H.B. No. 2590

	AN ACT
	relating to the foreclosure sale of property subject to an oil or
	gas lease.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subtitle B, Title 5, Property Code, is amended by
	adding Chapter 66 to read as follows:
	CHAPTER 66. SALE OF PROPERTY SUBJECT TO OIL OR GAS LEASE
	Sec. 66.001.  SALE OF PROPERTY SUBJECT TO OIL OR GAS LEASE.
	(a) Notwithstanding any other law, an oil or gas lease covering
	real property subject to a security interest that has been
	foreclosed remains in effect after the foreclosure sale if the oil
	or gas lease has not terminated or expired on its own terms and:
	(1)  was executed and recorded in the real property
	records of the county before the date the security interest was
	recorded; or
	(2)  was executed and recorded in the real property
	records of the county after the date the security interest was
	recorded but before the foreclosure sale.
	(b)  Any royalty payment under an oil or gas lease due to the
	owner of the real property that was subject to the security interest
	that has been foreclosed shall be paid to the purchaser of the
	foreclosed real property.
	(c)  The lessee of the oil or gas lease shall indemnify the
	purchaser and any mortgagee of the foreclosed real property from
	actual damages resulting from the lessee's operations conducted
	pursuant to the oil or gas lease.
	(d)  If an oil or gas lease is executed and recorded in the
	real property records of the county after the date a security
	interest in the affected real property is recorded and the affected
	real property is subsequently sold in a foreclosure sale, the
	foreclosure sale terminates and extinguishes the lessee's right to
	use the surface of the real property pursuant to the oil or gas
	lease.
	(e)  A subordination agreement between a lessee of an oil or
	gas lease and a mortgagee of real property controls over any
	conflicting provision of this section.
	SECTION 2.  Chapter 66, Property Code, as added by this Act,
	applies only with respect to a foreclosure sale for which the notice
	of sale is given under Section 51.002, Property Code, on or after
	the effective date of this Act or a judicial foreclosure for which
	the judicial foreclosure action commenced on or after the effective
	date of this Act.
	SECTION 3.  This Act takes effect January 1, 2014.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I certify that H.B. No. 2590 was passed by the House on May 8,
	2013, by the following vote:  Yeas 147, Nays 0, 2 present, not
	voting; and that the House concurred in Senate amendments to H.B.
	No. 2590 on May 24, 2013, by the following vote:  Yeas 145, Nays 0,
	2 present, not voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 2590 was passed by the Senate, with
	amendments, on May 22, 2013, by the following vote:  Yeas 31, Nays
	0.
	______________________________
	Secretary of the Senate
	APPROVED: __________________
	Date
	__________________
	Governor