Tex. Nat. Resources Code Section 52.174
Failure to Drill Offset

If such persons fail or refuse to begin the drilling of such well or wells within the time required or to prosecute such drilling as necessary for the purpose intended herein, any lease of such land executed under the provisions of this law shall be subject to forfeiture by the Commissioner of the General Land Office, and he shall forfeit same when he is sufficiently informed of the facts which authorize a forfeiture, and shall, on the wrapper containing the papers relating to such lease, write and sign officially words declaring such forfeiture, and the lease and all rights thereunder shall thereupon be forfeited together with all payments made thereunder. Notice of such action shall forthwith be mailed to the persons shown by the records of the General Land Office to be the owners of the surface and the owners of the forfeited lease at their last known addresses as shown by the records of said office. Upon proper showing by the owner of the forfeited lease within 30 days after the declaration of forfeiture, the lease may, at the discretion of the commissioner and upon the terms of this subchapter and such other terms as he may prescribe, be reinstated. If such lease be not reinstated within such time, or if the commissioner finds that any unleased land included in this law is being drained, the commissioner shall notify the person at his last known address, as shown by records of the General Land Office to be the surface owner, that the oil and gas is subject to sale or lease by the owner of the soil in accordance with this law, and that drilling is required. If such owner shall fail or refuse to obtain the commencement of such a well within 100 days after the date of such notice, the relinquishment herein granted and the rights acquired thereunder shall be subject to forfeiture by the commissioner by endorsing on the file wrapper containing the papers relating to the sale of the land, words indicating such forfeiture, and such rights shall thereupon be forfeited, and notice of such forfeiture shall be forwarded to the county clerk of the county wherein the land is situated. The rights of any owner of the soil which may have ipso facto terminated under prior laws shall be reinstated and are hereby reinstated, together with all rights acquired thereunder except where rights of third parties may have intervened. All rights herein reinstated shall be subject to the terms and provisions of this subchapter.
Acts 1977, 65th Leg., p. 2458, ch. 871, art. I, Sec. 1, eff. Sept. 1, 1977.

Source: Section 52.174 — Failure to Drill Offset, https://statutes.­capitol.­texas.­gov/Docs/NR/htm/NR.­52.­htm#52.­174 (accessed Jun. 5, 2024).

52.001
Definitions 52.011
Area Subject to Lease 52.012
Conditions for Lease 52.013
Determination of Lease Price and Delay Rentals 52.014
Date for Lease and Notice 52.015
Bid to Lease 52.016
Special Fee 52.017
Keeping and Opening Bids 52.018
Void Application 52.019
Tie Bids 52.020
Return of Payments on Rejected Applications 52.021
Term of Lease 52.022
Royalty Rate 52.023
Lease Provisions for Drilling and Reworking 52.024
Lease Provisions for Shut-in Oil or Gas Royalty and Compensatory Royalty 52.026
Lease Transfer 52.027
Lease Relinquishment 52.028
Suspension of Lease Because of Litigation 52.029
Forfeiture of Rights 52.030
Refund of Lease Money in Certain Situations 52.031
Extension of Lease by Commissioner 52.032
Regulation of Development and Operations 52.033
Access to Land 52.034
Offset Wells 52.071
Authority over Riverbeds and Channels 52.072
State Policy 52.073
Area Subject to Lease 52.074
Size of Tract 52.076
Duty to Advertise 52.077
Special Fee 52.080
Forms for Lease and Contract 52.082
Term of Lease 52.083
Conditions of Lease 52.084
Special Lease Provisions 52.085
Prevention of Pollution 52.087
Determination of Lease Price and Delay Rentals 52.088
Royalty Rate 52.090
Extension of Lease 52.091
Refund of Lease Money in Certain Situations 52.092
Power of Eminent Domain 52.093
Eminent Domain Purposes 52.094
Drilling Offset Well on Condemned Land 52.095
Rights of Parties to Condemnation 52.096
Exclusion from Damages in Condemnation 52.097
Injunction 52.098
Appeal 52.099
Venue 52.100
Effect of Subchapter 52.131
Payment of Royalty Generally 52.132
Form of Payment 52.133
Payment of Royalty in Kind 52.134
Filing Contracts and Agreements 52.135
Inspections and Examinations 52.136
Lien 52.137
Suit After Protest 52.139
Limitations on Audit Assessments 52.140
Audit Information Confidential 52.151
Authorization to Operate Areas as Units 52.152
Approval of Agreements 52.153
Provisions of Agreement 52.154
Ratifications and Other Agreements 52.171
School and Asylum Lands 52.172
Sale and Lease by Agent 52.173
Offset Wells 52.174
Failure to Drill Offset 52.175
Lease of Oil and Gas After Forfeiture 52.176
Forfeiture of Rights 52.177
Rights of Subsequent Purchaser 52.178
Operation Under Permit 52.179
Lease Under Permit 52.180
Payments Under Permit 52.181
Relinquishment Under Permit 52.182
Damages to Soil 52.183
Effective Date of Lease 52.184
Statement of Consideration 52.185
University Land 52.186
Lease of Certain Minerals When Owner of the Soil Unavailable 52.188
Assignments to the Owner of the Soil 52.189
Authority and Duties of Agent 52.190
Lease by Owner of the Soil 52.291
Coverage 52.297
Compensation for Damages from Use of Surface 52.0301
Suspension of Terms of Lease in Certain Situations 52.321
Definitions 52.322
Permit Required for Exploration 52.323
Application for Permit 52.324
Authority of Commissioner 52.325
Permittee’s Failure to Comply
Green check means up to date. Up to date

Accessed:
Jun. 5, 2024

§ 52.174’s source at texas​.gov