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A BILL TO BE ENTITLED
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AN ACT
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relating to the information a payor of the proceeds of production |
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from an oil and gas well is required to provide a payee. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter J, Chapter 91, Natural Resources |
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Code, is amended by adding Sections 91.409 and 91.410 to read as |
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follows: |
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Sec. 91.409. INFORMATION REQUESTED BY PAYEE. (a) This |
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section applies to a payee who is requested by a payor to sign: |
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(1) a ratification of a lease, pooling agreement, or |
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unit designation; or |
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(2) a division order. |
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(b) On written request by a payee to whom this section |
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applies, the payor must provide the payee with a copy of the |
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document to be ratified or the lease underlying the division order, |
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as appropriate. The payor must respond to the request not later |
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than the 14th day after the date on which the request was received |
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by the payor. |
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(c) The failure of a payor to respond to a request described |
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by Subsection (b) releases the obligation of the payee to sign the |
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ratification or division order, as appropriate. A payee who is not |
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obligated to sign a division order under this subsection is |
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entitled to payment notwithstanding Section 91.402(c)(1). |
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Sec. 91.410. REQUIRED INFORMATION IN PAYOR REQUEST. A |
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payor's request that a payee ratify a lease, pooling agreement, or |
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unit designation, or sign a division order, must include a |
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statement that describes the payee's rights under Section 91.409. |
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SECTION 2. This Act takes effect September 1, 2021. |