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2025 Texas Statutes
Property Code
Title 4 - Actions and Remedies
Chapter 31 - Bad Faith Washout of Overriding Royalty Interest in Oil and Gas Lease
Section 31.002. Cause of Action for Bad Faith Washout
Universal Citation:
TX Prop § 31.002 (2025)
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Sec. 31.002. CAUSE OF ACTION FOR BAD FAITH WASHOUT. 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.
Added by Acts 2023, 88th Leg., R.S., Ch. 7 (H.B. 450), Sec. 1, eff. September 1, 2023.
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