(a) The School Land Board (hereafter called "the board') may lease state-owned lands or flats to an eligible navigation district (hereafter sometimes called "district') only for a purpose reasonably related to the promotion of navigation. The term "navigation' as used herein refers to marine commerce and immediately related activities, including but not limited to port development; channel construction and maintenance; commercial and sport fishing; recreational boating; industrial site locations; transportation, shipping, and storage facilities; pollution abatement facilities; and all other activities necessary or appropriate to the promotion of marine commerce; but specifically does not refer to residential development.
(b) In making application for a lease of state-owned lands or flats, the district will submit the following information to the General Land Office:
  (1) the name, address, and telephone number of the district and the name of the agent certified by the district authorized to execute documents;
  (2) proof of eligibility to qualify as a district;
  (3) a description of the lands or flats sought to be leased;
  (4) a plan showing how it proposes to utilize the land and a timetable indicating approximately when such utilization will take place;
  (5) a draft environmental impact statement assessing the effect of the proposed use on the environment, which statement shall generally conform to the requirements of the National Environmental Policy Act, (Public Law No. 91-190, 42 United States Code §4321, et seq.), however, a draft environmental impact statement will not be required if the proposed use requires no dredging, filling, or bulkheading;
  (6) proof satisfactory to the board establishing the public convenience and necessity for acquisition of lands sought to be leased;
  (7) such additional information as the board may deem necessary.
(c) Upon receipt of an application and accompanying information, the board will submit copies thereof to the member agencies of the Interagency Council on Natural Resources and the Environment and other appropriate state agencies for review and comment. In addition, the board will submit for review and comment the proposed terms and conditions of the lease. The board will allow 30 days for such review and comment, and may extend the review period for an additional 30 days upon written request by the executive director of any state agency.
(d) Following the expiration of the period provided for review and comment, or following the expiration of the 30-day extension of such period, if any, the board will cause a hearing to be held in the county in which the land proposed to be leased is located in accordance with §155.3 of this title (relating to Easements). The board will consider the record of the hearing in making a decision on the application.
(e) After the submission of all evidence, the board will authorize the issuance or denial of the proposed lease and will determine the reasonable rent, term of years, special limitations, if any, and other conditions necessary to best serve the interest of the general public. In establishing the consideration to be paid to the state for the lease, due weight will be given to the depth of the water over the submerged land, its proximity to development activities, and its proposed use. Final action will be taken by the board no more than 60 days following the public hearing.
(f) The board may, at its option, accept a draft environmental impact statement as required in subsection (b)(5) of this section which is prepared in accordance with the guidelines for preparation of a draft environmental impact statement described in §155.4(a) or (b) of this title (relating to Permits), or an environmental impact statement, or draft thereof, of a document prepared in accordance with federal law to meet the requirements of the National Environmental Policy Act (Public Law 91-190, 42 United States Code §4321 et seq.). The board may request any additional information deemed necessary.
(g) If an applicant requests in writing that an application be processed without the filing of a draft environmental impact statement, the board will require the other necessary application information and will process the application as provided in subsections (c)-(e) of this section; but in such case, the board will include in the lease the following provisions:
  (1) that the draft environmental impact statement required by federal law be filed with the board before the district makes any use of such lands or flats which requires dredging, filling, or bulkheading;
  (2) that approval of such use be obtained from the board after copies of the draft environmental impact statement and a description of the proposed use are circulated for comment as provided in subsection (c) of this section and a second hearing is held as provided in subsection (d) of this section;
  (3) that the board will be authorized to make any such amendments to the lease as the board may deem necessary as a result of information developed in and comments received on the draft environmental impact statement;
  (4) that the lease will cease to be effective at a time specifically stated in the lease unless prior to that time the board notifies the applicant in writing that accord concerning environmental issues has been reached between the district and the board;
  (5) that the board may renegotiate the consideration to be paid or the term of the lease; renegotiate any of the conditions and provisions of the lease; may declare the lease or any portion thereof null and void and terminated; or it may make any change in the lease deemed necessary to protect the public interest.
(h) Districts may sublease lands leased from the state under the provisions of this chapter to third parties for navigation purposes, but such sublease or any amendments thereto will be subject to board approval. A request for a sublease or any amendments thereto may be processed by the board as provided in subsections (b)-(g) of this section.
(i) If the district included the work, improvements, and uses in the district's original lease and the board authorized same and/or included the state-owned lands and flats in the final amended lease to the district in accordance with subsection (g) of this section, no approval by the board will be required; however, the district must submit a copy of the sublease, or any amendments thereto, to the board for a determination that the sublease was contemplated by the district in the district's original lease. No environmental impact statement will ever be necessary for any sublease which requires no dredging, filling, or bulkheading, and which would not have a substantial impact upon the environment, or which requires only insubstantial dredging, filling, or bulkheading, as determined by the board; nor will a district in obtaining approval for a sublease under any circumstances be required to reveal the name of the tenant to whom the sublease is to be made.
(j) If lands or flats leased from the board under the provisions of this chapter are utilized by a district or its sublessee for any purpose or use not approved by the board, the district will be given notice and an opportunity to change and correct the use. If the use is not changed and corrected within a reasonable time after receipt of such notice, the lease may be terminated by the board and the lands and flats will revert to the State of Texas.

Source Note: The provisions of this §155.21 adopted to be effective January 1, 1976.