By Keffer H.B. No. 3582
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to receivers, payors, and lessees under certain mineral
1-3 leases.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter F, Chapter 64, Civil Practice and
1-6 Remedies Code, is amended by adding Section 64.093 to read as
1-7 follows:
1-8 Sec. 64.093. RECEIVER FOR ROYALTY INTERESTS OWNED BY
1-9 NONRESIDENT OR ABSENTEE. (a) A district court may appoint a
1-10 receiver for the royalty interest owned by a nonresident or absent
1-11 defendant in an action that:
1-12 (1) is brought by a person claiming or owning an
1-13 undivided mineral interest in land in this state or an undivided
1-14 leasehold interest under a mineral lease of land in the state; and
1-15 (2) has one or more defendants who have, claim, or own
1-16 an undivided royalty interest in that property.
1-17 (b) The defendant for whom the receiver is sought must:
1-18 (1) be a person whose residence or identity is unknown
1-19 or a nonresident; and
1-20 (2) not have paid taxes on the interest or rendered it
1-21 for taxes during the five-year period immediately preceding the
1-22 filing of the action.
1-23 (c) The plaintiff in the action must allege by verified
1-24 petition and prove that the plaintiff:
2-1 (1) has made a diligent but unsuccessful effort to
2-2 locate the defendant; and
2-3 (2) will suffer substantial damage or injury unless
2-4 the receiver is appointed.
2-5 (d) In an action under Subsection (a):
2-6 (1) the plaintiff, in the petition, must name the last
2-7 known owner or the last record owner of the interest as defendant;
2-8 (2) the plaintiff must serve notice on the defendant
2-9 by publication as provided by the Texas Rules of Civil Procedure;
2-10 (3) the court may appoint as receiver the county
2-11 judge, the county clerk, or any other resident of the county in
2-12 which the land is located;
2-13 (4) notwithstanding the Texas Rules of Civil
2-14 Procedure, the applicant is not required to post bond; and
2-15 (5) the receiver is not required to post bond.
2-16 (e) A receivership created under this section continues as
2-17 long as the defendant or the defendant's heirs, assigns, or
2-18 personal representatives fail to appear in court in person or by
2-19 agent or attorney to claim the defendant's interest.
2-20 (f) As ordered by the court, the receiver shall immediately:
2-21 (1) ratify a mineral lease executed by a person owning
2-22 an undivided mineral interest in the property;
2-23 (2) ratify a pooling agreement executed by a person
2-24 owning an undivided mineral interest in the property or an
2-25 undivided leasehold interest in the property; or
2-26 (3) enter into a unitization agreement authorized by
2-27 the Railroad Commission of Texas.
3-1 (g) A lease ratified by a receiver under this section may
3-2 authorize the lessee to pool and unitize land subject to the lease
3-3 with adjacent land into a unit not to exceed 160 acres for an oil
3-4 well or 640 acres for a gas well plus 10 percent tolerance or into
3-5 a unit that substantially conforms to a larger unit prescribed or
3-6 permitted by governmental rule. A pooling agreement ratified by a
3-7 receiver under this section may allow a pooled unit not to exceed
3-8 160 acres for an oil well or 640 acres for a gas well plus 10
3-9 percent tolerance or into a unit that substantially conforms to a
3-10 larger unit prescribed or permitted by governmental rule.
3-11 (h) The monetary consideration, if any, due for the
3-12 execution of a ratification, pooling agreement, or unitization
3-13 agreement by the receiver must be paid to the clerk of the court in
3-14 which the case is pending before the receiver executes the
3-15 instrument. It is, however, recognized that, because
3-16 ratifications, pooling agreements, and unitization agreements are
3-17 typically entered into in consideration of the future benefits
3-18 accruing to the grantor thereof, an initial monetary consideration
3-19 is not typically paid for the execution of such instruments. The
3-20 court shall apply the money to the costs accruing in the case and
3-21 retain any balance for the owner of the royalty interest. Payments
3-22 made at a later time under the lease, pooled unit, or unitization
3-23 agreement shall be paid into the registry of the court and
3-24 impounded for the owner of the royalty interest.
3-25 (i) This section is cumulative of other laws relating to
3-26 removal of a cloud from title or appointment of a receiver.
3-27 (j) In this section:
4-1 (1) "Mineral lease" includes any lease of oil, gas, or
4-2 other minerals that contains provisions necessary or incident to
4-3 the orderly exploration, development, and recovery of oil, gas, or
4-4 other minerals.
4-5 (2) "Leasehold interest" includes ownership created
4-6 under a mineral lease or carved out of a leasehold estate granted
4-7 under a mineral lease, including production payments, overriding
4-8 royalty interests, and working interests.
4-9 (3) "Pooling agreement" includes any agreement that
4-10 pools or unitizes land with adjacent land for production of oil,
4-11 gas, or other minerals.
4-12 (4) "Royalty interest" includes any interest in the
4-13 lands entitled to share in the production of oil, gas, or other
4-14 minerals that is not required to execute a mineral lease or any
4-15 other instrument in order to vest in the mineral interest owner or
4-16 mineral leasehold interest owner the right and power, as to that
4-17 interest, to develop oil, gas, or other minerals produced solely
4-18 from those lands.
4-19 (k) To the extent that Subsection (d)(2) conflicts with the
4-20 Texas Rules of Civil Procedure, Subsection (d)(2) controls.
4-21 Notwithstanding Section 22.004, Government Code, the supreme court
4-22 may not amend or adopt rules in conflict with Subsection (d)(2).
4-23 SECTION 2. Section 53.001, Natural Resources Code, is
4-24 amended by adding Subdivision (4) to read as follows:
4-25 (4) "Surface mining" means the mining of minerals by
4-26 removing the overburden lying above the natural deposit of minerals
4-27 and mining directly from the natural deposits that are exposed.
5-1 The term does not include in situ mining activities.
5-2 SECTION 3. Sections 53.065(b) and (c), Natural Resources
5-3 Code, are amended to read as follows:
5-4 (b) Except as provided by Subsection (c), under [Under] a
5-5 lease executed under this subchapter on or after September 1, 1987,
5-6 the lessee shall pay:
5-7 (1) to the state 80 percent of all bonuses agreed to
5-8 be paid for the lease and 80 percent of all rentals and royalties
5-9 that are payable under the lease; and
5-10 (2) [. The lessee shall pay] to the owner of the
5-11 surface 20 percent of all bonuses agreed to be paid for the lease
5-12 and 20 percent of all rentals and royalties payable under the
5-13 lease.
5-14 (c) Under a lease executed under this subchapter on or after
5-15 September 1, 1999, for the exploration and production by surface
5-16 mining of coal, lignite, potash, sulphur, thorium, or uranium, the
5-17 lessee shall pay:
5-18 (1) to the state 60 percent of all bonuses agreed to
5-19 be paid for the lease and 60 percent of all rentals and royalties
5-20 that are payable under the lease; and
5-21 (2) to the owner of the surface 40 percent of all
5-22 bonuses agreed to be paid for the lease and 40 percent of all
5-23 rentals and royalties payable under the lease.
5-24 (d) If production is obtained, the state shall receive not
5-25 less than one-sixteenth of the value of the minerals produced.
5-26 SECTION 4. Subchapter J, Chapter 91, Natural Resources Code,
5-27 is amended by adding Section 91.408 to read as follows:
6-1 Sec. 91.408. INFORMATION FOR PAYEES OF PROCEEDS OF
6-2 PRODUCTION FROM CERTAIN GAS WELLS. (a) A payor of proceeds from
6-3 the sale of gas produced from a tight formation as defined by
6-4 Section 29(c)(2)(B), Internal Revenue Code of 1986, annually shall
6-5 furnish the payee a statement providing the information necessary
6-6 to compute the federal income tax credit provided by that section
6-7 for the gas for which payment was made in the preceding year,
6-8 including:
6-9 (1) information as described in Section 91.502(1) of
6-10 this code; and
6-11 (2) the volume of the gas, measured in:
6-12 (A) thousands of cubic feet and heating value;
6-13 or
6-14 (B) millions of British thermal units for each
6-15 thousand cubic feet.
6-16 (b) A payor shall furnish a statement required by Subsection
6-17 (a) not later than March 15 each year.
6-18 SECTION 5. Section 4 of this Act takes effect September 1,
6-19 1999.
6-20 SECTION 6. The importance of this legislation and the
6-21 crowded condition of the calendars in both houses create an
6-22 emergency and an imperative public necessity that the
6-23 constitutional rule requiring bills to be read on three several
6-24 days in each house be suspended, and this rule is hereby suspended,
6-25 and that this Act take effect and be in force from and after its
6-26 passage, and it is so enacted.