Course Title: Energy and Natural Resources
Lesson Title: Ethical Issues Related to Natural Resource Management
TEKS Addressed in Lesson:
130.11 (c) (5)- A-D http://ritter.tea.state.tx.us/rules/tac/chapter130/index.html
Lesson Objectives. The student will be able to:
1.
2.
3.
4.
Compile examples of lease agreements used in natural resources
Identify relationships between landowners and leasing companies
Determine public interest in natural resources management
Analyze impacts of natural resource management on landowners
Tools and Equipment
Power Point: Ethical Issues related to natural resource management
Key Terms / Vocabulary
1.
2.
3.
4.
5.
Lease agreements
Ethics
Fee Simple
Mineral Rights
Surface Rights
Interest Approach/Anticipatory Set
1. Link: Imagine you come home one day and there is a crew putting up an oil well in front of your
house.
2. Motivation: What issues might you have with this? Noise, safety, etc.?
3. Overview: Today we will discuss lease agreements, rights of land owners and the impacts of
natural resource management on landowners and the public interest.
Teaching Plan and Strategy / Presentation of New Material
Open the PowerPoint, progress through the slides and teach the material from the slides to the
students and allow time for discussion on each slide.
1. History of the problem
a. The United States is unlike many nations. We allow private ownership of underground
mineral resources.
b. In all other countries, the minerals under the ground belong to the King or country.
c. The first dispute over mineral properties in Texas arose over salt; in early Texas,
caravans of wagon trains came to El Sal del Ray Lake in Hidalgo County and transported
the salt to market in Mexico.
d. In 1862, during the War Between the States, a joint resolution of the legislature ordered
the governor to take possession of the salt deposit. In 1866, the constitutional
convention undertook to return the salt rights to the surface owners.
e. There are many legal precedents that occurred over the years.
2. Surface rights versus mineral rights
a. The land owner typically has rights to the “surface” of the property—the right to farm or
build on the property
b. The land owner may or may not own what is under the property, known as “mineral”
rights
c. Mineral rights can be sold or leased separately from surface rights
d. This sometimes create problems for surface owners
3. Public interest and natural resources
a. What is the role of public interest in natural resource management?
b. Think about the differing goals of the public, landowners, and companies who wish to
capture/sell our natural resources
c. There are lots of issues to consider:
d. Biological and Ecological principles (what is best for the environment)
e. Personal Attitudes and Personal Gain (what is best for the landowner)
f. Public Perception and Good (what is best for the general public)
g. There are no easy answers, just lots of perspectives to consider!
Activity/Application/ Student Engagement /Laboratory
Review the case study, Unfair Share: How oil and gas drillers avoid paying royalties and consider the
following questions:
o What is the cause of the debate indicated in this article?
 The debate is caused by companies possibly withholding full payments to
landowners, fuzzy contracts between companies and landowners, and lack of
transparency of accounting practices
o How can landowners protect themselves from these types of problems?
 Landowners should be very aware of what is in contracts, allowing attorneys to
protect their interests; they should also investigate the companies who are
seeking to lease their minerals
o Do you believe this article may be biased? Why or why not?

o
This article may be biased. It was found on a website that is specific to the
public good which means that they are not unbiased in their reporting.
What can we learn about the relationship between landowners and companies?
 Though there are many good things that can come from these relationships
such as more products for our use and money, there is also potential for conflict
that may be very difficult to resolve
Conduct a search on the internet for lease agreements for mineral and surface rights. Analyze the lease
agreements based on the following:
 Who do the lease agreements protect, typically?
o They typically protect the company, not the land owner.
 What are common characteristics of lease agreements?
o Refer to Texas Sample Oil and Gas Lease and Surface Use Agreement
http://www.earthworksaction.org/files/publications/Texas-Sample-ModelGas-Lease_201106.pdf
Extension Activity
Contact a local “land man” or oil and gas attorney to talk to students about potential ethical
issues in surface and mineral leases.
Evaluation / Summary
1. Pick individuals or ask the entire class these questions
a. What are some examples of mineral leases?
i. Leases for minerals, surface rights, oil, gas, coal, or other substance under the
land
b. Who do mineral leases typically protect?
i. They typically protect the company. Land owners should be diligent in ensuring
their rights are protected if leasing minerals.
c. Provide examples of ethical issues in lease agreements.
 Examples would companies possibly withholding full payments to landowners,
fuzzy contracts between companies and landowners, and lack of transparency
of accounting practices
d. What is the public interest when it comes to natural resource management?
i. The public interest is what would be best for the general public, not the land
owner or company.
2. Summary: Today we
a. Compiled examples of lease agreements used in natural resources
b. Identified relationships between landowners and leasing companies
c. Determined public interest in natural resources management
d. Analyzed impacts of natural resource management on landowners
References/Additional Materials / Extended Learning Opportunities/ Enrichment
1. Natural Resource Management and Leadership in Public Arena Decision Making: A Prescriptive
Framework (1996). American Fisheries Society Symposium (16)54-63.
http://fishwild.vt.edu/faculty/mcmullin/naturalresourcemanage.pdf
2. Unfair Share: How oil and gas drillers avoid paying royalties (2013). Pro Publica Journalism in
the Public Interest http://www.propublica.org/article/unfair-share-how-oil-and-gas-drillersavoid-paying-royalties
3. Mineral Rights: Basic information about mineral, surface, oil and gas rights. Geoscience News
and Information, Geology.com http://geology.com/articles/mineral-rights.shtml
4. Texas Oil and Gas Accountability, Sample oil and gas lease and surface use agreement, a project
of Earthworks: http://www.earthworksaction.org/files/publications/Texas-Sample-Model-GasLease_201106.pdf
College & Career Readiness Standards:
1. Social Studies I. C. 3
2. Social Studies I. E. 1, 4
3. Social Studies IV. A. 1, 3
Developed by the Department of Agricultural Leadership, Education & Communications,
Texas A&M University
for the Texas Education Agency, Educational Excellence Project for AFNR
©Texas Education Agency, 2014