2023 Texas Statutes › Natural Resources Code › Title 2 - Public Domain › Subtitle D - Disposition of the Public Domain › Chapter 52 - Oil and Gas › Subchapter B. Lease of Public School and Gulf Land › Section 52.0301. Suspension of Terms of Lease in Certain Situations

Sec. 52.0301.  SUSPENSION OF TERMS OF LEASE IN CERTAIN SITUATIONS.  (a)  If the lessee of a valid oil and gas lease granted by the state is unable to obtain access to the leased premises, or is unable to obtain in a timely manner a permit to drill on or produce from the leased premises by any duly constituted authority of the United States or of this state after a diligent, good faith attempt has been made by the lessee to obtain access to, or a permit to drill on or produce from, the leased premises, the lessee may file with the board an application describing and giving the date of the action that deprives the lessee of access to or a permit to drill on or produce from the leased premises.
(b)  If the board is satisfied that the facts included in the application are true and that the lessee acted diligently and in good faith in an attempt to gain access to or the right to drill on or produce from the leased premises, the board may order the suspension of the lease or any condition or covenant contained in the lease from the date the board determines to be the date the cause for the suspension began, except as otherwise provided by this section.
(c)  The board may set as a condition to approving the application for a suspension of the lease any term or requirement that relates to the duration of the suspension, the administration of the property during the suspension, reporting requirements during the suspension, or another administrative matter that the board determines is in the best interest of the state.
(d)  If the lease is suspended during its primary term, the lessee shall make payments in the amount of the annual delay rental stipulated in the lease by each anniversary date of the lease during the period of suspension.  If the payments in the amount of the annual delay rental are not paid by each anniversary date of the lease, the lease shall not automatically terminate.  However, the amount of the annual delay rental stipulated in the lease due by each anniversary date of the lease during the period of suspension continues to be an obligation and debt owed by the lessee.  The lessee shall pay all royalties, if any, that accrue during the period of suspension of the lease in the same manner as they are to be paid under the terms of the lease.
(e)  If the lease is suspended during its primary term, then, when the suspension ends, the primary term provided in the lease shall resume and continue to run for the remainder of the period specified in the lease, and all conditions and covenants contained in the lease shall be operative.
(f)  If the lease is suspended during its secondary term, then, when the suspension ends, the lease and all of the conditions and covenants contained in the lease shall be operative, and the lessee shall have 60 days from the date the suspension ends to produce in paying quantities or to commence drilling or reworking operations on the lease as if production had ceased on that date under Section 52.023 of this code.
(g)  This section may not be construed as abridging any rights or privileges conveyed under Chapter 287, Acts of the 47th Legislature, Regular Session, 1941 (Article 5366a, Vernon's Texas Civil Statutes).
Added by Acts 1979, 66th Leg., p. 2006, ch. 785, Sec. 7, eff. June 13, 1979.  Amended by Acts 1985, 69th Leg., ch. 923, Sec. 14, eff. Aug. 26, 1985;  Acts 1987, 70th Leg., ch. 948, Sec. 21, eff. Sept. 1, 1987;  Acts 1993, 73rd Leg., ch. 897, Sec. 24, eff. Sept. 1, 1993.