Edward Reyes

The meeting included a presentation on RVK Portfolio Performance, summarizing market volatility due to the government shutdown and subsequent lack of economic data, along with discussions on the Federal Reserve's potential interest rate adjustments. The Committee reviewed the current value and performance of the CLO's all-weather portfolio, noting it is at a high-water mark of nearly $3.1 Billion and on track for distributions exceeding $120 Million for 2025. Key actions taken included recommending approval for changes to the Annual Investment Plan to establish Mid-Cap Equity Investments as a standalone asset class, and subsequently recommending Fidelity as the passive manager for this new class based on low fees and strong tracking history. The committee also considered changes to accommodate "Invest in Oklahoma" Investments but ultimately voted to table the proposed investment plan modifications pending further communication with the new oversight board. Agency updates noted that an RFP for an investment consultant is underway, and the next meeting is scheduled for February 11.

Key discussion topics for this meeting included the approval of minutes from the January 8, 2026 meeting, presentations on the quarterly performance reports for the Investment Portfolio and the Real Estate Investment Portfolio (Quarter Ending December 31st, 2025). A significant item involved discussion and possible action regarding the potential termination of the Other Agency Mineral (OAM) Program, with a recommendation to track data for reconsideration by March 2027 and to address non-compliant agencies. The Commission also considered issuing a continuous easement lease to the Oklahoma Department of Transportation for highway purposes in Texas County. Other business involved consideration and possible action on proposed rules OAC 385:25-1-45 and 385:25-1-46, routine approval of the December Division Summary of Activities, review of December 2025 financial information, and a planned Executive Session to discuss the pending litigation Foster v. The CLO, Case No. 24-cv-140.

The Commissioners of the Land Office meeting included several key actions and informational reports. The Board approved changes to the Annual Investment Plan to accommodate Mid-Cap Equity Investments, which included authorizing the execution of a manager contract with Fidelity for this new asset class. The 2026 Internal Audit Plan, which allocates hours across four projects including Royalty Compliance and fund apportionment processes, was approved. Staff received authorization to obtain a three-party consensus appraisal for a 10-acre parcel near I-40 and Kickapoo in Shawnee for potential retail sale or exchange. A Capital Expense budget revision for FY 2026 was approved to cover the cost of a failed boiler replacement at an investment property. A continuous easement for a highway improvement project to ODOT was approved. The proposed rules OAC 385:25-1-45 and 385:25-1-46 were tabled until the February meeting to allow for receipt of additional public comments. Finally, the November 2025 Division Summary of Activities and monthly financial information were presented.

The agenda for the meeting included several key items. Discussion involved the presentation of the Annual Comprehensive Financial Report and External Audit Results for the year ending June 30, 2025. The Commission was set to consider and potentially approve changes to the Annual Investment Plan to accommodate Mid-Cap Equity Investments, and authorize the issuance of a U.S. Mid-Cap Equity Manager contract with Fidelity. Further considerations involved the approval of the 2026 Internal Audit Plan, authorization to appraise real estate for sale or exchange, and approval of Capital Expense Budget Revisions for a commercial investment property due to an unanticipated boiler replacement. Additionally, approval was sought for a continuous easement offer from the Oklahoma Department of Transportation and the adoption of proposed rules OAC 385:25-1-45 and 385:25-1-46. The Consent Agenda covered the November Division Summary of Activities, and informational items included financial data regarding investments and monthly distributions.

Key discussions and actions during this special meeting included the approval of the minutes from the Regular Meeting held on September 11, 2025. The Secretary's comments highlighted the conclusion of the September quarterly mineral auction, resulting in 42 new mineral leases generating over $2.7 million in lease bonuses, and a partnership with the University of Oklahoma for an MBA student project. Investment portfolio updates were presented informatively, covering quarterly performance reports for both general investments (RVK presentation) and real estate investments (Assistant Secretary Fischer presentation). Operational and financial actions included authorizing an appraisal for a real estate parcel in Comanche County for auction, denying a long-term commercial lease with cost recoupment from escrowed funds, approving an operating expense budget revision for the Shartel Plaza investment property, and approving the sale via auction of a tract in Oklahoma City with a minimum bid of $3,890,000. The Commission also approved the final step in the sale of a 40.85-acre tract to SIDDHI, LLC. Furthermore, the Commission authorized the transfer of nearly $3 million in mistakenly distributed royalties back to the trust corpus, approved the 2026 regular commission meeting dates, adopted a resolution delegating increased authority limits to the Secretary for contracting and litigation settlement, and authorized filing a lawsuit to recover over $101,000 in unpaid royalties. Executive Session discussions covered appraisals and potential exchanges/purchases of real estate properties in Pottawatomie, Woodward, and Kingfisher Counties, culminating in approvals to accept an amended appraisal for a Pottawatomie County lot, authorize property acquisition in Woodward County for exchange, and reject the sale or exchange of five tracts in Kingfisher County. Finally, the Commission extended the approval deadlines for appraisals and commencement of exchange processes related to several Pottawatomie County leases.