Bill Text: TX SB785 | 2023-2024 | 88th Legislature | Enrolled
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-Enrolled.html
| S.B. No. 785 | ||
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| relating to the ownership of and certain insurance policy | ||
| provisions regarding 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 2703.056, Insurance Code, is amended to | ||
| read as follows: | ||
| Sec. 2703.056. EXCEPTIONS; MINERAL AND GEOTHERMAL ENERGY | ||
| INTERESTS. (a) Subject to the underwriting standards of the title | ||
| insurance company, a title insurance company may in a commitment | ||
| for title insurance or a title insurance policy include a general | ||
| exception or a special exception to except from coverage: | ||
| (1) a mineral estate or the geothermal energy and | ||
| associated resources below the surface of the land; or | ||
| (2) an instrument that purports to reserve or transfer | ||
| all or part of a mineral estate or the geothermal energy and | ||
| associated resources below the surface of the land. | ||
| (b) A reduction to, or credit on a premium charge for, a | ||
| policy of title insurance or other insuring form may not be directly | ||
| or indirectly based on an exclusion of, or general or special | ||
| exception to, a mineral estate or the geothermal energy and | ||
| associated resources below the surface of the land in the title | ||
| insurance policy. | ||
| (c) The inclusion in a title insurance policy of a general | ||
| exception or a special exception described by Subsection (a) does | ||
| not create title insurance coverage as to the condition or | ||
| ownership of the mineral estate or the geothermal energy and | ||
| associated resources below the surface of the land. | ||
| SECTION 2. 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 3. 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; or | ||
| (2) change existing law regarding: | ||
| (A) oil, gas, or mineral extraction regardless of | ||
| its heat or energy potential; | ||
| (B) the rights of the dominant and servient | ||
| estates; or | ||
| (C) the ownership and use of groundwater. | ||
| SECTION 4. 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. | ||
| ______________________________ | ______________________________ | |
| President of the Senate | Speaker of the House | |
| I hereby certify that S.B. No. 785 passed the Senate on | ||
| April 19, 2023, by the following vote: Yeas 30, Nays 1; and that | ||
| the Senate concurred in House amendment on May 25, 2023, by the | ||
| following vote: Yeas 29, Nays 1, one present not voting. | ||
| ______________________________ | ||
| Secretary of the Senate | ||
| I hereby certify that S.B. No. 785 passed the House, with | ||
| amendment, on May 23, 2023, by the following vote: Yeas 140, | ||
| Nays 0, two present not voting. | ||
| ______________________________ | ||
| Chief Clerk of the House | ||
| Approved: | ||
| ______________________________ | ||
| Date | ||
| ______________________________ | ||
| Governor | ||
