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Texas · Through 89th 2nd Called Legislative Session, 2025

Tex. Property Code § 31.002: CAUSE OF ACTION FOR BAD FAITH WASHOUT.

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Where this section sits in the code
  1. PROPERTY CODE
  2. TITLE 4. ACTIONS AND REMEDIES
  3. CHAPTER 31. 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.

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

Collected 2026-08-27T01:47:37Z. Source file · JSON

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