Property Code › Title 4 › Chapter 31

Texas Property Code § 31.002

Cause of Action for Bad Faith Washout

Bad Faith Washout of Overriding Royalty Interest in Oil and Gas Lease

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.

Official text of the Texas Property Code as published by the Texas Legislative Council.

Official source
Legislative history

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