Amend SB 1354 as follows:
      Strike Sec. 66.61.  DEFINITIONS  (1)  "Affiliate" that begins
on page 1, line 9 and renumber subsequent definitions
appropriately.
      Strike Sec. 66.61  DEFINITIONS  (5)  "Lessee" that begins on
page 1, line 21 and renumber subsequent definitions appropriately.
      On page 5, line 24, of Sec. 66.64(b), add the following
language after the word "forfeiture":
      "The board shall give written notice to each lessee whose
leasehold interest may be forfeited.  Such notice shall be given at
least twenty-one days before the meeting at which the board will
consider forfeiture of the lease.  The notice shall state the time,
date, and place of the meeting of the board and include a statement
of the board's policy concerning the public's opportunity to be
heard with respect to a declaration of forfeiture.  Notice shall be
properly given when mailed to the last known address of the lessee
based on the records of the board of regents or, if the records do
not contain an address, to any address that may reasonably be
determined to be an address for the lessee."
      Strike Section 66.71.  LEASE PROVISIONS  (b) that begins on
page 12, line 2 and substitute as follows:
      "If oil or gas is discovered in paying quantities on any
tract covered by a lease, then the lease as to that tract shall
remain in force as long as oil and gas is produced in paying
quantities from the tract, provided that the other provisions of
this subchapter are complied with by the lessee."
      Strike Section 66.72  CESSATION OF PRODUCTION; DRILLING AND
REWORKING that begins on page 12, line 13 and substitute as
follows:
      "Section 66.72  CESSATION OF PRODUCTION; DRILLING AND
REWORKING.  Each lease shall provide that in the event production
of oil or gas on the leased premises, after once obtained, shall
cease for any cause within 60 days before the expiration of the
primary term of such lease or at any time or times thereafter, such
lease shall not terminate, if the lessee commences additional
drilling or reworking operations within 60 days thereafter, and
such lease shall remain in full force and effect so long as such
operations continue in good faith and in workmanlike manner,
without interruptions, totalling more than 60 days during any one
such operation; and if such drilling or reworking operations result
in the production of oil and/or gas, such lease shall remain in
full force and effect so long as oil or gas is produced therefrom
in paying quantities or payment of shut-in gas well royalty or
compensatory royalties is made as hereinafter provided in this
subchapter."
      Strike the last sentence of Sec. 66.76, ASSIGNMENT,
RELINQUISHMENT, subsection (c) which begins on page 15, line 25.
      On page 17, line 8, strike "other information as may be
required by the board of regents" and substitute "University lease
numbers".
      Strike Sec. 66.77(e) entirely and renumber the subsequent
subsections appropriately.
      On page 20, line 3, insert the following after "then" and
before "delivery":  "the board may elect".
      On page 20, line 4, after "gas" and before "by" insert:
"shall be at the wellhead, at the oil and gas separator, into a
pipeline connected at the well, or at such other location as may be
specified in a royalty in kind provision in the lease or other
agreement.  Such delivery".
      Strike Sec. 66.80(b) and substitute the following:
      "(b)  The books and accounts, receipts and discharges of all
wells, tanks, pools, meters, pipelines, and all contracts and other
records pertaining to the production, transportation, sale, and
marketing of the oil and gas shall at all times be subject to the
inspection, examination, and copying by the commissioner of the
general land office, the attorney general, the governor, the board
of regents, or the board, or the representative of any of them."
      Add Sec. 66.82(c) to read as follows:
      "The board, in its sole discretion, may authorize
reinstatement of a forfeited lease on terms the board may determine
at the time of the declaration of forfeiture."
      Strike Section 2, Subsection (d) that begins on page 48, line
20 and renumber subsequent sections appropriately.
      Strike Section 3, Subsection (a) that begins on page 49, line
12 and renumber subsequent sections appropriately.