| 1 | 1 | | 84R4324 JXC-F |
|---|
| 2 | 2 | | By: Estes S.B. No. 402 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | A BILL TO BE ENTITLED |
|---|
| 6 | 6 | | AN ACT |
|---|
| 7 | 7 | | relating to the information required to be provided by a payor of |
|---|
| 8 | 8 | | proceeds from the sale of oil or gas from an oil or gas well to a |
|---|
| 9 | 9 | | payee on the request by the payee. |
|---|
| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 11 | 11 | | SECTION 1. Section 91.402, Natural Resources Code, is |
|---|
| 12 | 12 | | amended by adding Subsection (d-1) to read as follows: |
|---|
| 13 | 13 | | (d-1) A payee that receives a division order from a payor in |
|---|
| 14 | 14 | | compliance with Subsection (c) may request that the payor provide |
|---|
| 15 | 15 | | to the payee the formula used to calculate the payee's fractional or |
|---|
| 16 | 16 | | decimal interest in production as stated in the division order, the |
|---|
| 17 | 17 | | information used to determine the payee's fractional or decimal |
|---|
| 18 | 18 | | interest in production, or the fractional or decimal interest in |
|---|
| 19 | 19 | | production of each payee. If the payee's interest in production is |
|---|
| 20 | 20 | | subject to a pooling or unitization agreement, the payor may comply |
|---|
| 21 | 21 | | with this subsection by providing to the payee detailed information |
|---|
| 22 | 22 | | regarding where in the real property records of the county in which |
|---|
| 23 | 23 | | the well is located the pooling or unitization agreement that shows |
|---|
| 24 | 24 | | the relevant fractional or decimal calculation formula is recorded. |
|---|
| 25 | 25 | | The payor must provide the required formula, information, or |
|---|
| 26 | 26 | | division of interest to the payee not later than the 21st day after |
|---|
| 27 | 27 | | the date the payor receives the request. |
|---|
| 28 | 28 | | SECTION 2. The change in law made by this Act applies only |
|---|
| 29 | 29 | | to a division order issued on or after the effective date of this |
|---|
| 30 | 30 | | Act. A division order issued before the effective date of this Act |
|---|
| 31 | 31 | | is governed by the law in effect on the date the division order was |
|---|
| 32 | 32 | | issued, and the former law is continued in effect for that purpose. |
|---|
| 33 | 33 | | SECTION 3. This Act takes effect September 1, 2015. |
|---|