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Enrolled Bill Summary

Enrolled Bill Summary

Legislative Session: 87(R)

Senate Bill 1259

Senate Author:  Birdwell

Effective:  5-24-21

House Sponsor:  Smith


            Current law authorizes payments of proceeds from the sale of oil or gas production to be withheld in certain circumstances involving competing claims of ownership. Senate Bill 1259 amends the Natural Resources Code to establish that a payee does not have a common law cause of action for breach of contract against a payor for withholding payments in such a circumstance unless, for a dispute concerning the title, the contract requiring payment specifies otherwise.