House Bill 450
House Author: Craddick et al.
Effective: 9-1-23
Senate Sponsor: Hughes
House Bill 450 amends the Property Code to authorize a person to bring a cause of action for a bad faith washout of the person's overriding royalty interest in an oil and gas lease in a district court of a county in which any part of the property subject to the lease is located and entitles the person to remedies if the person proves by a preponderance of the evidence the overriding royalty interest and certain actions by the defendant. The bill requires the person to bring the action not later than the second anniversary of the date the person obtained actual knowledge that the washout occurred and authorizes an owner who prevails in the action to recover actual damages, court costs and attorney's fees, and the enforcement of a constructive trust on the oil and gas lease or mineral estate acquired to accomplish the washout of the overriding royalty interest.