Texas 2015 - 84th Regular

Texas House Bill HB2207 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Keffer, et al. (Senate Sponsor - Eltife) H.B. No. 2207
2		-	(In the Senate - Received from the House May 5, 2015;
3		-	May 5, 2015, read first time and referred to Committee on Natural
4		-	Resources and Economic Development; May 13, 2015, reported
5		-	favorably by the following vote: Yeas 10, Nays 0; May 13, 2015,
6		-	sent to printer.)
7		-	Click here to see the committee vote
	1	+	H.B. No. 2207
8	2
9	3
10		-	COMMITTEE VOTE
11		-	YeaNayAbsentPNV
12		-	FraserX
13		-	EstesX
14		-	BirdwellX
15		-	HallX
16		-	HancockX
17		-	HinojosaX
18		-	LucioX
19		-	NicholsX
20		-	SeligerX
21		-	UrestiX
22		-	ZaffiriniX
23		-	A BILL TO BE ENTITLED
24	4		AN ACT
25	5		relating to the foreclosure sale of property subject to an oil or
26	6		gas lease.
27	7		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
28	8		SECTION 1. Subtitle B, Title 5, Property Code, is amended by
29	9		adding Chapter 66 to read as follows:
30	10		CHAPTER 66. SALE OF PROPERTY SUBJECT TO OIL OR GAS LEASE
31	11		Sec. 66.001. SALE OF PROPERTY SUBJECT TO OIL OR GAS LEASE.
32	12		(a) In this section:
33	13		(1) "Mortgagee," "mortgagor," and "security
34	14		instrument" have the meanings assigned by Section 51.0001.
35	15		(2) "Oil or gas lease" means an instrument conveying a
36	16		fee simple determinable interest in a mineral estate covering oil,
37	17		gas, or other hydrocarbons or a recorded memorandum of such an
38	18		instrument.
39	19		(3) "Real property" means an estate covering the
40	20		mineral interest in hydrocarbons or the mineral interest in
41	21		hydrocarbons together with the surface overlying such mineral
42	22		interest. The term does not include a surface interest or other
43	23		interest that excludes a mineral interest in hydrocarbons.
44	24		(b) Notwithstanding any other law, an oil or gas lease
45	25		covering real property subject to a security instrument that has
46	26		been foreclosed remains in effect after the foreclosure sale if the
47	27		oil or gas lease has not terminated or expired on its own terms and
48	28		was executed and recorded in the real property records of the county
49	29		before the foreclosure sale. An interest of the mortgagor or the
50	30		mortgagor's assigns in the oil or gas lease, including a right to
51	31		receive royalties or other payments that become due and payable
52	32		after the date of the foreclosure, passes to the purchaser of the
53	33		foreclosed property to the extent that the security instrument
54	34		under which the real property was foreclosed had priority over the
55	35		interest in the oil or gas lease of the mortgagor or the mortgagor's
56	36		assigns.
57	37		(c) Notwithstanding Subsection (b), if real property that
58	38		includes the mineral interest in hydrocarbons together with the
59	39		surface overlying such mineral interest is subject to both an oil or
60	40		gas lease and a security instrument and the security interest is
61	41		foreclosed, the foreclosure sale terminates and extinguishes any
62	42		right granted under the oil or gas lease for the lessee to use the
63	43		surface of the real property to the extent that the security
64	44		instrument under which the real property was foreclosed had
65	45		priority over the rights of the lessee under the oil or gas lease.
66	46		(d) An agreement, including a subordination agreement,
67	47		between a lessee of an oil or gas lease and a mortgagee of real
68	48		property or the lessee of an oil or gas lease and the purchaser of
69	49		foreclosed real property controls over any conflicting provision of
70	50		this section. An agreement between a mortgagor and mortgagee may
71	51		not modify the application of this section unless the affected
72	52		lessee agrees to the modification.
73	53		(e) This section does not apply to a security instrument
74	54		that does not attach to a mineral interest in hydrocarbons in the
75	55		mortgaged real property.
76	56		SECTION 2. Chapter 66, Property Code, as added by this Act,
77	57		applies only with respect to a foreclosure sale for which the notice
78	58		of sale is given under Section 51.002, Property Code, on or after
79	59		the effective date of this Act or a judicial foreclosure for which
80	60		the judicial foreclosure action commenced on or after the effective
81	61		date of this Act.
82	62		SECTION 3. This Act takes effect January 1, 2016.
83		-	* * * * *
	63	+	______________________________ ______________________________
	64	+	President of the Senate Speaker of the House
	65	+	I certify that H.B. No. 2207 was passed by the House on May 4,
	66	+	2015, by the following vote: Yeas 140, Nays 0, 2 present, not
	67	+	voting.
	68	+	______________________________
	69	+	Chief Clerk of the House
	70	+	I certify that H.B. No. 2207 was passed by the Senate on May
	71	+	20, 2015, by the following vote: Yeas 31, Nays 0.
	72	+	______________________________
	73	+	Secretary of the Senate
	74	+	APPROVED: _____________________
	75	+	Date
	76	+	_____________________
	77	+	Governor