Cause of Action For Bad Faith Washout

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.