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.