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 General Land Office to 

require the payment of interest on the bonus before filing 

a Relinquishment Act lease. 

Dear Sir: 

You have requested our opinion regardin@; 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 General Iand Office to require payment of interest at the legal rate of 6 per cent before 

accepting an unreasonably lat,e bonus payment and filing 

the lease." 

It is settled that the provisions of the Relinquishment 

Act regarding payment are 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 withheld after the time 

fixed by statute for payment. State v. Powell, 70 S.W.2d 297 (Tex. 

Civ.App. 1934). There is, however, no statute fixing the time for 

payment of the bonus. 

In order to raise an implied promise to pay legal interest, it is not necessary that the contract itself establish a fixed 

liability in a definite amount as of a date certain. It is sufficient if the contract provides the conditions unon which liabilitv 

depends. Federal Life-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 cannot escape liability for 

bonus payments by his failure or refusal to 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 a 
Hon. C. H. Cavnese - Page 2 - V-lG92. 

suit is in effect a suit for specific performance. Caprito Y. 

Grisham-Hunter Co-., supra. 

It is~ likewise the rule that if an obligation is payable 

upon an event which depends entirely upon the obligor, the obligation becomes due after the expiration of a reasonable time for the 

event to have been brought about. 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 enacted for the benefit of the State. It is 

included in General Land Office lease forms for the same reason* 

We think that a duty is thereby imposed upon the lessee to file 

the lease within a reaaon&ble,time. Cf. Cheek v. 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); Cunyus v. Hooks Lumber Co., 

S.W. 1106 (Tex.Civ.App. l&IS);,66 C.J."680, Vendor and Purchaser, 

Sec. 241. The SQite could waive the right to have the lease filed 

and sue for 'the~purchase prick. Cf. Goiden West 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 should have 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 General Land Office to request 

payment of interest before filing a, Rel$nquishment Act lease if the 

payment of 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 

payment to the State of bonus money from a Relinquishment Act lease, it;!;8 legal'+nq proper for the 

Commissioner of the General Land Office to request 

payment of interest before filing the lease. If 

payment of 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, 

Attorney General 

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