Texas 2021 - 87th Regular

Texas House Bill HB2881 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	87R3113 SLB-D
2	2	By: Bailes H.B. No. 2881
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the applicability of provisions governing payment of
8	8	the proceeds derived from the sale of oil or gas production to
9	9	nonparticipating royalty interest owners.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 91.401, Natural Resources Code, is
12	12	amended by adding Subdivision (5) to read as follows:
13	13	(5) "Nonparticipating royalty interest owner" means a
14	14	mineral interest owner whose interest was conveyed without the
15	15	right to negotiate lease terms or receive a bonus.
16	16	SECTION 2. Section 91.402, Natural Resources Code, is
17	17	amended by amending Subsection (a) and adding Subsection (a-1) to
18	18	read as follows:
19	19	(a) In this section, the term "payee" includes a
20	20	nonparticipating royalty interest owner.
21	21	(a-1) The proceeds derived from the sale of oil or gas
22	22	production from an oil or gas well located in this state must be
23	23	paid to each payee by payor on or before 120 days after the end of
24	24	the month of first sale of production from the well. After that
25	25	time, payments must be made to each payee on a timely basis
26	26	according to the frequency of payment specified in a lease or other
27	27	written agreement between payee and payor. If the lease or other
28	28	agreement does not specify the time for payment, subsequent
29	29	proceeds must be paid no later than:
30	30	(1) 60 days after the end of the calendar month in
31	31	which subsequent oil production is sold; or
32	32	(2) 90 days after the end of the calendar month in
33	33	which subsequent gas production is sold.
34	34	SECTION 3. Section 91.5001, Natural Resources Code, is
35	35	amended to read as follows:
36	36	Sec. 91.5001. DEFINITIONS [DEFINITION]. In this
37	37	subchapter:
38	38	(1) "Nonparticipating royalty interest owner" means a
39	39	mineral interest owner whose interest was conveyed without the
40	40	right to negotiate lease terms or receive a bonus.
41	41	(2) "Payor"[, "payor"] has the meaning assigned by
42	42	Section 91.401.
43	43	SECTION 4. Section 91.504, Natural Resources Code, is
44	44	amended by amending Subsection (a) and adding Subsection (a-1) to
45	45	read as follows:
46	46	(a) In this section, "royalty interest owner" includes a
47	47	nonparticipating royalty interest owner.
48	48	(a-1) If the payor does not explain on the check stub,
49	49	attachment to the payment form, or other remittance advice, or by a
50	50	separate mailing, deductions from or adjustments to payments, the
51	51	payor must provide an explanation by certified mail not later than
52	52	the 60th day after the date the payor receives a request from the
53	53	royalty interest owner. The royalty interest owner must send the
54	54	request by certified mail.
55	55	SECTION 5. Section 91.505, Natural Resources Code, is
56	56	amended to read as follows:
57	57	Sec. 91.505. PROVIDING OTHER INFORMATION. (a) In this
58	58	section, "royalty interest owner" includes a nonparticipating
59	59	royalty interest owner.
60	60	(b) If a royalty interest owner requests information or
61	61	answers to questions concerning a payment made pursuant to this
62	62	subchapter, other than information requested under Section 91.504,
63	63	and the request is made by certified mail, the payor must respond to
64	64	the request by certified mail not later than 30 days after the
65	65	request is received.
66	66	SECTION 6. The change in law made by this Act applies only
67	67	to a division order issued on or after the effective date of this
68	68	Act. A division order issued before the effective date of this Act
69	69	is governed by the law in effect on the date the division order was
70	70	issued, and the former law is continued in effect for that purpose.
71	71	SECTION 7. This Act takes effect September 1, 2021.