(a) The board may lease for oil, gas, sulphur, ore, and other mineral development
all land under its exclusive control for the use of the university. The board may make and enter into pooling agreements, division orders, or other
contracts necessary in the management and development of its land. All leases, pooling agreements, division orders, or other contracts entered into
shall be on terms which the board deems in the best interest of the university. No lease shall be sold for less than the royalty and rental terms demanded at that
time by the General Land Office in the sale of oil, gas, and other mineral leases
of the public lands of the State of Texas.
(b) All money received under and by virtue of the leases and contracts executed for
the management and development of the land, except revenue pledged to the payment
of revenue bonds or notes, shall be deposited to the credit of a special fund created
by the board. The board shall designate a depository for the special fund and shall accord the
money deposited in it the same protection by the pledging of assets of the depository
as is required for the protection of public funds. Money deposited in the special fund may be used by the board for the administration
of the university, for payment of principal of and interest on any revenue bonds or
notes issued by the board, and for any other use or purpose which in the judgment
of the board may be for the good of the university.
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