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AN ACT
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relating to the foreclosure sale of property subject to an oil or |
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gas lease. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle B, Title 5, Property Code, is amended by |
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adding Chapter 66 to read as follows: |
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CHAPTER 66. SALE OF PROPERTY SUBJECT TO OIL OR GAS LEASE |
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Sec. 66.001. SALE OF PROPERTY SUBJECT TO OIL OR GAS LEASE. |
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(a) Notwithstanding any other law, an oil or gas lease covering |
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real property subject to a security interest that has been |
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foreclosed remains in effect after the foreclosure sale if the oil |
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or gas lease has not terminated or expired on its own terms and: |
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(1) was executed and recorded in the real property |
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records of the county before the date the security interest was |
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recorded; or |
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(2) was executed and recorded in the real property |
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records of the county after the date the security interest was |
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recorded but before the foreclosure sale. |
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(b) Any royalty payment under an oil or gas lease due to the |
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owner of the real property that was subject to the security interest |
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that has been foreclosed shall be paid to the purchaser of the |
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foreclosed real property. |
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(c) The lessee of the oil or gas lease shall indemnify the |
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purchaser and any mortgagee of the foreclosed real property from |
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actual damages resulting from the lessee's operations conducted |
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pursuant to the oil or gas lease. |
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(d) If an oil or gas lease is executed and recorded in the |
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real property records of the county after the date a security |
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interest in the affected real property is recorded and the affected |
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real property is subsequently sold in a foreclosure sale, the |
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foreclosure sale terminates and extinguishes the lessee's right to |
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use the surface of the real property pursuant to the oil or gas |
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lease. |
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(e) A subordination agreement between a lessee of an oil or |
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gas lease and a mortgagee of real property controls over any |
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conflicting provision of this section. |
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SECTION 2. Chapter 66, Property Code, as added by this Act, |
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applies only with respect to a foreclosure sale for which the notice |
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of sale is given under Section 51.002, Property Code, on or after |
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the effective date of this Act or a judicial foreclosure for which |
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the judicial foreclosure action commenced on or after the effective |
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date of this Act. |
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SECTION 3. This Act takes effect January 1, 2014. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 2590 was passed by the House on May 8, |
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2013, by the following vote: Yeas 147, Nays 0, 2 present, not |
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voting; and that the House concurred in Senate amendments to H.B. |
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No. 2590 on May 24, 2013, by the following vote: Yeas 145, Nays 0, |
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2 present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 2590 was passed by the Senate, with |
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amendments, on May 22, 2013, by the following vote: Yeas 31, Nays |
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0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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__________________ |
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Governor |