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A BILL TO BE ENTITLED
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AN ACT
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relating to the manner in which a payor of proceeds derived from the |
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sale of oil or gas production is required to provide certain |
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information to a royalty interest owner. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 91.501 and 91.506, Natural Resources |
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Code, are amended to read as follows: |
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Sec. 91.501. INFORMATION REQUIRED. If payment is made to a |
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royalty interest owner from the proceeds derived from the sale of |
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oil or gas production pursuant to a division order, lease, |
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servitude, or other agreement, the payor shall include the |
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information required by Section 91.502 on the check stub, an |
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attachment to the payment form, or another remittance advice that |
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accompanies the payment. |
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Sec. 91.506. EXEMPTION. (a) Except as provided by |
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Subsection (b), if [If] the information required by Section 91.502 |
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is provided in some other manner on a monthly basis, the payor is |
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not required to include the information on the check stub, an |
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attachment to the payment form, or another [other] remittance |
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advice that accompanies the payment. |
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(b) If payment is made to the royalty interest owner by a |
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paper check delivered by mail or by means of a private delivery |
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service, the payor may not provide the information required by |
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Section 91.502 in a manner other than by including the information |
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on the check stub, an attachment to the payment form, or another |
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remittance advice that accompanies the payment unless the payor |
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obtains, or a previous payor has obtained, the written consent of |
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the royalty interest owner to provide the information in some other |
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manner. |
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SECTION 2. The change in law made by this Act applies only |
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to a payment made on or after the effective date of this Act to a |
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royalty interest owner from the proceeds derived from the sale of |
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oil or gas production. A payment made before the effective date of |
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this Act to a royalty interest owner from the proceeds derived from |
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the sale of oil or gas production is governed by the law in effect on |
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the date the payment is made, and the former law is continued in |
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effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2017. |