78R3310 MI-F

By:  Keffer of Eastland                                           H.B. No. 3471



A BILL TO BE ENTITLED

AN ACT

relating to jurisdiction over a suit for damages brought by a 
landowner or producer of oil or gas.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Sections 85.321 and 85.322, Natural Resources 
Code, are amended to read as follows:
	Sec. 85.321.  SUIT FOR DAMAGES.  A party who owns an interest 
in property or production that may be damaged by another party 
violating the provisions of this chapter that were formerly a part 
of Chapter 26, Acts of the 42nd Legislature, 1st Called Session, 
1931, as amended, [or] another law of this state prohibiting waste, 
or a valid rule or order of the commission, or committing unlawful 
conversion of minerals may sue for and recover damages and have any 
other relief to which he may be entitled at law or in equity.  
Provided, however, that in any action brought under this section or 
otherwise, alleging waste to have been caused by an act or omission 
of a lease owner or operator, it shall be a defense that the lease 
owner or operator was acting as a reasonably prudent operator would 
act under the same or similar facts and circumstances.
	Sec. 85.322.  PROCEEDINGS NOT TO IMPAIR SUIT FOR DAMAGES.  
None of the provisions of this chapter that were formerly a part of 
Chapter 26, Acts of the 42nd Legislature, 1st Called Session, 1931, 
as amended, no suit by or against the commission, [and] no penalties 
imposed on or claimed against any party violating a law, rule, or 
order of the commission, and no other proceedings in the commission
shall impair or abridge or delay a cause of action for damages or 
other relief that an owner of land or a producer of oil or gas, or 
any other party at interest, may have or assert against any party 
violating any rule or order of the commission, any person 
committing unlawful conversion of minerals, or any judgment under 
this chapter.
	SECTION 2.  (a)  This Act takes effect September 1, 2003.                      
	(b)  The changes in law made by this Act to Sections 85.321 
and 85.322, Natural Resources Code, apply only to an action for 
damages brought on or after September 1, 2003.  An action brought 
before that date is governed by the law in effect on the date the 
action is brought, and the former law is continued in effect for 
that purpose.