By Junell H.B. No. 2981 75R7285 SMH-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to a notification of a payee of a change in the payor of 1-3 oil or 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 TO PAYEE OF CHANGE OF PAYOR. (a) A 1-8 payor shall give written notice to each payee to whom the payor 1-9 distributes oil or gas proceeds if there is a change of payor. 1-10 (b) The payor must include the notice with the final payment 1-11 by the payor to the payee. The notice must include: 1-12 (1) the date of the final payment by the payor to the 1-13 payee; 1-14 (2) the name, address, and telephone number of the 1-15 successor payor; and 1-16 (3) the name, address, and telephone number of the 1-17 successor operator, if there is a change of operator. 1-18 (c) The payor is considered to have given the notice if the 1-19 payor mails the notice to the payee by certified mail, return 1-20 receipt requested. 1-21 (d) A payor is liable in the amount of $1,000 to each payee 1-22 to whom the payor does not give a notice required by this section. 1-23 SECTION 2. This Act takes effect September 1, 1997. 1-24 SECTION 3. The importance of this legislation and the 2-1 crowded condition of the calendars in both houses create an 2-2 emergency and an imperative public necessity that the 2-3 constitutional rule requiring bills to be read on three several 2-4 days in each house be suspended, and this rule is hereby suspended.