Sec. 52.028. SUSPENSION OF LEASE BECAUSE OF LITIGATION. (a) If an oil and gas lease that has been issued by the commissioner is involved in litigation relating to the validity of the lease or to the authority of the commissioner to issue the lease, the lease and all of the conditions and covenants contained in the lease shall be suspended during the period of the litigation, except as otherwise provided by this section.
(b) If the litigation is instituted during the primary term of the lease, then, after a final, nonappealable judgment is entered in the litigation, the primary term provided in the lease shall resume and the lease shall continue to run for the remainder of the period specified in the lease, and all conditions and covenants contained in the lease shall be operative.
(c) If the litigation is instituted during the secondary term of the lease, then, after a final, nonappealable judgment is entered in the litigation, the lease and all the conditions and covenants contained in the lease shall be operative, and the lessee shall have 60 days from the date a final, nonappealable judgment is entered in the litigation to produce in paying quantities or to commence drilling or reworking operations on the lease as if production had ceased on that date under Section 52.023 of this code.
(d) The lessee shall pay any royalties that accrue during the period of suspension of the lease in the same manner as they are to be paid under the terms of the lease.
Acts 1977, 65th Leg., p. 2448, ch. 871, art. I, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 1987, 70th Leg., ch. 948, Sec. 20, eff. Sept. 1, 1987; Acts 1993, 73rd Leg., ch. 897, Sec. 23, eff. Sept. 1, 1993.
Structure Texas Statutes
Subtitle D - Disposition of the Public Domain
Subchapter B. Lease of Public School and Gulf Land
Section 52.011. Area Subject to Lease
Section 52.012. Conditions for Lease
Section 52.013. Determination of Lease Price and Delay Rentals
Section 52.014. Date for Lease and Notice
Section 52.017. Keeping and Opening Bids
Section 52.018. Void Application
Section 52.020. Return of Payments on Rejected Applications
Section 52.023. Lease Provisions for Drilling and Reworking
Section 52.024. Lease Provisions for Shut-in Oil or Gas Royalty and Compensatory Royalty
Section 52.026. Lease Transfer
Section 52.027. Lease Relinquishment
Section 52.028. Suspension of Lease Because of Litigation
Section 52.029. Forfeiture of Rights
Section 52.030. Refund of Lease Money in Certain Situations
Section 52.0301. Suspension of Terms of Lease in Certain Situations
Section 52.031. Extension of Lease by Commissioner
Section 52.032. Regulation of Development and Operations