Texas Natural Resources Code Title 2, Chapter 52 - Oil And Gas

SUBCHAPTER A GENERAL PROVISIONS

SUBCHAPTER B LEASE OF PUBLIC SCHOOL AND GULF LAND

• Texas Section 52.001 - 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...
• Texas Section 52.011 - Area Subject To Lease
  Under the provisions of this subchapter, the board may lease to any person for the production of oil and natural gas: (1) islands, saltwater lakes,...
• Texas Section 52.012 - Conditions For Lease
  Oil and gas shall only be leased together and shall be leased separately from other minerals. Acts 1977, 65th Leg., p. 2445, ch. 871, art....
• Texas Section 52.013 - Determination Of Lease Price And Delay Rentals
  The board shall determine the price at which areas under this subchapter shall be leased and the amount of delay rentals that shall be charged....
• Texas Section 52.014 - Date For Lease And Notice
  The date for opening bids to lease areas covered by this subchapter shall be set and notice of the date shall be given in the...
• Texas Section 52.015 - Bid To Lease
  (a) To apply to lease a tract, a bidder must submit a separate bid for each separate tract to be leased. (b) A bid must...
• Texas Section 52.016 - Special Fee
  Each bidder on a lease under this subchapter shall remit by separate check a special sale fee in the amount and in the manner provided...
• Texas Section 52.017 - Keeping And Opening Bids
  Bids shall be kept secure and unopened by the commissioner or the commissioner's designee until opened on the date and at the time set as...
• Texas Section 52.018 - Void Application
  An application that includes two or more areas or that is for a price that is less than the fixed royalty and price per acre...
• Texas Section 52.019 - Tie Bids
  (a) If the highest bid for an area is made by more than one applicant, all applications shall be rejected and the board shall set...
• Texas Section 52.020 - Return Of Payments On Rejected Applications
  The comptroller or commissioner shall return all amounts paid on rejected applications. Acts 1977, 65th Leg., p. 2446, ch. 871, art. I, Sec. 1, eff....
• Texas Section 52.021 - Term Of Lease
  A lease granted under this subchapter shall be for a primary term not to exceed 10 years and for as long after that time as...
• Texas Section 52.022 - Royalty Rate
  The board shall set the royalty rate on production of oil and gas from land leased under this subchapter. The royalty rate set must be...
• Texas Section 52.023 - Lease Provisions For Drilling And Reworking
  Each lease shall provide that: (1) if the production of oil or gas on premises leased under this subchapter ceases for any reason after the...
• Texas Section 52.024 - Lease Provisions For Shut-in Oil Or Gas Royalty And Compensatory Royalty
  (a) For purposes of this section, "well" means any well that has been assigned a well number by the state agency having jurisdiction over the...
• Texas Section 52.025 - Disposition Of Lease Payments
  The comptroller shall credit the permanent school fund with amounts received from unsurveyed school land and with two-thirds of the amount received from other areas...
• Texas Section 52.026 - Lease Transfer
  (a) A lessee of an area under this subchapter may transfer the lease at any time. The liability of the transferor to properly discharge its...
• Texas Section 52.027 - Lease Relinquishment
  (a) A lessee may relinquish his lease to the state at any time by recording the relinquishment in each county in which all or part...
• Texas Section 52.028 - Suspension Of Lease Because Of Litigation
  (a) If an oil and gas lease that has been issued by the commissioner is involved in litigation relating to the validity of the lease...
• Texas Section 52.029 - Forfeiture Of Rights
  The provisions of Subchapter F of this chapter governing the forfeiture and reinstatement of rights apply to forfeiture and reinstatement of leases issued under this...
• Texas Section 52.030 - Refund Of Lease Money In Certain Situations
  (a) If a lessee is prevented from exploring, developing, drilling, or producing oil and gas from the tract leased to him as a result of...
• Texas Section 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...
• Texas Section 52.031 - Extension Of Lease By Commissioner
  (a) At the expiration of the primary term of a lease made under the provisions of this subchapter, if production of oil or gas has...
• Texas Section 52.032 - Regulation Of Development And Operations
  (a) Development and operations on areas covered by this subchapter shall be done insofar as practicable in a manner that will prevent the pollution of...
• Texas Section 52.033 - Access To Land
  (a) If it is necessary for the lessee to enter the enclosed land of another person for the purpose of ingress and egress to and...
• Texas Section 52.034 - Offset Wells
  (a) If oil or gas is produced in commercial quantities from a well located on a privately owned area or areas of state land leased...

SUBCHAPTER C DEVELOPMENT OF RIVERBEDS AND CHANNELS

• Texas Section 52.035 - Agreements With U
  Sec. 52.035. AGREEMENTS WITH U.S. GOVERNMENT. (a) The governor may execute agreements on behalf of the state to obtain access to confidential and proprietary information...
• Texas Section 52.071 - Authority Over Riverbeds And Channels
  The riverbeds and channels belonging to the state are subject to development by the state and to lease or contract for recovery of oil and...
• Texas Section 52.072 - State Policy
  (a) With regard to leases and contracts for the development of riverbeds and channels, it is the policy of the state that activities of the...
• Texas Section 52.073 - Area Subject To Lease
  Riverbeds and channels that belong to the state may be leased to any person by the board under the provisions of this subchapter. Acts 1977,...
• Texas Section 52.074 - Size Of Tract
  Subject to the conditions in this subchapter, riverbeds and channels shall be leased in tracts of the size determined by the board. Acts 1977, 65th...
• Texas Section 52.076 - Duty To Advertise
  (a) The board may: (1) advertise for bids to lease riverbeds and channels for oil and gas development; (2) advertise for bids to contract to...
• Texas Section 52.077 - Special Fee
  Each bidder on a lease under this subchapter shall remit with each bid by separate payment a special sale fee in the amount and in...
• Texas Section 52.080 - Forms For Lease And Contract
  Leases and contracts for the development of riverbeds and channels shall be executed on forms approved by the board. Acts 1977, 65th Leg., p. 2451,...
• Texas Section 52.082 - Term Of Lease
  A lease granted under this subchapter shall be for a primary term not to exceed 10 years and for as long after that time as...
• Texas Section 52.083 - Conditions Of Lease
  Oil and gas shall only be leased together and separately from other minerals. Acts 1977, 65th Leg., p. 2451, ch. 871, art. I, Sec. 1,...
• Texas Section 52.084 - Special Lease Provisions
  Each lease shall include the provisions required by Sections 52.023 and 52.024 of this code. Acts 1977, 65th Leg., p. 2451, ch. 871, art. I,...
• Texas Section 52.085 - Prevention Of Pollution
  (a) Each lease and contract shall require the lessee or contracting party or his successors or assigns to use the highest degree of care and...
• Texas Section 52.087 - Determination Of Lease Price And Delay Rentals
  The board shall determine the price at which riverbeds and channels shall be leased and the amount of delay rentals that shall be charged. Acts...
• Texas Section 52.088 - Royalty Rate
  The board shall set the royalty rate on production of oil and gas from riverbeds and channels leased under this subchapter. The royalty rate set...
• Texas Section 52.090 - Extension Of Lease
  A lease may be extended in the manner provided in Section 52.031 of this code. Acts 1977, 65th Leg., p. 2453, ch. 871, art. I,...
• Texas Section 52.091 - Refund Of Lease Money In Certain Situations
  A lessee under this subchapter is entitled to a refund of all money paid for bonus, delay rentals, and other fees for the reasons and...
• Texas Section 52.092 - Power Of Eminent Domain
  The board or any person including a leaseholder or assignee, who has a contract with the board for the development of oil and gas resources...
• Texas Section 52.093 - Eminent Domain Purposes
  The board and any person, including a leaseholder or assignee, who has a contract with the board for the development of oil and gas resources...
• Texas Section 52.094 - Drilling Offset Well On Condemned Land
  (a) If the landowner or other interested party and the board or the lessee of the riverbed or channel cannot agree on the amount of...
• Texas Section 52.095 - Rights Of Parties To Condemnation
  It is the intent of this subchapter that the mineral rights of the owner are superior to the surface rights of the condemning party. Acts...
• Texas Section 52.096 - Exclusion From Damages In Condemnation
  In determining the damages resulting from condemnation, the commissioners or any other tribunal shall not consider the value of oil or gas located beneath the...
• Texas Section 52.097 - Injunction
  (a) No injunction may be granted against the board, its agents, or persons with whom it has contracted, to restrain the board from enforcing its...
• Texas Section 52.098 - Appeal
  (a) Either party to the suit for an injunction or restraining order is entitled to appeal from the final judgment. (b) The appeal shall be...
• Texas Section 52.099 - Venue
  The venue for any suit arising from this subchapter either by or against the board and regardless of the kind or nature shall be in...

SUBCHAPTER D ROYALTIES

• Texas Section 52.100 - Effect Of Subchapter
  The provisions of this subchapter do not repeal or supersede Chapter 138, Acts of the 41st Legislature, Regular Session, 1929 (Article 5414a, Vernon's Texas Civil...
• Texas Section 52.131 - Payment Of Royalty Generally
  (a) Royalties due under a lease of state land or minerals that are required to be paid to the land office, including leases on land...
• Texas Section 52.132 - Form Of Payment
  Except as provided in Section 52.133 of this code, royalty payments shall be made in cash, by bank draft drawn on a state or national...
• Texas Section 52.133 - Payment Of Royalty In Kind
  (a) Each oil or gas lease covering land leased by the board, by a board for lease, or by the surface owner of land under...
• Texas Section 52.134 - Filing Contracts And Agreements
  Copies of contracts for the sale or processing of gas and subsequent agreements and amendments to those contracts shall be filed in the land office...
• Texas Section 52.135 - Inspections And Examinations
  (a) The books and accounts, receipts, and discharges of all lines, tanks, pools, and meters and all contracts and other records relating to the production,...
• Texas Section 52.136 - Lien
  (a) The state has a statutory first lien on all oil and gas produced on any lease area to secure payment of unpaid royalty and...
• Texas Section 52.137 - Suit After Protest
  (a) If a lessee, who has received an audit deficiency assessment and has waived the right to request a hearing before the commissioner or who...
• Texas Section 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)...

SUBCHAPTER E UNITIZATION OF LEASED AREAS

• Texas Section 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...
• Texas Section 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...
• Texas Section 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...
• Texas Section 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...

SUBCHAPTER F RELINQUISHMENT

• Texas Section 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...
• Texas Section 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...
• Texas Section 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...
• Texas Section 52.173 - Offset Wells
  (a) If oil and/or gas should be produced in commercial quantities within 1,000 feet of land subject to this subchapter, or in any case where...
• Texas Section 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...
• Texas Section 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...
• Texas Section 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...
• Texas Section 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...
• Texas Section 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...
• Texas Section 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...
• Texas Section 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...
• Texas Section 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...
• Texas Section 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...
• Texas Section 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...
• Texas Section 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...
• Texas Section 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...
• Texas Section 52.186 - Lease Of Certain Minerals When Owner Of The Soil Unavailable
  (a) If an owner of the soil or of any undivided interest therein of any land subject to the terms of this subchapter or Subchapter...
• Texas Section 52.188 - Assignments To The Owner Of The Soil
  (a) An owner of the soil may acquire by assignment a lease which he executed on land subject to the Relinquishment Act, Subchapter F, Chapter...
• Texas Section 52.189 - Authority And Duties Of Agent
  (a) Prohibition Against Self-Dealing. (1) The owner of the soil may not lease, either directly or indirectly, to himself or to a nominee, to any...

SUBCHAPTER H LEASE LIMITATIONS

• Texas Section 52.190 - Lease By Owner Of The Soil
  (a) An owner of the soil of lands covered by this subchapter may lease those lands for the purpose of exploring for and producing oil...
• Texas Section 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;...

SUBCHAPTER I GEOPHYSICAL AND GEOCHEMICAL EXPLORATION PERMIT

• Texas Section 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,...
• Texas Section 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...
• Texas Section 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...
• Texas Section 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...
• Texas Section 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;...
• Texas Section 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...

Last modified: September 28, 2016