CHAPTER 75. TEXAS MINERALS - Texas Statutes

PROPERTY CODE

TITLE 6. UNCLAIMED PROPERTY

CHAPTER 75. TEXAS MINERALS

SUBCHAPTER A. APPLICABILITY

Sec. 75.001. DEFINITIONS; APPLICATION OF CHAPTER. (a) In this

chapter:

(1) "Mineral" means oil, gas, uranium, sulphur, lignite, coal,

and any other substance that is ordinarily and naturally

considered a mineral in this state, regardless of the depth at

which the oil, gas, uranium, sulphur, lignite, coal, or other

substance is found.

(2) "Mineral proceeds" includes:

(A) all obligations to pay resulting from the production and

sale of minerals, including net revenue interests, royalties,

overriding royalties, production payments, and joint operating

agreements; and

(B) all obligations for the acquisition and retention of a

mineral lease, including bonuses, delay rentals, shut-in

royalties, and minimum royalties.

(3) "Holder" means a person, wherever organized or domiciled,

who is:

(A) in possession of property that belongs to another;

(B) a trustee; or

(C) indebted to another on an obligation.

(b) This chapter applies to mineral proceeds and the owner's

underlying right to receive those mineral proceeds if:

(1) the owner's underlying right to receive mineral proceeds is

related to land located in this state;

(2) the mineral proceeds result from the production of minerals

located in this state; or

(3) the mineral proceeds are an obligation for the acquisition

or retention of a mineral lease to produce minerals located in

this state.

(c) A holder of property presumed abandoned under this chapter

is subject to the procedures of Chapter 74.

(d) This chapter supplements other chapters in this title, and

each chapter shall be followed to the extent applicable.

Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1,

1985. Amended by Acts 1987, 70th Leg., ch. 426, Sec. 6, eff.

Sept. 1, 1987.

Sec. 75.002. TRANSFER AND PURCHASE OF MINERAL INTEREST ON

MINERAL PROCEEDS. A person purchasing mineral proceeds of an

owner whose name has been reported or is reportable to the

comptroller shall provide documentation required by the

comptroller to substantiate that the transfer is executed by the

reported owner or the reported owner's legal agent.

Added by Acts 1997, 75th Leg., ch. 1037, Sec. 37, eff. Sept. 1,

1997.

SUBCHAPTER B. PRESUMPTION OF ABANDONMENT

Sec. 75.101. PRESUMPTION OF ABANDONMENT. (a) All mineral

proceeds that are held or owing by the holder and that have

remained unclaimed by the owner for longer than three years after

they became payable or distributable and the owner's underlying

right to receive those mineral proceeds are presumed abandoned.

(b) At the time any owner's underlying right to receive mineral

proceeds is presumed abandoned under this section, any mineral

proceeds then held for or owing to the owner as a result of the

underlying right and any mineral proceeds accruing after that

time as a result of the underlying right and not previously

presumed abandoned are presumed abandoned.

Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1,

1985. Amended by Acts 1987, 70th Leg., ch. 426, Sec. 7, eff.

Sept. 1, 1987.

Sec. 75.102. PRESERVATION OF PROPERTY. A holder of abandoned

property shall preserve that property and may not by any

procedure, including a deduction for service, maintenance, or

other charge, transfer, convert, or reduce the property to the

profits or assets of the holder.

Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1,

1985.