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