Texas 2023 - 88th Regular

Texas House Bill HB4204 Compare Versions

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1	1	88R8530 PRL-D
2	2	By: Smithee H.B. No. 4204
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to wind energy rights and wind energy development
8	8	agreements.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Title 6, Utilities Code, is amended by adding
11	11	Chapter 303 to read as follows:
12	12	CHAPTER 303. WIND ENERGY RIGHTS AND RELATED AGREEMENTS
13	13	Sec. 303.0001. DEFINITIONS. In this chapter:
14	14	(1) "Wind energy agreement" means a lease, license,
15	15	easement, or other agreement between the owner of a wind energy
16	16	right and a wind energy developer to develop wind-powered energy
17	17	generation.
18	18	(2) "Wind energy developer" means the lessee, easement
19	19	holder, licensee, or similar party under a wind energy agreement.
20	20	(3) "Wind energy developer of record" means the wind
21	21	energy developer named in a recorded wind energy agreement or, if
22	22	the wind energy agreement has been transferred by a recorded
23	23	document, the most recent transferee of the rights of the original
24	24	wind energy developer identified in the recorded document.
25	25	(4) "Wind energy right" means the right of the owner of
26	26	a surface estate, either directly or through a wind energy
27	27	developer under a wind energy agreement, to capture and employ the
28	28	kinetic energy of the wind or a person to whom that right has been
29	29	transferred.
30	30	(5) "Wind-powered energy generation" means the
31	31	generation of electricity by means of a turbine or other device that
32	32	captures and employs the kinetic energy of the wind.
33	33	Sec. 303.0002. WIND ENERGY RIGHT. A wind energy right is
34	34	severable from the surface estate and may be transferred,
35	35	encumbered, or modified by agreement.
36	36	Sec. 303.0003. WIND ENERGY AGREEMENT. (a) A wind energy
37	37	agreement is subject to statutory and other rules of law to the same
38	38	extent as other agreements creating interests in or rights to use
39	39	real property.
40	40	(b) A wind energy agreement:
41	41	(1) may be recorded in the office of the county clerk
42	42	in the county where the land subject to the agreement is located;
43	43	and
44	44	(2) unless recorded as described in Subdivision (1),
45	45	is void as to any person who subsequently purchases rights in or to
46	46	the land for a valuable consideration, except as between the
47	47	parties to the agreement and as to those having notice of the
48	48	agreement.
49	49	(c) The county clerk shall index a wind energy agreement in
50	50	both the grantor and grantee indices under the name of each party to
51	51	the wind energy agreement.
52	52	(d) This section applies to any modification, assignment,
53	53	or encumbrance of a wind energy agreement.
54	54	Sec. 303.0004. TERMINATION; RELEASE. (a) If a wind energy
55	55	agreement expires or is terminated, the wind energy developer of
56	56	record shall record a release in the office of the county clerk in
57	57	the county where the land subject to the agreement is located.
58	58	(b) If the wind energy developer of record fails to record a
59	59	release as described by Subsection (a), the owner of the surface
60	60	estate or the owner of the wind energy right that is the subject of
61	61	the agreement or the owner's agent may request the wind energy
62	62	developer of record to record the release. The request must be:
63	63	(1) in writing; and
64	64	(2) delivered to the last-known address of the wind
65	65	energy developer of record:
66	66	(A) personally; or
67	67	(B) by certified mail, first class postage
68	68	prepaid, and return receipt requested.
69	69	(c) A wind energy developer of record who receives a request
70	70	under Subsection (b) shall, not later than 90 days after the date
71	71	the request is received, record the release as described by
72	72	Subsection (a).
73	73	(d) If the interest of the wind energy developer of record
74	74	has been transferred by an instrument that has not been recorded,
75	75	the transferee shall:
76	76	(1) first record the instrument by which the
77	77	transferee acquired the interest and then record the release
78	78	required by Subsection (c); or
79	79	(2) cause the wind energy developer of record to
80	80	record the release required by Subsection (c).
81	81	(e) A release recorded under this section must:
82	82	(1) identify the wind energy agreement with reasonable
83	83	clarity; and
84	84	(2) include:
85	85	(A) the names of the parties;
86	86	(B) the legal description of the land subject to
87	87	the agreement; and
88	88	(C) the applicable recording information of the
89	89	agreement.
90	90	(f) The county clerk shall index the release in both the
91	91	grantor and grantee indices under the name of each party identified
92	92	in the release.
93	93	Sec. 303.0005. FAILURE TO RECORD RELEASE; LIABILITY. (a) If
94	94	a wind energy developer of record who receives a request under
95	95	Section 303.0004(b) fails to record the release as required by
96	96	Section 303.0004(c), the wind energy developer of record is liable
97	97	to the owner of the surface estate and the owner of the wind energy
98	98	right that is the subject of the agreement for any damages caused by
99	99	the failure.
100	100	(b) The wind energy developer of record and every transferee
101	101	described in Section 303.0004(d) are jointly and severally liable
102	102	for any damages caused by the failure of:
103	103	(1) the wind energy developer of record to record the
104	104	release as required by Section 303.0004(c); or
105	105	(2) a transferee to comply with Section 303.0004(d).
106	106	Sec. 303.0006. TRANSFER OF PARTY'S INTEREST IN AGREEMENT.
107	107	Nothing in this chapter restricts the transfer of any interest of a
108	108	party to a wind energy agreement, including the transfer of the
109	109	right of the owner of the surface estate to receive payments under
110	110	the wind energy agreement.
111	111	SECTION 2. Nothing in this Act affects the validity of an
112	112	agreement entered into before the effective date of this Act.
113	113	SECTION 3. This Act takes effect September 1, 2023.