(a) When applicable, a veteran may execute mineral leases covering the land being purchased through the board. The following conditions must be met:      
        (1) No oil and gas lease will be accepted unless the board's standard form is used. Copies of this form will be furnished upon request.       
        (2) The lease must be approved by the chairman of the board.       
        (3) Each lease must state the actual and true consideration to be paid.       
        (4) At least 1/2 of all proceeds, including bonus, rentals and royalties received under the terms of such leases, shall be paid to the board and applied toward the principal balance of the account. If an account is delinquent, the board will require  that additional payments of bonus, rental and royalty be paid until the delinquency is satisfied. Payments made in this manner will not relieve the veteran of his obligation to make the regular installment payments.       
        (5) The lease term may not exceed 10 years, except when a lease is held in force by production. However, coal and lignite leases may be executed, with board approval, for terms up to 40 years.       
        (6) No lease may contain a provision for an option, renewal or release for any term, nor may such provision be provided for by separate instrument.       
      (b) Each executed mineral lease must be submitted to the board in duplicate. The approved original will be returned for recording with the county  clerk. One half of the bonus payment should accompany the lease, along with a lease review fee. If the account is delinquent, all of the bonus payment, or as much as may be required, should be sent to the board to satisfy the delinquency.     
      (c) At least five acres around and including improvements on a tract must be excluded from all leases executed for iron ore, gravel, coal, or other substances, the mining or development of which tends to destroy the surface value of the land.     
      (d) The veteran may lease the property for agricultural, hunting or grazing purposes or for other surface uses without obtaining the approval of the board. However, if the tract is forfeited the rights of the lessee are then terminated.     
     Source Note:        The provisions of this §175.14 adopted to be effective March 11, 1986, 11 TexReg 1005; amended to be effective August 12, 2001, 26 TexReg 5838