Texas 2025 - 89th Regular

Texas House Bill HB4511 Compare Versions

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11 89R16313 RAL-D
22 By: Smithee H.B. No. 4511
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77 A BILL TO BE ENTITLED
88 AN ACT
99 relating to wind energy rights and wind energy development
1010 agreements.
1111 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1212 SECTION 1. Title 6, Utilities Code, is amended by adding
1313 Chapter 303 to read as follows:
1414 CHAPTER 303. WIND ENERGY RIGHTS AND RELATED AGREEMENTS
1515 Sec. 303.0001. DEFINITIONS. In this chapter:
1616 (1) "Wind energy agreement" means a lease, license,
1717 easement, or other agreement between the owner of a wind energy
1818 right and a wind energy developer to develop wind-powered energy
1919 generation.
2020 (2) "Wind energy developer" means the lessee, easement
2121 holder, licensee, or similar party under a wind energy agreement.
2222 (3) "Wind energy developer of record" means the wind
2323 energy developer named in a recorded wind energy agreement or, if
2424 the wind energy agreement has been transferred by a recorded
2525 document, the most recent transferee of the rights of the original
2626 wind energy developer identified in the recorded document.
2727 (4) "Wind energy right" means the right of the owner of
2828 a surface estate, either directly or through a wind energy
2929 developer under a wind energy agreement, to capture and employ the
3030 kinetic energy of the wind or a person to whom that right has been
3131 transferred.
3232 (5) "Wind-powered energy generation" means the
3333 generation of electricity by means of a turbine or other device that
3434 captures and employs the kinetic energy of the wind.
3535 Sec. 303.0002. WIND ENERGY RIGHT. A wind energy right is
3636 severable from the surface estate and may be transferred,
3737 encumbered, or modified by agreement.
3838 Sec. 303.0003. WIND ENERGY AGREEMENT. (a) A wind energy
3939 agreement is subject to statutory and other rules of law to the same
4040 extent as other agreements creating interests in or rights to use
4141 real property.
4242 (b) A wind energy agreement:
4343 (1) may be recorded in the office of the county clerk
4444 in the county where the land subject to the agreement is located;
4545 and
4646 (2) unless recorded as described in Subdivision (1),
4747 is void as to any person who subsequently purchases rights in or to
4848 the land for a valuable consideration, except as between the
4949 parties to the agreement and as to those having notice of the
5050 agreement.
5151 (c) The county clerk shall index a wind energy agreement in
5252 both the grantor and grantee indices under the name of each party to
5353 the wind energy agreement.
5454 (d) This section applies to any modification, assignment,
5555 or encumbrance of a wind energy agreement.
5656 Sec. 303.0004. TERMINATION; RELEASE. (a) If a wind energy
5757 agreement expires or is terminated, the wind energy developer of
5858 record shall record a release in the office of the county clerk in
5959 the county where the land subject to the agreement is located.
6060 (b) If the wind energy developer of record fails to record a
6161 release as described by Subsection (a), the owner of the surface
6262 estate or the owner of the wind energy right that is the subject of
6363 the agreement or the owner's agent may request the wind energy
6464 developer of record to record the release. The request must be:
6565 (1) in writing; and
6666 (2) delivered to the last-known address of the wind
6767 energy developer of record:
6868 (A) personally; or
6969 (B) by certified mail, first class postage
7070 prepaid, and return receipt requested.
7171 (c) A wind energy developer of record who receives a request
7272 under Subsection (b) shall, not later than 90 days after the date
7373 the request is received, record the release as described by
7474 Subsection (a).
7575 (d) If the interest of the wind energy developer of record
7676 has been transferred by an instrument that has not been recorded,
7777 the transferee shall:
7878 (1) first record the instrument by which the
7979 transferee acquired the interest and then record the release
8080 required by Subsection (c); or
8181 (2) cause the wind energy developer of record to
8282 record the release required by Subsection (c).
8383 (e) A release recorded under this section must:
8484 (1) identify the wind energy agreement with reasonable
8585 clarity; and
8686 (2) include:
8787 (A) the names of the parties;
8888 (B) the legal description of the land subject to
8989 the agreement; and
9090 (C) the applicable recording information of the
9191 agreement.
9292 (f) The county clerk shall index the release in both the
9393 grantor and grantee indices under the name of each party identified
9494 in the release.
9595 Sec. 303.0005. FAILURE TO RECORD RELEASE; LIABILITY. (a) If
9696 a wind energy developer of record who receives a request under
9797 Section 303.0004(b) fails to record the release as required by
9898 Section 303.0004(c), the wind energy developer of record is liable
9999 to the owner of the surface estate and the owner of the wind energy
100100 right that is the subject of the agreement for any damages caused by
101101 the failure.
102102 (b) The wind energy developer of record and every transferee
103103 described in Section 303.0004(d) are jointly and severally liable
104104 for any damages caused by the failure of:
105105 (1) the wind energy developer of record to record the
106106 release as required by Section 303.0004(c); or
107107 (2) a transferee to comply with Section 303.0004(d).
108108 Sec. 303.0006. TRANSFER OF PARTY'S INTEREST IN AGREEMENT.
109109 Nothing in this chapter restricts the transfer of any interest of a
110110 party to a wind energy agreement, including the transfer of the
111111 right of the owner of the surface estate to receive payments under
112112 the wind energy agreement.
113113 SECTION 2. Nothing in this Act affects the validity of an
114114 agreement entered into before the effective date of this Act.
115115 SECTION 3. This Act takes effect September 1, 2025.