Skip to main content

HB 5106

AN ACT relating to the information a payor of the proceeds of production

House Bill
Filed

Filed

Bill introduced by legislator

Committee

Hearing

Passed Cmte

Calendar

Passed

Sent

Enrolled

Governor

Signed

89th Regular Session

Jan 14, 2025 - Jun 2, 2025 • Session ended

Awaiting Committee Assignment

Bill filed, pending referral to House committee

← Back to Bills

Committee

Not yet assigned

Fiscal Note

Not available

What This Bill Does

relating to the information a payor of the proceeds of production

Subject Areas

Bill Text

relating to the information a payor of the proceeds of production
from an oil and gas well is required to provide a payee.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Subchapter J, Chapter 91, Natural Resources
Code, is amended by adding Sections 91.409 and 91.410 to read as
Sec. 91.409.  INFORMATION REQUESTED BY PAYEE.  (a)  This
section applies to a payee who is requested by a payor to sign:
(1)  a ratification of a lease, pooling agreement, or
(b)  On written request by a payee to whom this section
applies, the payor must provide the payee with a copy of the
document to be ratified or the lease underlying the division order,
as appropriate.  The payor must respond to the request not later
than the 14th day after the date on which the request was received
(c)  The failure of a payor to respond to a request described
by Subsection (b) releases the obligation of the payee to sign the
ratification or division order, as appropriate.  A payee who is not
obligated to sign a division order under this subsection is
entitled to payment notwithstanding Section 91.402(c)(1).
Sec. 91.410.  REQUIRED INFORMATION IN PAYOR REQUEST.  A
payor's request that a payee ratify a lease, pooling agreement, or
unit designation, or sign a division order, must include a
statement that describes the payee's rights under Section 91.409.
SECTION 2.  This Act takes effect September 1, 2025.

Bill History

filed

Bill filed: AN ACT relating to the information a payor of the proceeds of production