Mineral Rights – How They Richly Benefit Our Universities!
December 5, 2018
Selling mineral rights in Texas can be financially advantageous for those who own such rights.
It’s a way that Texans have created wealth for themselves and their families for hundreds of years, ever since the first well struck oil way back in the late 1800’s.
With funds from the oil and gas industry coming into these institutions in two significant ways, colleges like the University of Texas, Texas A&M, and others have benefited from the land in the same ways that private owners of mineral rights have.
Texas Permanent University Fund
The Texas Permanent University Fund (PUF) was set up in 1876 by state legislators to offer a way to build, improve, and support important universities and schools within the state.
The fund, which received most of its money from grazing leases, became one of the many benefactors once oil was discovered in the state, then drilled and produced.
Initially, the fund was used to support the University of Texas. The Permanent School Fund (PSF) was also set up to provide funding to other educational institutions throughout the state.
Today, both the PUF and PSF still exist as a part of the Available University Fund (AUF), which designates where the funds are allocated.
A third of the money generated for the PUF by selling mineral rights from public lands now supports Texas A&M as well.
Together, the different funds have close to $40 billion in assets and endowments for these two universities and various other schools within the state.
Universities - A Common Benefactor of Mineral Interests in Texas
Another significant way that universities like UT and TAMU benefit from mineral rights for sale is through bestowments from private citizens.
Although most owners of mineral rights pass their rights down to their families, some actually leave their interests to universities or other schools.
The same way that some folks leave a portion of their bank account to their favorite university that they attended way back when, others who already sell mineral rights and know the value, leave their mineral interests.
Some donors create scholarships to be funded by the proceeds or earmark how the profits can be used; others simply leave their interests for the schools to use at will.
This type of inheritance can really pay off for the universities when experienced investment professionals carefully manage those interests.
A Summary of Oil Right Endowments for Texas Universities
When it comes to the ownership of mineral interests, selling mineral rights really can be a gift that keeps on giving year after year.
Between state-run funds and private endowments, the University of Texas, Texas A&M, Angelo State University, and schools of higher education throughout the state continue to benefit from the wealth contained in this resource-rich land.
If you currently have interests and wish to set up a way to donate them so your favorite university can earn through your mineral rights for sale, contact a royalties professional or estate lawyer today to discuss the details!
Selling Your Mineral Rights In Texas?
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