| (i) Generally. Within 18 months of the forfeiture or waiver of the preferential right, the SLB may lease the tract directly to an adjacent mineral owner prior to a public offering to the highest bidder under a sealed bid sale. (ii) Lease to adjacent mineral owners and applicants. (I) If the adjoining land on one side of the tract is owned by several adjacent mineral owners in cotenancy, and one or more of these adjacent mineral owners forfeits or waives his or her preferential right, the SLB shall lease in equitable proportions to the remaining cotenants who have applied to lease the tract. (II) If the adjacent mineral owners on one side of a tract waive or forfeit their preferential rights to lease, the SLB shall lease in equitable proportions to the adjacent mineral owners on the other side of the tract who have applied to lease such tract. (III) If all or part of a tract is not leased to an adjacent mineral owner, the SLB shall lease all or part of the unleased tract to the first person who submitted an application to lease it. (IV) The terms and conditions of a lease issued under this subparagraph will be the same as those found in leases issued to adjacent mineral owners. The SLB shall not lease to an applicant at a price or terms which are less than those offered to the adjacent mineral owner. (V) A lease will not be issued until the SLB approves the lease and receives the bonus payment and the 1.5% sales fee provided by Texas Natural Resources Code, §32.110. (iii) Lease by sealed bid. If all or part of the tract is not leased to an adjacent mineral owner or to an applicant, the SLB shall offer all or part of the unleased tract for lease by sealed bid under paragraph (1) of this subsection. |
