Texas Statutes
Subchapter B. Mineral Leases After Public Notice
Section 1160.056. Hearing on Application; Order

Sec. 1160.056. HEARING ON APPLICATION; ORDER. (a) At the time and place designated for the hearing under Section 1160.053(a), or at the time to which the hearing is continued as provided by Section 1160.053(b), the judge shall:
(1) hear a lease application filed under Section 1160.052; and
(2) require proof as to the necessity or advisability of leasing for mineral development the property described in the application and the notice.
(b) The judge shall enter an order authorizing one or more leases affecting and covering the property or portions of property described in the lease application, with or without pooling provisions or unitization clauses, and with or without cash consideration if considered by the court to be in the best interest of the estate, if the judge is satisfied that:
(1) the application is in proper form;
(2) notice has been given in the manner and for the time required by law;
(3) proof of necessity or advisability of leasing is sufficient; and
(4) the application should be granted.
(c) The order must contain:
(1) the name of the lessee;
(2) any actual cash consideration to be paid by the lessee;
(3) a finding that the requirements of Subsection (b) have been satisfied; and
(4) one of the following findings:
(A) a finding that the guardian of the estate is exempt by law from giving a bond; or
(B) if the guardian of the estate is required to give a bond, a finding as to whether the guardian's general bond on file is sufficient to protect the personal property on hand, including any cash bonus to be paid.
(d) If the court finds the general bond insufficient to meet the requirements of Subsection (c)(4)(B), the order must show the amount of increased or additional bond required to cover the deficiency.
(e) A complete exhibit copy, either written or printed, of each authorized lease must be set out in, attached to, incorporated by reference in, or made part of the order. The exhibit copy must show:
(1) the name of the lessee;
(2) the date of the lease;
(3) an adequate description of the property being leased;
(4) any delay rental to be paid to defer commencement of operations; and
(5) all other authorized terms and provisions.
(f) If the date of a lease does not appear in the exhibit copy of the lease or in the order, the date of the order is considered for all purposes to be the date of the lease.
(g) If the name or address of a depository bank for receiving rental is not shown in the exhibit copy of a lease, the guardian of the estate may insert the name or address, or cause the name or address to be inserted, in the lease at the time of the lease's execution or at any other time agreeable to the lessee or the lessee's successors or assigns.
Added by Acts 2011, 82nd Leg., R.S., Ch. 823 (H.B. 2759), Sec. 1.02, eff. January 1, 2014.