By Armbrister                                          S.B. No. 422
         77R3551 DAK-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the time that certain causes of action arising out of
 1-3     or relating to interests in an oil and gas lease accrue.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 16.004, Civil Practice and Remedies Code,
 1-6     is amended by adding Subsection (d) to read as follows:
 1-7           (d)  For purposes of this section, a cause of action arising
 1-8     under an oil and gas lease does not accrue until the facts giving
 1-9     rise to the cause of action are discovered or by the exercise of
1-10     reasonable diligence should have been discovered.
1-11           SECTION 2.  This Act takes effect September 1, 2001, and
1-12     applies only to a cause of action pending or commenced on or after
1-13     that date.  An action commenced before the effective date of this
1-14     Act and that is not pending on or after that date is governed by
1-15     the law applicable to the action immediately before the effective
1-16     date of this Act, and that law is continued in effect for that
1-17     purpose.