Tex. Prop. Code Section 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.

Source: Section 31.002 — Cause of Action for Bad Faith Washout, https://statutes.­capitol.­texas.­gov/Docs/PR/htm/PR.­31.­htm#31.­002 (accessed May 18, 2024).

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Accessed:
May 18, 2024

§ 31.002’s source at texas​.gov