Bill Text: TX SB1030 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to the applicability of provisions governing payment of the proceeds derived from the sale of oil or gas production to nonparticipating royalty interest owners.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2021-03-18 - Referred to Natural Resources & Economic Development [SB1030 Detail]
Download: Texas-2021-SB1030-Introduced.html
87R3113 SLB-D | ||
By: Paxton | S.B. No. 1030 |
|
||
|
||
relating to the applicability of provisions governing payment of | ||
the proceeds derived from the sale of oil or gas production to | ||
nonparticipating royalty interest owners. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 91.401, Natural Resources Code, is | ||
amended by adding Subdivision (5) to read as follows: | ||
(5) "Nonparticipating royalty interest owner" means a | ||
mineral interest owner whose interest was conveyed without the | ||
right to negotiate lease terms or receive a bonus. | ||
SECTION 2. Section 91.402, Natural Resources Code, is | ||
amended by amending Subsection (a) and adding Subsection (a-1) to | ||
read as follows: | ||
(a) In this section, the term "payee" includes a | ||
nonparticipating royalty interest owner. | ||
(a-1) The proceeds derived from the sale of oil or gas | ||
production from an oil or gas well located in this state must be | ||
paid to each payee by payor on or before 120 days after the end of | ||
the month of first sale of production from the well. After that | ||
time, payments must be made to each payee on a timely basis | ||
according to the frequency of payment specified in a lease or other | ||
written agreement between payee and payor. If the lease or other | ||
agreement does not specify the time for payment, subsequent | ||
proceeds must be paid no later than: | ||
(1) 60 days after the end of the calendar month in | ||
which subsequent oil production is sold; or | ||
(2) 90 days after the end of the calendar month in | ||
which subsequent gas production is sold. | ||
SECTION 3. Section 91.5001, Natural Resources Code, is | ||
amended to read as follows: | ||
Sec. 91.5001. DEFINITIONS [ |
||
subchapter: | ||
(1) "Nonparticipating royalty interest owner" means a | ||
mineral interest owner whose interest was conveyed without the | ||
right to negotiate lease terms or receive a bonus. | ||
(2) "Payor"[ |
||
Section 91.401. | ||
SECTION 4. Section 91.504, Natural Resources Code, is | ||
amended by amending Subsection (a) and adding Subsection (a-1) to | ||
read as follows: | ||
(a) In this section, "royalty interest owner" includes a | ||
nonparticipating royalty interest owner. | ||
(a-1) If the payor does not explain on the check stub, | ||
attachment to the payment form, or other remittance advice, or by a | ||
separate mailing, deductions from or adjustments to payments, the | ||
payor must provide an explanation by certified mail not later than | ||
the 60th day after the date the payor receives a request from the | ||
royalty interest owner. The royalty interest owner must send the | ||
request by certified mail. | ||
SECTION 5. Section 91.505, Natural Resources Code, is | ||
amended to read as follows: | ||
Sec. 91.505. PROVIDING OTHER INFORMATION. (a) In this | ||
section, "royalty interest owner" includes a nonparticipating | ||
royalty interest owner. | ||
(b) If a royalty interest owner requests information or | ||
answers to questions concerning a payment made pursuant to this | ||
subchapter, other than information requested under Section 91.504, | ||
and the request is made by certified mail, the payor must respond to | ||
the request by certified mail not later than 30 days after the | ||
request is received. | ||
SECTION 6. The change in law made by this Act applies only | ||
to a division order issued on or after the effective date of this | ||
Act. A division order issued before the effective date of this Act | ||
is governed by the law in effect on the date the division order was | ||
issued, and the former law is continued in effect for that purpose. | ||
SECTION 7. This Act takes effect September 1, 2021. |