Bill Text: TX SB1033 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to imposing on a payor of proceeds of production from an oil or gas well a duty to notify a payee when payments to the payee are suspended.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2021-03-18 - Referred to Natural Resources & Economic Development [SB1033 Detail]
Download: Texas-2021-SB1033-Introduced.html
| 87R8985 SLB-F | ||
| By: Paxton | S.B. No. 1033 | |
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| relating to imposing on a payor of proceeds of production from an | ||
| oil or gas well a duty to notify a payee when payments to the payee | ||
| are suspended. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter J, Chapter 91, Natural Resources | ||
| Code, is amended by adding Section 91.409 to read as follows: | ||
| Sec. 91.409. NOTIFICATION OF SUSPENSION OF PAYMENTS. (a) | ||
| When a payor suspends a payment to a payee for a reason other than a | ||
| reason described by Section 91.402(f), the payor shall send to the | ||
| payee a written notice stating that payments have been suspended | ||
| and explaining in reasonable detail the reason for the suspension. | ||
| The notice must be sent not later than the 30th day after the date | ||
| the payment was suspended and must include the information required | ||
| by Section 91.502(1). | ||
| (b) A payor that suspends payment to a payee for a reason | ||
| other than a reason described by Section 91.402(f) without sending | ||
| to the payee notice of suspension as provided by Subsection (a) | ||
| shall pay to the payee interest on the amount of the suspended | ||
| payment for the period that begins on the 31st day after the date | ||
| the payment is suspended and ends on the date notice of the | ||
| suspension is delivered to the payee. The rate of interest to be | ||
| paid under this subsection is a rate two points higher than the rate | ||
| charged for that period on loans to depository institutions by the | ||
| New York Federal Reserve Bank, unless a different rate is specified | ||
| by a written agreement between the payor and payee. | ||
| SECTION 2. Section 91.409, Natural Resources Code, as added | ||
| by this Act, applies only to a suspension of a payment of proceeds | ||
| of production from an oil or gas well made on or after the effective | ||
| date of this Act. A suspension of a payment of proceeds of | ||
| production from an oil or gas well made before the effective date of | ||
| this Act is governed by the law in effect on the date the suspension | ||
| was made, and the former law is continued in effect for that | ||
| purpose. | ||
| SECTION 3. This Act takes effect September 1, 2021. | ||
