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AN ACT
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relating to the ownership of and certain insurance policy |
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provisions regarding the geothermal energy and associated |
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resources below the surface of land. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2703.056, Insurance Code, is amended to |
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read as follows: |
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Sec. 2703.056. EXCEPTIONS; MINERAL AND GEOTHERMAL ENERGY |
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INTERESTS. (a) Subject to the underwriting standards of the title |
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insurance company, a title insurance company may in a commitment |
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for title insurance or a title insurance policy include a general |
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exception or a special exception to except from coverage: |
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(1) a mineral estate or the geothermal energy and |
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associated resources below the surface of the land; or |
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(2) an instrument that purports to reserve or transfer |
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all or part of a mineral estate or the geothermal energy and |
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associated resources below the surface of the land. |
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(b) A reduction to, or credit on a premium charge for, a |
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policy of title insurance or other insuring form may not be directly |
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or indirectly based on an exclusion of, or general or special |
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exception to, a mineral estate or the geothermal energy and |
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associated resources below the surface of the land in the title |
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insurance policy. |
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(c) The inclusion in a title insurance policy of a general |
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exception or a special exception described by Subsection (a) does |
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not create title insurance coverage as to the condition or |
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ownership of the mineral estate or the geothermal energy and |
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associated resources below the surface of the land. |
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SECTION 2. Section 141.003(5), Natural Resources Code, is |
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amended to read as follows: |
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(5) "By-product" means any other element found in a |
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geothermal formation which is brought to the surface, whether or |
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not it is used in geothermal heat or pressure inducing energy |
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generation. The term does not include: |
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(A) a mineral, as defined by Section 75.001, |
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Property Code; or |
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(B) oil, gas, or a product of oil or gas, as |
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defined by Section 85.001. |
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SECTION 3. Subchapter A, Chapter 141, Natural Resources |
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Code, is amended by adding Section 141.004 to read as follows: |
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Sec. 141.004. OWNERSHIP OF GEOTHERMAL ENERGY AND ASSOCIATED |
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RESOURCES. (a) Except as otherwise expressly provided by a |
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conveyance, contract, deed, reservation, exception, limitation, |
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lease, or other binding obligation, the geothermal energy and |
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associated resources below the surface of land are owned as real |
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property by: |
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(1) the landowner; or |
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(2) if the surface estate and the mineral estate of the |
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land have been severed, the owner of the surface estate of the land. |
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(b) Subject to the provisions of this chapter, the property |
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rights described by this section entitle the owner of the |
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geothermal energy and associated resources below the surface of |
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land and the owner's lessee, heir, or assignee to drill for and |
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produce the geothermal energy and associated resources. |
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(c) This section does not: |
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(1) apply to minerals dissolved or otherwise contained |
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in groundwater, including in hot brines; or |
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(2) change existing law regarding: |
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(A) oil, gas, or mineral extraction regardless of |
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its heat or energy potential; |
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(B) the rights of the dominant and servient |
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estates; or |
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(C) the ownership and use of groundwater. |
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SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2023. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 785 passed the Senate on |
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April 19, 2023, by the following vote: Yeas 30, Nays 1; and that |
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the Senate concurred in House amendment on May 25, 2023, by the |
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following vote: Yeas 29, Nays 1, one present not voting. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 785 passed the House, with |
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amendment, on May 23, 2023, by the following vote: Yeas 140, |
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Nays 0, two present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |