SRC-BWC S.B. 422 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 422
77R3551 DAK-DBy: Armbrister
Natural Resources
2/7/2001
As Filed


DIGEST AND PURPOSE 

In a 1999 decision, the Texas Supreme Court did away with the discovery
rule in oil and gas cases. The removal of the discovery rule in cases
arising under oil and gas leases increases the possibility that litigation
in Texas will rise.  As proposed, S.B. 422  reintroduces the discovery rule
in oil and gas cases in order to protect plaintiffs from being barred from
remedies merely because the injuries have yet to be discovered. 

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 Section 16.004, Civil Practice and Remedies Code, to
provide that for purposes of this section, a cause of action arising under
an oil and gas lease does not accrue until the facts giving rise to the
cause of action are discovered or by the exercise of reasonable diligence
should have been discovered. 

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