Amend HB 2981 (Senate committee report) as follows:
      1)  Strike the recital to SECTION 1 of the bill (page 1,
lines 11-12) and substitute the following:
      "SECTION 1.  Subchapter J, Chapter 91, Natural Resources
Code, is amended by adding Sections 91.407 and 91.408 to read as
follows:"
      2)  At the end of SECTION 1 of the bill add the following:
      Sec. 91.408.  NOTIFICATION TO NONOPERATORS OF ADDITIONAL
PAYMENT RECEIVED BY OPERATOR.  (a)  An operator of an oil and gas
property who receives a payment for crude oil or condensate from
the first purchaser at the operated property in addition to the
purchase price, regardless of how the payment is described, must
notify the nonoperators for which it is selling production from the
property and the royalty owners to whom it is obligated to pay
royalty on production from the property of the receipt of such
payment and describe the nature and purpose of the payment.  The
notification is considered timely if made as of the later of:
            (1)  the 90th day after the date of receipt of such
payment; or
            (2)  the date on which the next payment to the
nonoperator or royalty owner is made in accordance with Section
91.402.
      (b)  Accounting adjustments made in the normal course of
business for the purchase price of the crude oil or condensate at
the operated property are not considered additional payments under
this section.