Texas 2017 - 85th Regular

Texas House Bill HB1168 Latest Draft

Bill / Introduced Version Filed 01/19/2017

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                            85R5032 JAM-F
 By: Nevárez H.B. No. 1168


 A BILL TO BE ENTITLED
 AN ACT
 relating to the mineral use of land that has been subdivided for
 energy development resulting in the generation of electricity.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Section 92.002, Natural Resources Code, is
 amended by adding Subdivision (5) to read as follows:
 (5)  "Qualified subdivision for energy development"
 means a tract of land of not more than 640 acres that:
 (A)  has been subdivided in a manner authorized by
 law by the surface owners for energy development resulting in the
 generation of electricity by a plant or industrial facility; and
 (B)  contains one or more operations sites within
 the tract and provisions for road and pipeline easements to allow
 use of the operations sites.
 SECTION 2.  Section 92.003, Natural Resources Code, is
 amended to read as follows:
 Sec. 92.003.  CREATION OF SUBDIVISION. The surface owners
 of a parcel of land may create a qualified subdivision or a
 qualified subdivision for energy development on the land if a plat
 of the subdivision has been approved by the railroad commission and
 filed with the clerk of the county in which the subdivision is to be
 located.
 SECTION 3.  Section 92.004(a), Natural Resources Code, is
 amended to read as follows:
 (a)  The railroad commission shall adopt rules governing the
 contents of an application for a qualified subdivision or a
 qualified subdivision for energy development.  An application must
 be accompanied by a plat of the subdivision showing the applicant's
 proposed location of operations sites and road and pipeline
 easements.
 SECTION 4.  Section 92.005, Natural Resources Code, is
 amended to read as follows:
 Sec. 92.005.  USE OF OPERATIONS SITE. (a)  An owner of a
 possessory mineral interest within a qualified subdivision or a
 qualified subdivision for energy development may use only the
 surface contained in designated operations sites for exploration,
 development, and production of minerals and the designated
 easements only as necessary to adequately use the operations sites.
 (b)  The owner of the possessory mineral interest may drill
 wells or extend well bores from an operations site or from a site
 outside of the qualified subdivision or qualified subdivision for
 energy development under the surface of other parts of the
 qualified subdivision or qualified subdivision for energy
 development if the operations do not unreasonably interfere with
 the use of the surface of the qualified subdivision or qualified
 subdivision for energy development outside the operations site.
 (c)  This section ceases to apply to a qualified subdivision
 if, by the third anniversary of the date on which the order of the
 commission becomes final:
 (1)  the surface owner has not commenced actual
 construction of roads or utilities within the qualified
 subdivision; and
 (2)  a lot within the qualified subdivision has not
 been sold to a third party.
 (d)  This section ceases to apply to a qualified subdivision
 for energy development if, by the third anniversary of the date on
 which the order of the commission becomes final, the surface owner
 has not commenced actual construction of roads or facilities for
 use in generating electricity within the qualified subdivision for
 energy development.
 SECTION 5.  Section 92.006, Natural Resources Code, is
 amended to read as follows:
 Sec. 92.006.  AMENDMENT, REPLAT, OR ABANDONMENT.  All or any
 portion of a qualified subdivision or qualified subdivision for
 energy development may be amended, replatted, or abandoned by the
 surface owner.  An amendment or replat, however, may not alter,
 diminish, or impair the usefulness of an operations site or
 appurtenant road or pipeline easement unless the amendment or
 replat is approved by the commission in accordance with Section
 92.003 [of this code].
 SECTION 6.  Not later than January 1, 2018, the Railroad
 Commission of Texas shall adopt rules necessary to implement
 Chapter 92, Natural Resources Code, as amended by this Act.
 SECTION 7.  This Act takes effect immediately if it receives
 a vote of two-thirds of all the members elected to each house, as
 provided by Section 39, Article III, Texas Constitution.  If this
 Act does not receive the vote necessary for immediate effect, this
 Act takes effect September 1, 2017.