83R5509 JAM-D
By: Keffer H.B. No. 2590
A BILL TO BE ENTITLED
AN ACT
relating to the foreclosure sale of property subject to certain
agreements related to the production or sale of oil or gas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 51, Property Code, is amended by adding
Section 51.010 to read as follows:
Sec. 51.010. SALE OF PROPERTY SUBJECT TO CERTAIN AGREEMENTS
RELATED TO PRODUCTION OR SALE OF OIL OR GAS. (a) Notwithstanding
any other law, an oil or gas lease or other agreement related to the
production or sale of oil or gas from real property subject to a
security interest that is being foreclosed remains in effect after
the foreclosure sale and has priority over the foreclosed lien
regardless of whether the agreement was recorded in the real
property records of the county before the date the security
interest was recorded if the agreement:
(1) was recorded in the real property records of the
county before the foreclosure sale; and
(2) has not terminated or expired on its own terms.
(b) Any royalty payment due to the owner of the real
property under an agreement described by Subsection (a) shall be
paid to the purchaser of the foreclosed real property.
SECTION 2. Section 51.010, Property Code, as added by this
Act, applies only to a security interest recorded in the real
property records of a county on or after the effective date of this
Act. A security interest recorded before the effective date of this
Act is governed by the law in effect immediately before the
effective date of this Act, and that law is continued in effect for
that purpose.
SECTION 3. This Act takes effect September 1, 2013.