Texas 2009 - 81st Regular

Texas House Bill HB3461 Compare Versions

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1	1	H.B. No. 3461
2	2
3	3
4	4	AN ACT
5	5	relating to the powers and duties of the School Land Board and the
6	6	commissioner of the General Land Office.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Section 32.001(4), Natural Resources Code, is
9	9	amended to read as follows:
10	10	(4) "Land" means:
11	11	(A) land dedicated to or acquired on behalf of
12	12	the permanent school fund and the asylum funds under [by] the
13	13	constitution and laws of this state;
14	14	(B) the mineral estate in areas within tidewater
15	15	limits, including islands, lakes, bays, and the bed of the sea which
16	16	belong to the state;
17	17	(C) the mineral estate in river beds and
18	18	channels; and
19	19	(D) land owned by the state or held in trust for
20	20	the use and benefit of the state or of a department, board, or
21	21	agency of the state.
22	22	SECTION 2. Section 32.002, Natural Resources Code, is
23	23	amended by amending Subsections (a) and (b) and adding Subsections
24	24	(a-1) and (f) to read as follows:
25	25	(a) This chapter does not apply to:
26	26	(1) land dedicated by the constitution or a law of this
27	27	state to The University of Texas System, land donated by a will or
28	28	instrument in writing or otherwise to The University of Texas
29	29	System, as trustee, for a scientific, educational, or other
30	30	charitable or public purpose, or any other land under the control of
31	31	the Board of Regents of The University of Texas System;
32	32	(2) land whose title is vested in the state for the use
33	33	and benefit of any part of The Texas A&M University System or land
34	34	under the control of the Board of Regents of The Texas A&M
35	35	University System;
36	36	(3) minerals subject to lease under Subchapter F,
37	37	Chapter 52, [of this code,] commonly known as the Relinquishment
38	38	Act, and Subchapters B and C, Chapter 53[, of this code];
39	39	(4) [oil and gas underlying land owned by the state
40	40	that was acquired to construct or maintain a highway, road, street,
41	41	or alley, which is located in a producing area, unless the oil or
42	42	gas is leased for the specific purpose of drilling a horizontal
43	43	well;
44	44	[(5) oil and gas underlying land owned by the state
45	45	that was acquired to construct or maintain a highway, road, street,
46	46	or alley if the Texas Transportation Commission has determined that
47	47	such right-of-way is no longer needed for use by citizens as a road
48	48	pursuant to Section 202.021, Transportation Code;
49	49	[(6)] land owned by the [Texas] Parks and Wildlife
50	50	Department; or
51	51	(5) [(7)] land owned by the Texas Board of Criminal
52	52	Justice.
53	53	(a-1) Oil and gas underlying land that is owned by this
54	54	state, was acquired to construct or maintain a highway, road,
55	55	street, or alley, is located in a producing area, and is subject to
56	56	an oil or gas lease may be pooled or unitized only prospectively and
57	57	is subject to Sections 32.201, 32.202, and 32.203.
58	58	(b) For purposes of Subsection (a-1) [Subsection (a)(4) of
59	59	this section], land is located in a producing area if the closest
60	60	boundary line of the surface of such land is within 2,500 feet of a
61	61	well capable of producing oil or gas in paying quantities [as of
62	62	January 1, 1985].
63	63	(f) This chapter does not authorize drilling or other
64	64	operations on the surface of land during the period in which the
65	65	land is used by this state as a highway, road, street, or alley.
66	66	SECTION 3. Subchapter A, Chapter 32, Natural Resources
67	67	Code, is amended by adding Section 32.003 to read as follows:
68	68	Sec. 32.003. APPLICATION OF SUNSET ACT. The School Land
69	69	Board is subject to Chapter 325, Government Code (Texas Sunset
70	70	Act). Unless continued in existence as provided by that chapter,
71	71	the board is abolished September 1, 2017.
72	72	SECTION 4. Section 32.016(a), Natural Resources Code, is
73	73	amended to read as follows:
74	74	(a) When necessary, the board shall meet on the first and
75	75	third Tuesdays of each month at a time and location to be designated
76	76	by the board [in the land office].
77	77	SECTION 5. Section 32.061, Natural Resources Code, is
78	78	amended to read as follows:
79	79	Sec. 32.061. BOARD'S GENERAL DUTIES. Except as provided by
80	80	Subchapter G, Chapter 51, of this code, the board shall:
81	81	(1) set the dates to open received bids for the sale of
82	82	[surveyed] land [dedicated to the permanent school fund], for the
83	83	lease of land for prospecting or exploring for, mining, producing,
84	84	storing, caring for, transporting, preserving, selling, or
85	85	disposing of oil, gas, or other minerals leased under this chapter,
86	86	and for the commitment of land to a contract for development;
87	87	(2) determine the prices and set the terms and
88	88	conditions under [of the contract for] which land shall be sold,
89	89	leased, or committed to a contract for development;
90	90	(3) consult with the president, chairman, or other
91	91	head of the department, board, or agency, as applicable, or with the
92	92	representative of the head, on each matter before the board that
93	93	affects land owned or held in trust for the use and benefit of a
94	94	department, board, or agency of the state; and
95	95	(4) perform any other duties which may be required by
96	96	law.
97	97	SECTION 6. Section 32.102, Natural Resources Code, is
98	98	amended to read as follows:
99	99	Sec. 32.102. LIST OF LAND. From time to time as requested
100	100	by the board, the commissioner shall furnish the board a list of
101	101	land areas subject to the provisions of this chapter.
102	102	SECTION 7. Section 32.105, Natural Resources Code, is
103	103	amended to read as follows:
104	104	Sec. 32.105. DATE FOR OPENING BIDS. The date for opening
105	105	bids for the sale, lease, or commitment to a contract for
106	106	development of land shall be:
107	107	(1) the first or third Tuesday of a [the] month in
108	108	which the board meets; or
109	109	(2) any date on which the board has a special meeting.
110	110	SECTION 8. Sections 32.107(a), (b), and (c), Natural
111	111	Resources Code, are amended to read as follows:
112	112	(a) The board shall publish notice that the board will
113	113	receive bids for the sale, lease, or commitment to a contract for
114	114	development of land in at least three issues of at least four daily
115	115	newspapers or other publications, two of which may be
116	116	Internet-based journals, trade publications, newsletters, or
117	117	similar news media, that are, in the opinion of the commissioner,
118	118	likely to reach the public interested in responding to the notice of
119	119	sale, lease, or commitment to a contract for development.
120	120	(b) The notice shall be published at least 30 days before
121	121	the date the bids are due [advertised to be opened].
122	122	(c) The notice shall state that land is to be offered for
123	123	sale, lease, or commitment to a contract for development on a
124	124	certain date and at a certain time and the method of the sale,
125	125	lease, or commitment to a contract for development and shall give
126	126	notice of how [that] a person may obtain additional information
127	127	concerning [publications from the land office that describe] the
128	128	land offered for sale, lease, or commitment to a contract for
129	129	development.
130	130	SECTION 9. Sections 32.110(a) and (c), Natural Resources
131	131	Code, are amended to read as follows:
132	132	(a) On land sales and mineral leases made by the board, the
133	133	purchaser or bidder is required to pay by separate check an amount
134	134	equal to one and one-half percent of the bid or sale amount payable
135	135	to the commissioner as a special fee. The board may waive the
136	136	special fee on land sales to any state agency, board, commission,
137	137	political subdivision, or other governmental entity.
138	138	(c) Failure to pay the special fee shall not void a bid, but
139	139	the commissioner shall demand payment of the fee before accepting
140	140	the bid and completing the transaction [a lease is issued to the
141	141	best bidder. If the best bidder fails or refuses to make the
142	142	payment within 30 days after demand by the commissioner, the bidder
143	143	is not entitled to a sale of or a lease on the tract covered by that
144	144	bid and the cash bonus shall be automatically forfeited to be
145	145	deposited by the commissioner in the State Treasury to the credit of
146	146	the permanent school fund or the appropriate special mineral fund.
147	147	The board, at its option, may offer the tract for sale or lease to
148	148	the next best bidder under the same terms as submitted by and as
149	149	would have been granted to the best bidder].
150	150	SECTION 10. Section 32.203, Natural Resources Code, is
151	151	amended to read as follows:
152	152	Sec. 32.203. COMPENSATORY ROYALTY. Compensatory royalty
153	153	shall be paid to the state on any lease offered and granted under
154	154	Section 32.201 of this code if the lease is not being held by
155	155	production on the tract, by production from a pooled unit, or by
156	156	payment of shut-in royalties in accordance with the terms of the
157	157	lease, and if oil or gas is sold and delivered in paying quantities
158	158	from a well located within 2,500 feet of the leased premises and
159	159	completed in a producible reservoir underlying the state lease or
160	160	in any case in which drainage is occurring. Such compensatory
161	161	royalty shall be paid at the royalty rate provided in the state
162	162	lease based on the value of production from the well as provided in
163	163	the lease on which such well is located. The compensatory royalty
164	164	shall be paid in the same proportion that the acreage of the state
165	165	lease has to the acreage of the state lease plus the acreage of a
166	166	standard [the] proration unit under statewide field rules or, if
167	167	applicable, the special field rules adopted by the Railroad
168	168	Commission of Texas for the field in which [surrounding] the
169	169	[draining] well has been completed. The compensatory royalty is to
170	170	be paid monthly to the commissioner on or before the last day of the
171	171	month next succeeding the month in which the oil or gas is sold and
172	172	delivered from the well [causing the drainage or from the well
173	173	located within 2,500 feet of the leased premises and completed in a
174	174	producible reservoir under the state lease]. Notwithstanding
175	175	anything herein to the contrary, compensatory royalty payable under
176	176	this section shall be no less than an amount equal to double the
177	177	annual rental payable under the state lease. Payment of
178	178	compensatory royalty shall maintain the state lease in force and
179	179	effect for so long as such payments are made as provided in this
180	180	section.
181	181	SECTION 11. Subchapter F, Chapter 32, Natural Resources
182	182	Code, is amended by adding Section 32.207 to read as follows:
183	183	Sec. 32.207. ADVERTISING FOR BIDS; POOLING. Section 52.076
184	184	applies to oil and gas under land owned by this state that was
185	185	acquired to construct or maintain a highway, road, street, or alley
186	186	in the same manner as that section applies to oil and gas under a
187	187	riverbed or channel.
188	188	SECTION 12. Section 32.253, Natural Resources Code, is
189	189	amended to read as follows:
190	190	Sec. 32.253. PURPOSE OF TRADE. Land dedicated to or
191	191	acquired for the use and benefit of the permanent school fund may be
192	192	traded to:
193	193	(1) aggregate sufficient acreage of contiguous land to
194	194	create a manageable unit;
195	195	(2) acquire land having unique biological,
196	196	geological, cultural, or recreational value; [or]
197	197	(3) create a buffer zone for the enhancement of
198	198	already existing public land, facilities, or amenities; or
199	199	(4) acquire land for the use and benefit of the
200	200	permanent school fund as determined by the board to be in the best
201	201	interest of the fund.
202	202	SECTION 13. Section 51.001, Natural Resources Code, is
203	203	amended by amending Subdivision (8) and adding Subdivision (12) to
204	204	read as follows:
205	205	(8) "Surveyed land" means all or part of any tract of
206	206	land surveyed either on the ground or by protraction and dedicated
207	207	to or acquired on behalf of the public school fund which is unsold
208	208	and for which field notes are on file in the land office or that may
209	209	be delineated on the maps of that office as such.
210	210	(12) "Sovereign land" means land that has not been
211	211	sold and severed by the sovereign.
212	212	SECTION 14. The heading to Section 51.013, Natural
213	213	Resources Code, is amended to read as follows:
214	214	Sec. 51.013. CLASSIFICATION [AND VALUATION] OF LAND.
215	215	SECTION 15. Section 51.013(b), Natural Resources Code, is
216	216	amended to read as follows:
217	217	(b) After the classification [and determination of market
218	218	value] is entered on the records of the land office, no further
219	219	action needs to be taken by the commissioner and no notice is
220	220	required to be given to the county clerk for the classification [and
221	221	determination of market value] to be effective.
222	222	SECTION 16. Section 51.014, Natural Resources Code, is
223	223	amended to read as follows:
224	224	Sec. 51.014. RULES. [(a)] The commissioner may adopt
225	225	rules necessary to carry out the provisions of this chapter and may
226	226	alter or amend the rules to protect the public interest.
227	227	[(b) Before rules are adopted under Subsection (a) of this
228	228	section, the commissioner shall submit the rules to the governor
229	229	for his approval.]
230	230	SECTION 17. Sections 51.052(e), (f), (g), (i), and (k),
231	231	Natural Resources Code, are amended to read as follows:
232	232	(e) The owner of land that surrounds [land in] a tract of
233	233	land approved for sale by the board shall have a preference right to
234	234	purchase the tract before the land is made available for sale to any
235	235	other person, provided the person having the preference right pays
236	236	not less than the market value for the land as determined by the
237	237	board and the board finds use of the preference to be in the best
238	238	interest of the state. The board shall adopt rules to implement
239	239	this preference right.
240	240	(f) If the surrounding land is owned by more than one
241	241	person, the owners of land with a common boundary with a tract of
242	242	land approved [1,200 acres or less that is] for sale by the board
243	243	shall have a preference right to purchase the tract before it is
244	244	made available to any other person, provided the person with the
245	245	preference right pays not less than the market value of the land as
246	246	determined by the board and the board finds use of the preference to
247	247	be in the best interest of the state. The board shall adopt rules to
248	248	implement this preference right.
249	249	(g) If land is located within the boundaries of or adjacent
250	250	to any state park, refuge, natural area, or historical site subject
251	251	to the management and control of the Parks and Wildlife Department,
252	252	the department has a preference right to purchase the land before it
253	253	is made available [for sale] to any other person. A sale to the
254	254	department under this section may not be for less than the market
255	255	value of the land, as determined by the board.
256	256	(i) If no bid meeting minimum requirements is received for a
257	257	tract of land offered at a sealed bid sale under Subchapter D of
258	258	Chapter 32, or if the transaction involves commercial real estate
259	259	and the board determines that it is in the best interest of the
260	260	permanent school fund, the asset management division of the land
261	261	office may solicit proposals or negotiate a sale, exchange, or
262	262	lease of the land to any person. [The asset management division
263	263	may contract for the services of a real estate broker or of a
264	264	private brokerage or real estate firm to assist in a transaction
265	265	under this subsection.] The board must approve any negotiated
266	266	sale, exchange, or lease of any land under this section.
267	267	(k) The [If an award of a bid under this section does not
268	268	result in a final transaction, the] asset management division of
269	269	the land office may contract for the services of a real estate
270	270	broker or of a private brokerage or real estate firm to assist in
271	271	any sale, lease, or exchange of land under this subchapter [the real
272	272	estate transaction].
273	273	SECTION 18. Section 51.056, Natural Resources Code, is
274	274	amended to read as follows:
275	275	Sec. 51.056. APPLICATION OR REQUEST TO PURCHASE LAND.
276	276	[(a)] A person who wants to purchase public school land shall
277	277	submit to the commissioner a [separate] written application or
278	278	request in a form designated by the commissioner [for each tract].
279	279	[(b) Each application shall:
280	280	[(1) designate the land to be purchased;
281	281	[(2) state the bid offered;
282	282	[(3) include an affidavit disclosing the names of all
283	283	persons or entities either directly or indirectly interested in the
284	284	purchase of the land.
285	285	[(c) The sale of the land is effective from the date of the
286	286	receipt and filing of the application, affidavit, obligation, and
287	287	the payment of the initial portion of the price offered.
288	288	[(d) The application to purchase and the notice of award
289	289	shall state that the land is sold without condition of settlement
290	290	and with a reservation of minerals, as determined by the board.]
291	291	SECTION 19. Section 51.066, Natural Resources Code, is
292	292	amended to read as follows:
293	293	Sec. 51.066. LAND [NOTICE OF] AWARD. (a) The commissioner
294	294	shall prepare and issue a land [notice of] award for each tract of
295	295	sovereign land sold.
296	296	(b) Each land [notice of] award shall be appropriately
297	297	numbered and shall be worded in a manner that will constitute a
298	298	receipt for the first or full payment after it is signed by the
299	299	commissioner.
300	300	(c) One copy of the land [notice of] award shall be retained
301	301	in the land office and the other copy shall be sent to the
302	302	purchaser.
303	303	SECTION 20. The heading to Section 51.070, Natural
304	304	Resources Code, is amended to read as follows:
305	305	Sec. 51.070. UNPAID PRINCIPAL [AND INTEREST] ON PUBLIC
306	306	SCHOOL LAND SALES.
307	307	SECTION 21. Sections 51.070(a) and (b), Natural Resources
308	308	Code, are amended to read as follows:
309	309	(a) Unpaid and delinquent principal [and interest] on sales
310	310	of public school land shall bear interest at a rate set by the
311	311	board, which principal and interest shall be payable at the times
312	312	and on such terms as are established by the board [by rule or by
313	313	contract].
314	314	(b) No patent may be issued for any public school land until
315	315	all [unpaid] principal, accrued [and compounded] interest, late
316	316	charges, and other fees and expenses are [is] paid in full [to the
317	317	time of issuing the patent].
318	318	SECTION 22. Section 51.071, Natural Resources Code, is
319	319	amended to read as follows:
320	320	Sec. 51.071. FORFEITURE OF LAND. (a) If principal,
321	321	accrued [and] interest, late charges, and other fees and expenses
322	322	on a sale of sovereign land are [is] not paid when due as required by
323	323	the terms set by the board, the land is subject to forfeiture by the
324	324	commissioner by entry on the file [wrapper] containing the papers
325	325	"Land Forfeited" or similar words, the date of the forfeiture, and
326	326	the official signature of the commissioner.
327	327	(b) After the entry is made on the file [wrapper], the land
328	328	and all payments that have been made for it are forfeited to the
329	329	state, and the land may be resold in accordance with the provisions
330	330	of this subchapter [offered for sale on a subsequent sale date].
331	331	SECTION 23. Section 51.073, Natural Resources Code, is
332	332	amended to read as follows:
333	333	Sec. 51.073. CLASSIFICATION AND SALE OF LEASED AND
334	334	FORFEITED LAND. [(a)] Before it is sold, the commissioner shall
335	335	classify and determine the market value of land on which leases have
336	336	expired and land forfeited to the state.
337	337	[(b) Except as provided in Section 51.064 of this code, no
338	338	land may be sold until it is advertised.]
339	339	SECTION 24. Section 51.086(a), Natural Resources Code, is
340	340	amended to read as follows:
341	341	(a) All sales of escheated land that is a part of the
342	342	permanent school fund must be made [to the highest bidder] at a
343	343	price that may not be less than [the greater of $2.50 an acre or] the
344	344	minimum price set by the court under Section 71.107, Property Code,
345	345	and in the same manner as the sale of public school land as provided
346	346	by this chapter.
347	347	SECTION 25. Sections 51.172(4) and (7), Natural Resources
348	348	Code, are amended to read as follows:
349	349	(4) "Necessary party" means:
350	350	(A) an applicant or good-faith claimant whose
351	351	present legal interest in the surface or mineral estate of the land
352	352	claimed to be vacant may be adversely affected by a vacancy
353	353	determination;
354	354	(B) a person who asserts a right to or who claims
355	355	an interest in land claimed to be vacant;
356	356	(C) a person who asserts a right to or who claims
357	357	an interest in [land claimed to be vacant or in] land adjoining land
358	358	claimed to be vacant as shown in the records of the land office or
359	359	the county records, including tax records, of any county in which
360	360	all or part of the land claimed to be vacant is located;
361	361	(D) a person whose name appears in the records
362	362	described by Paragraph (C); or
363	363	(E) an attorney ad litem appointed under Section
364	364	51.180.
365	365	(7) "Vacancy application" means a form submitted to
366	366	the commissioner by an applicant to:
367	367	(A) initiate a determination by the commissioner
368	368	whether land claimed to be vacant is vacant; and
369	369	(B) purchase [vacant land;] or
370	370	[(C)] lease vacant land.
371	371	SECTION 26. Section 51.177(a), Natural Resources Code, is
372	372	amended to read as follows:
373	373	(a) Not later than the 45th day after the date the
374	374	commissioner accepts [applicant files] the duplicate copies as
375	375	properly filed by the applicant [with the commissioner] as provided
376	376	by Section 51.176(f), the commissioner shall:
377	377	(1) determine whether the vacancy application is
378	378	administratively complete; and
379	379	(2) provide to the applicant the notice required by
380	380	this section.
381	381	SECTION 27. Section 51.180, Natural Resources Code, is
382	382	amended to read as follows:
383	383	Sec. 51.180. ATTORNEY AD LITEM. (a) If the [The]
384	384	applicant cannot [must] provide evidence to the commissioner to
385	385	establish the applicant's ownership of all interests as defined by
386	386	Section 51.172 in the land surrounding the land claimed to be
387	387	vacant, the commissioner shall investigate the ownership interests
388	388	of the land claimed to be vacant and the surrounding land to ensure
389	389	that all necessary parties have been identified and located.
390	390	(b) The investigation must conclude not later than the 60th
391	391	day after the application commencement date. If the investigation
392	392	yields any [applicant fails to provide sufficient] evidence that a
393	393	necessary party may not have been identified and located, as
394	394	determined by the commissioner, the commissioner shall, not later
395	395	than the 30th day after the conclusion of the investigation
396	396	[application commencement date], appoint an attorney ad litem to [:
397	397	[(1)] identify and locate all necessary parties
398	398	[; and
399	399	[(2) represent the interests of any necessary party
400	400	that has not been located].
401	401	(c) The commissioner shall provide the attorney ad litem
402	402	with all documents submitted by the applicant and the results of the
403	403	investigation to identify necessary parties, and the attorney ad
404	404	litem shall search public land records and other available records
405	405	to identify and locate necessary parties.
406	406	(d) If any necessary party cannot be located, the attorney
407	407	ad litem shall represent the interests of that necessary party.
408	408	SECTION 28. Sections 51.181(a) and (b), Natural Resources
409	409	Code, are amended to read as follows:
410	410	(a) Not later than the 30th day after the application
411	411	commencement date, and at any time after that date that the
412	412	commissioner considers it necessary to notify an identified
413	413	necessary party, the commissioner shall provide to each necessary
414	414	party identified and located as of that date a written notice that:
415	415	(1) informs the necessary party that a vacancy
416	416	application has been filed;
417	417	(2) states the application commencement date; and
418	418	(3) includes:
419	419	(A) a copy of the vacancy application and any
420	420	attachments; and
421	421	(B) a form for requesting subsequent notices
422	422	regarding the application.
423	423	(b) If the attorney ad litem is unable to locate an
424	424	identified [identify each] necessary party, the attorney ad litem
425	425	shall notify the commissioner in writing, and the commissioner
426	426	[applicant] shall provide notice required under this section by
427	427	publication in the same manner prescribed by the Texas Rules of
428	428	Civil Procedure.
429	429	SECTION 29. Section 51.187(a), Natural Resources Code, is
430	430	amended to read as follows:
431	431	(a) If the commissioner has not issued a final order with a
432	432	finding of "Not Vacant Land" on or before the first anniversary of
433	433	the application commencement date and one or more exceptions have
434	434	been filed under Section 51.182(a) or 51.186(b), the commissioner
435	435	shall order a hearing to determine if a vacancy exists. A hearing
436	436	under this subchapter:
437	437	(1) shall be held not later than the 60th day after the
438	438	date the hearing is ordered;
439	439	(2) shall be conducted as a contested case hearing
440	440	subject to Chapter 2001, Government Code; and
441	441	(3) may be waived by written agreement of all
442	442	necessary parties and the commissioner.
443	443	SECTION 30. Section 51.188(a), Natural Resources Code, is
444	444	amended to read as follows:
445	445	(a) At any time during or after an investigation of or
446	446	hearing regarding a vacancy application, the commissioner may
447	447	determine that land claimed to be vacant is not vacant and issue a
448	448	final order with a finding of "Not Vacant Land[.]" or an order
449	449	finding a vacancy if a hearing is not required under Section 51.187.
450	450	SECTION 31. Section 51.194, Natural Resources Code, is
451	451	amended by amending Subsection (a) and adding Subsections (a-1) and
452	452	(a-2) to read as follows:
453	453	(a) A good-faith claimant who has been notified by the
454	454	commissioner that a vacancy exists under this subchapter has a
455	455	preferential right to purchase or lease the interest claimed in the
456	456	land before the land was declared vacant. The preferential right
457	457	may be exercised after a final judicial determination or after the
458	458	commissioner's final order and the period for filing an appeal has
459	459	expired.
460	460	(a-1) If a good-faith claimant does not apply to purchase or
461	461	lease the interest before the later of the 121st day after the date
462	462	the commissioner's order becomes final or the 60th day after the
463	463	date of the final judicial determination of an appeal under this
464	464	subchapter, then the good-faith claimant's preferential right
465	465	expires.
466	466	(a-2) If a good-faith claimant does not close a transaction
467	467	to purchase or lease the interest before the 121st day after the
468	468	date the terms and conditions are determined by the board, then the
469	469	good-faith claimant's preferential right expires.
470	470	SECTION 32. Section 61.021, Natural Resources Code, is
471	471	amended by adding Subsection (c) to read as follows:
472	472	(c) Any requirement to keep a beach open for vehicular
473	473	traffic under this subchapter or rules adopted under this
474	474	subchapter does not apply to a beach or segment of a beach within
475	475	3,100 feet of a natural science laboratory in a county with a
476	476	population of 40,000 or less.
477	477	SECTION 33. The following provisions of the Natural
478	478	Resources Code are repealed:
479	479	(1) Section 32.103;
480	480	(2) Section 51.052(a);
481	481	(3) Section 51.057;
482	482	(4) Section 51.058;
483	483	(5) Section 51.059;
484	484	(6) Section 51.060;
485	485	(7) Section 51.061;
486	486	(8) Section 51.062;
487	487	(9) Section 51.063;
488	488	(10) Section 51.064;
489	489	(11) Section 51.068;
490	490	(12) Section 51.084; and
491	491	(13) Section 51.086(b).
492	492	SECTION 34. Sections 32.002 and 32.203, Natural Resources
493	493	Code, as amended by this Act, and Section 32.207, Natural Resources
494	494	Code, as added by this Act, do not authorize:
495	495	(1) any person, including this state or a local
496	496	government, to claim damages relating to production from a legally
497	497	permitted and legally producing well the drilling of which was
498	498	commenced before the effective date of this Act; or
499	499	(2) a state or local taxing authority to reallocate
500	500	liability for severance or ad valorem taxes or increase the amount
501	501	of those taxes imposed based on production from or the value
502	502	attributable to production from a legally permitted and legally
503	503	producing well the drilling of which was commenced before the
504	504	effective date of this Act.
505	505	SECTION 35. This Act takes effect immediately if it
506	506	receives a vote of two-thirds of all the members elected to each
507	507	house, as provided by Section 39, Article III, Texas Constitution.
508	508	If this Act does not receive the vote necessary for immediate
509	509	effect, this Act takes effect September 1, 2009.
510	510	______________________________ ______________________________
511	511	President of the Senate Speaker of the House
512	512	I certify that H.B. No. 3461 was passed by the House on April
513	513	30, 2009, by the following vote: Yeas 144, Nays 0, 1 present, not
514	514	voting; that the House refused to concur in Senate amendments to
515	515	H.B. No. 3461 on May 29, 2009, and requested the appointment of a
516	516	conference committee to consider the differences between the two
517	517	houses; and that the House adopted the conference committee report
518	518	on H.B. No. 3461 on May 31, 2009, by the following vote: Yeas 143,
519	519	Nays 1, 1 present, not voting.
520	520	______________________________
521	521	Chief Clerk of the House
522	522	I certify that H.B. No. 3461 was passed by the Senate, with
523	523	amendments, on May 25, 2009, by the following vote: Yeas 30, Nays
524	524	1; at the request of the House, the Senate appointed a conference
525	525	committee to consider the differences between the two houses; and
526	526	that the Senate adopted the conference committee report on H.B. No.
527	527	3461 on May 31, 2009, by the following vote: Yeas 31, Nays 0.
528	528	______________________________
529	529	Secretary of the Senate
530	530	APPROVED: __________________
531	531	Date
532	532	__________________
533	533	Governor