By Zaffirini S.B. No. 1549
77R7536 CAS-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to certain offers made to purchase mineral or royalty
1-3 interests.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 5.151, Property Code, is amended to read
1-6 as follows:
1-7 Sec. 5.151. DISCLOSURE IN OFFER TO PURCHASE MINERAL
1-8 INTEREST. (a) A person who mails to the owner of a mineral or
1-9 royalty interest an unsolicited offer to purchase only the mineral
1-10 or royalty interest, it being understood that for the purpose of
1-11 this section the taking of an oil, gas, or mineral lease shall not
1-12 be deemed a purchase of a mineral or royalty interest, and encloses
1-13 an instrument of conveyance of only the mineral or royalty interest
1-14 may not include with the offer [and] a draft or other instrument,
1-15 as defined in Section 3.104, Business & Commerce Code, providing
1-16 for payment for that interest but shall include in the offer a
1-17 conspicuous statement printed in English and in Spanish in a type
1-18 style that is approximately the same size as 14-point type style or
1-19 larger and is in substantially the following form:
1-20 BY EXECUTING AND DELIVERING THIS INSTRUMENT YOU ARE SELLING ALL OR
1-21 A PORTION OF YOUR MINERAL OR ROYALTY INTEREST IN (DESCRIPTION OF
1-22 PROPERTY BEING CONVEYED).
1-23 EN EJECUTAR Y ENTREGAR A ESTE DOCUMENTO, USTED ESTA VENDIENDO TODA
1-24 U UNA PORCION DE SU INTERES EN LOS MINERALES O REGALIAS
2-1 (DESCRIPCION DE BIENES TRASPASADO).
2-2 (b) To accept an offer made under Subsection (a), the owner
2-3 of the mineral or royalty interest must:
2-4 (1) sign the instrument of conveyance in the presence
2-5 of a notary public; and
2-6 (2) return the signed and notarized instrument of
2-7 conveyance to the person making the offer.
2-8 (c) After the instrument of conveyance is signed, notarized,
2-9 and returned as provided by Subsection (b):
2-10 (1) the property description may not be changed unless
2-11 an amended offer is presented to the owner of the mineral or
2-12 royalty interest with the same restrictions as prescribed by
2-13 Subsection (a) for an original offer; and
2-14 (2) the person making the offer may issue a draft or
2-15 other instrument, as defined by Section 3.104, Business & Commerce
2-16 Code, to the owner of the mineral or royalty interest providing for
2-17 payment of that interest.
2-18 (d) [(b)] A person who conveys a mineral or royalty interest
2-19 as provided by this section [Subsection (a)] may bring suit against
2-20 the purchaser of the interest if:
2-21 (1) the purchaser did not give the notice required by
2-22 Subsection (a); and
2-23 (2) the person has given 30 days' written notice to
2-24 the purchaser that a suit will be filed unless the matter is
2-25 otherwise resolved.
2-26 (e) [(c)] A plaintiff who prevails in a suit under
2-27 Subsection (d) [(b)] may recover from the initial purchaser of the
3-1 mineral or royalty interest the greater of:
3-2 (1) $100; or
3-3 (2) an amount up to the difference between the amount
3-4 paid by the purchaser for the mineral or royalty interest and the
3-5 fair market value of the mineral or royalty interest at the time of
3-6 the sale.
3-7 (f) [(d)] The prevailing party in a suit under Subsection
3-8 (d) [(b)] may recover:
3-9 (1) court costs; and
3-10 (2) reasonable attorney's fees.
3-11 (g) [(e)] A person must bring a suit under Subsection (d)
3-12 [(b)] not later than the second anniversary of the date the person
3-13 executed the conveyance.
3-14 (h) [(f)] The remedy provided under this section shall be in
3-15 addition to any other remedies existing under law, excluding
3-16 rescission or other remedies that would make the conveyance of the
3-17 mineral or royalty interest void or of no force and effect.
3-18 SECTION 2. (a) This Act takes effect September 1, 2001.
3-19 (b) The changes in law made by this Act apply only to an
3-20 unsolicited offer to purchase a mineral or royalty interest mailed
3-21 to the owner of the mineral or royalty interest on or after the
3-22 effective date of this Act. An offer to purchase a mineral or
3-23 royalty interest mailed to the owner of the mineral or royalty
3-24 interest before the effective date of this Act is covered by the
3-25 law in effect when the offer was mailed, and the former law is
3-26 continued in effect for that purpose.