Texas Education Code - Section 109.65. Separate Bids; Minimum Royalty; Delay Rental
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Texas Laws > Education Code > Texas Education Code - Section 109.65. Separate Bids; Minimum Royalty; Delay Rental
Section: 109.53 109.54 109.55 109.61 109.62 109.63 109.64 109.65 109.66 109.67 109.68 109.69 109.70 109.71 109.72
§ 109.65. SEPARATE BIDS; MINIMUM ROYALTY; DELAY
RENTAL. (a) A separate bid shall be made for each tract or
subdivision of a tract.
(b) No bid shall be accepted which offers a royalty of less
than one-eighth of the gross production of oil, gas, sulphur, and
other minerals in the land bid upon, and this minimum royalty may be
increased at the discretion of the board.
(c) Every bid shall carry the obligation to pay an amount
not less than $1 per acre for delay in drilling or development. The
amount shall be fixed by the board in advance of the advertisement.
The amount fixed shall be paid every year for five years unless in
the meantime production in paying quantities is had upon the land or
the land is released by the lessee.
Acts 1971, 62nd Leg., p. 3262, ch. 1024, art. 1, § 1, eff. Sept.
Last modified: August 11, 2007