http://www.legis.state.tx.us/tlodocs/82R/billtext/pdf/HB02087H.pdf#...
House Bill 2807 has been proposed. A full text of the bill is linked above.
This bill has to do with Non-Participating Royalty Interests (NPRI).
If the owner of a NPRI is under the drillsite tract, he does not have to consent to pooling. In Texas, the pooling transaction constitutes a cross conveyance of property and the owner of the underlying mineral interest does not have the authority to convey something which he does not own.
If the NPRI does not consent to pooling, his interest is not diluted at all.
This bill, if passed, will force the NPRI into the pool. There are several reasons that this is dangerous. First, the oil companies want to have this bill, because they have poor field landmen, who cannot get things done. Second, it opens the door to more Forced Pooling, since precedents are being set.
Before I resigned from the board of NARO-TX due to health reasons, I wrote a position paper on Forced Unitization, which is not the same thing as forced pooling. However, my arguments are the same. Attached is a copy of the position paper I wrote.
You will note that the bill subjects landowners to one standard but exempts lands owned and maintained by the General Land Office. Why must the playing field be not level? The reason is because the State knows how devastating this would be to their fee royalty lands.
For a good civics lesson, contact the Committee Members and tell them of your opposition of the bill, which results in a confiscation of property rights.
HOUSE CALENDARS COMMITTEE
(512-463-0758):
Todd Hunter, Chair – 512-463-0672
District 32 – Aransas, Calhoun, Nueces, San Patricio
Dennis Bonnen, Vice-Chair – 512-463-0564
District 25 – Brazoria
Dan Branch – 463-0367
District 108 – Dallas
Garnet Coleman – 512-463-0524
District 147 – Harris
Byron Cook – 512-463-0730
District 8 – Anderson, Freestone, Limestone, Navarro
Charlie Geren – 512-463-0610
District 99 – Tarrant
Jim Keffer – 512-463-0656
District 60 – Brown, Eastland, Hood, Palo Pinto, Shackelford, Stephens
Tracy King – 512-463-0194
District 80 – Dimmit, Frio, Kinney, La Salle, Maverick, Medina, Zavala
Lois Kolkhorst – 512-463-0600
District 13 – Austin, Grimes, Walker, Washington
Eddie Lucio III – 512-463-0606
District 38 – Cameron
Allan Ritter – 512-463-0706
District 21 – Jefferson
Eddie Rodriguez – 512-463-0674
District 51 - Travis
Burt Solomons – 512-463-0478
District 65 – Denton
Vicki Truitt – 512-463-0690
District 98 – Tarrant
John Zerwas – 512-463-0657
District 28 – Fort Bend, Waller, Wharton
Blogs do not allow for the attachment of files, so this has been cross posted to this forum.
Buddy Cotten
2981-NAROpositionpaperForcedUnitization.pdf (174 KB)