Amend HB 3461 by inserting the following new SECTION, 
appropriately numbered and renumbering the subsequent SECTIONS of 
the bill accordingly:
	SECTION ____.  Chapter 52.136, Natural Resources Code, is 
amended in Subsection (b) as follows:
	(b)  By acceptance of a lease, the lessee grants to the state 
an express contractual lien on and security interest in all oil and 
gas in and extracted from the area covered by the lease, all 
proceeds which may accrue to the lessee from the sale of the oil and 
gas, whether the proceeds are held by the lessee or another person, 
and all fixtures on and improvements to the area covered by the 
lease used in connection with the production or processing of the 
oil and gas, to secure the payment of royalties and other amounts 
due or to become due under the lease or this subchapter and to 
secure payment of damages or loss that the state may suffer by 
reason of the lessee's breach of a covenant or condition of the 
lease, whether express or implied.  By acceptance of a lease, the 
lessee having a financial or cost bearing interest in the lease 
grants to the state an express contractual lien on and security 
interest in all oil and gas in and extracted from the area covered 
by any other lease of state land or minerals held by the lessee 
having a financial or cost bearing interest in the lease only to the 
extent of the interest of the lessee having a financial or cost 
bearing interest in the lease.  A lessee or operator may request a 
hearing before the School Land Board, either prior to or after the 
exercising of the State's lien rights, for re-consideration of the 
lien and matters relating to the lien.