Amend HB 981 (Senate Committee Printing) by creating a new
SECTION 1 and renumbering the subsequent SECTIONS accordingly.
      SECTION 1.  Subchapter J, Chapter 91, Natural Resources Code,
is amended by adding Section 91.409 to read as follows:
      Sec. 91.409.  NOTIFICATION TO NONOPERATORS AND ROYALTY OWNERS
OF ADDITIONAL PAYMENT RECEIVED BY OPERATOR. (a)  An operator of an
oil and/or gas property who receives from the first purchaser a
payment for crude oil, condensate, or gas in addition to the price
per barrel or per MCF of oil or gas sold, regardless of how the
payment is described, must give written notice of the receipt of
such payment and describe the nature and purpose of the payment to
the nonoperators for which the operator is selling production and
the royalty owners to whom the operator is obligated to make
royalty payments.  The notification is considered timely if made as
of the later of:
            (1)  the 90th day after the date of receipt of such
payment; or
            (2)  the date on which the next payment to the
nonoperator or royalty owner is made in accordance with Section
91.402.
      (b)  Accounting adjustments made in the normal course of
business for the purchase price of the crude oil or condensate at
the operated property are not considered additional payments under
this section.