Bill Text: TX SB785 | 2023-2024 | 88th Legislature | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to the ownership of and certain insurance policy provisions regarding the geothermal energy and associated resources below the surface of land.

Spectrum: Bipartisan Bill

Status: (Passed) 2023-06-18 - Effective immediately [SB785 Detail]

Download: Texas-2023-SB785-Engrossed.html

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By: Birdwell, Blanco, Flores S.B. No. 785

A BILL TO BE ENTITLED
AN ACT
relating to the ownership of the geothermal energy and associated
resources below the surface of land.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 141.003(5), Natural Resources Code, is
amended to read as follows:
(5) "By-product" means any other element found in a
geothermal formation which is brought to the surface, whether or
not it is used in geothermal heat or pressure inducing energy
generation. The term does not include:
(A) a mineral, as defined by Section 75.001,
Property Code; or
(B) oil, gas, or a product of oil or gas, as
defined by Section 85.001.
SECTION 2. Subchapter A, Chapter 141, Natural Resources
Code, is amended by adding Section 141.004 to read as follows:
Sec. 141.004. OWNERSHIP OF GEOTHERMAL ENERGY AND ASSOCIATED
RESOURCES. (a) Except as otherwise expressly provided by a
conveyance, contract, deed, reservation, exception, limitation,
lease, or other binding obligation, the geothermal energy and
associated resources below the surface of land are owned as real
property by:
(1) the landowner; or
(2) if the surface estate and the mineral estate of the
land have been severed, the owner of the surface estate of the land.
(b) Subject to the provisions of this chapter, the property
rights described by this section entitle the owner of the
geothermal energy and associated resources below the surface of
land and the owner's lessee, heir, or assignee to drill for and
produce the geothermal energy and associated resources.
(c) This section does not:
(1) apply to minerals dissolved or otherwise contained
in groundwater, including in hot brines;
(2) change existing law regarding oil, gas, or mineral
extraction regardless of its heat or energy potential; or
(3) change existing law regarding the rights of the
dominant and servient estates.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2023.