| 1 | 1 | | 86R8558 BRG-F |
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| 2 | 2 | | By: Hinojosa S.B. No. 817 |
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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 | | the proceeds derived from the sale of oil or gas production to a |
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| 9 | 9 | | royalty interest owner. |
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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 91.502, Natural Resources Code, is |
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| 12 | 12 | | amended to read as follows: |
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| 13 | 13 | | Sec. 91.502. TYPES OF INFORMATION PROVIDED. Each check |
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| 14 | 14 | | stub, attachment to a payment form, or other remittance advice must |
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| 15 | 15 | | include: |
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| 16 | 16 | | (1) the lease, property, or well name, any lease, |
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| 17 | 17 | | property, or well identification number used to identify the lease, |
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| 18 | 18 | | property, or well, and a county and state in which the lease, |
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| 19 | 19 | | property, or well is located; |
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| 20 | 20 | | (2) the month and year during which the sales occurred |
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| 21 | 21 | | for which payment is being made; |
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| 22 | 22 | | (3) the total number of barrels of oil or the total |
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| 23 | 23 | | amount of gas sold; |
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| 24 | 24 | | (4) the price per barrel or per MCF of oil or gas sold; |
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| 25 | 25 | | (4-a) the Btu factor for gas sold; |
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| 26 | 26 | | (5) the total amount of state severance and other |
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| 27 | 27 | | production taxes paid; |
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| 28 | 28 | | (6) the windfall profit tax paid on the owner's |
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| 29 | 29 | | interest; |
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| 30 | 30 | | (7) any other deductions or adjustments; |
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| 31 | 31 | | (8) the net value of total sales after deductions; |
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| 32 | 32 | | (9) the owner's interest in sales from the lease, |
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| 33 | 33 | | property, or well expressed as a decimal; |
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| 34 | 34 | | (10) the owner's share of the total value of sales |
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| 35 | 35 | | before any tax deductions; |
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| 36 | 36 | | (11) the owner's share of the sales value less |
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| 37 | 37 | | deductions; and |
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| 38 | 38 | | (12) an address and telephone number at which |
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| 39 | 39 | | additional information regarding the payment may be obtained and |
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| 40 | 40 | | questions may be answered. |
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| 41 | 41 | | SECTION 2. The change in law made by this Act applies only |
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| 42 | 42 | | to a payment made on or after the effective date of this Act. A |
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| 43 | 43 | | payment made before the effective date of this Act is governed by |
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| 44 | 44 | | the law in effect on the date the payment is made, and the former law |
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| 45 | 45 | | is continued in effect for that purpose. |
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| 46 | 46 | | SECTION 3. This Act takes effect September 1, 2019. |
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