DALLAS - The Texas Permanent School Fund that backs Texas public school bonds earned record income from oil and gas production in the fiscal year ended Aug. 31, officials said.
The $1.26 billion for fiscal year 2014 far surpassed the previous record, lifting the fund's value to $34 billion, according to the Texas General Land Office.
The state properties include land in West Texas' Permian Basin, the Barnett Shale of North Texas and smaller sites in the Eagle Ford Shale south of San Antonio. They also include offshore leases and royalties that extend 10.3 nautical miles offshore.
"The record earnings are in large part due to the revolution in hydraulic fracturing technologies, which has private companies competing to outbid each other for access to Permanent School Fund lands that previously were of marginal value," said Jim Suydam, spokesman for the Texas General Land Office. "Lease rental income on Permanent School Fund land was up more than 653% in 2014, and lease bonus income rose by 86% over 2013."
Revenue from investments also paid off, gaining 71% or more than $461 million over fiscal year 2013 results.
State Land Commissioner Jerry Patterson, who manages the office, said the numbers show his emphasis on buying and selling land and investing in a multitude of other opportunities -- not just relying on oil and gas income -- is paying off.
"Oil and gas have been very good for public education in Texas," Patterson said. "But we're really starting to see the fruits of our efforts to diversify our income stream."
Between 1874 and 2003, the year Patterson took office, the General Land Office deposited about $7.9 billion into the Permanent School Fund. From 2003 to 2014, the General Land Office deposited $8.1 billion.
"We've had a good run," said Patterson, who will leave office at the end of this term in January.
