Bill Text: TX HB2590 | 2013-2014 | 83rd Legislature | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Introduced.html
  83R5509 JAM-D
 
  By: Keffer H.B. No. 2590
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the foreclosure sale of property subject to certain
  agreements related to the production or sale of oil or gas.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 51, Property Code, is amended by adding
  Section 51.010 to read as follows:
         Sec. 51.010.  SALE OF PROPERTY SUBJECT TO CERTAIN AGREEMENTS
  RELATED TO PRODUCTION OR SALE OF OIL OR GAS. (a) Notwithstanding
  any other law, an oil or gas lease or other agreement related to the
  production or sale of oil or gas from real property subject to a
  security interest that is being foreclosed remains in effect after
  the foreclosure sale and has priority over the foreclosed lien
  regardless of whether the agreement was recorded in the real
  property records of the county before the date the security
  interest was recorded if the agreement:
               (1)  was recorded in the real property records of the
  county before the foreclosure sale; and
               (2)  has not terminated or expired on its own terms.
         (b)  Any royalty payment due to the owner of the real
  property under an agreement described by Subsection (a) shall be
  paid to the purchaser of the foreclosed real property.
         SECTION 2.  Section 51.010, Property Code, as added by this
  Act, applies only to a security interest recorded in the real
  property records of a county on or after the effective date of this
  Act. A security interest recorded before the effective date of this
  Act is governed by the law in effect immediately before the
  effective date of this Act, and that law is continued in effect for
  that purpose.
         SECTION 3.  This Act takes effect September 1, 2013.
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