| 1 | 1 | | 87R3809 SLB-F |
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| 2 | 2 | | By: Paxton S.B. No. 1031 |
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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 information provided to a payee by a payor of proceeds |
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| 8 | 8 | | of production from an oil or gas well that traverses multiple |
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| 9 | 9 | | tracts. |
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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. The heading to Section 91.402, Natural Resources |
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| 12 | 12 | | Code, is amended to read as follows: |
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| 13 | 13 | | Sec. 91.402. [TIME FOR] PAYMENT OF PROCEEDS; DIVISION |
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| 14 | 14 | | ORDERS. |
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| 15 | 15 | | SECTION 2. Section 91.402, Natural Resources Code, is |
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| 16 | 16 | | amended by adding Subsection (d-1) to read as follows: |
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| 17 | 17 | | (d-1) For a horizontal well whose wellbore extends outside |
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| 18 | 18 | | of the tract on which a payee has an interest directly or through |
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| 19 | 19 | | pooling, the payor shall include in the division order or provide in |
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| 20 | 20 | | a separate statement included with the division order: |
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| 21 | 21 | | (1) an as-drilled plat of the well to which the |
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| 22 | 22 | | division order applies; and |
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| 23 | 23 | | (2) an explanation of the formula used to allocate |
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| 24 | 24 | | production between the different tracts through which the wellbore |
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| 25 | 25 | | passed or was pooled. |
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| 26 | 26 | | SECTION 3. Section 91.402(d-1), Natural Resources Code, as |
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| 27 | 27 | | added by this Act, applies only to a division order issued on or |
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| 28 | 28 | | after the effective date of this Act. A division order issued before |
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| 29 | 29 | | the effective date of this Act is governed by the law in effect on |
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| 30 | 30 | | the date the division order was issued, and the former law is |
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| 31 | 31 | | continued in effect for that purpose. |
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| 32 | 32 | | SECTION 4. This Act takes effect September 1, 2021. |
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