Texas Attorney General Opinion: WW-348 Page: 3 of 4
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Honorable Earl Rudder, Page 3 (WW-348)
Provided, further, that the lessee shall pay
all annual delay rentals and any royalties
which accrue during the period of litigation
the same as during any other period of the
extended primary term. Such rentals paid
during the litigation period shall be held
in suspense and returned to the lessee in the
event the State is unsuccessful in any such
litigation. As amended Acts 1951, 52nd Leg.,
p. 750, ch. 406, Sec. 1." (Emphasis added.)
The provisions of this statute are for the bene-
fit of the State's lessee and such provisions are as much a
part of any lease authorized by Article 9382d, V.C.S., as
though embodied in the lease form itself, The statute clearly
and unequivocally provides that "the running of the primary
term of any oil, gas, or mineral lease heretofore or here-
after issued by the Commissioner of the General Land Office
. . which may hereafter become involved in litigation re-
lating to the validity of such lease . . . shall be suspended
and all obligations imposed by such leases shall be set at
rest during the period of such litigation".
The leases in question were issued by the Com-
missioner of the General Land Office The validity of such
leases were put in question by the suit styled The City of
Tyler, et al v. The State of Texas, et al, No. 22599-A, 7th
Judicial District Court, -mith County. Under such circumstances
the statute unequivocally provides for the suspension of the
running of the primary term of such lease.
However, your opinion request inferentially
raises the question of whether Humble's taking a protection
lease from the City of Tyler and Smith County and its drilling
a dry hole amounted to a waiver of the rights conferred by
We do not believe the two protection leases
taken by Humble from the City of Tyler and Smith County con-
stitute a waiver by Humble of the rights conferred to Humble
under Articles 5382d and 54211. This action by Humble is
not inconsistent with Article 5421i, In fact Humble has con-
tinued to pay delay rentals up to the present time indicating
an intent to accept the provisions of Article 54211, not an
intent to waive the rights conferred by said article.
Humble's drilling of a well is not inconsistent
with Article 54211. This article provides that royalties
shall be paid during the period of the extended primary term
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Texas. Attorney-General's Office. Texas Attorney General Opinion: WW-348, text, January 24, 1958; (texashistory.unt.edu/ark:/67531/metapth266960/m1/3/: accessed December 18, 2018), University of North Texas Libraries, The Portal to Texas History, texashistory.unt.edu; crediting UNT Libraries Government Documents Department.