# THEATTORNEYGENERAI. 0F TEXAS

Hon. C. H. Cavness State Auditor Austin,Texas August 21, 1950
Opinion

No. V-1092.
Re: Authority

of the Codssioner of the GeneralLand Office to requirethe paymentof interest on the bonus before filing a Relinquishment

Act lease.
Dear Sir:
You have requested our opinionregardin@; interest

on delayed payments.

of the bonus for Relinquishment Act leases. You ask: 7,

. . . whether

. . . it would not be legal for the Commissioner

of the GeneralIand Office to requirepayment of interest

at the legal rate of 6 per cent before accepting

an unreasonably

lat,e bonus paymentand filing the lease."
It is settled

that the provisions of the Relinquishment Act regarding

paymentare read into the leases executed thereunder (Permian

Oil CO. Y. State, 161 S.W.2d 568 (Tex.Civ.App. 1942))and that interest

is due the State on royalties withheldafter the time fixed by statutefor payment. State v. Powell,70 S.W.2d 297 (Tex. Civ.App.1934). There is, however, no statutefixing the time for paymentof the bonus.

In order to raise an implied promiseto pay legal interest, it is not necessary that the contractitselfestablish a fixed liability

in a definite

amountas of a date certain. It is sufficient if the contract provides

the conditions

unon which liabilitv depends. FederalLife-Ins. Co. v. Kriton, 112 %ex. 532, 249 S.W." 193 (1923);

Phillips

Petroleum

Co. v. Johnson,155 F.2d 185, 191- 192 (CCA 5th 1946); 25 Tex. Jur. 19, Interest, Sec. 13.
A Relinquishment

Act lessee cannotescape liability for bonus payments

by his failureor refusalto file a lease. It is settled

that an oil and gas lessor can affirm the lease and sue for the purchase

price,with interest. s, 146 ~.~.2d 767 (Tex.Civ.App. 1940, Arcadia

Refining

Co. v. ,error dism.); Grisham-Hunter

Corp., 128 S.W.2d 149 (Tex.Civ.App. 1939, error dism.);McMillin

v. Wilson, 121 S.W.2d 1029 (Tex.Civ.App. 1938, error dism.);31A Tex. Jur. 502, Oil and Gas, Sec. 274. Such aHon. C. H. Cavnese - Page 2 - V-lG92.

suit is in effecta suit for specific performance. Caprito Y. Grisham-Hunter

Co-., supra.
It is~ likewise

the rule that if an obligation is payable upon an eventwhich depends entirely

upon the obligor,

the obligation becomesdue after the expiration of a reasonable

time for the event to have been broughtabout. C. C. Slaughter Co. v. Eller, 196 S.W. 704, 706 (Tex.~Civ.App. 1917, erro -- - of Potter, 173 S.W. 462, 467 (Tex.Civ.App. 1915, error rt Tex. Jur. 632-633,Papent, Se?; 3; 66 C.J. 682, Vendor and &rI r ref.);Boese;f;:C;c$nty

chaser,

Sec. 241.
The statute

requiring

the filing of the lease (Article 5421c-2,

V.C.S.)

was enactedfor the benefitof the State. It is included

in GeneralLand Office lease forms for the same reason* We think that a duty is thereby imposed upon the lesseeto file the leasewithin a reaaon&ble,time. Cf. Cheekv. Metzer, 116 Tex. 356, 291 S.W. 860 (1927); Longinotti

**V.** McShane, 184 s.w. 598 (Tex. Civ.App.1916, error ref.); United & South Oil Co. v. Tiller, 283 S.W. 676, 679 (Tex.Civ,App. 1926, error ref.);Clark v. Wilson, pl S.W. 627 (Tex.Civ.App.~ 1906);Cunyusv. Hooks LumberCo., S.W. 1106 (Tex.Civ.App. l&IS);,66

C.J."680,

Vendor and Purchaser, Sec. 241. The SQite couldwaive the right to have the lease filed and sue for 'the~purchase prick. Cf. GoidenWest Oil Co. No. 1 v.' Golden Rod,011 Co. No. l/285 S,W~. 63T(?%eX;Civ:.Auu.

1926).aff. 293 S.W. 167 (TexXti.App. 1927); Verschoyle

v. Ti&as; 2ki S~.W.' 554 (T$x.Civ,App.

'1924)'.

In'&Uch

a suit, t&e State would be entitld. to recover

the bonus due as pticb@se price with interest from the date that the lease and bonus shouldhave been tendered for filing. Cf. MdlilUn Y. Wilson, 12i S.W.2d 1029 (Tex.Civ.App. 1938, error dism.'). .~

It is our opinion,

therefor;,

that i$~vould

be ,legal

and. proper for the Commissioser of the GeneralLand Officeto request paymentof interest before filinga,

Rel$nquishment

Act lease if the paymentof the bonus is made at an unreasonably late date, If payment of interest

is'refused,

the.Comr@sioner

may place the,payment in suspense

and request,that

this off,ice

take action for cqllection of the interest.

Where there is sn &reasanable delay in the paymentto the State of bonus money from a Relinquishment

Act lease, it;!;8

legal'+nq

proper for the Commissioner

of the GeneralLand Office to request paymentof interest before filingthe lease. If paymentof interest is refused.,

the Commissioner.

Hon. C. H. Cavness - Page 3 - V-1092.

may place the bonus payment in suspense and request the Attorney

General

to take action for collection of the interest.

Yours very tmly,

APPROVED: PRICE DANIEL Attorney

General
Charles

D. Mathews First Assistant Price Daniel, AttorneyGeneral J??L:pwb