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A BILL TO BE ENTITLED
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AN ACT
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relating to the foreclosure sale of property subject to certain |
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agreements related to the production or sale of oil or gas. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 51, Property Code, is amended by adding |
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Section 51.010 to read as follows: |
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Sec. 51.010. SALE OF PROPERTY SUBJECT TO CERTAIN AGREEMENTS |
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RELATED TO PRODUCTION OR SALE OF OIL OR GAS. (a) Notwithstanding |
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any other law, an oil or gas lease or other agreement related to the |
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production or sale of oil or gas from real property subject to a |
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security interest that is being foreclosed remains in effect after |
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the foreclosure sale and has priority over the foreclosed lien |
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regardless of whether the agreement was recorded in the real |
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property records of the county before the date the security |
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interest was recorded if the agreement: |
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(1) was recorded in the real property records of the |
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county before the foreclosure sale; and |
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(2) has not terminated or expired on its own terms. |
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(b) Any royalty payment due to the owner of the real |
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property under an agreement described by Subsection (a) shall be |
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paid to the purchaser of the foreclosed real property. |
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SECTION 2. Section 51.010, Property Code, as added by this |
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Act, applies only to a security interest recorded in the real |
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property records of a county on or after the effective date of this |
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Act. A security interest recorded before the effective date of this |
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Act is governed by the law in effect immediately before the |
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effective date of this Act, and that law is continued in effect for |
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that purpose. |
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SECTION 3. This Act takes effect September 1, 2013. |