| 1 | 1 | | 84R4324 JXC-F |
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| 2 | 2 | | By: Paddie H.B. No. 3068 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the information required to be provided by a payor of |
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| 8 | 8 | | proceeds from the sale of oil or gas from an oil or gas well to a |
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| 9 | 9 | | payee on the request by the payee. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Section 91.402, Natural Resources Code, is |
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| 12 | 12 | | amended by adding Subsection (d-1) to read as follows: |
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| 13 | 13 | | (d-1) A payee that receives a division order from a payor in |
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| 14 | 14 | | compliance with Subsection (c) may request that the payor provide |
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| 15 | 15 | | to the payee the formula used to calculate the payee's fractional or |
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| 16 | 16 | | decimal interest in production as stated in the division order, the |
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| 17 | 17 | | information used to determine the payee's fractional or decimal |
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| 18 | 18 | | interest in production, or the fractional or decimal interest in |
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| 19 | 19 | | production of each payee. If the payee's interest in production is |
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| 20 | 20 | | subject to a pooling or unitization agreement, the payor may comply |
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| 21 | 21 | | with this subsection by providing to the payee detailed information |
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| 22 | 22 | | regarding where in the real property records of the county in which |
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| 23 | 23 | | the well is located the pooling or unitization agreement that shows |
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| 24 | 24 | | the relevant fractional or decimal calculation formula is recorded. |
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| 25 | 25 | | The payor must provide the required formula, information, or |
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| 26 | 26 | | division of interest to the payee not later than the 21st day after |
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| 27 | 27 | | the date the payor receives the request. |
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| 28 | 28 | | SECTION 2. The change in law made by this Act applies only |
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| 29 | 29 | | to a division order issued on or after the effective date of this |
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| 30 | 30 | | Act. A division order issued before the effective date of this Act |
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| 31 | 31 | | is governed by the law in effect on the date the division order was |
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| 32 | 32 | | issued, and the former law is continued in effect for that purpose. |
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| 33 | 33 | | SECTION 3. This Act takes effect September 1, 2015. |
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