Bill Text: TX HB2883 | 2021-2022 | 87th Legislature | Introduced


Bill Title: Relating to the information a payor of the proceeds of production from an oil and gas well is required to provide a payee.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2021-03-18 - Referred to Energy Resources [HB2883 Detail]

Download: Texas-2021-HB2883-Introduced.html
  87R8974 SLB-F
 
  By: Bailes H.B. No. 2883
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the information a payor of the proceeds of production
  from an oil and gas well is required to provide a payee.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter J, Chapter 91, Natural Resources
  Code, is amended by adding Sections 91.409 and 91.410 to read as
  follows:
         Sec. 91.409.  INFORMATION REQUESTED BY PAYEE. (a)  This
  section applies to a payee who is requested by a payor to sign:
               (1)  a ratification of a lease, pooling agreement, or
  unit designation; or
               (2)  a division order.
         (b)  On written request by a payee to whom this section
  applies, the payor must provide the payee with a copy of the
  document to be ratified or the lease underlying the division order,
  as appropriate.  The payor must respond to the request not later
  than the 14th day after the date on which the request was received
  by the payor.
         (c)  The failure of a payor to respond to a request described
  by Subsection (b) releases the obligation of the payee to sign the
  ratification or division order, as appropriate. A payee who is not
  obligated to sign a division order under this subsection is
  entitled to payment notwithstanding Section 91.402(c)(1).
         Sec. 91.410.  REQUIRED INFORMATION IN PAYOR REQUEST. A
  payor's request that a payee ratify a lease, pooling agreement, or
  unit designation, or sign a division order, must include a
  statement that describes the payee's rights under Section 91.409.
         SECTION 2.  This Act takes effect September 1, 2021.
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