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.