76R9926 MI-F
By Keffer H.B. No. 3582
Substitute the following for H.B. No. 3582:
By Smithee C.S.H.B. No. 3582
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the appointment of a receiver for a royalty interest.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subchapter F, Chapter 64, Civil Practice and
1-5 Remedies Code, is amended by adding Section 64.093 to read as
1-6 follows:
1-7 Sec. 64.093. RECEIVER FOR ROYALTY INTERESTS OWNED BY
1-8 NONRESIDENT OR ABSENTEE. (a) A district court may appoint a
1-9 receiver for the royalty interest owned by a nonresident or absent
1-10 defendant in an action that:
1-11 (1) is brought by a person claiming or owning an
1-12 undivided mineral interest in land in this state or an undivided
1-13 leasehold interest under a mineral lease of land in the state; and
1-14 (2) has one or more defendants who have, claim, or own
1-15 an undivided royalty interest in that property.
1-16 (b) The defendant for whom the receiver is sought must:
1-17 (1) be a person whose residence or identity is unknown
1-18 or a nonresident; and
1-19 (2) not have paid taxes on the interest or rendered it
1-20 for taxes during the five-year period immediately preceding the
1-21 filing of the action.
1-22 (c) The plaintiff in the action must allege by verified
1-23 petition and prove that the plaintiff:
1-24 (1) has made a diligent but unsuccessful effort to
2-1 locate the defendant; and
2-2 (2) will suffer substantial damage or injury unless
2-3 the receiver is appointed.
2-4 (d) In an action under Subsection (a):
2-5 (1) the plaintiff, in the petition, must name the last
2-6 known owner or the last record owner of the interest as defendant;
2-7 (2) the plaintiff must serve notice on the defendant
2-8 by publication as provided by the Texas Rules of Civil Procedure;
2-9 (3) the court may appoint as receiver the county
2-10 judge, the county clerk, or any other resident of the county in
2-11 which the land is located;
2-12 (4) notwithstanding the Texas Rules of Civil
2-13 Procedure, the applicant is not required to post bond; and
2-14 (5) the receiver is not required to post bond.
2-15 (e) A receivership created under this section continues as
2-16 long as the defendant or the defendant's heirs, assigns, or
2-17 personal representatives fail to appear in court in person or by
2-18 agent or attorney to claim the defendant's interest.
2-19 (f) As ordered by the court, the receiver shall immediately:
2-20 (1) ratify a mineral lease executed by a person owning
2-21 an undivided mineral interest in the property;
2-22 (2) ratify a pooling agreement executed by a person
2-23 owning an undivided mineral interest in the property or an
2-24 undivided leasehold interest in the property; or
2-25 (3) enter into a unitization agreement authorized by
2-26 the Railroad Commission of Texas.
2-27 (g) A lease ratified by a receiver under this section may
3-1 authorize the lessee to pool and unitize land subject to the lease
3-2 with adjacent land into a unit not to exceed 160 acres for an oil
3-3 well or 640 acres for a gas well plus 10 percent tolerance or into
3-4 a unit that substantially conforms to a larger unit prescribed or
3-5 permitted by governmental rule. A pooling agreement ratified by a
3-6 receiver under this section may allow a pooled unit not to exceed
3-7 160 acres for an oil well or 640 acres for a gas well plus 10
3-8 percent tolerance or into a unit that substantially conforms to a
3-9 larger unit prescribed or permitted by governmental rule.
3-10 (h) Any money consideration due for the execution of a
3-11 ratification, pooling agreement, or unitization agreement by the
3-12 receiver must be paid to the clerk of the court in which the case
3-13 is pending before the receiver executes the instrument. The court
3-14 shall apply the money to the costs accruing in the case and retain
3-15 any balance for the owner of the royalty interest. Payments made
3-16 at a later time under the lease, pooled unit, or unitization
3-17 agreement shall be paid into the registry of the court and
3-18 impounded for the owner of the royalty interest.
3-19 (i) This section is cumulative of other laws relating to
3-20 removal of a cloud from title or appointment of a receiver.
3-21 (j) In this section:
3-22 (1) "Mineral lease" includes any lease of oil, gas, or
3-23 other minerals that contains provisions necessary or incident to
3-24 the orderly exploration, development, and recovery of oil, gas, or
3-25 other minerals.
3-26 (2) "Leasehold interest" includes ownership created
3-27 under a mineral lease or carved out of a leasehold estate granted
4-1 under a mineral lease, including production payments, overriding
4-2 royalty interests, and working interests.
4-3 (3) "Pooling agreement" includes any agreement that
4-4 pools or unitizes land with adjacent land for production of oil,
4-5 gas, or other minerals.
4-6 (4) "Royalty interest" includes any interest in the
4-7 lands entitled to share in the production of oil, gas, or other
4-8 minerals that is not required to execute a mineral lease or any
4-9 other instrument in order to vest in the mineral interest owner or
4-10 mineral leasehold interest owner the right and power, as to that
4-11 interest, to develop oil, gas, or other minerals produced solely
4-12 from those lands.
4-13 (k) To the extent that Subsection (d)(2) conflicts with the
4-14 Texas Rules of Civil Procedure, Subsection (d)(2) controls.
4-15 Notwithstanding Section 22.004, Government Code, the supreme court
4-16 may not amend or adopt rules in conflict with Subsection (d)(2).
4-17 SECTION 2. The importance of this legislation and the
4-18 crowded condition of the calendars in both houses create an
4-19 emergency and an imperative public necessity that the
4-20 constitutional rule requiring bills to be read on three several
4-21 days in each house be suspended, and this rule is hereby suspended,
4-22 and that this Act take effect and be in force from and after its
4-23 passage, and it is so enacted.