1 | 1 | | 89R16313 RAL-D |
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2 | 2 | | By: Smithee H.B. No. 4511 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | |
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6 | 6 | | |
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7 | 7 | | A BILL TO BE ENTITLED |
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8 | 8 | | AN ACT |
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9 | 9 | | relating to wind energy rights and wind energy development |
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10 | 10 | | agreements. |
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11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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12 | 12 | | SECTION 1. Title 6, Utilities Code, is amended by adding |
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13 | 13 | | Chapter 303 to read as follows: |
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14 | 14 | | CHAPTER 303. WIND ENERGY RIGHTS AND RELATED AGREEMENTS |
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15 | 15 | | Sec. 303.0001. DEFINITIONS. In this chapter: |
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16 | 16 | | (1) "Wind energy agreement" means a lease, license, |
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17 | 17 | | easement, or other agreement between the owner of a wind energy |
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18 | 18 | | right and a wind energy developer to develop wind-powered energy |
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19 | 19 | | generation. |
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20 | 20 | | (2) "Wind energy developer" means the lessee, easement |
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21 | 21 | | holder, licensee, or similar party under a wind energy agreement. |
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22 | 22 | | (3) "Wind energy developer of record" means the wind |
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23 | 23 | | energy developer named in a recorded wind energy agreement or, if |
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24 | 24 | | the wind energy agreement has been transferred by a recorded |
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25 | 25 | | document, the most recent transferee of the rights of the original |
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26 | 26 | | wind energy developer identified in the recorded document. |
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27 | 27 | | (4) "Wind energy right" means the right of the owner of |
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28 | 28 | | a surface estate, either directly or through a wind energy |
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29 | 29 | | developer under a wind energy agreement, to capture and employ the |
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30 | 30 | | kinetic energy of the wind or a person to whom that right has been |
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31 | 31 | | transferred. |
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32 | 32 | | (5) "Wind-powered energy generation" means the |
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33 | 33 | | generation of electricity by means of a turbine or other device that |
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34 | 34 | | captures and employs the kinetic energy of the wind. |
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35 | 35 | | Sec. 303.0002. WIND ENERGY RIGHT. A wind energy right is |
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36 | 36 | | severable from the surface estate and may be transferred, |
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37 | 37 | | encumbered, or modified by agreement. |
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38 | 38 | | Sec. 303.0003. WIND ENERGY AGREEMENT. (a) A wind energy |
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39 | 39 | | agreement is subject to statutory and other rules of law to the same |
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40 | 40 | | extent as other agreements creating interests in or rights to use |
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41 | 41 | | real property. |
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42 | 42 | | (b) A wind energy agreement: |
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43 | 43 | | (1) may be recorded in the office of the county clerk |
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44 | 44 | | in the county where the land subject to the agreement is located; |
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45 | 45 | | and |
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46 | 46 | | (2) unless recorded as described in Subdivision (1), |
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47 | 47 | | is void as to any person who subsequently purchases rights in or to |
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48 | 48 | | the land for a valuable consideration, except as between the |
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49 | 49 | | parties to the agreement and as to those having notice of the |
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50 | 50 | | agreement. |
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51 | 51 | | (c) The county clerk shall index a wind energy agreement in |
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52 | 52 | | both the grantor and grantee indices under the name of each party to |
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53 | 53 | | the wind energy agreement. |
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54 | 54 | | (d) This section applies to any modification, assignment, |
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55 | 55 | | or encumbrance of a wind energy agreement. |
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56 | 56 | | Sec. 303.0004. TERMINATION; RELEASE. (a) If a wind energy |
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57 | 57 | | agreement expires or is terminated, the wind energy developer of |
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58 | 58 | | record shall record a release in the office of the county clerk in |
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59 | 59 | | the county where the land subject to the agreement is located. |
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60 | 60 | | (b) If the wind energy developer of record fails to record a |
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61 | 61 | | release as described by Subsection (a), the owner of the surface |
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62 | 62 | | estate or the owner of the wind energy right that is the subject of |
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63 | 63 | | the agreement or the owner's agent may request the wind energy |
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64 | 64 | | developer of record to record the release. The request must be: |
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65 | 65 | | (1) in writing; and |
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66 | 66 | | (2) delivered to the last-known address of the wind |
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67 | 67 | | energy developer of record: |
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68 | 68 | | (A) personally; or |
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69 | 69 | | (B) by certified mail, first class postage |
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70 | 70 | | prepaid, and return receipt requested. |
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71 | 71 | | (c) A wind energy developer of record who receives a request |
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72 | 72 | | under Subsection (b) shall, not later than 90 days after the date |
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73 | 73 | | the request is received, record the release as described by |
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74 | 74 | | Subsection (a). |
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75 | 75 | | (d) If the interest of the wind energy developer of record |
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76 | 76 | | has been transferred by an instrument that has not been recorded, |
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77 | 77 | | the transferee shall: |
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78 | 78 | | (1) first record the instrument by which the |
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79 | 79 | | transferee acquired the interest and then record the release |
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80 | 80 | | required by Subsection (c); or |
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81 | 81 | | (2) cause the wind energy developer of record to |
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82 | 82 | | record the release required by Subsection (c). |
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83 | 83 | | (e) A release recorded under this section must: |
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84 | 84 | | (1) identify the wind energy agreement with reasonable |
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85 | 85 | | clarity; and |
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86 | 86 | | (2) include: |
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87 | 87 | | (A) the names of the parties; |
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88 | 88 | | (B) the legal description of the land subject to |
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89 | 89 | | the agreement; and |
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90 | 90 | | (C) the applicable recording information of the |
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91 | 91 | | agreement. |
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92 | 92 | | (f) The county clerk shall index the release in both the |
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93 | 93 | | grantor and grantee indices under the name of each party identified |
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94 | 94 | | in the release. |
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95 | 95 | | Sec. 303.0005. FAILURE TO RECORD RELEASE; LIABILITY. (a) If |
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96 | 96 | | a wind energy developer of record who receives a request under |
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97 | 97 | | Section 303.0004(b) fails to record the release as required by |
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98 | 98 | | Section 303.0004(c), the wind energy developer of record is liable |
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99 | 99 | | to the owner of the surface estate and the owner of the wind energy |
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100 | 100 | | right that is the subject of the agreement for any damages caused by |
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101 | 101 | | the failure. |
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102 | 102 | | (b) The wind energy developer of record and every transferee |
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103 | 103 | | described in Section 303.0004(d) are jointly and severally liable |
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104 | 104 | | for any damages caused by the failure of: |
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105 | 105 | | (1) the wind energy developer of record to record the |
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106 | 106 | | release as required by Section 303.0004(c); or |
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107 | 107 | | (2) a transferee to comply with Section 303.0004(d). |
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108 | 108 | | Sec. 303.0006. TRANSFER OF PARTY'S INTEREST IN AGREEMENT. |
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109 | 109 | | Nothing in this chapter restricts the transfer of any interest of a |
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110 | 110 | | party to a wind energy agreement, including the transfer of the |
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111 | 111 | | right of the owner of the surface estate to receive payments under |
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112 | 112 | | the wind energy agreement. |
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113 | 113 | | SECTION 2. Nothing in this Act affects the validity of an |
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114 | 114 | | agreement entered into before the effective date of this Act. |
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115 | 115 | | SECTION 3. This Act takes effect September 1, 2025. |
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