81R5984 ACP-D By: Seliger S.B. No. 1823 A BILL TO BE ENTITLED AN ACT relating to the state's statutory and contractual liens to secure the payment of unpaid royalty and other amounts due under oil and gas leases of state land. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 52.136, Natural Resources Code, is amended by amending Subsection (b) and adding Subsection (d) to read as follows: (b) By acceptance of a lease, the lessee grants to the state an express contractual lien on and security interest in all oil and gas in and extracted from the area covered by the lease, all proceeds which may accrue to the lessee from the sale of the oil and gas extracted from the area covered by the lease or from the area covered by any other lease of state land or minerals held by the lessee, whether the proceeds are held by the lessee or another person, and all fixtures on and improvements to the area covered by the lease used in connection with the production or processing of the oil and gas, to secure the payment of royalties and other amounts due or to become due under the lease or this subchapter and to secure payment of damages or loss that the state may suffer by reason of the lessee's breach of a covenant or condition of the lease or of another lease of state land or minerals held by the lessee, whether express or implied. (d) The commissioner may temporarily suspend enforcement of a lien established by Subsection (b) if the commissioner determines that, because of extenuating circumstances beyond the control of the lessee, the lessee did not receive payment from the first purchaser of the oil or gas produced from the lease area. SECTION 2. This Act takes effect September 1, 2009.