(a) Causes. The circumstances under which a state oil and gas lease will terminate are determined by certain provisions in each lease and by the laws of the state.
(b) Procedure.
  (1) Termination occurs automatically whenever a condition of a lease, as defined by the lease and the laws of the state, is not met.
  (2) When the GLO becomes aware of facts and circumstances which would result in the termination of a lease, the GLO will, as a courtesy, issue an initial notice of termination to the lessee as shown by the GLO files. This notice shall inform the lessee of the GLO's determination that the lease at issue has terminated and the reasons for this determination. This notice shall also inform the lessee that the lessee has 30 days in which to present evidence and convince the GLO that a termination has not occurred.
  (3) If such evidence has not been presented at the expiration of the 30-day period, the mineral file shall be endorsed "terminated."
  (4) Should such evidence be presented to the GLO within the 30-day period, the GLO shall review it and determine if it proves to the GLO's satisfaction that the lease at issue did not terminate. If the GLO is not so persuaded, a final notice stating this conclusion and the GLO's reasons shall be sent to the lessee and the mineral file shall be endorsed "terminated." If the GLO is persuaded by the evidence presented that the lease at issue did not terminate, a letter explaining this conclusion shall be sent to the lessee and filed in the mineral file.
  (5) Failure of the GLO to send these notices, or failure of the appropriate parties to receive these notices, will not in any way affect the termination itself nor alter any liabilities accruing before or after termination.
(c) Release. See §9.92(d) of this title, (relating to Release), for the requirement of filing releases of terminated leases.

Source Note: The provisions of this §9.94 adopted to be effective January 7, 1999, 24 TexReg 146