87R3809 SLB-F
By: Bailes H.B. No. 2882
A BILL TO BE ENTITLED
AN ACT
relating to information provided to a payee by a payor of proceeds
of production from an oil or gas well that traverses multiple
tracts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Section 91.402, Natural Resources
Code, is amended to read as follows:
Sec. 91.402. [TIME FOR] PAYMENT OF PROCEEDS; DIVISION
ORDERS.
SECTION 2. Section 91.402, Natural Resources Code, is
amended by adding Subsection (d-1) to read as follows:
(d-1) For a horizontal well whose wellbore extends outside
of the tract on which a payee has an interest directly or through
pooling, the payor shall include in the division order or provide in
a separate statement included with the division order:
(1) an as-drilled plat of the well to which the
division order applies; and
(2) an explanation of the formula used to allocate
production between the different tracts through which the wellbore
passed or was pooled.
SECTION 3. Section 91.402(d-1), Natural Resources Code, as
added by this Act, applies only to a division order issued on or
after the effective date of this Act. A division order issued before
the effective date of this Act is governed by the law in effect on
the date the division order was issued, and the former law is
continued in effect for that purpose.
SECTION 4. This Act takes effect September 1, 2021.