Bill Text: TX SB1259 | 2021-2022 | 87th Legislature | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to causes of action for withholding payments of the proceeds from the sale of oil and gas production.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2021-05-24 - Effective immediately [SB1259 Detail]

Download: Texas-2021-SB1259-Comm_Sub.html
 
 
  By: Birdwell S.B. No. 1259
 
  (Smith)
 
   
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to causes of action for withholding payments of the
  proceeds from the sale of oil and gas production.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 91.402, Natural Resources Code, is
  amended by adding Subsection (b-1) to read as follows:
         (b-1)  A payee does not have a common law cause of action for
  breach of contract against a payor for withholding payments under
  Subsection (b) unless, for a dispute concerning the title, the
  contract requiring payment specifies otherwise.
         SECTION 2.  The change in law made by this Act applies only
  to an action filed on or after the effective date of this Act. An
  action filed before the effective date of this Act is governed by
  the law applicable to the action immediately before the effective
  date of this Act, and that law is continued in effect for that
  purpose.
         SECTION 3.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution. If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2021.
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