Texas Pacific Land Trust was created in 1888 as a result of the
bankruptcy of the
Texas and Pacific Railway Company.
Holders of Texas and Pacific Railway Company bonds
received 3.5 million acres of land in
Texas which had been
earned by the railroad and pledged as security against bonds.
The bondholders created the Trust and converted bonds to
shares of proprietary interest in the Trust. The Trust was
created to manage and sell the land. Today the Trust is one of
the largest landowners in
Texas with around 911,217 acres
located in eighteen different counties. Texas Pacific Land Trust
derives revenue from all avenues of managing the land, i.e. oil
and gas royalties, grazing leases, easements, sundry and
specialty leases, and land sales. The Trust has a perpetual oil
and gas royalty interest in some 459,200 acres.