H.B. No. 129
AN ACT
relating to the manner in which a payor of proceeds derived from the
sale of oil or gas production is required to provide certain
information to a royalty interest owner.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 91.501 and 91.506, Natural Resources
Code, are amended to read as follows:
Sec. 91.501. INFORMATION REQUIRED. If payment is made to a
royalty interest owner from the proceeds derived from the sale of
oil or gas production pursuant to a division order, lease,
servitude, or other agreement, the payor shall include the
information required by Section 91.502 on the check stub, an
attachment to the payment form, or another remittance advice that
accompanies the payment.
Sec. 91.506. EXEMPTION. (a) Except as provided by
Subsection (b), if [If] the information required by Section 91.502
is provided in some other manner on a monthly basis, the payor is
not required to include the information on the check stub, an
attachment to the payment form, or another [other] remittance
advice that accompanies the payment.
(b) If payment is made to the royalty interest owner by a
paper check delivered by mail or by means of a private delivery
service, the payor may not provide the information required by
Section 91.502 in a manner other than by including the information
on the check stub, an attachment to the payment form, or another
remittance advice that accompanies the payment unless the payor
obtains, or a previous payor has obtained, the consent of the
royalty interest owner to provide the information in some other
manner.
SECTION 2. The change in law made by this Act applies only
to a payment made on or after the effective date of this Act to a
royalty interest owner from the proceeds derived from the sale of
oil or gas production. A payment made before the effective date of
this Act to a royalty interest owner from the proceeds derived from
the sale of oil or gas production is governed by the law in effect on
the date the payment is made, and the former law is continued in
effect for that purpose.
SECTION 3. This Act takes effect September 1, 2017.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 129 was passed by the House on May 9,
2017, by the following vote: Yeas 147, Nays 0, 1 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 129 on May 20, 2017, by the following vote: Yeas 133, Nays 0, 2
present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 129 was passed by the Senate, with
amendments, on May 19, 2017, by the following vote: Yeas 30, Nays
1.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor