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Relating to causes of action for withholding payments of the proceeds from the sale of oil and gas production.
No significant fiscal implication to the State is anticipated.
HB 3262 would, under certain circumstances in which a title is disputed, prohibit a person from whom an oil and gas producer is withholding payments under the Natural Resources Code from having a civil cause of action unless their contract with the producer expressly grants them one. This would only apply to a legal action filed on or after the effective date of this bill.
Texas Action supports HB 3262 because it would promote property rights and limit frivolous civil cases during the course of a title dispute. Current law permits an oil and gas producer to withhold payments from a person under certain circumstances, including title disputes. If enacted, SB 1259 would prevent a person from seeking damages or recompense from a company that is following the law with respect to this issue.