Untitled Texas Attorney General Opinion ( 1950 )


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  •       THEATTORNEYGENERAI.
    0F TEXAS
    August 21, 1950
    Hon. C. H. Cavness             OpinionNo. V-1092.
    State Auditor
    Austin,Texas                   Re: Authorityof the Codssioner
    of the GeneralLand Office to
    requirethe paymentof inter-
    est on the bonus before filing
    a Relinquishment Act lease.
    Dear Sir:
    You have requestedour opinionregardin@;intereston de-
    layed payments.
    of the bonus for Relinquishment
    Act leases. You
    ask:
    7,
    . . . whether . . . it would not be legal for the
    Commissionerof the GeneralIand Office to requirepay-
    ment of interestat the legal rate of 6 per cent before
    acceptingan unreasonablylat,ebonus paymentand filing
    the lease."
    It is settledthat the provisionsof the Relinquishment
    Act regardingpaymentare read into the leases executedthereunder
    (PermianOil CO. Y. State, 
    161 S.W.2d 568
    (Tex.Civ.App.
    1942)) and
    that interestis due the State on royaltieswithheldafter the time
    fixed by statutefor payment. State v. Powell,70 S.W.2d297 (Tex.
    Civ.App.1934). There is, however,no statutefixing the time for
    payment of the bonus.
    In order to raise an impliedpromiseto pay legal inter-
    est, it is not necessarythat the contractitselfestablisha fixed
    liabilityin a definiteamountas of a date certain. It is suffi-
    cient if the contractprovidesthe conditionsunon which liabilitv
    depends. Federal Life-Ins.Co. v. Kriton,112 %ex. 532, 249 S.W."
    193 (1923);PhillipsPetroleumCo. v. Johnson,
    155 F.2d 185
    , 191-
    192 (CCA 5th 1946);25 Tex. Jur. 19, Interest,Sec. 13.
    A Relinquishment Act lessee cannotescape liabilityfor
    bonus paymentsby his failureor refusalto file a lease. It is
    settledthat an oil and gas lessor can affirm the lease and sue
    for the purchaseprice,with interest. ArcadiaRefiningCo. v.
    s,    146 ~.~.2d 767 (Tex.Civ.App. 1940, ,errordism.);
    Grisham-Hunter Corp., 
    128 S.W.2d 149
    (Tex.Civ.App.1939, error
    dism.);McMillin v. Wilson, 
    121 S.W.2d 1029
    (Tex.Civ.App.1938,
    error dism.);31A Tex. Jur. 502, Oil and Gas, Sec. 274. Such a
    Hon. C. H. Cavnese - Page 2 - V-lG92.
    suit is in effecta suit for specificperformance. CapritoY.
    
    Grisham-HunterCo-., supra
    .
    It is~likewisethe rule that if an obligationis payable
    upon an event which dependsentirelyupon the obligor,the obliga-
    tion becomes due after the expirationof a reasonabletime for the
    event to have been broughtabout. C. C. SlaughterCo. v. Eller,
    
    196 S.W. 704
    , 706 (Tex.~Civ.App.
    1917, error ref.); Boese;f;:C;c$nty
    -- -
    of Potter,173 S.W. 462, 467 (Tex.Civ.App. 1915, error rt
    Tex. Jur. 632-633,Papent, Se?; 3; 66 C.J. 682, Vendor and &rI
    chaser,Sec. 241.
    The statuterequiringthe filing of the lease (Article
    5421c-2,V.C.S.)was enactedfor the benefitof the State. It is
    includedin GeneralLand Office lease forms for the same reason*
    We think that a duty is therebyimposedupon the lesseeto file
    the leasewithin a reaaon&ble,time.Cf. Cheek v. Metzer, 
    116 Tex. 356
    , 
    291 S.W. 860
    (1927);LonginottiV. McShane, 184 s.w. 598 (Tex.
    Civ.App.1916, error ref.);United         & South Oil Co. v. Tiller,
    
    283 S.W. 676
    , 679 (Tex.Civ,App. 1926, error ref.); Clark v. Wilson,
    pl S.W. 627 (Tex.Civ.App.~1906); Cunyusv. Hooks Lumber Co.,
    S.W. 1106 (Tex.Civ.App. l&IS);,66C.J."680,Vendor and Purchaser,
    Sec. 241. The SQite could waive the right to have the lease filed
    and sue for 'the~purchaseprick. Cf. GoidenWest Oil Co. No. 1 v.'
    GoldenRod,011 Co. No. l/285 S,W~.63T(?%eX;Civ:.Auu.  1926). aff.
    
    293 S.W. 167
    (TexXti.App. 1927);Verschoylev. Ti&as; 2ki S~.W.'
    554 (T$x.Civ,App. '1924)'.In'&Ucha suit, t&e State would be en-
    titld. to recoverthe bonus due as pticb@seprice with interest
    from the date that the lease and bonus shouldhave been tendered
    for filing. Cf. MdlilUn Y. Wilson, 12i S.W.2d 1029 (Tex.Civ.App.
    1938, error dism.').                .~
    It is our opinion,therefor;,that i$~vouldbe ,legaland.
    proper for the Commissioserof the GeneralLand Officeto request
    paymentof interestbefore filinga,Rel$nquishment  Act lease if the
    payment of the bonus is made at an unreasonablylate date, If pay-
    ment of interestis'refused,the.Comr@sionermay place the,payment
    in suspenseand request,thatthis off,ice take action for cqllection
    of the interest.
    Where there is sn &reasanable delay in the
    paymentto the State of bonus money from a Relin-
    quishmentAct lease, it;!;8legal'+nqproper for the
    Commissionerof the GeneralLand Office to request
    paymentof interestbefore filingthe lease. If
    paymentof interestis refused., the Commissioner
    .
    Hon. C. H. Cavness - Page 3 - V-1092.
    may place the bonus payment in suspenseand request
    the AttorneyGeneralto take action for collection
    of the interest.
    Yours very tmly,
    PRICE DANIEL
    APPROVED:                           AttorneyGeneral
    CharlesD. Mathews
    First Assistant
    Price Daniel,
    AttorneyGeneral
    J??L:pwb