Texas 2019 - 86th Regular

Texas House Bill HB3838 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 3838
	1	+	By: Bailes, et al. (Senate Sponsor - Birdwell) H.B. No. 3838
	2	+	(In the Senate - Received from the House May 6, 2019;
	3	+	May 10, 2019, read first time and referred to Committee on Natural
	4	+	Resources & Economic Development; May 17, 2019, reported favorably
	5	+	by the following vote: Yeas 11, Nays 0; May 17, 2019, sent to
	6	+	printer.)
	7	+	Click here to see the committee vote
2	8
3	9
	10	+	A BILL TO BE ENTITLED
4	11		AN ACT
5	12		relating to a disclosure in certain offers to purchase a mineral or
6	13		royalty interest.
7	14		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	15		SECTION 1. Subchapter F, Chapter 5, Property Code, is
9	16		amended by adding Section 5.152 to read as follows:
10	17		Sec. 5.152. CERTAIN PURCHASES OF MINERAL OR ROYALTY
11	18		INTERESTS VOID. (a) This section applies only to the conveyance of
12	19		a mineral or royalty interest by an instrument that:
13	20		(1) is presented to the owner of the interest by the
14	21		person acquiring the interest;
15	22		(2) is titled an oil and gas lease or an oil and gas
16	23		royalty lease or has other words in the caption or other prominently
17	24		displayed label that indicate that the transaction is a lease of a
18	25		mineral or royalty interest; and
19	26		(3) has the effect of conveying, permanently or for a
20	27		term, all or a portion of the owner's:
21	28		(A) mineral interest in lands covered by an
22	29		existing oil, gas, or mineral lease; or
23	30		(B) royalty interest in production from an
24	31		existing oil, gas, or mineral lease.
25	32		(b) This section does not apply to a conveyance of a mineral
26	33		or royalty interest by an instrument that:
27	34		(1) is an oil, gas, or mineral lease;
28	35		(2) conveys a mineral or royalty interest for a term;
29	36		and
30	37		(3) provides that the interest conveyed vests in
31	38		possession after the expiration or termination of all or a portion
32	39		of the interest conveyed by an existing oil, gas, or mineral lease
33	40		in effect at the time of the execution of the instrument, commonly
34	41		referred to as a top lease.
35	42		(c) A conveyance instrument described by Subsection (a)
36	43		must include:
37	44		(1) a conspicuous statement printed at the top of the
38	45		first page of the instrument below the caption, if any, in an
39	46		approximate type size of at least 14 points and in substantially the
40	47		following form:
41	48		THIS IS NOT AN OIL AND GAS LEASE. YOU ARE SELLING ALL OR A PORTION OF
42	49		YOUR MINERAL OR ROYALTY INTERESTS IN (DESCRIPTION OF PROPERTY BEING
43	50		CONVEYED).
44	51		; and
45	52		(2) a conspicuous statement printed at the top of each
46	53		subsequent page of the instrument and immediately above the
47	54		signature of the person conveying the interest in an approximate
48	55		type size of at least 14 points and in substantially the following
49	56		form:
50	57		THIS IS NOT AN OIL AND GAS LEASE. YOU ARE SELLING ALL OR A PORTION OF
51	58		YOUR MINERAL OR ROYALTY INTERESTS.
52	59		(d) If the conveyance instrument does not include the
53	60		statements required by Subsection (c), the conveyance is void.
54	61		(e) A person who has conveyed a royalty or mineral interest
55	62		in a conveyance that is void under this section may bring suit
56	63		against the purchaser of the interest to remove the conveyance as a
57	64		cloud on title and may recover from the purchaser:
58	65		(1) all royalties and bonuses paid to the purchaser
59	66		and any successor or assign of the purchaser;
60	67		(2) court costs; and
61	68		(3) reasonable attorney's fees.
62	69		(f) The remedies under this section are in addition to any
63	70		other rights or remedies a person may have at law or pursuant to
64	71		contract.
65	72		SECTION 2. The change in law made by this Act applies only
66	73		to an agreement entered into on or after the effective date of this
67	74		Act. An agreement entered into before the effective date of this
68	75		Act is governed by the law as it existed immediately before the
69	76		effective date of this Act, and that law is continued in effect for
70	77		that purpose.
71	78		SECTION 3. This Act takes effect September 1, 2019.
72		-	______________________________ ______________________________
73		-	President of the Senate Speaker of the House
74		-	I certify that H.B. No. 3838 was passed by the House on May 3,
75		-	2019, by the following vote: Yeas 138, Nays 5, 1 present, not
76		-	voting.
77		-	______________________________
78		-	Chief Clerk of the House
79		-	I certify that H.B. No. 3838 was passed by the Senate on May
80		-	22, 2019, by the following vote: Yeas 31, Nays 0.
81		-	______________________________
82		-	Secretary of the Senate
83		-	APPROVED: _____________________
84		-	Date
85		-	_____________________
86		-	Governor
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