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A BILL TO BE ENTITLED
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AN ACT
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relating to wind energy rights and wind energy development |
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agreements. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Title 6, Utilities Code, is amended by adding |
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Chapter 303 to read as follows: |
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CHAPTER 303. WIND ENERGY RIGHTS AND RELATED AGREEMENTS |
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Sec. 303.0001. DEFINITIONS. In this chapter: |
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(1) "Wind energy agreement" means a lease, license, |
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easement, or other agreement between the owner of a wind energy |
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right and a wind energy developer to develop wind-powered energy |
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generation. |
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(2) "Wind energy developer" means the lessee, easement |
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holder, licensee, or similar party under a wind energy agreement. |
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(3) "Wind energy developer of record" means the wind |
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energy developer named in a recorded wind energy agreement or, if |
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the wind energy agreement has been transferred by a recorded |
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document, the most recent transferee of the rights of the original |
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wind energy developer identified in the recorded document. |
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(4) "Wind energy right" means the right of the owner of |
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a surface estate, either directly or through a wind energy |
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developer under a wind energy agreement, to capture and employ the |
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kinetic energy of the wind or a person to whom that right has been |
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transferred. |
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(5) "Wind-powered energy generation" means the |
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generation of electricity by means of a turbine or other device that |
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captures and employs the kinetic energy of the wind. |
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Sec. 303.0002. WIND ENERGY RIGHT. A wind energy right is |
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severable from the surface estate and may be transferred, |
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encumbered, or modified by agreement. |
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Sec. 303.0003. WIND ENERGY AGREEMENT. (a) A wind energy |
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agreement is subject to statutory and other rules of law to the same |
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extent as other agreements creating interests in or rights to use |
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real property. |
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(b) A wind energy agreement: |
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(1) may be recorded in the office of the county clerk |
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in the county where the land subject to the agreement is located; |
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and |
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(2) unless recorded as described in Subdivision (1), |
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is void as to any person who subsequently purchases rights in or to |
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the land for a valuable consideration, except as between the |
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parties to the agreement and as to those having notice of the |
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agreement. |
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(c) The county clerk shall index a wind energy agreement in |
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both the grantor and grantee indices under the name of each party to |
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the wind energy agreement. |
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(d) This section applies to any modification, assignment, |
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or encumbrance of a wind energy agreement. |
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Sec. 303.0004. TERMINATION; RELEASE. (a) If a wind energy |
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agreement expires or is terminated, the wind energy developer of |
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record shall record a release in the office of the county clerk in |
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the county where the land subject to the agreement is located. |
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(b) If the wind energy developer of record fails to record a |
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release as described by Subsection (a), the owner of the surface |
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estate or the owner of the wind energy right that is the subject of |
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the agreement or the owner's agent may request the wind energy |
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developer of record to record the release. The request must be: |
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(1) in writing; and |
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(2) delivered to the last-known address of the wind |
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energy developer of record: |
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(A) personally; or |
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(B) by certified mail, first class postage |
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prepaid, and return receipt requested. |
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(c) A wind energy developer of record who receives a request |
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under Subsection (b) shall, not later than 90 days after the date |
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the request is received, record the release as described by |
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Subsection (a). |
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(d) If the interest of the wind energy developer of record |
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has been transferred by an instrument that has not been recorded, |
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the transferee shall: |
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(1) first record the instrument by which the |
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transferee acquired the interest and then record the release |
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required by Subsection (c); or |
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(2) cause the wind energy developer of record to |
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record the release required by Subsection (c). |
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(e) A release recorded under this section must: |
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(1) identify the wind energy agreement with reasonable |
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clarity; and |
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(2) include: |
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(A) the names of the parties; |
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(B) the legal description of the land subject to |
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the agreement; and |
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(C) the applicable recording information of the |
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agreement. |
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(f) The county clerk shall index the release in both the |
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grantor and grantee indices under the name of each party identified |
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in the release. |
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Sec. 303.0005. FAILURE TO RECORD RELEASE; LIABILITY. (a) If |
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a wind energy developer of record who receives a request under |
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Section 303.0004(b) fails to record the release as required by |
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Section 303.0004(c), the wind energy developer of record is liable |
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to the owner of the surface estate and the owner of the wind energy |
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right that is the subject of the agreement for any damages caused by |
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the failure. |
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(b) The wind energy developer of record and every transferee |
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described in Section 303.0004(d) are jointly and severally liable |
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for any damages caused by the failure of: |
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(1) the wind energy developer of record to record the |
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release as required by Section 303.0004(c); or |
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(2) a transferee to comply with Section 303.0004(d). |
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Sec. 303.0006. TRANSFER OF PARTY'S INTEREST IN AGREEMENT. |
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Nothing in this chapter restricts the transfer of any interest of a |
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party to a wind energy agreement, including the transfer of the |
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right of the owner of the surface estate to receive payments under |
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the wind energy agreement. |
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SECTION 2. Nothing in this Act affects the validity of an |
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agreement entered into before the effective date of this Act. |
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SECTION 3. This Act takes effect September 1, 2023. |