CHAPTER 4. OIL AND GAS - Texas Statutes

VERNON'S CIVIL STATUTES

TITLE 86. LANDS--PUBLIC

CHAPTER 4. OIL AND GAS

Art. 5341d. EXTENSION OF LEASES ON UNIVERSITY LAND; WAR AGENCY

RESTRICTIONS.

Sec. 1. In the case of any non-producing oil, gas or mineral

lease on University land, if one hundred twenty (120) days before

expiration of the primary term there be in effect any

restrictions issued by a Federal war agency prohibiting the

drilling or completion of a well thereon, the holder of such

lease shall have the right to negotiate an extension or renewal

of such lease for a period of not longer than two (2) years with

the Board of Regents of the University of Texas and the

Commissioner of the General Land Office.

The Board of Regents of the University of Texas and the

Commissioner of the General Land Office, in considering an

application for an extension or renewal of any such lease above

described, shall take into consideration in establishing the

consideration for such lease the diligence with which the lessee

has followed his duties under the existing lease, the present

value of the land upon which an extension or renewal of the lease

is sought, and all other good business practices. The lessee in

presenting his application for extension or renewal of such lease

or leases shall present evidence to the Board of Regents of the

University of Texas and to the Commissioner of the General Land

Office showing it was impossible for him or any of his co-owners

to comply with the restrictions which he claims prohibited the

drilling or completion of the well on said tract.

If the lessee should claim as grounds for an extension or renewal

of any such lease that there is insufficient acreage within the

tract under lease by him to comply with the Federal restriction

then no extension or renewal shall be granted unless said lessee

also show that there is no adjacent and adjoining acreage to said

tract wherein said applicant is a party in interest that could

have been combined with the tract upon which the application for

extension or renewal is made in order to comply with the Federal

restriction.

Sec. 2. The Commissioner of the General Land Office is hereby

authorized to issue to the lease owner such instrument in writing

in the nature of an extension or renewal of such lease as may be

necessary or proper to carry into effect the foregoing provision

of this Act.

Sec. 3. The provisions of this Act are and shall be held and

construed to be cumulative of all General Laws of this state on

the subject treated of and embraced in this Act when not in

conflict herewith, but in case of conflict, in whole or in part,

this Act shall control.

Sec. 4. If any section, subdivision, paragraph, sentence, or

clause of this Act be held to be unconstitutional, the remaining

portions of same shall nevertheless be held valid and binding.

Acts 1943, 48th Leg., p. 359, ch. 238.

Art. 5341e. SUSPENSION OF RUNNING OF TERMS OF LEASES WHILE OWNER

IS DENIED ACCESS BY UNITED STATES. If the owner of any valid oil

and gas lease granted by the State covering University lands is

denied access to or is denied a permit to drill upon or produce

from the leased premises by any duly constituted authority of the

United States of America, after a bona fide attempt has been made

by such owner to obtain access or permit to drill upon or produce

from the leased premises, and denial of access as used herein

shall include agreements by the lessee or his assigns under any

such lease with a duly constituted authority of the United States

not to enter upon and engage in drilling operations on any such

oil and gas lease made under compulsion or threat of condemnation

by such duly constituted authority of the United States, such

owner may file with the Board for Lease of University Lands an

application describing and giving the date of the action which

deprives him of the right of access or the right to drill upon or

produce from the premises, and if said Board is satisfied that

the facts set forth in the application are true, the Board may

enter an order upon its minutes suspending the running of both

the primary and the principal term of such lease, or suspending

any condition, obligation, or duty thereunder as of the date of

the origin of the cause of suspension and during the existence of

the cause of suspension, so long as the lessee continues to make

on each anniversary date of such lease the annual rental payments

stipulated in the lease during the period of suspension. Such oil

and gas lease shall remain in status quo, and all obligations and

conditions existing during such lease or such of them as may be

suspended by said Board, shall be inoperative and of no force and

effect, except the obligation to pay delay rentals as provided

for herein, until ninety (90) days after the Board for Lease of

University Lands shall enter an order upon its minutes reciting

that the cause for suspension has ceased to exist, at which time

such oil and gas lease shall, provided the rental payments have

been made during the period of suspension, again become operative

and all of the suspended obligations and conditions, including

the payment of rentals under same, shall again attach and be in

force, and in the case of the suspension of the primary and/or

principal terms of the lease, the lease shall thereafter continue

in force for a period equivalent to the unexpired term of the

lease on the date or origin of the cause for suspension. The

Commissioner of the General Land Office shall give notice

immediately to the lessee of the entry of the order that the

cause for suspension has ceased to exist; provided, however, that

the annual rental payments have been met.

Acts 1945, 49th Leg., p. 300, ch. 217, Sec. 1.

Art. 5366a. EXTENSION OF OIL AND GAS LEASES ON AREAS COVERED BY

COASTAL WATERS OR WITHIN GULF.

Sec. 1. In each case in which an oil and gas mineral lease has

heretofore been granted or may hereafter be granted by the State

of Texas on an area covered by the coastal waters of the State or

within the Gulf of Mexico and in which the War Department of the

United State refuses to grant a permit to the lessee or owner of

such lease to drill a well thereon for oil, gas or other minerals

(the area included in such lease being within the navigable

waters of the United States) and in the event the primary term of

such lease should expire during the period of time in which the

War Department of the United States may continue to refuse to

issue such permit, then and in such event the primary term of

such lease is hereby extended for successive periods of one (1)

year from and after the end of the original primary term of such

lease while and so long as the War Department may continue such

refusal to issue to the lessee or to the owner of such lease a

permit to drill for oil, gas or other minerals, on the area

covered thereby; provided, that in order to make such extensions

effectual the lessee or the owner of such lease shall, during

each of the annual periods during which the primary term of the

lease is so extended, apply to and seek to obtain from the War

Department a permit to drill a well for oil, gas or other

minerals on the area covered by such lease and be unsuccessful in

its attempts to obtain a permit, or, if successful in obtaining a

permit, commence operations for drilling a well upon the leased

premises within sixty (60) days after obtaining such permit; and

provided further that the lessee or the owner of such lease

continues to pay the annual renewal rentals at the rate provided

for in such lease for the period of time involved in such

extensions. Should such lease be so extended and should the War

Department at any time while such lease is still in force and

effect issue a permit to the lessee or to the owner of such lease

to drill a well thereon for oil, gas or other minerals, such

lease shall continue in force and effect if the lessee commences

drilling operations upon the leased premises within sixty (60)

days after obtaining such permit, and so long as the lessee or

the owner of such lease shall continue to conduct drilling or

mining operations thereon, or if oil, gas or other mineral be

discovered thereon by the lessee or the owner of such lease, so

long as oil, gas or other mineral is produced from such leased

premises. Should the production of oil, gas or other mineral on

said leased premises after once secured, cease from any cause,

such lease shall not terminate if the lessee or owner of such

lease commences additional drilling, reworking or mining

operations within thirty (30) days thereafter or if it be within

the original primary term of such lease, commences or resumes the

payment or tender of rental on or before the rental paying date,

if any, next ensuing; but if there be no rental paying date next

ensuing, the lease shall in no event terminate prior to the

expiration of the primary term.

Sec. 2. The Commissioner of the General Land Office is hereby

authorized to issue to the lessee or owner of said lease such

instrument in writing in the nature of an extension of said lease

as may be necessary or proper to carry into effect the foregoing

provisions of this Act.

Acts 1941, 47th Leg., p. 456, ch. 287.

Art. 5382b-1. VALIDATION OF LEASES ADVERTISED FOR 30 DAYS PRIOR

TO ACT OF 1949. All oil and gas leases sold at a sale held on

June 7, 1949 by the School Land Board of the State of Texas, and

issued by the Commissioner of the General Land Office under the

seal of his office, covering areas within tidewater limits which

were advertised and offered for lease on June 7, 1949 as the

lease sale date, by advertisement for not less than thirty (30)

days prior to June 7, 1949, and prior to June 6, 1949, the

effective date of Chapter 321, page 603, Acts of the 51st

Legislature, 1949, are hereby ratified and title validated and

confirmed in the lessees named in such leases, their heirs,

successors or assigns, subject only to the terms and provisions

of said leases and the laws applicable thereto; however, nothing

herein shall validate, affect, or apply to any such oil and gas

lease which is not otherwise valid and in force on the effective

date of this Act.

Acts 1953, 53rd Leg., p. 440, ch. 128, Sec. 1.