Sec. 109.155. SEPARATE BIDS; MINIMUM ROYALTY; DELAY RENTAL. (a) A separate bid shall be made for each tract or subdivision of a tract.
(b) No bid shall be accepted which offers a royalty of less than one-eighth of the gross production of oil, gas, sulphur, and other minerals in the land bid upon. The board may increase this minimum royalty at the discretion of the board.
(c) Every bid shall carry the obligation to pay an amount not less than $5 per acre for delay in drilling or development. The amount shall be fixed by the board in advance of the advertisement. The delay rental shall be paid every year for five years unless in the meantime production in paying quantities is had upon the land or the land is released by the lessee.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 1173 (S.B. 907), Sec. 9, eff. June 19, 2015.
Structure Texas Statutes
Subtitle F - Other Colleges and Universities
Chapter 109 - Texas Tech University System
Subchapter D. Mineral Development in University Land
Section 109.151. Mineral Leases; Disposition of Proceeds
Section 109.152. Majority of Board to Act
Section 109.153. Subdivision of Land; Titles
Section 109.154. Sale of Leases; Advertisements; Payments
Section 109.155. Separate Bids; Minimum Royalty; Delay Rental
Section 109.156. Rejection of Bids; Withdrawal of Land
Section 109.157. Acceptance; Conditions and Provisions of Lease
Section 109.158. Acceptance and Filing of Bids; Termination of Lease
Section 109.159. Award and Filing of Lease
Section 109.160. Exploratory Term of Lease; Extension; Other Provisions
Section 109.161. Extension of Leases
Section 109.162. Control of Drilling and Production
Section 109.164. Title to Rights Purchased; Assignment; Relinquishment
Section 109.165. Payment of Royalties; Records; Report of Receipts
Section 109.166. Protection From Drainage; Forfeiture of Rights
Section 109.167. Forfeiture and Other Remedies; Liens
Section 109.168. Filing of Documents and Payment of Royalties, Fees, and Rentals