(a) Royalty as stipulated in the lease and all other amounts due under this subchapter
shall be paid to the board of regents at Austin, Travis County, Texas. The lessee of record in the records of the board of regents shall be responsible
for making or causing to be made all payments required by this subchapter at the required
times and in the form and manner determined by the board of regents or otherwise required
(b) The board shall set by rule the date for making royalty payments and for filing
any reports, documents, or other records required to be filed by this section. The date set by the board must be on or after the fifth day of the second month
succeeding the month of production of oil and on or after the 15th day of the second
month succeeding the month of production of gas.
(c) A royalty payment is timely made if the payment is deposited in a postpaid, properly
addressed wrapper, with a post office or official depository under the care and custody
of, and postmarked by, the United States Postal Service before the applicable due
(d) The lessee shall provide to the board of regents with each royalty payment:
(1) an affidavit of the owner, manager, or other authorized agent completed in the
form and manner required by the board of regents and showing the gross amount and
disposition of all oil and gas produced and the market value of the oil and gas, the
number assigned by the Railroad Commission of Texas, and university lease numbers;
(2) a purchase statement or other document showing the price at which the oil and
gas was sold;
(3) a check stub, schedule, summary, or other remittance advice showing by the assigned
lease number the amount of royalty being paid on each lease; and
(4) other reports or records that the board of regents may require to identify the
well and lease and verify the gross production, disposition, and market value.
(e) The board of regents may implement such practices and procedures with regard to
accounting for royalty payments as it may determine to be in the best interest of
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