Texas 2023 - 88th Regular

Texas Senate Bill SB785 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	S.B. No. 785
2	2
3	3
4	4	AN ACT
5	5	relating to the ownership of and certain insurance policy
6	6	provisions regarding the geothermal energy and associated
7	7	resources below the surface of land.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 2703.056, Insurance Code, is amended to
10	10	read as follows:
11	11	Sec. 2703.056. EXCEPTIONS; MINERAL AND GEOTHERMAL ENERGY
12	12	INTERESTS. (a) Subject to the underwriting standards of the title
13	13	insurance company, a title insurance company may in a commitment
14	14	for title insurance or a title insurance policy include a general
15	15	exception or a special exception to except from coverage:
16	16	(1) a mineral estate or the geothermal energy and
17	17	associated resources below the surface of the land; or
18	18	(2) an instrument that purports to reserve or transfer
19	19	all or part of a mineral estate or the geothermal energy and
20	20	associated resources below the surface of the land.
21	21	(b) A reduction to, or credit on a premium charge for, a
22	22	policy of title insurance or other insuring form may not be directly
23	23	or indirectly based on an exclusion of, or general or special
24	24	exception to, a mineral estate or the geothermal energy and
25	25	associated resources below the surface of the land in the title
26	26	insurance policy.
27	27	(c) The inclusion in a title insurance policy of a general
28	28	exception or a special exception described by Subsection (a) does
29	29	not create title insurance coverage as to the condition or
30	30	ownership of the mineral estate or the geothermal energy and
31	31	associated resources below the surface of the land.
32	32	SECTION 2. Section 141.003(5), Natural Resources Code, is
33	33	amended to read as follows:
34	34	(5) "By-product" means any other element found in a
35	35	geothermal formation which is brought to the surface, whether or
36	36	not it is used in geothermal heat or pressure inducing energy
37	37	generation. The term does not include:
38	38	(A) a mineral, as defined by Section 75.001,
39	39	Property Code; or
40	40	(B) oil, gas, or a product of oil or gas, as
41	41	defined by Section 85.001.
42	42	SECTION 3. Subchapter A, Chapter 141, Natural Resources
43	43	Code, is amended by adding Section 141.004 to read as follows:
44	44	Sec. 141.004. OWNERSHIP OF GEOTHERMAL ENERGY AND ASSOCIATED
45	45	RESOURCES. (a) Except as otherwise expressly provided by a
46	46	conveyance, contract, deed, reservation, exception, limitation,
47	47	lease, or other binding obligation, the geothermal energy and
48	48	associated resources below the surface of land are owned as real
49	49	property by:
50	50	(1) the landowner; or
51	51	(2) if the surface estate and the mineral estate of the
52	52	land have been severed, the owner of the surface estate of the land.
53	53	(b) Subject to the provisions of this chapter, the property
54	54	rights described by this section entitle the owner of the
55	55	geothermal energy and associated resources below the surface of
56	56	land and the owner's lessee, heir, or assignee to drill for and
57	57	produce the geothermal energy and associated resources.
58	58	(c) This section does not:
59	59	(1) apply to minerals dissolved or otherwise contained
60	60	in groundwater, including in hot brines; or
61	61	(2) change existing law regarding:
62	62	(A) oil, gas, or mineral extraction regardless of
63	63	its heat or energy potential;
64	64	(B) the rights of the dominant and servient
65	65	estates; or
66	66	(C) the ownership and use of groundwater.
67	67	SECTION 4. This Act takes effect immediately if it receives
68	68	a vote of two-thirds of all the members elected to each house, as
69	69	provided by Section 39, Article III, Texas Constitution. If this
70	70	Act does not receive the vote necessary for immediate effect, this
71	71	Act takes effect September 1, 2023.
72	72	______________________________ ______________________________
73	73	President of the Senate Speaker of the House
74	74	I hereby certify that S.B. No. 785 passed the Senate on
75	75	April 19, 2023, by the following vote: Yeas 30, Nays 1; and that
76	76	the Senate concurred in House amendment on May 25, 2023, by the
77	77	following vote: Yeas 29, Nays 1, one present not voting.
78	78	______________________________
79	79	Secretary of the Senate
80	80	I hereby certify that S.B. No. 785 passed the House, with
81	81	amendment, on May 23, 2023, by the following vote: Yeas 140,
82	82	Nays 0, two present not voting.
83	83	______________________________
84	84	Chief Clerk of the House
85	85	Approved:
86	86	______________________________
87	87	Date
88	88	______________________________
89	89	Governor