| (1) If the owner of a lease or permit shall fail or refuse to make payment of any sum due, or if the owner or his authorized agent should knowingly make any false return or false report concerning the lease or permit, or if the owner or his agent should refuse the commissioner or his authorized representative access to the records or other data pertaining to operations under the lease or permit, or if any of the material terms of the lease or permit should be violated, the lease or permit shall be subject to forfeiture by the commissioner. (2) A lease or permit shall be considered forfeited when it has been endorsed "forfeited" and the endorsement signed by the commissioner. (3) Upon forfeiture, the commissioner will give written notice to the lessee or permittee stating the date of forfeiture and the reasons for the forfeiture. The notice of forfeiture will be sufficient if mailed to the last known address of the lessee or assignee shown of record in the GLO. (4) A forfeiture may be set aside and all rights under a lease or permit may be reinstated before the rights of another party intervene, upon satisfactory evidence to the commissioner of future compliance with the provisions of the law, of the lease or permit, and of any rules adopted relative to the lease or permit, and any conditions placed upon the reinstatement. Lessee or permittee shall offer the evidence required for reinstatement within 30 days after the date the notice of forfeiture was mailed and after such 30 days shall have no future right of reinstatement. If a lease or permit issued under §10.5 of this title (relating to Mining Leases on Relinquishment Act Lands) is not reinstated within the 30-day period, the surface owner is entitled to act as the state's agent for leasing the minerals. (e) Reduction of penalty and/or interest. The School Land Board may reduce penalties and/or interest assessed under the Texas Natural Resources Code, §52.131, and/or any other penalties or interest relating to delinquent or unpaid royalties that have been assessed by the commissioner in the following circumstances: (1) when a lessee brings a deficiency to the General Land Office's attention voluntarily; and/or (2) when a lessee and the General Land Office have reached an agreement regarding the reduction as part of a resolution of an outstanding audit issue. |
| Source Note: The provisions of this §10.8 adopted to be effective March 22, 1989, 14 TexReg 1280; amended to be effective May 26, 1992, 17 TexReg 3473; amended to be effective April 27, 1994, 19 TexReg 2959; amended to be effective February 5, 1998, 23 TexReg 782; amended to be effective July 11, 2004, 29 TexReg 6308; amended to be effective December 10, 2009, 34 TexReg 8776 |
