78R6639 KCR-D

By:  Van Arsdale                                                  H.B. No. 2884



A BILL TO BE ENTITLED

AN ACT

relating to the conveyance of certain surface estates located above 
or over an inactive mineral estate.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter A, Chapter 5, Property Code, is 
amended by adding Section 5.014 to read as follows:
	Sec. 5.014.  EFFECT OF CONVEYANCE OF SURFACE ESTATE IN 
CERTAIN COUNTIES.  (a)  This section applies only to property 
located in whole or in part within:
		(1)  a municipality that has a population of less than 
75,000 or in the municipality's extraterritorial jurisdiction; and
		(2)  a county having a population of 3.3 million or 
more.            
	(b)  For purposes of this section, "inactive mineral estate" 
means a property interest in oil, gas, uranium, sulphur, lignite, 
coal, or any other substance that is naturally considered a mineral 
in this state that, for at least the preceding five years:
		(1)  has not yielded production; or                                    
		(2)  does not appear on the tax rolls of the county in 
which the property is located.
	(c)  A person who conveys an interest in a surface estate 
geographically located over or above an inactive mineral estate 
owned by another person conveys title to an estate that is dominant 
to an interest in the inactive mineral estate if:
		(1)  at the time of conveyance, the surface estate has 
not been developed;
		(2)  the person to whom the surface estate is conveyed 
intends to develop the surface estate for residential or commercial 
purposes within one year of the conveyance; and
		(3)  the person conveying the surface estate gives the 
owner of the mineral estate notice as required by Subsection (d).
	(d)  A person who intends to convey an interest in a surface 
estate described by Subsection (c) shall:
		(1)  if the name and address of an owner of an interest 
in the inactive mineral estate is known, give the owner of an 
interest in the inactive mineral estate written notice of the sale 
of the surface estate in a manner described by Rule 21a, Texas Rules 
of Civil Procedure, as amended, not later than the 20th day before 
the date the conveyance is to be made; or
		(2)  if the name or address of an owner of an interest 
in the inactive mineral estate is not known, give the owner of the 
inactive mineral estate written notice of the sale of the surface 
estate in a manner described by Rule 647, Texas Rules of Civil 
Procedure, as amended.
	(e)  A notice required under Subsection (d) must contain:               
		(1)  a brief description of the surface estate in which 
an interest is to be conveyed, including the address or physical 
location of the surface estate;
		(2)  the name and address of the person intending to 
convey an interest in the surface estate; and
		(3)  the date on which an interest in the surface estate 
is to be conveyed.
	(f)  An owner of an interest in the inactive mineral estate 
who receives notice under Subsection (c) is entitled to recover 
from the person who conveys an interest in the surface estate the 
value of the owner's interest on the date the interest in the 
surface estate is conveyed.
	(g)  An owner described by Subsection (f) must file suit to 
recover the value of the owner's interest in the inactive mineral 
estate on or before the second anniversary of the date on which the 
interest in the surface estate was conveyed.
	SECTION 2.  This Act takes effect September 1, 2003.