VERNON'S TEXAS CIVIL STATUTES
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.
