| 1 | 1 | | 87R8974 SLB-F |
|---|
| 2 | 2 | | By: Bailes H.B. No. 2883 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | A BILL TO BE ENTITLED |
|---|
| 6 | 6 | | AN ACT |
|---|
| 7 | 7 | | relating to the information a payor of the proceeds of production |
|---|
| 8 | 8 | | from an oil and gas well is required to provide a payee. |
|---|
| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 10 | 10 | | SECTION 1. Subchapter J, Chapter 91, Natural Resources |
|---|
| 11 | 11 | | Code, is amended by adding Sections 91.409 and 91.410 to read as |
|---|
| 12 | 12 | | follows: |
|---|
| 13 | 13 | | Sec. 91.409. INFORMATION REQUESTED BY PAYEE. (a) This |
|---|
| 14 | 14 | | section applies to a payee who is requested by a payor to sign: |
|---|
| 15 | 15 | | (1) a ratification of a lease, pooling agreement, or |
|---|
| 16 | 16 | | unit designation; or |
|---|
| 17 | 17 | | (2) a division order. |
|---|
| 18 | 18 | | (b) On written request by a payee to whom this section |
|---|
| 19 | 19 | | applies, the payor must provide the payee with a copy of the |
|---|
| 20 | 20 | | document to be ratified or the lease underlying the division order, |
|---|
| 21 | 21 | | as appropriate. The payor must respond to the request not later |
|---|
| 22 | 22 | | than the 14th day after the date on which the request was received |
|---|
| 23 | 23 | | by the payor. |
|---|
| 24 | 24 | | (c) The failure of a payor to respond to a request described |
|---|
| 25 | 25 | | by Subsection (b) releases the obligation of the payee to sign the |
|---|
| 26 | 26 | | ratification or division order, as appropriate. A payee who is not |
|---|
| 27 | 27 | | obligated to sign a division order under this subsection is |
|---|
| 28 | 28 | | entitled to payment notwithstanding Section 91.402(c)(1). |
|---|
| 29 | 29 | | Sec. 91.410. REQUIRED INFORMATION IN PAYOR REQUEST. A |
|---|
| 30 | 30 | | payor's request that a payee ratify a lease, pooling agreement, or |
|---|
| 31 | 31 | | unit designation, or sign a division order, must include a |
|---|
| 32 | 32 | | statement that describes the payee's rights under Section 91.409. |
|---|
| 33 | 33 | | SECTION 2. This Act takes effect September 1, 2021. |
|---|