reglab/statecodes huggingface dataset:
2023 Texas Statutes › Natural Resources Code › Title 2 - Public Domain › Subtitle D - Disposition of the Public Domain › Chapter 52 - Oil and Gas › Subchapter D. Royalties › Section 52.139. Limitations on Audit Assessments

Sec. 52.139.  LIMITATIONS ON AUDIT ASSESSMENTS.  (a)  If an audit billing notice has been issued under Section 52.135 and any outstanding audit deficiency assessment has been paid either:
(1)  voluntarily;
(2)  after a hearing was requested and the commissioner has entered a final non-appealable order concerning the assessment; or
(3)  after a final non-appealable judgment has been rendered by a court after filing of a suit under Section 52.137, then the commissioner may not issue another deficiency assessment which covers the same issues, time periods, and leases as those covered by the previous assessment.
(b)  If the commissioner audits a lessee's books and records under Section 52.135 of this code the commissioner shall notify the lessee upon completion of his findings.  If the commissioner notifies the lessee that no additional royalties are due, the commissioner may not again audit the books and records covering the same issues, time periods, and leases involved in the first audit.
(c)  This section shall not preclude the commissioner from conducting subsequent audits or examinations covering the same issues, time periods, and leases in cases where fraud exists or where the first audit deficiency assessment results only from an examination of documents, records, or reports submitted to the commissioner and not from a complete audit of the books, accounts, reports, or other records of a lessee.
Added by Acts 1987, 70th Leg., ch. 948, Sec. 26, eff. Sept. 1, 1987.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 3 (S.B. 903), Sec. 9, eff. September 1, 2015.
2023 Texas Statutes › Natural Resources Code › Title 2 - Public Domain › Subtitle D - Disposition of the Public Domain › Chapter 52 - Oil and Gas › Subchapter D. Royalties › Section 52.140. Audit Information Confidential

Sec. 52.140.  AUDIT INFORMATION CONFIDENTIAL.  (a)  All information secured, derived, or obtained during the course of an inspection or examination of books, accounts, reports, or other records, as provided in Section 52.135 of this code, is confidential and may not be used publicly, opened for public inspection, or disclosed, except for information set forth in a lien filed under this chapter and except as permitted under Subsection (d) of this section.
(b)  All information made confidential in this section shall not be subject to subpoena directed to the commissioner, the attorney general, or the governor except in a judicial or administrative proceeding in which this state is a party.
(c)  The commissioner or the attorney general may use information made confidential by the provisions of this section and contracts made confidential by Section 52.134 of this code to enforce any provisions of this chapter or may authorize their use in judicial or administrative proceedings in which this state is a party.
(d)  This section does not prohibit:
(1)  the delivery of information made confidential by this section to the lessee or its successor, receiver, executor, guarantor, administrator, assignee, or representative;
(2)  the publication of statistics classified to prevent the identification of a particular audit or items in a particular audit;
(3)  the release of information which is otherwise available to the public;  or
(4)  the release of information concerning the amount of royalty assessed as a result of an examination conducted under Section 52.135 of this code or the release of other information which would have been properly included in reports required under Section 52.131 of this code.
Added by Acts 1987, 70th Leg., ch. 948, Sec. 27, eff. Sept. 1, 1987.
2023 Texas Statutes › Natural Resources Code › Title 2 - Public Domain › Subtitle D - Disposition of the Public Domain › Chapter 52 - Oil and Gas › Subchapter E. Unitization of Leased Areas › Section 52.151. Authorization to Operate Areas as Units

Sec. 52.151.  AUTHORIZATION TO OPERATE AREAS AS UNITS.  (a)  The commissioner, on behalf of the state or any fund that belongs to the state, may execute agreements that provide for operating areas as a unit for the exploration, development, and production of oil or gas or both and to commit to the agreements:
(1)  the royalty interests in oil, gas, or both oil and gas, reserved to the state or any fund of the state by law, in a patent, in a contract of sale, or under the terms of an oil and gas lease legally executed by an official, board, agent, agency, or authority of the state;  or
(2)  the free royalty interests, whether leased or unleased, reserved to the state pursuant to Section 51.201 or 51.054 of this code.
(b)  Before executing an agreement authorized by Subsection (a) of this section, the commissioner must find that the agreement is in the best interest of the state.
Acts 1977, 65th Leg., p. 2456, ch. 871, art. I, Sec. 1, eff. Sept. 1, 1977.  Amended by Acts 1987, 70th Leg., ch. 948, Sec. 28, eff. Sept. 1, 1987;  Acts 1993, 73rd Leg., ch. 897, Sec. 32, eff. Sept. 1, 1993.
2023 Texas Statutes › Natural Resources Code › Title 2 - Public Domain › Subtitle D - Disposition of the Public Domain › Chapter 52 - Oil and Gas › Subchapter E. Unitization of Leased Areas › Section 52.152. Approval of Agreements

Sec. 52.152.  APPROVAL OF AGREEMENTS.  (a)  An agreement must be approved by the board and executed by the commissioner to be effective if the agreement commits:
(1)  a royalty interest in land belonging to the permanent school fund or the asylum funds, in riverbeds, inland lakes, and channels, or in an area within tidewater limits, including islands, lakes, bays, inlets, marshes, reefs, and the bed of the sea;  or
(2)  the free royalty interests, whether leased or unleased, reserved to the state pursuant to Section 51.201 or 51.054 of this code.
(b)  An owner of the soil who is subject to Subchapter F  of this chapter may grant to a lessee prior authority to pool or unitize the interest of the owner in a lease executed under that subchapter.  For the provisions of an agreement to bind the interest of an owner of the soil who is subject to Subchapter F of this chapter and who has not granted the lessee prior authorization to pool or unitize the owner's interest in an oil and gas lease executed under that subchapter, the agreement must be executed by the owner of the soil.
(c)  An agreement that commits any interest in any land not listed in Subsection (a) of this section must be approved by the board, official, agent, agency, or authority of the state which has the authority to lease or to approve the lease of the land for oil and gas and must be executed by the commissioner to be effective.
Acts 1977, 65th Leg., p. 2457, ch. 871, art. I, Sec. 1, eff. Sept. 1, 1977.  Amended by Acts 1987, 70th Leg., ch. 948, Sec. 29, eff. Sept. 1, 1987;  Acts 1993, 73rd Leg., ch. 897, Sec. 33, eff. Sept. 1, 1993.
2023 Texas Statutes › Natural Resources Code › Title 2 - Public Domain › Subtitle D - Disposition of the Public Domain › Chapter 52 - Oil and Gas › Subchapter E. Unitization of Leased Areas › Section 52.153. Provisions of Agreement

Sec. 52.153.  PROVISIONS OF AGREEMENT.  (a)  An agreement executed under this subchapter may include the following provisions:
(1)  that operations incident to drilling a well on any portion of a unit shall be considered for all purposes to be conduct of the operations on each tract in the unit;
(2)  that production allocated by the agreement to each tract included in the unit when produced shall be considered for all purposes to have been production from the tract;
(3)  that the interest reserved to or provided for the state or any of its funds on production from any tract included in the unit shall be paid only on that portion of the production from the unit that is allocated to the tract under the agreement;  and
(4)  that each lease included in the unit shall remain in effect as long as the agreement remains in effect and that on termination of the agreement each lease shall continue in effect under the terms and conditions of the lease.
(b)  The agreement may include any other terms and conditions the commissioner or any board, official, agent, agency, or authority of the state that has the authority to lease or to approve a lease of the land for oil and gas may consider to be in the best interest of the state.
Acts 1977, 65th Leg., p. 2457, ch. 871, art. I, Sec. 1, eff. Sept. 1, 1977.  Amended by Acts 1993, 73rd Leg., ch. 897, Sec. 34, eff. Sept. 1, 1993.
2023 Texas Statutes › Natural Resources Code › Title 2 - Public Domain › Subtitle D - Disposition of the Public Domain › Chapter 52 - Oil and Gas › Subchapter E. Unitization of Leased Areas › Section 52.154. Ratifications and Other Agreements

Sec. 52.154.  RATIFICATIONS AND OTHER AGREEMENTS.  (a)  The board may approve, by rule or order, a ratification or other agreement that includes in the benefits of production a mineral or royalty interest in land belonging to the permanent school fund or the asylum funds.
(b)  An agreement approved by the board under this section must be executed by the commissioner to be effective.
(c)  A ratification or other agreement that commits any of the interests listed in Subsection (a) of this section in land not belonging to the permanent school fund or the asylum funds must be approved by the board, official, agent, agency, or authority of the state that has the authority to lease or to approve the lease of the land for oil and gas and must be executed by the commissioner to be effective.
Added by Acts 1993, 73rd Leg., ch. 897, Sec. 35, eff. Sept. 1, 1993.
2023 Texas Statutes › Natural Resources Code › Title 2 - Public Domain › Subtitle D - Disposition of the Public Domain › Chapter 52 - Oil and Gas › Subchapter F. Relinquishment › Section 52.171. School and Asylum Lands

Sec. 52.171.  SCHOOL AND ASYLUM LANDS.  The state hereby constitutes the owner of the soil its agent for the purposes herein named, and in consideration therefor, relinquishes and vests in the owner of the soil an undivided fifteen-sixteenths of all oil and gas which has been undeveloped and the value of the same that may be upon and within the surveyed and unsurveyed public free school land and asylum lands and portions of such surveys sold with a mineral classification or mineral reservation, subject to the terms of this law.  The remaining undivided portion of said oil and gas and its value is hereby reserved for the use of and benefit of the public school fund and the several asylum funds.
Acts 1977, 65th Leg., p. 2457, ch. 871, art. I, Sec. 1, eff. Sept. 1, 1977.
2023 Texas Statutes › Natural Resources Code › Title 2 - Public Domain › Subtitle D - Disposition of the Public Domain › Chapter 52 - Oil and Gas › Subchapter F. Relinquishment › Section 52.172. Sale and Lease by Agent

Sec. 52.172.  SALE AND LEASE BY AGENT.  The owner of said land is hereby authorized to sell or lease to any person, firm, or corporation the oil and gas that may be thereon or therein upon such terms and conditions as such owner may deem best, subject only to the provisions hereof, and he may have a second lien thereon to secure the payment of any sum due him.  All leases and sales so made shall be assignable.  No oil or gas rights shall be sold or leased hereunder for a delay rental during the primary term of less than 10 cents per acre per year plus royalty, and in case of production, the lessee or purchaser shall pay the state the undivided one-sixteenth of the value of the oil and gas reserved herein, and like amounts to the owner of the soil.
Acts 1977, 65th Leg., p. 2457, ch. 871, art. I, Sec. 1, eff. Sept. 1, 1977.  Amended by Acts 1985, 69th Leg., ch. 624, Sec. 44, eff. Sept. 1, 1985.
2023 Texas Statutes › Natural Resources Code › Title 2 - Public Domain › Subtitle D - Disposition of the Public Domain › Chapter 52 - Oil and Gas › Subchapter F. Relinquishment › Section 52.174. Failure to Drill Offset

Sec. 52.174.  FAILURE TO DRILL OFFSET.  If such persons fail or refuse to begin the drilling of such well or wells within the time required or to prosecute such drilling as necessary for the purpose intended herein, any lease of such land executed under the provisions of this law shall be subject to forfeiture by the Commissioner of the General Land Office, and he shall forfeit same when he is sufficiently informed of the facts which authorize a forfeiture, and shall, on the wrapper containing the papers relating to such lease, write and sign officially words declaring such forfeiture, and the lease and all rights thereunder shall thereupon be forfeited together with all payments made thereunder.  Notice of such action shall forthwith be mailed to the persons shown by the records of the General Land Office to be the owners of the surface and the owners of the forfeited lease at their last known addresses as shown by the records of said office.  Upon proper showing by the owner of the forfeited lease within 30 days after the declaration of forfeiture, the lease may, at the discretion of the commissioner and upon the terms of this subchapter and such other terms as he may prescribe, be reinstated.  If such lease be not reinstated within such time, or if the commissioner finds that any unleased land included in this law is being drained, the commissioner shall notify the person at his last known address, as shown by records of the General Land Office to be the surface owner, that the oil and gas is subject to sale or lease by the owner of the soil in accordance with this law, and that drilling is required.  If such owner shall fail or refuse to obtain the commencement of such a well within 100 days after the date of such notice, the relinquishment herein granted and the rights acquired thereunder shall be subject to forfeiture by the commissioner by endorsing on the file wrapper containing the papers relating to the sale of the land, words indicating such forfeiture, and such rights shall thereupon be forfeited, and notice of such forfeiture shall be forwarded to the county clerk of the county wherein the land is situated.  The rights of any owner of the soil which may have ipso facto terminated under prior laws shall be reinstated and are hereby reinstated, together with all rights acquired thereunder except where rights of third parties may have intervened.  All rights herein reinstated shall be subject to the terms and provisions of this subchapter.
Acts 1977, 65th Leg., p. 2458, ch. 871, art. I, Sec. 1, eff. Sept. 1, 1977.
2023 Texas Statutes › Natural Resources Code › Title 2 - Public Domain › Subtitle D - Disposition of the Public Domain › Chapter 52 - Oil and Gas › Subchapter F. Relinquishment › Section 52.175. Lease of Oil and Gas After Forfeiture

Sec. 52.175.  LEASE OF OIL AND GAS AFTER FORFEITURE.  When the relinquishment or agency right herein granted has been forfeited, the land shall be subject to lease for oil and gas under the procedure provided by law for the leasing of unsold surveyed public school lands.  The substantive provisions of Subchapter B of this chapter  and Subchapters D and E, Chapter 32, of this code  shall apply to the oil and gas lease.  No oil and gas lease shall be executed which provides for a royalty of less than one-eighth, payable to the state for the benefit of the permanent free school fund.  The owner of the soil shall not be entitled to any revenue generated by a lease executed pursuant to this section.  Upon the termination or expiration of a lease so executed by the Commissioner of the General Land Office, the rights of the surface owner to act under this law shall be ipso facto reinstated.
Acts 1977, 65th Leg., p. 2459, ch. 871, art. I, Sec. 1, eff. Sept. 1, 1977.  Amended by Acts 1987, 70th Leg., ch. 912, Sec. 1, eff. Aug. 31, 1987;  Acts 1993, 73rd Leg., ch. 897, Sec. 36, eff. Sept. 1, 1993.
2023 Texas Statutes › Natural Resources Code › Title 2 - Public Domain › Subtitle D - Disposition of the Public Domain › Chapter 52 - Oil and Gas › Subchapter F. Relinquishment › Section 52.176. Forfeiture of Rights

Sec. 52.176.  FORFEITURE OF RIGHTS.  If any person, firm, or corporation operating under this law shall fail or refuse to make the payment of any sum within 30 days after it becomes due, or if such one or an authorized agent should knowingly make any false return or false report concerning production or drilling, or if such one should fail to file reports in the manner required by law or fail to comply with General Land Office rules and regulations or refuse the proper authority access to the records pertaining to the operations, or if such one or an authorized agent should knowingly fail or refuse to give correct information to the proper authority, or knowingly fail or refuse to furnish the land office a correct log of any well, or if any lease is assigned and the assignment is not filed in the General Land Office as required by law, the rights acquired under the permit or lease shall be subject to forfeiture by the commissioner, and he shall forfeit same when sufficiently informed of the facts which authorize a forfeiture, and the oil and gas shall be subject to sale in the manner provided for the sale of other forfeited rights hereunder, except that the owner of the soil shall not thereby forfeit his interest in the oil and gas.  Such forfeiture may be set aside and all rights theretofore existing shall be reinstated at any time before the rights of another intervene, upon satisfactory evidence of future compliance with the provisions of this subchapter.
Acts 1977, 65th Leg., p. 2459, ch. 871, art. I, Sec. 1, eff. Sept. 1, 1977.
2023 Texas Statutes › Natural Resources Code › Title 2 - Public Domain › Subtitle D - Disposition of the Public Domain › Chapter 52 - Oil and Gas › Subchapter F. Relinquishment › Section 52.177. Rights of Subsequent Purchaser

Sec. 52.177.  RIGHTS OF SUBSEQUENT PURCHASER.  If one acquires a valid right by permit or lease to the oil and gas in any unsold public free school or asylum land under any other law, a subsequent purchaser of such land shall not acquire any rights to any of the oil and gas that may be therein, but when the rights under such permit or lease terminate in the manner provided in the law under which they were obtained, then the owner of the soil shall become the owner of that portion of the oil and gas herein relinquished, and shall be thereafter subject to the provisions of this law.  A forfeiture of the purchase of any survey or tract for any cause shall operate as a forfeiture of the minerals therein to the state.  A relinquishment to the state of a lease producing oil or gas in paying quantities shall not operate to relinquish or convey to the owner of the soil any interest whatever in the oil and gas that may be in the land included in said lease.
Acts 1977, 65th Leg., p. 2459, ch. 871, art. I, Sec. 1, eff. Sept. 1, 1977.
2023 Texas Statutes › Natural Resources Code › Title 2 - Public Domain › Subtitle D - Disposition of the Public Domain › Chapter 52 - Oil and Gas › Subchapter F. Relinquishment › Section 52.178. Operation Under Permit

Sec. 52.178.  OPERATION UNDER PERMIT.  The owner of a permit or combination of permits shall have 18 months from the date or average date thereof in which to begin drilling a well for oil and gas on some portion of the land included therein.  The drilling on one permit shall be sufficient protection against forfeiture of all the permits included in a combination.  Owners of permits or combination of permits included herein shall have three years after the date or average date thereof in which to complete the development of oil and gas thereon, and if oil and gas should not be found in paying quantities and a lease applied for within said time all rights in such permit or combination of permits shall terminate, and the oil and gas in such land shall become subject to the provisions of this law relating to the relinquishment of oil and gas to the owner of the soil.
Acts 1977, 65th Leg., p. 2460, ch. 871, art. I, Sec. 1, eff. Sept. 1, 1977.
2023 Texas Statutes › Natural Resources Code › Title 2 - Public Domain › Subtitle D - Disposition of the Public Domain › Chapter 52 - Oil and Gas › Subchapter F. Relinquishment › Section 52.179. Lease Under Permit

Sec. 52.179.  LEASE UNDER PERMIT.  If oil or gas should be produced in paying quantities upon any land included in this law, the owner of the permit shall report the development to the commissioner within 30 days thereafter and apply for a lease upon such whole surveys or tracts in each permit as the owner or owners of a combination of permits may desire to be leased, and accompany the application with a log of the wells, and the correctness of the log shall be sworn to by the owner, manager, or driller, and thereupon a lease shall be issued without the payment of any additional sum of money and for a period not to exceed 10 years, subject to renewal or renewals.
Acts 1977, 65th Leg., p. 2460, ch. 871, art. I, Sec. 1, eff. Sept. 1, 1977.
2023 Texas Statutes › Natural Resources Code › Title 2 - Public Domain › Subtitle D - Disposition of the Public Domain › Chapter 52 - Oil and Gas › Subchapter F. Relinquishment › Section 52.180. Payments Under Permit

Sec. 52.180.  PAYMENTS UNDER PERMIT.  The owner of a permit or combination of permits who desires to avail himself of the terms of this law, shall pay the state 10 cents per acre, annually in advance, for the second and third years, and shall likewise pay the owner of the soil 10 cents per acre for the first year of such permit, before availing himself of the privileges hereof, and a like sum thereafter annually in advance.  A failure to make either of said payments shall subject the permit or permits to forfeiture by the commissioner, and when sufficiently informed of the facts which subject the permits to forfeiture, said commissioner shall forfeit the same by an endorsement of forfeiture upon the wrapper containing the papers relating to the permits and sign it officially.  The payment of 10 cents per acre to the owner of the soil may be made to him or to the county clerk of the county in which the land is situated, and said clerk shall deposit such payment as he receives, in some bank at the county seat to the credit of the record owner of such land.  If the owner of the soil refuses to accept such payment, said clerk shall withdraw such deposit and return it to the owner of the permit.  The payment, or the tender of payment, shall be evidenced by the receipt of the owner or part owner or county clerk filed among the papers in the land office relating to such permits.
Acts 1977, 65th Leg., p. 2460, ch. 871, art. I, Sec. 1, eff. Sept. 1, 1977.
2023 Texas Statutes › Natural Resources Code › Title 2 - Public Domain › Subtitle D - Disposition of the Public Domain › Chapter 52 - Oil and Gas › Subchapter F. Relinquishment › Section 52.181. Relinquishment Under Permit

Sec. 52.181.  RELINQUISHMENT UNDER PERMIT.  The owner of a permit or combination of permits may relinquish to the state a permit or combination of permits or any whole survey or whole tract included in a permit at any time before obtaining a lease therefor by having such relinquishment recorded in the counties in which the land or part thereof is situated, and by filing it in the land office within 60 days after its execution, with a filing fee set by the commissioner in an amount not less than $1.
Acts 1977, 65th Leg., p. 2460, ch. 871, art. I, Sec. 1, eff. Sept. 1, 1977.  Amended by Acts 1983, 68th Leg., p. 405, ch. 81, Sec. 21(k), eff. Sept. 1, 1983.
2023 Texas Statutes › Natural Resources Code › Title 2 - Public Domain › Subtitle D - Disposition of the Public Domain › Chapter 52 - Oil and Gas › Subchapter F. Relinquishment › Section 52.182. Damages to Soil

Sec. 52.182.  DAMAGES TO SOIL.  The payment of delay rentals and the obligation to pay the owner of the soil one-sixteenth of the production and the payment of same when produced and the acceptance of same by the owner, shall be in lieu of all damages to the soil.
Acts 1977, 65th Leg., p. 2461, ch. 871, art. I, Sec. 1, eff. Sept. 1, 1977.  Amended by Acts 1985, 69th Leg., ch. 923, Sec. 18, eff. Aug. 26, 1985.
2023 Texas Statutes › Natural Resources Code › Title 2 - Public Domain › Subtitle D - Disposition of the Public Domain › Chapter 52 - Oil and Gas › Subchapter F. Relinquishment › Section 52.183. Effective Date of Lease

Sec. 52.183.  EFFECTIVE DATE OF LEASE.  No mineral lease executed by the owner of the land or minerals under this subchapter is effective until a certified copy of the lease is filed in the land office.
Acts 1977, 65th Leg., p. 2461, ch. 871, art. I, Sec. 1, eff. Sept. 1, 1977.
2023 Texas Statutes › Natural Resources Code › Title 2 - Public Domain › Subtitle D - Disposition of the Public Domain › Chapter 52 - Oil and Gas › Subchapter F. Relinquishment › Section 52.184. Statement of Consideration

Sec. 52.184.  STATEMENT OF CONSIDERATION.  No lease executed under this subchapter after September 17, 1939, is binding on the state unless it recites the actual and true consideration paid or promised.
Acts 1977, 65th Leg., p. 2461, ch. 871, art. I, Sec. 1, eff. Sept. 1, 1977.
2023 Texas Statutes › Natural Resources Code › Title 2 - Public Domain › Subtitle D - Disposition of the Public Domain › Chapter 52 - Oil and Gas › Subchapter F. Relinquishment › Section 52.185. University Land

Sec. 52.185.  UNIVERSITY LAND.  The provisions of this subchapter relating to a combination of permits and extension of time for beginning development and time for development applies to permits on university land.
Acts 1977, 65th Leg., p. 2461, ch. 871, art. I, Sec. 1, eff. Sept. 1, 1977.
2023 Texas Statutes › Natural Resources Code › Title 2 - Public Domain › Subtitle D - Disposition of the Public Domain › Chapter 52 - Oil and Gas › Subchapter H. Lease Limitations › Section 52.291. Coverage

Sec. 52.291.  COVERAGE.  The following persons, agencies, and entities are subject to the provisions of Sections 52.292 through 52.293 of this code:
(1)  the commissioner;
(2)  the board;
(3)  boards for lease of land owned by a department, board, or agency of the state created by Chapter 34 of this code;
(4)  the Board for Lease of University Lands;
(5)  the Board of Regents of Texas A&M University;
(6)  the Board of Regents of Texas Tech University;
(7)  the Board of Regents of the Texas State University System;
(8)  the Board of Regents of the University of Houston;
(9)  any other board of regents or other governing board of a state-supported institution of higher learning having authority to execute oil and gas leases on land owned by the institution;
(10)  an owner of land or minerals in this state whose authority to lease the land or minerals as agent for the state arises in whole or in part from what is commonly known as the Relinquishment Act, codified in Subchapter F  of this chapter;
(11)  the Board for Lease of State Park Lands;
(12)  the Board for Lease of the Texas Department of Criminal Justice;  and
(13)  the commissioners court of any county in this state.
Acts 1977, 65th Leg., p. 2466, ch. 871, art. I, Sec. 1, eff. Sept. 1, 1977.  Amended by Acts 1993, 73rd Leg., ch. 897, Sec. 38, eff. Sept. 1, 1993;  Acts 1997, 75th Leg., ch. 227, Sec. 6, eff. May 23, 1997.
2023 Texas Statutes › Natural Resources Code › Title 2 - Public Domain › Subtitle D - Disposition of the Public Domain › Chapter 52 - Oil and Gas › Subchapter H. Lease Limitations › Section 52.297. Compensation for Damages From Use of Surface

Sec. 52.297.  COMPENSATION FOR DAMAGES FROM USE OF SURFACE.  (a)  Leases issued under Subchapter B of this chapter  for unsold surveyed or unsurveyed school land, other than land included in islands, saltwater lakes, bays, inlets, marshes, and reefs owned by the state in tidewater limits and other than that portion of the Gulf of Mexico within the jurisdiction of the state, must include a provision requiring the compensation for damages from the use of the surface in prospecting for, exploring, developing, or producing the leased minerals.
(b)  The commissioner by rule shall set the procedure for receiving compensation for damages to the surface of land dedicated to the permanent school fund.
(c)  Money collected for surface damages shall be deposited in a special fund account in the State Treasury to be used for conservation, reclamation, or construction of permanent improvements on land that belongs to the permanent school fund.
(d)  The special fund account must be an interest-bearing account, and the interest received on the account shall be deposited in the State Treasury to the credit of the permanent school fund.
(e)  Money collected under this section and designated for the construction of permanent improvements as provided by this section must be used not later than two years after the date on which the money is collected.
(f)  Any money that remains in the special fund account for longer than two years shall be deposited in the State Treasury to the credit of the permanent school fund.
(g)  The compensation for damages under this section is in addition to any bonus, rental, royalty, or other payment required by the lease.
Added by Acts 1985, 69th Leg., ch. 624, Sec. 46, eff. Sept. 1, 1985.  Amended by Acts 1993, 73rd Leg., ch. 897, Sec. 42, eff. Sept. 1, 1993;  Acts 2003, 78th Leg., ch. 328, Sec. 8, eff. Jan. 1, 2004.
2023 Texas Statutes › Natural Resources Code › Title 2 - Public Domain › Subtitle D - Disposition of the Public Domain › Chapter 52 - Oil and Gas › Subchapter I. Geophysical and Geochemical Exploration Permit › Section 52.321. Definitions

Sec. 52.321.  DEFINITIONS.  In this subchapter:
(1)  "Geophysical exploration" means a survey or investigation conducted to discover or locate oil and gas prospects using magnetic, gravity, seismic, and/or electrical techniques.
(2)  "Geochemical exploration" means a survey or investigation conducted to discover or locate oil and gas prospects using techniques involving soil sampling and analysis.
(3)  "Public school land" means land dedicated by the constitution or laws of this state to the permanent free school fund, and specifically includes land with a mineral classification under Subchapter F of this chapter  in which the state has retained the oil and gas interest and areas within tidewater limits.
(4)  "Areas within tidewater limits" means islands, saltwater lakes, bays, inlets, marshes, and reefs within tidewater limits and that portion of the Gulf of Mexico within the jurisdiction of Texas.
(5)  "Permit" means a license issued by the commissioner authorizing geophysical and/or geochemical exploration on public school land.
(6)  "Permittee" means the holder of a permit.
Added by Acts 1981, 67th Leg., p. 2451, ch. 631, Sec. 1, eff. Sept. 1, 1981.  Amended by Acts 1985, 69th Leg., ch. 624, Sec. 47, eff. Sept. 1, 1985;  Acts 1993, 73rd Leg., ch. 897, Sec. 43, eff. Sept. 1, 1993.
2023 Texas Statutes › Natural Resources Code › Title 2 - Public Domain › Subtitle D - Disposition of the Public Domain › Chapter 52 - Oil and Gas › Subchapter I. Geophysical and Geochemical Exploration Permit › Section 52.322. Permit Required for Exploration

Sec. 52.322.  PERMIT REQUIRED FOR EXPLORATION.  (a)  Except for a person who has a valid oil and gas lease on public school land authorized by this chapter, a person may not conduct geophysical or geochemical exploration on public school land unless the person obtains a permit from the commissioner.
(b)  Every person who is authorized to conduct a geophysical or geochemical exploration on public school land shall comply with the commissioner's rules relating to such exploration.  Any person with a valid oil and gas lease on land subject to this chapter must comply with the commissioner's rules concerning exploration.
(c)  Nothing in this title shall prohibit the conduct of airborne geophysical exploration.
Added by Acts 1981, 67th Leg., p. 2451, ch. 631, Sec. 1, eff. Sept. 1, 1981.  Amended by Acts 1985, 69th Leg., ch. 624, Sec. 47, eff. Sept. 1, 1985.
2023 Texas Statutes › Natural Resources Code › Title 2 - Public Domain › Subtitle D - Disposition of the Public Domain › Chapter 52 - Oil and Gas › Subchapter I. Geophysical and Geochemical Exploration Permit › Section 52.323. Application for Permit

Sec. 52.323.  APPLICATION FOR PERMIT.  (a)  The person responsible for conducting a geophysical or geochemical exploration is the person who must apply for a permit.
(b)  An application for a permit shall be made on a form prescribed by the commissioner and shall state the name and address of each person for whom the exploration is being conducted as well as any other information required by the commissioner.
Added by Acts 1981, 67th Leg., p. 2451, ch. 631, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Natural Resources Code › Title 2 - Public Domain › Subtitle D - Disposition of the Public Domain › Chapter 52 - Oil and Gas › Subchapter I. Geophysical and Geochemical Exploration Permit › Section 52.324. Authority of Commissioner

Sec. 52.324.  AUTHORITY OF COMMISSIONER.  (a)  The commissioner:
(1)  as a condition of issuing a permit, shall collect reasonable fees from the applicant in an amount determined by the commissioner;
(2)  may require a permittee to furnish to the commissioner, upon the commissioner's request, copies of maps, plats, reports, data, and any other information in the possession of the permittee that relates to the progress or results of an exploration under a permit;  provided however, the commissioner shall not require a permittee to furnish any of its interpretive data;
(3)  shall by rule require a permittee to restore land explored under the permit as nearly as is practicable to its condition immediately prior to the exploration;
(4)  shall by rule determine the procedure for receiving compensation for damages to the surface of public school land except land with a mineral classification under Subchapter F of this chapter;  and
(5)  may make any other rules relating to geophysical or geochemical explorations, permits, or permittees the commissioner considers appropriate.
(b)  Money collected for surface damages shall be deposited and used in the manner provided by Section 52.297 of this chapter.
(c)  In the case of areas within tidewater limits, the commissioner shall follow the recommendations of the Parks and Wildlife Department in making rules to prevent unnecessary pollution of water, destruction of fish, oysters, and other marine life, and obstruction of navigation.
(d)  If a permittee violates a rule of the commissioner or a term of a permit, the commissioner may cancel the permit.
(e)  If by authority of Subsection (a)(2) of this section the commissioner acquires information concerning a permittee's geophysical or geochemical exploration, the commissioner shall consider the information to be confidential and may not disclose it, except by authority of a court order, to the public or any other agency of this state.
Added by Acts 1981, 67th Leg., p. 2451, ch. 631, Sec. 1, eff. Sept. 1, 1981.  Amended by Acts 1985, 69th Leg., ch. 624, Sec. 47, eff. Sept. 1, 1985;  Acts 1993, 73rd Leg., ch. 897, Sec. 44, eff. Sept. 1, 1993.
2023 Texas Statutes › Natural Resources Code › Title 2 - Public Domain › Subtitle D - Disposition of the Public Domain › Chapter 52 - Oil and Gas › Subchapter I. Geophysical and Geochemical Exploration Permit › Section 52.325. Permittee's Failure to Comply

Sec. 52.325.  PERMITTEE'S FAILURE TO COMPLY.  (a)  If a permittee fails to restore land in accordance with Section 52.324(a)(3) of this code and the rules of the commissioner, the commissioner and any surface lessee may maintain an action against the permittee for actual damages to the land, or to the improvements, growing crops, or domesticated animals on the land that were caused by the geophysical or geochemical exploration.
(b)  If a permittee violates this subchapter, the provisions of a permit issued by authority of this subchapter, or a rule of the commissioner, the permittee commits an offense.  An offense under this subsection is a misdemeanor punishable by a fine of not less than $100 nor more than $1,000.  Each day that a violation occurs is a separate offense.
Added by Acts 1981, 67th Leg., p. 2451, ch. 631, Sec. 1, eff. Sept. 1, 1981.
2023 Texas Statutes › Natural Resources Code › Title 2 - Public Domain › Subtitle D - Disposition of the Public Domain › Chapter 53 - Minerals › Subchapter A. General Provisions › Section 53.001. Definitions

Sec. 53.001.  DEFINITIONS.  In this chapter:
(1)  "Commissioner" means the Commissioner of the General Land Office.
(2)  "Land office" means the General Land Office.
(3)  "Board" means the School Land Board.
(4)  "Surface mining" means the mining of minerals by removing the overburden lying above the natural deposit of minerals and mining directly from the natural deposits that are exposed.  The term does not include in situ mining activities.
Acts 1977, 65th Leg., p. 2469, ch. 871, art. I, Sec. 1, eff. Sept. 1, 1977.  Amended by Acts 1993, 73rd Leg., ch. 897, Sec. 45, eff. Sept. 1, 1993;  Acts 1999, 76th Leg., ch. 1483, Sec. 3, eff. Aug. 30, 1999.
2023 Texas Statutes › Natural Resources Code › Title 2 - Public Domain › Subtitle D - Disposition of the Public Domain › Chapter 53 - Minerals › Subchapter B. Prospect and Lease on State Land › Section 53.011. Land Subject to Prospect

Sec. 53.011.  LAND SUBJECT TO PROSPECT.  Any tract of land that belongs to the state, including islands, salt and freshwater lakes, bays, inlets, marshes, and reefs owned by the state within tidewater limits, the part of the Gulf of Mexico within the state's jurisdiction, unsold surveyed public school land, rivers and channels that belong to the state, and land sold with a reservation of minerals to the state are subject to prospect by any person for those minerals which are not subject to lease or permit under any other statute.  A person may not prospect from a location within 2,500 feet of a military base, but prospectors may, from a location more than 2,500 feet from a base, look for minerals within the 2,500-foot strip.
Acts 1977, 65th Leg., p. 2469, ch. 871, art. I, Sec. 1, eff. Sept. 1, 1977.  Amended by Acts 1987, 70th Leg., ch. 912, Sec. 4, eff. Aug. 31, 1987;  Acts 1987, 70th Leg., ch. 1061, Sec. 4, eff. Aug. 31, 1987;  Acts 2003, 78th Leg., ch. 149, Sec. 14, eff. May 27, 2003.
2023 Texas Statutes › Natural Resources Code › Title 2 - Public Domain › Subtitle D - Disposition of the Public Domain › Chapter 53 - Minerals › Subchapter B. Prospect and Lease on State Land › Section 53.012. Application for Right to Prospect

Sec. 53.012.  APPLICATION FOR RIGHT TO PROSPECT.  (a)  A person who desires to prospect land covered by this subchapter shall file an application with the commissioner designating the area to be prospected.
(b)  Each area covered by an application may not be in excess of 640 acres with a 10 percent tolerance for tracts, sections, and surveys that include more than 640 acres.
(c)  The commissioner may determine the contents of an application.
Acts 1977, 65th Leg., p. 2469, ch. 871, art. I, Sec. 1, eff. Sept. 1, 1977.  Amended by Acts 1993, 73rd Leg., ch. 897, Sec. 46, eff. Sept. 1, 1993.
2023 Texas Statutes › Natural Resources Code › Title 2 - Public Domain › Subtitle D - Disposition of the Public Domain › Chapter 53 - Minerals › Subchapter B. Prospect and Lease on State Land › Section 53.013. Conditions of Permit

Sec. 53.013.  CONDITIONS OF PERMIT.  (a)  The commissioner may issue to the first applicant a permit to prospect the area designated in the applicant's application for a period up to one year from the date the application is filed.  If the commissioner elects to grant the application for a permit to prospect under the provisions of this subchapter, the permit shall not be issued until after the land office receives the rental payment set by the commissioner.
(b)  After receipt of an additional rental payment set by the commissioner, the commissioner may extend the permit for a period of one year.
(c)  No permit may be extended for a period of more than five consecutive years from the date of its issuance.
Acts 1977, 65th Leg., p. 2470, ch. 871, art. I, Sec. 1, eff. Sept. 1, 1977.  Amended by Acts 1985, 69th Leg., ch. 923, Sec. 19, eff. Aug. 26, 1985;  Acts 1993, 73rd Leg., ch. 897, Sec. 47, eff. Sept. 1, 1993;  Acts 1995, 74th Leg., ch. 354, Sec. 4, eff. Aug. 28, 1995.
2023 Texas Statutes › Natural Resources Code › Title 2 - Public Domain › Subtitle D - Disposition of the Public Domain › Chapter 53 - Minerals › Subchapter B. Prospect and Lease on State Land › Section 53.015. Application for Lease

Sec. 53.015.  APPLICATION FOR LEASE.  (a)  At any time during the term of the permit, the permittee may file an application to lease the area or a designated portion of the area covered by the permit for the purpose of mining or producing the minerals covered by the permit.
(b)  An application to lease must designate the specific minerals the permittee is applying to lease.  The commissioner may determine any additional information an application must contain.
(c)  If the area designated for lease in the application is less than the area covered by the permit, the applicant shall include with the application field notes prepared by the county surveyor or by a licensed state land surveyor describing the land designated.
Acts 1977, 65th Leg., p. 2470, ch. 871, art. I, Sec. 1, eff. Sept. 1, 1977.  Amended by Acts 1993, 73rd Leg., ch. 897, Sec. 48, eff. Sept. 1, 1993.
2023 Texas Statutes › Natural Resources Code › Title 2 - Public Domain › Subtitle D - Disposition of the Public Domain › Chapter 53 - Minerals › Subchapter B. Prospect and Lease on State Land › Section 53.016. Issuance of Lease

Sec. 53.016.  ISSUANCE OF LEASE.  (a)  After receipt of the bonus payment set by the commissioner, the lease shall be issued by the commissioner under the provisions of this subchapter and shall be for a primary term not to exceed 20 years and as long after that time as the minerals are produced in paying quantities.
(b)  Any lease covering land adjacent to a military base shall require the lessee to forego the right to use the surface within 2,500 feet of the military base while exploiting the minerals.  The commissioner may include in the lease any other provision the commissioner considers necessary for protection of the interests of the state.
Acts 1977, 65th Leg., p. 2470, ch. 871, art. I, Sec. 1, eff. Sept. 1, 1977.  Amended by Acts 1983, 68th Leg., p. 5248, ch. 965, Sec. 11, eff. June 19, 1983;  Acts 1993, 73rd Leg., ch. 897, Sec. 49, eff. Sept. 1, 1993;  Acts 2003, 78th Leg., ch. 149, Sec. 15, eff. May 27, 2003.
2023 Texas Statutes › Natural Resources Code › Title 2 - Public Domain › Subtitle D - Disposition of the Public Domain › Chapter 53 - Minerals › Subchapter B. Prospect and Lease on State Land › Section 53.018. Royalty

Sec. 53.018.  ROYALTY.  The royalty under the lease shall not be less than one-sixteenth of the value of the minerals produced under the lease.
Acts 1977, 65th Leg., p. 2470, ch. 871, art. I, Sec. 1, eff. Sept. 1, 1977.
2023 Texas Statutes › Natural Resources Code › Title 2 - Public Domain › Subtitle D - Disposition of the Public Domain › Chapter 53 - Minerals › Subchapter B. Prospect and Lease on State Land › Section 53.019. Payments

Sec. 53.019.  PAYMENTS.  Lease payments and royalty shall be paid to the commissioner at Austin, and all payments shall be credited to the account of the permanent school fund.
Acts 1977, 65th Leg., p. 2470, ch. 871, art. I, Sec. 1, eff. Sept. 1, 1977.
2023 Texas Statutes › Natural Resources Code › Title 2 - Public Domain › Subtitle D - Disposition of the Public Domain › Chapter 53 - Minerals › Subchapter B. Prospect and Lease on State Land › Section 53.020. Assignment and Transfer

Sec. 53.020.  ASSIGNMENT AND TRANSFER.  A lease issued under this subchapter may be transferred or assigned at any time in the manner provided by Section 52.026 of this code.
Acts 1977, 65th Leg., p. 2470, ch. 871, art. I, Sec. 1, eff. Sept. 1, 1977.  Amended by Acts 1983, 68th Leg., p. 405, ch. 81, Sec. 21(l), eff. Sept. 1, 1983;  Acts 1993, 73rd Leg., ch. 897, Sec. 50, eff. Sept. 1, 1993.
2023 Texas Statutes › Natural Resources Code › Title 2 - Public Domain › Subtitle D - Disposition of the Public Domain › Chapter 53 - Minerals › Subchapter B. Prospect and Lease on State Land › Section 53.021. Forfeiture of Lease

Sec. 53.021.  FORFEITURE OF LEASE.  (a)  A lease is subject to forfeiture by act of the commissioner if:
(1)  the lessee fails or refuses to pay any amount which is due either as a lease payment or royalty;
(2)  the lessee or his authorized agent knowingly makes any false return or false report concerning the lease;
(3)  the lessee or his agent refuses the commissioner or his authorized representative access to the records or other data relating to operations under the lease;  or
(4)  a material term of the lease is violated.
(b)  Any area forfeited under this section is subject to application for a permit under the same terms as the original application.
Acts 1977, 65th Leg., p. 2471, ch. 871, art. I, Sec. 1, eff. Sept. 1, 1977.
Sec. 53.022.  EFFECT OF SUBCHAPTER.  None of the provisions of this subchapter shall apply to, alter, or affect any rights existing on June 22, 1955, under a valid permit issued by the commissioner under the provisions of Section 12, Chapter 271, General Laws, Acts of the 42nd Legislature, Regular Session, 1931, as amended (Article 5421c, Vernon's Texas Civil Statutes), but if the permittee desires that his lease continue as long as production is obtained in paying quantities, he shall pay lease payments and royalty provided in this subchapter.
Acts 1977, 65th Leg., p. 2471, ch. 871, art. I, Sec. 1, eff. Sept. 1, 1977.
2023 Texas Statutes › Natural Resources Code › Title 2 - Public Domain › Subtitle D - Disposition of the Public Domain › Chapter 53 - Minerals › Subchapter B. Prospect and Lease on State Land › Section 53.023. Immediate Lease

Sec. 53.023.  IMMEDIATE LEASE.  If the commissioner determines that a certain mineral is located on a state tract subject to prospect under this subchapter, a lease for that mineral may be issued immediately on the application for the prospect permit if the applicant identifies the mineral in the application and requests the immediate issuance of the lease.
Added by Acts 1985, 69th Leg., ch. 923, Sec. 20, eff. Aug. 26, 1985.
2023 Texas Statutes › Natural Resources Code › Title 2 - Public Domain › Subtitle D - Disposition of the Public Domain › Chapter 53 - Minerals › Subchapter B. Prospect and Lease on State Land › Section 53.024. Penalty and Interest

Sec. 53.024.  PENALTY AND INTEREST.  A lease issued under this subchapter shall be subject to Sections 52.131(e) through (j) of this code.
Added by Acts 1985, 69th Leg., ch. 923, Sec. 20, eff. Aug. 26, 1985.  Amended by Acts 1993, 73rd Leg., ch. 897, Sec. 51, eff. Sept. 1, 1993.
2023 Texas Statutes › Natural Resources Code › Title 2 - Public Domain › Subtitle D - Disposition of the Public Domain › Chapter 53 - Minerals › Subchapter B. Prospect and Lease on State Land › Section 53.025. Lease Relinquishment

Sec. 53.025.  LEASE RELINQUISHMENT.  A lease issued under this subchapter may be relinquished to the state at any time in the manner provided by Section 52.027 of this code.
Added by Acts 1993, 73rd Leg., ch. 897, Sec. 52, eff. Sept. 1, 1993.
2023 Texas Statutes › Natural Resources Code › Title 2 - Public Domain › Subtitle D - Disposition of the Public Domain › Chapter 53 - Minerals › Subchapter B. Prospect and Lease on State Land › Section 53.026. In Kind Royalty

Sec. 53.026.  IN KIND ROYALTY.  (a)  The commissioner or the commissioner acting on behalf of and at the direction of the board or a board for lease may negotiate and execute a contract or any other instrument or agreement necessary to dispose of or enhance their portion of the royalty taken in kind, including contracts for sale, purchase, transportation, or storage.
(b)  The commissioner or the commissioner acting on behalf of and at the direction of the board or a board for lease may negotiate and execute a contract or any other instrument or agreement necessary to convert that portion of the royalty taken in kind to other forms of energy, other than electricity.
(c)  This section shall not be construed to surrender or in any way affect the right of the state under an existing or future lease to receive monetary royalty from its lessee.
Added by Acts 1993, 73rd Leg., ch. 897, Sec. 52, eff. Sept. 1, 1993.  Amended by Acts 1999, 76th Leg., ch. 405, Sec. 50, eff. Sept. 1, 1999.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 53 (H.B. 2263), Sec. 2, eff. May 17, 2019.