pjc-oil-and-gas-2022-lib

PJC 303.5

L ESSOR -L ESSEE I SSUES

In addition to specifying time periods for payment, Tex. Nat. Res. Code § 91.404 requires the payee to give the payor written notice by mail of the failure to pay timely as a prerequisite to suing the payor for nonpayment. Defenses. Tex. Nat. Res. Code § 91.402(b) allows the lessee to suspend royalty payments under certain situations, including the existence of a title dispute that would affect the distribution of payments. See PJC 312.20 for a question on defenses. Other proceeds. In addition to royalties, Tex. Nat. Res. Code §§ 91.401–.408 apply to other oil or gas proceeds or the interest on those proceeds.

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