The Laws of Texas, 1929-1931 [Volume 27] Page: 69 of 1,943
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FORTY-FIRST LEGISLATURE-FOURTH CALLED SESSION. 57
which shall be paid every year for five years, unless in the
meantime production in paying quantities is had upon the
SEC. 6. Every bid shall be accompanied by a payment equal
to the minimum price fixed on the land per acre for the delay
in 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 in 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, and 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. Provided,
that no lease for oil or gas shall be made by said Board which
will permit the drilling for oil or gas within 1,000 feet of any
building where patients are confined.
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 royalties 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 covered by such lease to properly develop the same.
Failure to comply with the obligations provided by this section
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Gammel, Hans Peter Mareus Neilsen. The Laws of Texas, 1929-1931 [Volume 27], book, 1931; Austin, Texas. (texashistory.unt.edu/ark:/67531/metapth16362/m1/69/: accessed May 28, 2017), University of North Texas Libraries, The Portal to Texas History, texashistory.unt.edu; .