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A BILL TO BE ENTITLED
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AN ACT
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relating to information provided to a payee by a payor of proceeds |
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of production from an oil or gas well that traverses multiple |
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tracts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Section 91.402, Natural Resources |
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Code, is amended to read as follows: |
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Sec. 91.402. [TIME FOR] PAYMENT OF PROCEEDS; DIVISION |
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ORDERS. |
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SECTION 2. Section 91.402, Natural Resources Code, is |
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amended by adding Subsection (d-1) to read as follows: |
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(d-1) For a horizontal well whose wellbore extends outside |
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of the tract on which a payee has an interest directly or through |
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pooling, the payor shall include in the division order or provide in |
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a separate statement included with the division order: |
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(1) an as-drilled plat of the well to which the |
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division order applies; and |
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(2) an explanation of the formula used to allocate |
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production between the different tracts through which the wellbore |
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passed or was pooled. |
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SECTION 3. Section 91.402(d-1), Natural Resources Code, as |
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added by this Act, applies only to a division order issued on or |
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after the effective date of this Act. A division order issued before |
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the effective date of this Act is governed by the law in effect on |
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the date the division order was issued, and the former law is |
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continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2021. |