The companies that win the leases, determined by the winner of a bidding process that occurs twice a year, will pay a pre-determined price over several years. The move was made to take advantage of record oil prices.
The system holds 2.1 million acres of land in West Texas, 1.4 million of which is leased for drilling purposes. The Texas Constitution dictates that two-thirds of all funds generated from drilling leases and royalties go to UT, with the remaining funds going to Texas A&M University.
University of Texas Investment and Management Company CEO Bruce Zimmeran told the regents Thursday that the company's conservative investment strategies will have the investment company for UT's endowments financially well-situated in what is becoming a rough economic environment.
"Our more conservative posture bodes well for us in more difficult markets," he said.