| 4 | 6 | | AN ACT |
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| 5 | 7 | | relating to causes of action for withholding payments of the |
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| 6 | 8 | | proceeds from the sale of oil and gas production. |
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| 7 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 8 | 10 | | SECTION 1. Section 91.402, Natural Resources Code, is |
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| 9 | 11 | | amended by adding Subsection (b-1) to read as follows: |
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| 10 | 12 | | (b-1) A payee does not have a common law cause of action for |
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| 11 | 13 | | breach of contract against a payor for withholding payments under |
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| 12 | 14 | | Subsection (b) unless, for a dispute concerning the title, the |
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| 13 | 15 | | contract requiring payment specifies otherwise. |
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| 14 | 16 | | SECTION 2. The change in law made by this Act applies only |
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| 15 | 17 | | to an action filed on or after the effective date of this Act. An |
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| 16 | 18 | | action filed before the effective date of this Act is governed by |
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| 17 | 19 | | the law applicable to the action immediately before the effective |
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| 18 | 20 | | date of this Act, and that law is continued in effect for that |
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| 19 | 21 | | purpose. |
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| 20 | 22 | | SECTION 3. This Act takes effect immediately if it receives |
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| 21 | 23 | | a vote of two-thirds of all the members elected to each house, as |
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| 22 | 24 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 23 | 25 | | Act does not receive the vote necessary for immediate effect, this |
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| 24 | 26 | | Act takes effect September 1, 2021. |
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| 25 | | - | ______________________________ ______________________________ |
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| 26 | | - | President of the Senate Speaker of the House |
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| 27 | | - | I hereby certify that S.B. No. 1259 passed the Senate on |
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| 28 | | - | April 27, 2021, by the following vote: Yeas 31, Nays 0. |
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| 29 | | - | ______________________________ |
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| 30 | | - | Secretary of the Senate |
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| 31 | | - | I hereby certify that S.B. No. 1259 passed the House on |
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| 32 | | - | May 7, 2021, by the following vote: Yeas 142, Nays 0, one present |
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| 33 | | - | not voting. |
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| 34 | | - | ______________________________ |
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| 35 | | - | Chief Clerk of the House |
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| 36 | | - | Approved: |
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| 37 | | - | ______________________________ |
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| 38 | | - | Date |
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| 39 | | - | ______________________________ |
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| 40 | | - | Governor |
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