The Forced Unitization Bill, HB 100, has been set for a hearing at the House Energy Resources Committee this Wednesday, March 13.  This is an extraordinarily bad bill for landowners and mineral interest owners.  As a land and mineral owner in Shelby County Texas I ask you to please vote NO on the HB 100.   The bill would take away landowner rights when negotiating oil and gas leases in several different ways:


1.      It only requires 70% approval of the total working interest, not working interest owners, which can eliminate any leverage small land owners may have to protect their interests.  Meaning if 1 person owns large acreage that makes up 70% of the land in the unit, he can agree to pool even though 30 guys who own small lots don't want to.

2.      It allows the Commission to issue a forced pooling order before the operator has ever asked the royalty interest owners for approval.

3.      It leaves no real choice.  If an owner makes the decision to not ratify the forced pooling order, the operator can withhold from the owner’s proceeds up to three times what the owner would have paid if he had ratified.

4.      It gives wide discretion in how proceeds are distributed between landowners, allowing the use of any factors “as are reasonably susceptible of determination” when deciding what a tract’s fair share of the proceeds should be.

5.      The current system of leasing oil and gas mineral interests has withstood the test of time for over 100 years.  Things are working in Texas.   Those who want this bill want to change the law so they can make more money and sacrifice private property rights at the same time.

I know many land and mineral owners, as I am, and I am convinced this bill will be very bad for Texas land and mineral owners, especially small mineral owners.

Please contact your Representative and ask them to oppose HB 100!

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Replies to This Discussion

Andrew--- WOW I am happy your are member of this site and Thank You for the time you spend to summarize this Bill. It appears it can be a good Bill for the Mineral Owner with some amendments. If you live in Texas and I understand you do it would be Great if you would email or fax this summary with your comments to each member of HERC. Maybe they will conside admending some of Bill.  Would that be possible please, again thanks for your time (Time is MONEY for  Attorney). Hope you can forward to the each Committee member

HB 100 is NOT a positive bill for mineral owners because is is wide open. Andrew is cherry picking some elements that would benefit some landowners in narrow circumstances and that s what the forces behind this bill are counting on. Individual mineral owners will suffer in negotiating leases if this bill becomes law.

If anyone wants to have debates and rearrange the bill to benefit land/mineral owners I'm all for that -anytime within the next two years we can work on it.


Considering that I read the entire bill and listed all the provisions that I thought were good or bad, I would hardly call it "cherry picking." After reading the bill as a whole I think it would be a net positive for mineral owners from the current state of affairs. I respect that you may disagree, but I'm struggling to see what it is that you see wrong with this bill. I think it will result in substantially greater bargaining power, especially for small mineral owners.

The Bill should be killed a started over. Take the good if there really is any and limit the bad to depleted fields. What is bad about this bill I'd so bad that nothing redeeming is left. Don't spread a little jelly over a crap sandwich and tell people it's good and they should eat it and smile. Not speaking personally at you but what you have been saying s exactly what the proponents of this bill ave been saying at the Capitol - 'there is some good in it so let's just pass it and see how well it works'. We've heard that before and it's not working very well.

intrepid---agree if it's not good enough for the State's Minerals it's probably not good for Texas Citizens IMO

-interpid--- just got off phone with Rep Crownover Office in Austin , Vice Chair of HCER  Committee and they say phones calls > 95% against HB 100 and in their opinion the Bill will DIE in committee :) Very nice conversation of 5 minutes Chairman office Jeff Keller not taking call today.NARO Also against Bill and has recently activated it's Lobbist against the Bill--- So IMO will DIE tomorrow !! :)

I do hope you are right that the bill will be killed in committee tomorrow. However, there Is a companion bill (identical) in the Senate that will have to be dealt with also. The same interests that have brought these two bills up this session also brought them up the past two sessions so this is not the end even if it's killed in the House tomorrow.

Thank you for taking this seriously. Your point about the State being exempt is an excellent one and one the proponents don't want to talk about. They cannot explain it rationally, IMHO.

The Senate bill is SB136. So, you may want to be putting that one on your agenda also. I've already made my request known to my Senator.
Intrepid--- only the Hearing is tomorrow-- it will most like will have to be called back up for a vote by committee another day or if not brought back up before deadline at end of Session it then is Dead and never get to floor


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