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STATE OF OKLAHOMA
2nd Session of the 60th Legislature (2026)
HOUSE BILL 3943 By: Kane
AS INTRODUCED
An Act relating to public lands; amending 64 O.S.
2021, Sections 1023, as amended by Section 1, Chapter
360, O.S.L. 2025, 1065, and 1067 (64 O.S. Supp. 2025,
Section 1023), which relate to the administration of
leases by the Commissioners of the Land Office;
authorizing hunting lease contracts; requiring
certain value; authorizing concurrent leases;
requiring certain notices; clarifying certain rights
and liabilities associated with hunting lease
contracts; and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 64 O.S. 2021, Section 1023, as
amended by Section 1, Chapter 360, O.S.L. 2025 (64 O.S. Supp. 2025,
Section 1023), is amended to read as follows:
Section 1023. A. The Commissioners of the Land Office are
authorized to grant commercial leases and, agricultural, and hunting
leases in trust property.
Commercial leases shall not exceed fifty-five (55) years. The
granting of any commercial lease in excess of three (3) years shall
be by public bidding at not less than fair market value. All
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commercial leases shall provide for fair market value throughout the
term of the lease.
Agricultural leases of trust property shall be limited to a
maximum of five (5) years and shall be by public bidding at not less
than fair market value.
Hunting leases of trust property shall be offered at not less
than fair market value as determined by the Commissioners. Hunting
leases may be offered on the same parcels as commercial and
agricultural leases; provided, notice of such hunting lease or
intent to lease is given prior to the commencement of such
commercial or agricultural lease.
The granting of any interest in trust property at less than fair
market value or not in compliance with this section is void.
Any permanent improvement made on commercial trust property from
and after July 1, 1989, shall revert to the trust at the end of the
lease.
B. In connection with any commercial and agricultural leases,
the Commissioners of the Land Office shall, unless otherwise
exempted by the Constitution or laws of this state:
1. Require payment of ad valorem property taxes on any
improvements and structures on state school land, which would
otherwise be subject to ad valorem property taxation if constructed
on privately owned land; and
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2. Indemnify and hold harmless the Commissioners of the Land
Office from any financial obligation related to land, financing, or
operation; and
3. Provide to the lessee notice of any existing or potential
hunting lease contracts affecting such lease, along with a copy of
the terms and rights associated with such contract.
C. An appraiser selected by the Commissioners of the Land
Office shall appraise any improvements approved by the Commissioners
of the Land Office made to the property leased as an agricultural
lease by the current lessee that cannot be removed without manifest
injury to the land. When the Commissioners enter into a new lease
for the property, the lease shall require the new lessee to
reimburse the previous lessee for the appraised value of any
improvements made by the previous lessee by the date the new lessee
is permitted to take occupancy of the property. It shall be
considered a default of the lease of the property to the new lessee
if such reimbursement is not made. Provided, no fees may be charged
to a lessee above those included in the originally accepted bid to
irrigate land used for agricultural purposes if the water is not
sourced from lands owned or managed by the Commissioners.
D. The Commissioners of the Land Office may refuse to accept
any bid or lease on a commercial, agricultural, hunting, or mineral
lease where the party is in default of any installment due or in
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violation of any provisions contained in a prior or current lease
contract.
E. The Commissioners of the Land Office may refuse to accept
any bid or lease contract where the interested party cannot show
adequate creditworthiness as determined by the Land Office.
F. The Commissioners of the Land Office shall promulgate rules
to implement the provisions of this section.
SECTION 2. AMENDATORY 64 O.S. 2021, Section 1065, is
amended to read as follows:
Section 1065. Each agricultural, timber, grazing, hunting, or
other lease to any surface interest in land in which the deposits
are segregated, as provided in the preceding section Section 1064 of
this title shall reserve to the state, its lessees or grantees the
right to drill and operate oil and gas wells on such premises, and
the easement, use and right-of-way to enter upon and fully enjoy the
mining right reserved in this article.
SECTION 3. AMENDATORY 64 O.S. 2021, Section 1067, is
amended to read as follows:
Section 1067. Any person, firm or corporation leasing under the
provisions of this article, and operating for oil and gas, shall be
liable to the surface owner, the lessee or purchaser, for all
damages or loss accruing to the surface interest in said land and to
all crops and improvements thereupon and appurtenances and
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hereditaments thereunto belonging, whether said land be
agricultural, timber, grazing, hunting, or otherwise.
SECTION 4. This act shall become effective November 1, 2026.
60-2-14619 JM 01/13/26