SRC-BWC S.B. 290 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 290
77R1822 DAK-DBy: Armbrister
Jurisprudence
2/14/2001
As Filed


DIGEST AND PURPOSE 

A 1999 court of appeals case has led royalty owners to file lawsuits prior
to negotiating with oil companies in order to put a stop to "venue
shopping" by the oil companies.  This additional step places an expensive
burden on land and royalty owners, and the court system.  As proposed, S.B.
290 reduces preemptive litigation and forum shopping by the oil companies.
This bill encourages the oil industry representatives to negotiate or
mediate problems with royalty owners, rather than engaging in litigation at
the outset. 

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 15B, Civil Practice and Remedies Code, by adding
Section 15.0116, as follows: 

Sec. 15.0116.  OIL AND GAS LEASES.  Requires an action arising under an oil
and gas lease to be brought in a county in which all or a part of the real
property subject to the lease is located. 

SECTION 2.  Effective date:  September 1, 2001.
                       Makes application of this Act prospective.