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Enrolled Bill Summary

Enrolled Bill Summary

Legislative Session: 86(R)

House Bill 3838

House Author:  Bailes et al.

Effective:  9-1-19

Senate Sponsor:  Birdwell


House Bill 3838 amends the Property Code to require certain instruments that convey a mineral or royalty interest but are made to look like the transaction is for a lease of a mineral or royalty interest to include certain conspicuous statements warning that the instrument is not an oil and gas lease and that the owner is selling all or a portion of the owner's mineral or royalty interests. The bill voids a conveyance for which the instrument does not include these required statements and provides remedies for a person who has conveyed a royalty or mineral interest in a voided conveyance.