Sec. 66.67. LEASE TERMS. (a) The oil and gas lease for each tract shall be offered for a bonus to be determined by high bid in addition to the stipulated royalty or for a stipulated bonus and a royalty to be determined by high bid. Each tract shall be offered separately and the minimum bonus or royalty, depending on the basis for the bid, and the length of the primary term for each tract shall be set out in the official publication describing the tracts and terms.
(b) Except as otherwise provided by law, the minimum royalty rate shall be one-eighth of the oil or gas produced or the value thereof.
(c) The primary term of a lease shall not exceed 10 years.
(d) Each lease shall be subject to the provisions of this subchapter and rules promulgated by the board.
(e) The successful bidder shall pay to the board of regents on the day the bid is accepted the full amount of bonus, whether stipulated or bid, and the special fee in the form of payment specified by the board.
Amended by Acts 1997, 75th Leg., ch. 1324, Sec. 1, eff. Jan. 1, 1998.
Structure Texas Statutes
Subtitle C - The University of Texas System
Chapter 66 - Permanent University Fund
Subchapter D. Board for Lease of University Lands
Section 66.62. Board for Lease of University Lands
Section 66.63. Certain Board Actions
Section 66.64. Powers and Duties of the Board
Section 66.65. Board Staff; Exchange of Information With State Agencies
Section 66.68. Marginal Property Royalty Rates
Section 66.71. Lease Provisions
Section 66.72. Cessation of Production; Drilling and Reworking
Section 66.73. Shut-in Royalty
Section 66.74. Lease Extension or Suspension
Section 66.75. Protection From Drainage; Compensatory Royalties
Section 66.76. Assignment; Relinquishment
Section 66.77. Royalty Payments and Reports
Section 66.78. Interest and Penalties
Section 66.79. Payment of Royalty in Kind
Section 66.81. Audit Information Confidential
Section 66.82. Forfeiture; Other Remedies