89R23990 RAL-D
By: Smithee H.B. No. 4511
Substitute the following for H.B. No. 4511:
By: King C.S.H.B. No. 4511
A BILL TO BE ENTITLED
AN ACT
relating to wind energy agreements.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 6, Utilities Code, is amended by adding
Chapter 303 to read as follows:
CHAPTER 303. WIND ENERGY AGREEMENTS
Sec. 303.0001. DEFINITIONS. In this chapter:
(1) "Wind energy agreement" means a lease, license,
easement, or other agreement between the owner of a surface estate
and a wind energy developer to develop wind-powered energy
generation by means of the installation of equipment and necessary
facilities on the subject property.
(2) "Wind energy developer" means the lessee, grantee,
easement holder, licensee, or similar party under a wind energy
agreement.
(3) "Wind-powered energy generation" means the
generation of electricity by means of a turbine or other device that
captures and employs the kinetic energy of the wind.
Sec. 303.0002. RIGHT OF SURFACE ESTATE OWNER TO CAPTURE AND
EMPLOY WIND ENERGY. The owner of a surface estate has an inherent
right, either directly or through a wind energy developer under a
wind energy agreement, to capture and employ the kinetic energy of
the wind. The right described by this section is not severable from
the surface estate.
Sec. 303.0003. WIND ENERGY AGREEMENT. A wind energy
agreement is subject to statutory and other rules of law to the same
extent as other agreements creating interests in or rights to use
real property.
Sec. 303.0004. TERMINATION; RELEASE. (a) If a wind energy
agreement expires or is terminated, each wind energy developer that
owned the wind energy agreement at the time the agreement expired or
terminated shall record a release of the expired or terminated
agreement in the office of the county clerk in the county where the
land subject to the agreement is located.
(b) If a wind energy developer fails to record a release as
required by Subsection (a), the owner of the surface estate or the
owner's agent may request a wind energy developer shown as the wind
energy developer of record for the agreement to record the release.
The request must be:
(1) in writing; and
(2) delivered to the last-known address of the wind
energy developer:
(A) personally; or
(B) by certified mail, first class postage
prepaid, and return receipt requested.
(c) In the absence of a good faith claim that the wind energy
agreement is in force and effect, a wind energy developer who
receives a request under Subsection (b) shall, not later than 90
days after the date the request is received:
(1) record the release as required by Subsection (a);
or
(2) inform the owner of the surface estate or the
owner's agent:
(A) that the wind energy developer no longer owns
the wind energy agreement; and
(B) of the name of the party that succeeded to the
wind energy developer's interest.
(d) An owner of the surface estate or the owner's agent that
receives notice under Subsection (c)(2) may request the successor
in interest to record a release in the manner provided by Subsection
(b). If the interest of a wind energy developer has been
transferred by an instrument that has not been recorded, the
transferee shall:
(1) first record the instrument by which the
transferee acquired the interest or record a notice of the transfer
and then record the release required by Subsection (c); or
(2) cause the wind energy developer shown as the wind
energy developer of record for the agreement to record the release
required by Subsection (c).
(e) A release recorded under this section must:
(1) identify the wind energy agreement with reasonable
clarity; and
(2) include:
(A) the names of the parties;
(B) the legal description of the land subject to
the agreement; and
(C) the applicable recording information of the
agreement.
Sec. 303.0005. TRANSFER OF PARTY'S INTEREST IN AGREEMENT.
Nothing in this chapter restricts the transfer of any interest of a
party to a wind energy agreement, including the transfer of the
right of the owner of the surface estate to receive payments under
the wind energy agreement.
SECTION 2. Nothing in this Act affects the validity of an
agreement entered into before the effective date of this Act.
SECTION 3. This Act takes effect September 1, 2025.