1. (a) Definitions.

   1. (1) Surrounding land means all of the privately owned property having a common boundary with a particular tract.
   2. (2) Preferential right refers to the right to purchase property before the property is offered for sale to any other party.

2. (b) Board authority.

   1. (1) If the School Land Board proposes to sell a small tract of 320 acres or less, it may convey that property for not less than the market value.
   2. (2) The board determines the fair market value of the land.

3. (c) Preferential right.

   1. (1) If there is only one surrounding land owner, that owner possesses the preferential right to purchase the tract.
   2. (2) If there is more than one owner of the surrounding land, the board may grant a preference to those surrounding owners if it determines that granting the preferential right is in the best interest of the state.
   3. (3) When a preferential right exists, the board shall send a notice of sale by certified mail to the last known address of the surrounding land owner or owners, as identified by the records of the county tax-assessor and collector.

4. (d) Partition agreement.

   1. (1) When there exists more than one surrounding land owner and when the board decides to grant a preferential right to those owners, the owners must submit to the General Land Office a proposed partition agreement recommending an agreed division of the state land between the participating surrounding landowners.
   2. (2) An affidavit stating that all surrounding owners have been identified and have agreed to the partition agreement or have otherwise waived their rights must be signed by all of the purchasing surrounding land owners and submitted with the proposed agreement.
   3. (3) Any surrounding owner choosing not to exercise his or her preferential right may waive the right by filing a written waiver with the General Land Office. Once the waiver has been filed, the affected landowner's signature will not be required on the partition agreement or its accompanying affidavit.
   4. (4) If all owners will not join in the partition agreement or otherwise waive their rights, the board will deny the preference and may offer the tract for sealed bid sale.
   5. (5) The board may require purchasers to provide a survey, prepared by a licensed state land surveyor, which shall include all tracts represented by the partition agreement.
5. (e) Upon approval of the board, payment of the purchase price, payment of the statutory fee, and, if applicable, filing of the survey and the partition agreement, the award may be issued in accordance with the terms prescribed by the board.

Source Note:The provisions of this §154.1 adopted to be effective April 2, 1986, 11 TexReg 1392.