SRC-JBJ S.B. 436 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 436
76R4307 SMH-DBy: Nixon
Jurisprudence
3/3/1999
As Filed


DIGEST 

Currently, a citizen may sign away the mineral rights to a property upon
receiving a check accompanied with ambiguously worded correspondence.  Some
companies send a check with ambiguously worded correspondence to a resident
whose mineral rights the companies wish to purchase.  At times, some
citizens, particularly senior citizens, may cash or deposit a check without
the understanding that to do so may forfeit their mineral rights to the
property.  S.B. 436 requires an instruments of conveyance to contain
certain conspicuous statements regarding mineral rights.  S.B. 436 also
requires the rights to be rescinded if the statement was not included in
the letter or if the mineral rights holder is over 65 years. 

PURPOSE

As proposed, S.B. 436 requires a disclosure to be included in certain
offers by mail to purchase mineral interests. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 5, Property Code, by adding Subchapter F, as
follows: 

SUBCHAPTER F.  REQUIREMENTS FOR CONVEYANCES OF MINERAL INTERESTS

Sec. 5.151.  DISCLOSURE IN OFFER BY MAIL TO PURCHASE MINERAL INTEREST.
Requires a person who mails an offer to purchase a mineral interest to
include in the offer an instrument of conveyance with a certain conspicuous
statement regarding the ownership of mineral interests.  Sets forth
required language for the instrument of conveyance.  Authorizes a person
who conveys a mineral interest to rescind the instrument of conveyance if
the purchase did not give the requisite notice and the person who executed
the document was at least 65 years of age. 

SECTION 2.Effective date: September 1, 1999.
  Makes application of this Act prospective.

SECTION 3.Emergency clause.