Bill > HB5106

This bill adds two new sections to the Texas Natural Resources Code that provide protections for oil and gas well payees (property owners or royalty owners) when they are asked to sign lease ratifications, pooling agreements, or division orders. Specifically, the bill requires payors (typically oil and gas companies) to provide a copy of the underlying lease or document upon written request from a payee within 14 days. If the payor fails to respond to such a request, the payee is released from the obligation to sign the document and remains entitled to payment. Additionally, any request from a payor to sign such documents must now include a statement explaining the payee's rights under this new law. The bill aims to increase transparency and provide more information to property owners in oil and gas transactions by ensuring they can review relevant documents before being asked to sign them. The new provisions will take effect on September 1, 2025, giving companies time to prepare for the new requirements.

Agriculture and Natural Resources

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB5106