SRC-LBB H.B. 2689 78(R)   BILL ANALYSIS


Senate Research Center   H.B. 2689
78R10563 YDB-DBy: Keffer, Jim (Duncan)
Jurisprudence
5/5/2003
Engrossed


DIGEST AND PURPOSE 

Under current law, landmen perform professional services with regard to
oil and gas and minerals, including researching county records to
determine ownership, negotiating and preparing leases for execution by
mineral owners, negotiating and preparing well trade, joint venture and
operating agreements among oil and mineral operators (working interest
owners), negotiating and preparing damage agreements, rights-of-way
agreements related to oil and gas and mineral exploration and operations,
and other business matters with regard to oil and gas and mineral
operations.   

Landmen duties have come to be included under the evolving definition of
the practice of law. This practice has long been recognized and operated
under what is know as the "mineral exemption" or the "landman's exemption"
to the current definition of the practice of law under the Texas
Government Code. 

H.B. 2689 defines what constitutes the unlicensed practice of law in
relation to acts involving the lease, purchase, sale, or transfer of a
mineral or mining interest in real property.  


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 Subtitle B, Title 5, Occupations Code, by adding Chapter
953 as follows: 

CHAPTER 953.  PETROLEUM AND MINERAL LAND SERVICES

Sec.  953.001.  EXCEPTION TO PRACTICE OF LAW.  Creates an exception to the
practice of law for petroleum and mineral land services.  Provides that
the definition of the practice of law does not include acts relating to
the lease, purchase, sale, or transfer of a mineral or mining interest in
real property if: (1) the acts are performed by a person who does not hold
the person out to be an attorney; and (2) is not a licensed attorney. 

SECTION 2.  Effective date:  upon passage or September 1, 2003.