The Laws of Texas, 1929-1931 [Volume 27] Page: 30 of 1,943
The following text was automatically extracted from the image on this page using optical character recognition software:
18 GENERAL LAWS.
royalty of less than one-eighth of the gross production of oil
and/or gas in the land bid upon, and this minimum royalty may
be increased at the discretion of the Board, all members concurring,
before the promulgation of the advertisement of the land.
Every bid shall carry the obligation to pay an amount not less
than One Dollar per acre for delay in drilling, such amount to
be fixed by the Board in advance of the advertisement, and
which shall be paid every year for five years, unless in the meantime
production in paying quantities is had upon the land.
SEC. 6. Every bid shall be accompanied by a payment equal
to the minimum price fixed on the land per acre for delay in the
drilling if the bid is accepted. The bid shall further indicate
the royalty the bidder is willing to pay, which royalty shall not
be less than one-eighth of the gross production. The bid shall
further name such amount as the bidder may be willing to pay in
addition to the royalty and the annual payment herein provided
for, and shall be accompanied by cash or checks collectable in
Austin to cover said amounts.
SEC. 7. If any one of the bidders shall have offered a reasonable
and proper price therefor, not less than the price fixed
by the Board, the lands advertised, or any whole survey or subdivision
thereof, may be leased for oil and/or gas purposes under
the terms of this Act and such regulations as the Board may
prescribe, not inconsistent with the provisions of this Act. If
after any bidding by sealed bids the Board should reject all
bids, as it is hereby authorized to do, it may thereafter offer
for sale and sell the oil and/or gas in said lands, in separate
whole surveys only or subdivisions thereof, by open public auction
at a price less than the price offered by the sealed bids.
All bids may be rejected. In the event of no sale at public auction,
any subsequent procedure for the sale of said oil and gas
leases shall be in the manner above provided.
SEC. 8. If the Board shall determine that a satisfactory bid
has been received for said oil and gas, it shall be filed in the
General Land Office. Whenever the royalty shall amount to as
much as the yearly payment as fixed by the Board, the yearly
payment may be discontinued. If before the expiration of three
years oil and/or gas shall not have been produced in paying
quantities, the lease shall terminate.
SEC. 9. If during the term of any lease issued under the
provisions of this Act the lessee shall be engaged in actual drilling
operations for the discovery of oil and/or gas on land covered
by any such lease, no rentals shall be payable as to the tract
on which such operations are being conducted so long as such
operations are proceeding in good faith; and in the event oil
or gas is discovered in paying quantities on any tract of land
covered by any such lease, then the lease as to such tract shall
remain in force so long as oil or gas is produced in paying quantities
from such tract. In the event of the discovery of oil and/
or gas on any tract covered by a lease issued hereunder or on
any land adjoining same, the lessee shall conduct such operations
as may be necessary to prevent drainage from the tract
Here’s what’s next.
This book can be searched. Note: Results may vary based on the legibility of text within the document.
Tools / Downloads
Get a copy of this page or view the extracted text.
Citing and Sharing
Basic information for referencing this web page. We also provide extended guidance on usage rights, references, copying or embedding.
Reference the current page of this Book.
Gammel, Hans Peter Mareus Neilsen. The Laws of Texas, 1929-1931 [Volume 27], book, 1931; Austin, Texas. (texashistory.unt.edu/ark:/67531/metapth16362/m1/30/: accessed October 19, 2017), University of North Texas Libraries, The Portal to Texas History, texashistory.unt.edu; .