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texas pacific land trust was created in 1888 as a result of a reorganization of the texas and pacific railway company following receivership. 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 888,333 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.
