Enrolled Bill Summary

Enrolled Bill Summary

Legislative Session: 88(R)

Senate Bill 785	Senate Author: Birdwell et al.
Effective: 6-18-23	House Sponsor: Darby et al.

Senate Bill 785 amends the Insurance Code and Natural Resources Code to establish that, except as otherwise expressly provided by a binding obligation, the geothermal energy and associated resources below the surface of land are owned as real property by either the landowner or, if the surface estate and the mineral estate of the land have been severed, by the surface estate's owner. Subject to the Geothermal Resources Act of 1975, the property rights provided by the bill entitle the owner of the geothermal energy and associated resources and the owner's lessee, heir, or assignee to drill for and produce the energy and resources. The bill authorizes a title insurance company to include in a commitment for title insurance or a title insurance policy a general exception or a special exception to except from coverage the geothermal energy and associated resources below the surface of the land or an instrument that purports to reserve or transfer all or part of the energy and resources.