Bill: SB 1259, 87(R) - 2021

Committee

Senate Natural Resources and Economic Development

Companion Bill

HB 3262

Vote Recommendation

Vote Recommendation Economic Freedom Property Rights Personal Responsibility Limited Government Individual Liberty
Yes Neutral Positive Neutral Positive Neutral

Author(s)

Brian Birdwell

Bill Caption

Relating to causes of action for withholding payments of the proceeds from the sale of oil and gas production.

Fiscal Notes

No significant fiscal implication to the State is anticipated.

Bill Analysis

SB 1259 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 for breach of contract 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. 

Vote Recommendation Notes

Texas Action supports SB 1259 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 that person from seeking damages or recompense from a company that is following the law with respect to this issue.


Source URL (retrieved on 03/28/2024 12:03 PM): http://reports.texasaction.com/bill/87r/sb1259?print_view=true