Texas 2009 - 81st Regular

Texas House Bill HB834 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R5149 TRH-D
2	2	By: Miller of Erath H.B. No. 834
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to reporting ownership of mineral interests severed from
8	8	the surface estate and the vesting of title by judicial proceeding
9	9	to certain abandoned mineral interests.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Title 4, Property Code, is amended by adding
12	12	Chapter 30 to read as follows:
13	13	CHAPTER 30. VESTING OF TITLE TO ABANDONED MINERAL INTEREST IN
14	14	SURFACE OWNER
15	15	Sec. 30.001. APPLICABILITY. This chapter does not apply to
16	16	a mineral interest owned by a governmental entity.
17	17	Sec. 30.002. DEFINITIONS. In this chapter:
18	18	(1) "Abandonment" means the termination of the use of
19	19	a mineral interest by the owner of the interest.
20	20	(2) "Interest in the surface" means a fee interest,
21	21	whether conditional or not, from which a mineral interest has been
22	22	severed.
23	23	(3) "Mineral interest" means an interest in oil, gas,
24	24	or other minerals in place that is severed from the ownership of an
25	25	interest in the surface and includes a fee interest, whether
26	26	conditional or not, life estate, estate for years, remainder
27	27	interest, reversion, possibility of reverter, right of entry,
28	28	executory interest, leasehold interest, royalty interest,
29	29	executive right, or other present possessory interest, future
30	30	interest, equitable interest, or concurrent ownership interest.
31	31	(4) "Surface owner" means a person who has concurrent
32	32	or sole legal right or title to a present interest in real property
33	33	from which a mineral interest has been severed, except the holder of
34	34	a leasehold interest or an estate for years.
35	35	(5) "Use of a mineral interest" means:
36	36	(A) production of minerals under the interest;
37	37	(B) conduct of operations for injection,
38	38	withdrawal, storage, or disposal of water, gas, or other fluid
39	39	substances in connection with the interest;
40	40	(C) payment by the interest's owner of rentals or
41	41	royalties for the purpose of delaying or enjoying the use of the
42	42	interest;
43	43	(D) unitization or pooling of the interest for
44	44	production purposes with another tract on which the use is carried
45	45	out;
46	46	(E) production from a common vein or seam, in the
47	47	case of coal or other solid minerals, by the owners of two or more
48	48	mineral interests;
49	49	(F) payment of taxes on the interest by the
50	50	owner; or
51	51	(G) any other use authorized by the instrument
52	52	creating the interest.
53	53	Sec. 30.003. REPORT OF OWNERSHIP OF MINERAL INTEREST. (a)
54	54	A person who owns a mineral interest on September 1, 2009, must,
55	55	before September 1, 2010, file a report with the county clerk of
56	56	each county in which part of the interest is located. A person who
57	57	acquires or creates a mineral interest after September 1, 2010,
58	58	must file a report with the county clerk of each county in which
59	59	part of the interest is located before the first anniversary of the
60	60	date the person acquires or creates the interest.
61	61	(b) The report must be subscribed and acknowledged in the
62	62	same manner as required for a deed and must contain:
63	63	(1) the name of the person claiming the interest;
64	64	(2) the date the person acquired or created the
65	65	interest;
66	66	(3) a legal description of the interest; and
67	67	(4) a general description of the nature of the
68	68	interest.
69	69	Sec. 30.004. RECORDING OF REPORTS. (a) A county clerk may
70	70	charge the same filing fee for recording a report under Section
71	71	30.003 as authorized for recording a deed.
72	72	(b) Each county clerk shall maintain a public record of
73	73	reports filed under Section 30.003 separately from other records in
74	74	the clerk's office. The clerk shall maintain the record in the same
75	75	manner as required for deeds.
76	76	Sec. 30.005. PRESUMPTION OF ABANDONMENT ON FAILURE TO
77	77	REPORT. (a) An owner of a mineral interest who fails to file a
78	78	report as required by Section 30.003 is presumed to have abandoned
79	79	the interest, and title to the interest is presumed to belong to the
80	80	surface owner.
81	81	(b) A mineral interest is not abandoned if the owner of the
82	82	interest files a report under Section 30.003 before the court
83	83	renders a judgment under Section 30.006 declaring the interest
84	84	abandoned.
85	85	Sec. 30.006. JUDICIAL PROCEEDING. (a) A surface owner may
86	86	file a petition for declaratory judgment in the district court of
87	87	the county in which the real property is located, requesting the
88	88	court to declare a mineral interest abandoned.
89	89	(b) Except as provided by Section 30.005, the court may
90	90	declare a mineral interest abandoned only if the abandonment has
91	91	lasted for 10 years or more. The 10-year period does not begin to
92	92	run before September 1, 2009.
93	93	Sec. 30.007. NOTICE OF PROCEEDING. In an action for
94	94	declaratory judgment under Section 30.006, citation shall be issued
95	95	to the last known owner or owners of the abandoned mineral interest
96	96	as shown by the official records of the county clerk of the county
97	97	in which the property is located and shall be served in accordance
98	98	with the Texas Rules of Civil Procedure.
99	99	Sec. 30.008. VESTING OF TITLE. (a) If a court declares a
100	100	mineral interest abandoned, title to the interest vests in the
101	101	owner or owners of the surface interest from which it was severed,
102	102	with each owner taking the same share and the same type of ownership
103	103	in the mineral interest as the person has in the surface.
104	104	(b) A person who acquires title to a mineral interest in an
105	105	abandonment proceeding under this chapter may record, in the same
106	106	manner as a deed, a certified copy of the judgment as evidence of
107	107	title.
108	108	SECTION 2. This Act takes effect September 1, 2009.