Texas Estates Code 358.056 – Hearing On Application; Order
(a) At the time and place designated for the hearing under Section 358.053(a), or at the time to which the hearing is continued as provided by Section 358.053(b), the judge shall:
(1) hear a lease application filed under Section 358.052; and
(2) require proof as to the necessity or advisability of leasing for mineral development the property described in the application and the notice.
(b) The judge shall enter an order authorizing one or more leases affecting and covering the property or portions of property described in the application, with or without pooling provisions or unitization clauses, and with or without cash consideration if considered by the court to be in the best interest of the estate, if the judge is satisfied that:
(1) the application is in proper form;
(2) notice has been given in the manner and for the time required by law;
(3) proof of necessity or advisability of leasing is sufficient; and
(4) the application should be granted.
Terms Used In Texas Estates Code 358.056
- Court: means and includes:
(1) a county court in the exercise of its probate jurisdiction;
(2) a court created by statute and authorized to exercise original probate jurisdiction; and
(3) a district court exercising original probate jurisdiction in a contested matter. See Texas Estates Code 22.007 - Estate: means a decedent's property, as that property:
(1) exists originally and as the property changes in form by sale, reinvestment, or otherwise;
(2) is augmented by any accretions and other additions to the property, including any property to be distributed to the decedent's representative by the trustee of a trust that terminates on the decedent's death, and substitutions for the property; and
(3) is diminished by any decreases in or distributions from the property. See Texas Estates Code 22.012 - Judge: means the presiding judge of any court having original jurisdiction over probate proceedings, regardless of whether the court is:
(1) a county court in the exercise of its probate jurisdiction;
(2) a court created by statute and authorized to exercise probate jurisdiction; or
(3) a district court exercising probate jurisdiction in a contested matter. See Texas Estates Code 22.019 - Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- personal representative: include :
(1) an executor and independent executor;
(2) an administrator, independent administrator, and temporary administrator; and
(3) a successor to an executor or administrator listed in Subdivision (1) or (2). See Texas Estates Code 22.031 - Property: means real and personal property. See Texas Government Code 311.005
- Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005
(c) The order must contain:
(1) the name of the lessee;
(2) any actual cash consideration to be paid by the lessee;
(3) a finding that the requirements of Subsection (b) have been satisfied; and
(4) one of the following findings:
(A) a finding that the personal representative is exempted by law from giving bond; or
(B) if the representative is not exempted by law from giving bond, a finding as to whether the representative’s general bond on file is sufficient to protect the personal property on hand, including any cash bonus to be paid.
(d) If the court finds the general bond insufficient to meet the requirements of Subsection (c)(4)(B), the order must show the amount of increased or additional bond required to cover the deficiency.
(e) A complete exhibit copy, either written or printed, of each authorized lease must be set out in the order or attached to the order and incorporated by reference and made part of the order. The exhibit copy must show:
(1) the name of the lessee;
(2) the date of the lease;
(3) an adequate description of the property being leased;
(4) any delay rental to be paid to defer commencement of operations; and
(5) all other authorized terms and provisions.
(f) If the date of a lease does not appear in the exhibit copy of the lease or in the order, the date of the order is considered for all purposes to be the date of the lease.
(g) If the name or address of the depository bank for receiving rental is not shown in the exhibit copy of a lease, the estate’s personal representative may insert that information, or cause that information to be inserted, in the lease at the time of the lease’s execution or at any other time agreeable to the lessee or the lessee’s successors or assignees.