Bill Text: TX SB1031 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to information provided to a payee by a payor of proceeds of production from an oil or gas well that traverses multiple tracts.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2021-03-18 - Referred to Natural Resources & Economic Development [SB1031 Detail]
Download: Texas-2021-SB1031-Introduced.html
| 87R3809 SLB-F | ||
| By: Paxton | S.B. No. 1031 | |
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| relating to information provided to a payee by a payor of proceeds | ||
| of production from an oil or gas well that traverses multiple | ||
| tracts. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. The heading to Section 91.402, Natural Resources | ||
| Code, is amended to read as follows: | ||
| Sec. 91.402. [ |
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| ORDERS. | ||
| SECTION 2. Section 91.402, Natural Resources Code, is | ||
| amended by adding Subsection (d-1) to read as follows: | ||
| (d-1) For a horizontal well whose wellbore extends outside | ||
| of the tract on which a payee has an interest directly or through | ||
| pooling, the payor shall include in the division order or provide in | ||
| a separate statement included with the division order: | ||
| (1) an as-drilled plat of the well to which the | ||
| division order applies; and | ||
| (2) an explanation of the formula used to allocate | ||
| production between the different tracts through which the wellbore | ||
| passed or was pooled. | ||
| SECTION 3. Section 91.402(d-1), Natural Resources Code, as | ||
| added 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 4. This Act takes effect September 1, 2021. | ||
