get in bad shapes. They spent a lot of money trying to increase the water holding capacity on the property and have done that in the last year. They built about four miles of new fence in the last three years. So all the fences that were in need of repair have been replaced or repaired. So it was probably in the best shape that I've seen it in the last seven years. Part of that is due to a really favorable weather condition this summer and spring. Part of it is due to I think really good management on the property. In terms of recommendations, I guess my religious on the property would be that if the county chooses to maintain ownership of the property, this lease expires at the end of 2013. And if the county chooses to maintain ownership and continue leasing, the negotiated lease process work really well. There's always someone who is willing to pay more per acre for a piece of property, but in turn they may overgraze and try to get what they're paying back rather than some of the lower 7, $8 an acre that we get as opposed to what some of the other get, but ours is managed directly. And I think the resource sz better cared for. My religious would be that we continue the negotiated lease. And then as judge Biscoe alluded to, this will be my last independent monitor visit, so depending on who follows me in my position as county extension director, that person be allowed to appoint the independent monitor. If it's not someone who has experience or degree in agriculture that fills my position, that that person be allowed to appoint. For instance, maybe the agriculture agent within my office to serve as the independent monitor. Those would be the only two recommendations that I would have as a result of my visit to the property this time. And begin, I appreciate the opportunity to -- and again I appreciate the opportunity to serve as independent monitor. I've enjoyed it and certainly enjoyed being the county extension director here over the last seven years.
>> as far as the gas and other natural resources there that's under this particular lease as far as getting some of the revenue from those particular resources, is that also looking -- being looked at as far as when the end of the lease expires as far as who is actually currently occupying the property now? Is that something else for the gas and oil? Does this expire also at the same time as this other 2013? Is that separate?
>> there's several different other operator that have the leases that lease different tracts of land and they have different expiration dates. So each of the mineral leases are independent of the surface lease.
>> it's a separate one. So do we get -- when is that particular report that come out on the mineral end of it?
>> tamara and I talked about this last week, that that might be something that the court may want to consider it an independent monitor for the mineral. And that's almost someone who would need to be there almost on a daily base. Someone who is almost a resident because there's activity, saltwater disposal and pumpers are if there on a daily or weekly basis. So that would be one that would be really hard to monitor from Austin.
>> really?
>> yes. Tamara may have something to add to that.
>> yes. I think it would be a good idea to have someone monitor the mineral leases just to make certain that everything is going as it should. There aren't any problems that I've heard about. As a matter of fact, they've just discovered oil on three of the tracts, so that's nice. But we do need an independent monitor for the mineral leases.
>> well, I think my point is that when will that come up?
>> legally the way oil and gas leases operate, the lease continues as long as oil or gas, in our case oil, is produced and paying quantities. There are mineral leases out there that are as old or older than I am. So they can last a number of year. And they have to be monitored. And the state legally, they've always basically said, hey, if they have enough money to pay you royalties, oil is being produced in paying quantities. Why they can last a long time. -- this is why they can last a long time. We receive payments in oil royalties, but I do feel that there should be some monitoring of the mineral leases.
>> are we able to get reimbursed our expenses?
>> most of the time no. Not for monitoring.
>> we'll put this on for a work session full discussion. We'll have you leave a map to the place for your successor.
>> [ laughter ] laugh but for the record,all ofs from these 1800 plus acres goes to the school districts in Travis County.
>> that's correct.
>> and by law.
>> yes.
>> the independent monitoring agreement that we have with spade requires them to pay the travel expenses at least for the independent monitor, so they pay my mileage to go back and forth. They don't pay any time or salary,, but they do pay the actual travel expenses. So those expenses are reimbursed.
>> but I was talking about expenses in terms of haj the mineral leases and so forth.
>> your time --
>> and other stuff.
>> we wouldn't expect to get reimburse that had much.
>> Commissioner Daugherty, did you have a question?
>> no. I was going to ask you if your new position prohibits you from being in some sort of continued involvement with us? And I know you would at least like to have the ability to weigh in on in the event that we were to look at the leases. We went through this spade ranch process the last time. I guess there are at least several people that do it, but it not like that spade really was very -- did a very good job for us. Let me let you answer that initial question. What kind of involvement could you have given your new position?
>> well, I can be a phone call away, I can answer questions and provide background to whoever is in my position as the independent monitor. And I'm sure I will. That whoever steps into that position can call me and I can provide them background. So it's not -- that's not an issue.
>> how long have you been our extension agent?
>> seven years.
>> and for the record, you're a Texas a&m employee, right?
>> Texas cooperative extension.
>> that's the state of Texas.
>> yes.
>> and stationed here in Travis County. Probably the highlight of your career so far.
>> absolutely it has. No question.
>> [ laughter ]
>> we've enjoyed working with you.
>> thank you very much.
>> thank you very much for your service.
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Last Modified:
Wednesday, August 29, 2007, 18:30 AM