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A BILL TO BE ENTITLED
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AN ACT
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relating to the compensation of an owner of the surface estate in |
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land for damages associated with mineral exploration and production |
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operations. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle B, Title 3, Natural Resources Code, is |
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amended by adding Chapter 93 to read as follows: |
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CHAPTER 93. SURFACE OWNER COMPENSATION |
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Sec. 93.001. DEFINITIONS. In this chapter: |
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(1) "Agricultural use" has the meaning assigned by |
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Section 23.51, Tax Code. |
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(2) "Mineral developer" means a person who acquires a |
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mineral estate or a mineral lease for the purpose of extracting or |
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using minerals from a tract of land for purposes other than |
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agricultural use. |
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(3) "Mineral estate" means an estate in or ownership |
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of all or part of the minerals underlying a tract of land. |
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(4) "Mineral exploration and production operations" |
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means the following activities to the extent they require entry on |
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the surface of a tract of land: |
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(A) mineral geophysical and seismographical |
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exploration activities; and |
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(B) mineral drilling, production, and completion |
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operations. |
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(5) "Surface estate" means an estate in or ownership |
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of the surface of a tract of land. |
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(6) "Surface owner" means a person who holds record |
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title to the surface of a tract of land. |
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Sec. 93.002. APPLICABILITY. (a) This chapter applies only |
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to land used for agricultural use. |
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(b) A surface owner is entitled to damages as provided by |
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this subchapter regardless of whether: |
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(1) the surface estate of the land has been severed |
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from the mineral estate; or |
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(2) the surface owner is the person who executed the |
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instrument that gave the mineral developer the right to conduct |
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mineral exploration and production operations on the land. |
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Sec. 93.003. REMEDIES CUMULATIVE. The remedies provided by |
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this chapter are in addition to any other remedies provided by law. |
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Sec. 93.004. RIGHT TO PAYMENT FOR DAMAGES. (a) A mineral |
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developer shall pay each surface owner an amount equal to the amount |
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of actual damages sustained by the surface owner for the following, |
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to the extent the damages are caused by mineral exploration and |
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production operations on the surface owner's land: |
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(1) loss of income derived from agricultural use of |
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the land; |
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(2) reduction in value of the land; |
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(3) reduction in value of improvements to the land; |
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(4) loss of access to the surface of the land; and |
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(5) loss of the use of the surface of the land. |
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(b) The computation of the amount of compensation for |
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damages described by Subsection (a) to which the surface owner is |
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entitled must take into account: |
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(1) the amount of land affected by mineral exploration |
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and production operations; |
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(2) crop losses or livestock losses; |
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(3) surface damage; |
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(4) rental losses; and |
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(5) the length of the period during which the loss or |
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reduction in value occurs. |
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(c) Except as provided by Subsection (d), a surface owner |
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may be paid the compensation for the amount of the damages in annual |
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installments or in a lump-sum payment. |
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(d) A surface owner shall be paid the compensation for the |
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loss of income derived from agricultural use of the land in annual |
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installments. |
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SECTION 2. The change in law made by this Act applies only |
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to liability for damage to the surface of land caused by the use of |
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the surface for mineral exploration and production operations on or |
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after the effective date of this Act. Liability for damage to the |
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surface of land caused by the use of the surface for mineral |
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exploration and production operations before the effective date of |
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this Act is governed by the law in effect on the date the damage was |
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caused, and that law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2013. |