Texas Administrative Code
Title 31 - NATURAL RESOURCES AND CONSERVATION
Part 1 - GENERAL LAND OFFICE
Chapter 9 - EXPLORATION AND LEASING OF STATE OIL AND GAS
Subchapter C - MAINTAINING A STATE OIL AND GAS LEASE
Section 9.38 - Suspending the State Lease

(1) if a lease issued by the commissioner is the subject of litigation relating to the validity of the lease or to the commissioner's authority to issue the lease under Texas Natural Resources Code, § 52.028;

(2) if, after making a diligent and good faith attempt, a lessee is unable to obtain access to the leased property or is unable to obtain in a timely manner a permit to drill on or produce from the leased premises by any duly constituted authority of the United States or of this state under Texas Natural Resources Code, § 52.0301; or

(3) if lessee, having made a good faith effort to comply with the terms of the lease, to conduct drilling operations, or to produce oil or gas, is prevented from doing so by a reason set forth in the lease form, which reasons may include war, rebellion, riots, strikes, fire, acts of God, or any order, rule, or regulation of governmental authority.

(1) A lessee seeking a suspension of the terms of a lease shall submit a written request to the GLO, detailing the reasons for the suspension. All materials relating to a suspension must be mailed to the following address: Texas General Land Office; Attention: Minerals Leasing; 1700 North Congress, Room 640; Austin, Texas, 78701-1495. These materials may also be simultaneously faxed to (512) 475-1543 (Attention: Minerals Leasing)

(2) The GLO staff will evaluate the request and any supporting documentation submitted. Applicants should be prepared to submit any additional information requested and should be prepared to appear before the SLB if requested to do so.

(3) For cases related to litigation or force majuere conditions, the GLO staff will submit a recommendation for a decision to the commissioner. The commissioner may choose to present the recommendation to the SLB for input. The commissioner may accept or reject the recommendation and may impose additional terms or conditions to the lease suspension as authorized or required by statute or lease provision.

(4) For cases related to failure to obtain access or a permit, the GLO staff will submit a recommendation to the SLB. The SLB may accept or reject the recommendation and may impose additional terms or conditions to the lease suspension as authorized or required by statute or lease provision.

(5) Unless a shorter time frame for reporting is set when the suspension is granted, a lessee granted a suspension shall submit a status report to the entity that granted the suspension and to GLO staff at the address and/or fax number, given in subsection (b)(1) of this section, six months after the effective date of the suspension and at six-month intervals thereafter as long as the cause for suspension exists. The status report shall detail relevant information explaining what actions have been taken to remove or to remedy the cause for suspension.

(6) In addition to the status report, each lessee granted a suspension shall immediately notify the entity that granted the extension and GLO staff of developments which affect the terms of suspension and shall promptly notify such entity when the cause for suspension ends.