(a) If oil or other minerals are developed on any of the lands leased by the board,
the royalty or money as stipulated in the sale shall be paid to the general land office
at Austin on or before the last day of each month for the preceding month during the
life of the rights purchased, and shall be set aside as specified in Section 85.70. The royalty or money paid to the general land office shall be accompanied by the
sworn statement of the owner, manager, or other authorized agent showing the gross
amount of oil, gas, sulphur, mineral ore, and other minerals produced and saved since
the last report, the amount of oil, gas, sulphur, mineral ore, and other minerals
produced and sold off the premises, and the market value of the oil, gas, sulphur,
mineral ore, and other minerals, together with a copy of all daily gauges, or vats,
tanks, gas meter readings, pipeline receipts, gas line receipts and other checks and
memoranda of the amounts produced and put into pipelines, tanks, vats, or pool and
gas lines, gas storage, other places of storage, and other means of transportation.
(b) The books and accounts, receipts and discharges of all wells, tanks, vats, pools,
meters, pipelines, and all contracts and other records pertaining to the production,
transportation, sale, and marketing of oil, gas, sulphur, mineral ore, and other minerals
shall at all times be subject to inspection and examination of any member of the board
or any duly authorized representative of the board.
(c) The commissioner of the general land office shall tender to the board on or before
the 10th day of each month a report of all receipts that are collected from the lease
or sale of oil, gas, sulphur, mineral ore, and other minerals and that are deposited
as provided by Section 85.70 during the preceding month.
(d) Each lease shall contain a provision enabling the Board, at its discretion, to
require that payment of royalty, as stipulated in the lease, be in kind. The Board shall have all powers necessary to negotiate and execute sales contracts
or any other instruments necessary for the disposition of any royalty taken in kind. Such other reasonable provisions, not inconsistent with this subchapter, that will
facilitate the efficient and equitable payment of royalty in kind may be included
in the lease by the Board.
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