Bill > HB5105

This bill adds a new section to the Texas Natural Resources Code that requires payors (companies paying royalties from oil or gas production) to provide written notification to payees (royalty owners) when payments are suspended, with specific requirements and penalties. Specifically, when a payor suspends a payment for reasons other than those already outlined in Section 91.402(f), they must send a detailed written notice to the payee within 30 days of the suspension, explaining the reason for the suspension and including certain required information. If the payor fails to send this notice within 30 days, they will be required to pay interest on the suspended payment at a rate two percentage points higher than the New York Federal Reserve Bank's loan rate to depository institutions, unless a different rate is specified in a written agreement between the payor and payee. The bill will take effect on September 1, 2025, and will only apply to payment suspensions occurring on or after that date, with previous suspensions governed by the law in effect at the time of suspension.

Agriculture and Natural Resources

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB5105