Texas 2025 - 89th Regular

Texas House Bill HB5106 Compare Versions

Version 1 (Old)

Version 2 (New)

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1	1		By: Rosenthal H.B. No. 5106
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4	6		A BILL TO BE ENTITLED
5	7		AN ACT
6	8		relating to the information a payor of the proceeds of production
7	9		from an oil and gas well is required to provide a payee.
8	10		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	11		SECTION 1. Subchapter J, Chapter 91, Natural Resources
10	12		Code, is amended by adding Sections 91.409 and 91.410 to read as
11	13		follows:
12	14		Sec. 91.409. INFORMATION REQUESTED BY PAYEE. (a) This
13	15		section applies to a payee who is requested by a payor to sign:
14	16		(1) a ratification of a lease, pooling agreement, or
15	17		unit designation; or
16	18		(2) a division order.
17	19		(b) On written request by a payee to whom this section
18	20		applies, the payor must provide the payee with a copy of the
19	21		document to be ratified or the lease underlying the division order,
20	22		as appropriate. The payor must respond to the request not later
21	23		than the 14th day after the date on which the request was received
22	24		by the payor.
23	25		(c) The failure of a payor to respond to a request described
24	26		by Subsection (b) releases the obligation of the payee to sign the
25	27		ratification or division order, as appropriate. A payee who is not
26	28		obligated to sign a division order under this subsection is
27	29		entitled to payment notwithstanding Section 91.402(c)(1).
28	30		Sec. 91.410. REQUIRED INFORMATION IN PAYOR REQUEST. A
29	31		payor's request that a payee ratify a lease, pooling agreement, or
30	32		unit designation, or sign a division order, must include a
31	33		statement that describes the payee's rights under Section 91.409.
32	34		SECTION 2. This Act takes effect September 1, 2025.