By: Seliger S.B. No. 1823
(In the Senate - Filed March 11, 2009; March 20, 2009, read
first time and referred to Committee on Natural Resources;
April 16, 2009, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 10, Nays 0; April 16, 2009,
sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 1823 By: Seliger
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 Subsections (b-1),
(b-2), (b-3), and (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.
(b-1) The commissioner shall determine whether to foreclose
a lien established by Subsection (b) securing the payment of
royalties and other amounts due or to become due under a lease or
this subchapter and securing payment of damages or loss that the
state may suffer by reason of the lessee's breach of a convenant or
condition of the lease, whether express or implied, including the
lien on all proceeds which may accrue to the lessee from the sale of
the oil and gas extracted from the area covered by any other lease
of state land or minerals held by the lessee.
(b-2) The commissioner shall determine the amount of a lien
established by Subsection (b). The amount shall be based on the
final audit billing notice, or similar order or notice, sent to the
lessee and any penalty and interest that may have accrued after the
date the final billing notice, or similar order or notice, was sent.
(b-3) The commissioner may adjust the amount of a lien
established by Subsection (b) to account for the lessee's
proportionate ownership interest in the lease.
(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.
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