By:  Armbrister                                                   S.B. No. 1376


A BILL TO BE ENTITLED

AN ACT

relating to surface use planning and restoration for oil and gas 
mineral leases.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS
	SECTION 1.  Title 3, Natural Resource Code, Chapter 91, is 
amended by adding Subchapter P to read as follows:

SUBCHAPTER P.  SURFACE USE ACT
	Section 91.701.  Legislative findings and intent.  The 
legislature finds that.
	1.  It is necessary to exercise the police power of the state 
to protect the public welfare of Texas, which is greatly dependent 
on agriculture, ranching, and wildlife, and to protect the economic 
well being of individuals engaged in agricultural, ranching, and 
wildlife production.
	2.  Exploration for and development of oil and gas reserves 
in this state affect the use of certain land.
	3.  The mineral estate is dominant over the surface estate; 
however, owners of the surface estate and other persons should be 
justly compensated for injury to their persons or property and 
interference with the use of their property caused by oil and gas 
development.
		Section 91.702.  Definitions.  In this chapter:                        
	1.  "Agricultural production" means agricultural use as 
defined in Tax Code Section 23.51(2), and wildlife management as 
defined in Tax Code Section 23.51(7).
	2.  "Drilling operations" means the entry upon the surface 
estate for drilling purposes after September 1, 2003, the drilling 
of an oil and gas well, and the production and completion operations 
ensuing from the drilling which require entry upon the surface 
estate, and oil and gas geophysical and seismograph exploration 
activities.  "Drilling operations" does not mean the work-over or 
re-completion of an existing oil and gas well.
	3.  "Mineral developer" means the person who acquires the 
mineral estate or lease for the purpose of extracting or using the 
minerals for nonagricultural purposes.
	4.  "Mineral estate" means an estate in or ownership of all 
or part of the minerals underlying a specified tract of land.
	5.  "Minerals" mean oil and gas.                              
	6.  "Surface estate" means an estate in or ownership of the 
surface of a particular tract of land.
	7.  "Surface owner" means any person who holds record title 
to the surface of the land as an owner.
	8.  "Offer of settlement" means any financial offer or other 
act requested by the landowner from the mineral developer for 
compensation for damage of property caused by the development of 
minerals.
	9.  "Damage payments" means the terms of any payment for 
damages to property caused by the mineral developer.
	10.  "Disruption payments" means the terms of any payment for 
disruption of the use of the property by a landowner caused by the 
mineral developer.
		Section 91.703.  NOTICE OF DRILLING OPERATIONS.  
Except in instances where there are unknown heirs, imperfect 
titles, or surface owners whose whereabouts cannot be ascertained 
with reasonable diligence, the mineral developer shall give the 
surface owner written notice of the drilling operations 
contemplated at least thirty days (30) prior to the commencement of 
the operations, unless waived by mutual agreement of both parties.  
If the mineral developer plans to begin drilling operations within 
thirty days (30) of the termination date of the mineral lease, the 
required notice under this section may be given at any time prior to 
the commencement of drilling operations.  This notice must be given 
to the record surface owner at that person's address as shown by the 
records of the county clerk or county tax assessor at the time the 
notice is given.  This notice must sufficiently disclose the plan of 
work, the amount of land to be affected, any destruction or removal 
of trees or existing structures, fixtures, or improvements, and 
operations to enable the surface owner to evaluate the effect of 
drilling operations on the surface owner's use of the property.  
Included with this notice must be a statement from the mineral 
developer advising the surface owner of the surface owner's rights 
and options under this chapter.  If a mineral developer fails to 
give notice as provided under this section, the surface owner may 
seek any appropriate relief in the court of proper jurisdiction and 
may receive actual damages.  The prevailing party is entitled to 
recover reasonable court costs and attorneys fees for failure to 
properly give such notice.
	Section 91.704.  APPLICATION OF CHAPTER.  The remedies 
provided by this chapter do not preclude any person from seeking 
other remedies allowed by law.
	SECTION 2.  This Act takes effect September 1, 2003.