(a) A lease is subject to forfeiture by act of the commissioner if:
(1) the lessee fails or refuses to pay any amount which is due either as a lease payment or royalty;
(2) the lessee or his authorized agent knowingly makes any false return or false report concerning the lease;
(3) the lessee or his agent refuses the commissioner or his authorized representative access to the records or other data relating to operations under the lease; or
(4) a material term of the lease is violated.
(b) Any area forfeited under this section is subject to application for a permit under the same terms as the original application.

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Terms Used In Texas Natural Resources Code 53.021

  • 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