By Holzheauser H.B. No. 3016
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to reporting ownership of mineral interest severed from
1-3 the surface estate and the vesting of title by judicial proceeding
1-4 to certain abandoned mineral interests.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Title 4, Property Code is amended by adding a new
1-7 Chapter 29 to read as follows:
1-8 Chapter 29. VESTING OF TITLE TO
1-9 ABANDONED MINERAL INTEREST IN SURFACE OWNER
1-10 Sec. 29.001. APPLICABILITY. This chapter does not apply to
1-11 a mineral interest owned by a governmental entity.
1-12 Sec. 29.002. DEFINITIONS. In this chapter:
1-13 (1) "Abandonment" means the termination of the use of
1-14 a mineral interest by the owner of the interest.
1-15 (2) "Interest in the surface" means a fee interest,
1-16 whether conditional or not, from which a mineral interest has been
1-17 severed.
1-18 (3) "Mineral interest" means an interest in oil, gas,
1-19 or other minerals in place that is severed from the ownership of an
1-20 interest in the surface and includes a fee interest, whether
1-21 conditional or not, life estate, estate for years, remainder
1-22 interest, reversion, possibility of reverter, right of entry,
1-23 executory interest, leasehold interest, royalty interest, executive
2-1 right, or other present possessory interest, future interest,
2-2 equitable interest, or concurrent ownership interest.
2-3 (4) "Surface owner" means a person, firm, partnership,
2-4 corporation, trust or other entity, who has concurrent or sole
2-5 legal right or title to a present interest in real property from
2-6 which a mineral interest has been severed, except the holder of a
2-7 leasehold interest or an estate for years.
2-8 (5) "Use of a mineral interest" means:
2-9 (A) production of minerals under the interest;
2-10 (B) conduct of operations for injection,
2-11 withdrawal, storage or disposal of water, gas, or other fluid
2-12 substances in connection with the interest;
2-13 (C) payment by the interest's owner of rentals
2-14 or royalties for the purpose of delaying or enjoying the use of the
2-15 interest;
2-16 (D) unitization or pooling of the interest for
2-17 production purposes with another tract on which the use is carried
2-18 out;
2-19 (E) production from a common vein or seam, in
2-20 the case of coal or other solid minerals, by the owners of two or
2-21 more mineral interests;
2-22 (F) payment of taxes on the interest by the
2-23 owner; or
2-24 (G) any other use authorized by the instrument
2-25 creating the interest.
3-1 (6) "Dormant mineral interest" means an interest that
3-2 is not used under any of the sections of Section 29.002(5).
3-3 Section 29.003. AFFIDAVIT OF OWNERSHIP OF MINERAL INTEREST.
3-4 (a) An entity who owns a dormant mineral interest on September 1,
3-5 1995, must, before September 1, 1997, file an affidavit with the
3-6 county clerk of each county in which part of the dormant mineral
3-7 interest is located. An entity who owns a mineral interest that
3-8 becomes a dormant mineral interest after September 1, 1997, must
3-9 file an affidavit with the county clerk of each county in which
3-10 part of the interest is located before the tenth anniversary of the
3-11 date the mineral interest becomes a dormant mineral interest.
3-12 (b) The affidavit must be a pre-printed affidavit in a form
3-13 prescribed by the Secretary of State.
3-14 (c) Nothing shall preclude a dormant mineral interest owner
3-15 from filing affidavits in the future. Any such affidavit filed
3-16 shall prevent the mineral interest from being abandoned for a
3-17 period of twenty years from the filing of such affidavit.
3-18 Section 29.004. RECORDING OF AFFIDAVITS. (a) A county
3-19 clerk may charge the same filing fee for recording an affidavit
3-20 under Section 29.003 as authorized for recording a deed.
3-21 (b) Each county clerk shall maintain a public record of
3-22 affidavits filed under Section 29.003 separately from other records
3-23 in the clerk's office. The clerk shall maintain the affidavit in
3-24 the same manner as required for deeds.
3-25 Section 29.005. PRESUMPTION OF ABANDONMENT ON FAILURE TO
4-1 REPORT. (a) An owner of a dormant mineral interest who fails to
4-2 file an affidavit as required by Section 29.004 is presumed to have
4-3 abandoned the interest, and title to the interest is presumed to
4-4 belong to the surface owner.
4-5 (b) A mineral interest is not abandoned if the owner of the
4-6 interest files an affidavit under Section 29.003 within a year
4-7 after the court determines that the interest is abandoned, but
4-8 before a judgment under Section 29.006 declaring the interest
4-9 abandoned has been made.
4-10 Section 29.006. JUDICIAL PROCEEDING. (a) A surface owner
4-11 may file a petition for declaratory judgment in the district court
4-12 of the county in which the real property is located, requesting:
4-13 (1) the court to determine that the mineral interest
4-14 is abandoned; and
4-15 (2) the court to declare a mineral interest abandoned.
4-16 (b) Except as provided by Section 29.005, the court may
4-17 declare a mineral interest abandoned only if:
4-18 (1) a year has passed since the court determined that
4-19 the mineral interest has been abandoned; and
4-20 (2) the abandonment has lasted for 10 years or more.
4-21 The 10 year period shall not begin to run before September 1, 1995.
4-22 Section 29.007. NOTICE OF PROCEEDING. In an action for
4-23 declaratory judgment under Section 29.006, citation shall be issued
4-24 to the last known owner or owners of the abandoned mineral interest
4-25 as shown by the official records of the county clerk of the county
5-1 in which the property is located and shall be served in accordance
5-2 with the Texas Rules of Civil Procedure.
5-3 Section 29.008. VESTING OF TITLE. (a) If a court declares
5-4 a mineral interest abandoned, title to the interest vests in the
5-5 owner or owners of the surface interest from which it was severed,
5-6 with each owner taking the same share and the same type of
5-7 ownership in the mineral interest as the person has in the surface.
5-8 (b) An entity who acquires title to a mineral interest in an
5-9 abandonment proceeding under this chapter may record, in the same
5-10 manner as a deed, a certified copy of the judgement as evidence of
5-11 title.
5-12 SECTION 2. This Act takes effect september 1, 1995.
5-13 SECTION 3. The importance of this legislation and the
5-14 crowded condition of the calendars in both houses create an
5-15 emergency and imperative public necessity that the constitutional
5-16 rule requiring bills to be read on three several days in each house
5-17 be suspended, and this rule is hereby suspended.