HB 3838

86(R) - 2019
House Energy Resources
House Energy Resources

Vote Recommendation

  • Neutral
  • Neutral
  • Neutral
  • Neutral
  • Neutral


Ernest Bailes


Cody Harris

Bill Caption

Relating to a disclosure in certain offers to purchase a mineral or royalty interest.

Fiscal Notes

No fiscal implication to the State is anticipated. 

Bill Analysis

HB 3838 would require a mineral or royalty interest conveyance instrument to include certain conspicuous statements relating to the fact that the instrument is not an oil and gas lease and that the owner is selling all or a portion of the owner's mineral or royalty interests in the property. The bill also specifies the language and placement of the required statement. If the conveyance did not include the required statement, then the conveyance would be void and would authorize a seller to bring suit against the purchaser to clear the title and recover all royalties and bonuses paid to the purchaser, court costs, reasonable attorney's fees, and exemplary damages if the trier of fact makes a finding of certain fraud violations under the Business & Commerce Code. This bill would not apply to lease agreements.

Vote Recommendation Notes

Texas Action remains neutral on HB 3838 as it does not affect our liberty principles.