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
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) | ||
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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. |