HB5106 - Relating to the information a payor of the proceeds of production from an oil and gas well is required to provide a payee.

      By: Rosenthal H.B. No. 5106       A BILL TO BE ENTITLED   AN ACT   relating to the information a payor of the proceeds of production   from an oil and gas well is required to provide a payee.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter J, Chapter 91, Natural Resources   Code, is amended by adding Sections 91.409 and 91.410 to read as   follows:           Sec.   91.409.     INFORMATION REQUESTED BY PAYEE. (a) This   section applies to a payee who is requested by a payor to sign:                 (1)     a ratification of a lease, pooling agreement, or   unit designation; or                 (2)  a division order.           (b)     On written request by a payee to whom this section   applies, the payor must provide the payee with a copy of the   document to be ratified or the lease underlying the division order,   as appropriate. The payor must respond to the request not later   than the 14th day after the date on which the request was received   by the payor.           (c)     The failure of a payor to respond to a request described   by Subsection (b) releases the obligation of the payee to sign the   ratification or division order, as appropriate. A payee who is not   obligated to sign a division order under this subsection is   entitled to payment notwithstanding Section 91.402(c)(1).           Sec.   91.410.     REQUIRED INFORMATION IN PAYOR REQUEST. A   payor's request that a payee ratify a lease, pooling agreement, or   unit designation, or sign a division order, must include a   statement that describes the payee's rights under Section 91.409.          SECTION 2.  This Act takes effect September 1, 2025.