Bill Text: TX HB2590 | 2013-2014 | 83rd Legislature | Enrolled
Bill Title: Relating to the foreclosure sale of property subject to an oil or gas lease.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Vetoed) 2013-06-14 - Vetoed by the Governor [HB2590 Detail]
Download: Texas-2013-HB2590-Enrolled.html
| H.B. No. 2590 | ||
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| relating to the foreclosure sale of property subject to an oil or | ||
| gas lease. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subtitle B, Title 5, Property Code, is amended by | ||
| adding Chapter 66 to read as follows: | ||
| CHAPTER 66. SALE OF PROPERTY SUBJECT TO OIL OR GAS LEASE | ||
| Sec. 66.001. SALE OF PROPERTY SUBJECT TO OIL OR GAS LEASE. | ||
| (a) Notwithstanding any other law, an oil or gas lease covering | ||
| real property subject to a security interest that has been | ||
| foreclosed remains in effect after the foreclosure sale if the oil | ||
| or gas lease has not terminated or expired on its own terms and: | ||
| (1) was executed and recorded in the real property | ||
| records of the county before the date the security interest was | ||
| recorded; or | ||
| (2) was executed and recorded in the real property | ||
| records of the county after the date the security interest was | ||
| recorded but before the foreclosure sale. | ||
| (b) Any royalty payment under an oil or gas lease due to the | ||
| owner of the real property that was subject to the security interest | ||
| that has been foreclosed shall be paid to the purchaser of the | ||
| foreclosed real property. | ||
| (c) The lessee of the oil or gas lease shall indemnify the | ||
| purchaser and any mortgagee of the foreclosed real property from | ||
| actual damages resulting from the lessee's operations conducted | ||
| pursuant to the oil or gas lease. | ||
| (d) If an oil or gas lease is executed and recorded in the | ||
| real property records of the county after the date a security | ||
| interest in the affected real property is recorded and the affected | ||
| real property is subsequently sold in a foreclosure sale, the | ||
| foreclosure sale terminates and extinguishes the lessee's right to | ||
| use the surface of the real property pursuant to the oil or gas | ||
| lease. | ||
| (e) A subordination agreement between a lessee of an oil or | ||
| gas lease and a mortgagee of real property controls over any | ||
| conflicting provision of this section. | ||
| SECTION 2. Chapter 66, Property Code, as added by this Act, | ||
| applies only with respect to a foreclosure sale for which the notice | ||
| of sale is given under Section 51.002, Property Code, on or after | ||
| the effective date of this Act or a judicial foreclosure for which | ||
| the judicial foreclosure action commenced on or after the effective | ||
| date of this Act. | ||
| SECTION 3. This Act takes effect January 1, 2014. | ||
| ______________________________ | ______________________________ | |
| President of the Senate | Speaker of the House | |
| I certify that H.B. No. 2590 was passed by the House on May 8, | ||
| 2013, by the following vote: Yeas 147, Nays 0, 2 present, not | ||
| voting; and that the House concurred in Senate amendments to H.B. | ||
| No. 2590 on May 24, 2013, by the following vote: Yeas 145, Nays 0, | ||
| 2 present, not voting. | ||
| ______________________________ | ||
| Chief Clerk of the House | ||
| I certify that H.B. No. 2590 was passed by the Senate, with | ||
| amendments, on May 22, 2013, by the following vote: Yeas 31, Nays | ||
| 0. | ||
| ______________________________ | ||
| Secretary of the Senate | ||
| APPROVED: __________________ | ||
| Date | ||
| __________________ | ||
| Governor | ||
