Texas Education Code 66.71 – Lease Provisions
(a) An oil and gas lease issued by the board shall provide for payment of a delay rental. During the primary term of the lease, the lease shall terminate on the anniversary date of the lease unless:
(1) oil or gas is being produced in paying quantities from the leased premises;
(2) drilling operations are being conducted on the leased premises; or
(3) the lessee pays timely in the manner provided in the lease the amount of delay rental stated in the lease.
(b) If oil or gas is discovered in paying quantities on any tract covered by a lease, the lease as to that tract shall remain in force as long as oil and gas is produced in paying quantities from the tract, provided that the other provisions of this subchapter are complied with by the lessee.
Terms Used In Texas Education Code 66.71
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
(c) An oil and gas lease issued by the board shall provide that royalty may be taken in kind at any time and from time to time at the discretion of the board in the manner provided in this subchapter.