1-1 By: Junell (Senate Sponsor - Fraser) H.B. No. 2981 1-2 (In the Senate - Received from the House May 16, 1997; 1-3 May 16, 1997, read first time and referred to Committee on Natural 1-4 Resources; May 18, 1997, reported favorably by the following vote: 1-5 Yeas 10, Nays 0; May 18, 1997, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to notice to a payee of a change in the payor of oil or 1-9 gas proceeds. 1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-11 SECTION 1. Subchapter J, Chapter 91, Natural Resources Code, 1-12 is amended by adding Section 91.407 to read as follows: 1-13 Sec. 91.407. NOTICE OF CHANGE OF PAYOR. (a) Following a 1-14 change in payor, the new payor shall give written notice to each 1-15 payee to whom the payor is responsible for distributing oil or gas 1-16 proceeds. The notice must be given to the payee or the payee's 1-17 designee at the payee's or designee's most recent known address. 1-18 (b) Upon receipt of payee's address from the operator or 1-19 lessee, the payor must provide the notice within the time permitted 1-20 for payment of proceeds and in accordance with the conditions for 1-21 payment provided by Section 91.402. The notice must include: 1-22 (1) the information required by Sections 91.502(1), 1-23 (2), and (12) and Section 91.503; and 1-24 (2) the payor's telephone number. 1-25 (c) The notice may be given by any writing, including a 1-26 division order, check stub, or attachment to a payment form. 1-27 (d) A payor that is obligated to pay interest to a payee 1-28 under Section 91.403 and that does not give the payee a notice 1-29 required by this section is liable to the payee for interest under 1-30 that section at a rate that is two percent more than the rate 1-31 provided by that section. 1-32 SECTION 2. This Act takes effect September 1, 1997. 1-33 SECTION 3. The importance of this legislation and the 1-34 crowded condition of the calendars in both houses create an 1-35 emergency and an imperative public necessity that the 1-36 constitutional rule requiring bills to be read on three several 1-37 days in each house be suspended, and this rule is hereby suspended. 1-38 * * * * *