Texas Property Code

§ 31.002 — CAUSE OF ACTION FOR BAD FAITH WASHOUT

PR § 31.002Title 4. ACTIONS AND REMEDIES · Ch. 31. BAD FAITH WASHOUT OF OVERRIDING ROYALTY INTEREST IN OIL AND GAS LEASE

Statute text

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A person may bring a cause of action for a bad faith washout of the person's overriding royalty interest in an oil and gas lease. The person is entitled to a remedy under this chapter if the person proves by a preponderance of the evidence that:

(1)the person owned or had a legal right to the overriding royalty interest;

(2)the defendant had control over the oil and gas lease burdened by the overriding royalty interest;

(3)the defendant caused a washout of the person's overriding royalty interest; and

(4)the defendant acted in bad faith by knowingly or intentionally causing the washout.

Legislative history

Added by Acts 2023, 88th Leg., R.S., Ch. 7 (H.B. 450), Sec. 1, eff. September 1, 2023.