Sec. 66.72. CESSATION OF PRODUCTION; DRILLING AND REWORKING. Each lease shall provide that in the event production of oil or gas on the leased premises, once obtained, shall cease for any cause within 60 days before the expiration of the primary term of the lease or at any time or times thereafter, the lease shall not terminate if the lessee commences additional drilling or reworking operations within 60 days thereafter, and the lease shall remain in full force and effect so long as such operations continue in good faith and in workmanlike manner, without interruptions, totalling more than 60 days during any one such operation; and if such drilling or reworking operations result in the production of oil and/or gas, the lease shall remain in full force and effect so long as oil or gas is produced therefrom in paying quantities or payment of shut-in gas well royalty or compensatory royalties is made as provided in this subchapter.
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