Bill Text: TX SB865 | 2013-2014 | 83rd Legislature | Introduced

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Bill Title: Relating to the information required to be provided by a payor of proceeds from the sale of oil or gas from an oil or gas well to a payee.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2013-04-02 - Left pending in committee [SB865 Detail]

Download: Texas-2013-SB865-Introduced.html

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83R3418 JXC-F
By: Hegar S.B. No. 865

A BILL TO BE ENTITLED
AN ACT
relating to the information required to be provided by a payor of
proceeds from the sale of oil or gas from an oil or gas well to a
payee.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 91.402, Natural Resources Code, is
amended by adding Subsection (d-1) to read as follows:
(d-1) The division order or a separate statement provided to
the payee by the payor must describe the method used to calculate
the fractional or decimal interest in production of the payee as
stated in the division order and include the calculation of the
payee's interest. If the payee is a royalty interest owner, the
payee's fractional or decimal interest in production must be
calculated by dividing the number of mineral acres owned by the
payee by the number of acres in the drilling or spacing unit for the
well and multiplying that amount by the royalty required to be paid
under the lease.
SECTION 2. This Act takes effect September 1, 2013.