WEST TEXAS - A plan to sell a billion dollars worth of oil and natural gas reserves in West Texas has been approved by the U.T. System.
The University of Texas System Regents unanimously approved the plan.
Now an investment bank or oil company will pay one billion dollars upfront for the reserves.
In the plan approved Friday by Regents, the company would agree to produce a set amount of oil and gas from the 2.1 million acres for the next decade.
Still no word on how the sale will affect tuition and fees for U.T. Students.
One theory is that this forward contract will keep today's prices the same for the next few years.
The system originally received royalty payments only for actual, and not future production.