By Junell H.B. No. 2981 75R12999 E A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to notice to a payee of a change in the payor of oil or 1-3 gas proceeds. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter J, Chapter 91, Natural Resources Code, 1-6 is amended by adding Section 91.407 to read as follows: 1-7 Sec. 91.407. NOTICE OF CHANGE OF PAYOR. (a) Following a 1-8 change in payor, the new payor shall give written notice to each 1-9 payee to whom the payor is responsible for distributing oil or gas 1-10 proceeds. The notice must be given to the payee or the payee's 1-11 designee at the payee's or designee's most recent known address. 1-12 (b) Upon receipt of payee's address from the operator or 1-13 lessee, the payor must provide the notice within the time permitted 1-14 for payment of proceeds and in accordance with the conditions for 1-15 payment provided by Section 91.402. The notice must include: 1-16 (1) the information required by Sections 91.502(1), 1-17 (2), and (12) and Section 91.503; and 1-18 (2) the payor's telephone number. 1-19 (c) The notice may be given by any writing, including a 1-20 division order, check stub, or attachment to a payment form. 1-21 (d) A payor that is obligated to pay interest to a payee 1-22 under Section 91.403 and that does not give the payee a notice 1-23 required by this section is liable to the payee for interest under 1-24 that section at a rate that is two percent more than the rate 2-1 provided by that section. 2-2 SECTION 2. This Act takes effect September 1, 1997. 2-3 SECTION 3. The importance of this legislation and the 2-4 crowded condition of the calendars in both houses create an 2-5 emergency and an imperative public necessity that the 2-6 constitutional rule requiring bills to be read on three several 2-7 days in each house be suspended, and this rule is hereby suspended.