HBA-DMH H.B. 736 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 736
By: King, Tracy
Civil Practices
3/19/2001
Introduced



BACKGROUND AND PURPOSE 

Current law provides that a person must bring an action relating to an oil
and gas lease not later than four years after a cause of action accrues.
Discovering when a breach occurs is difficult in any case where the factual
circumstances may make it difficult for a plaintiff to know if the
defendant has breached a contract. This is the case for the lessors and
other royalty owners of mineral leases who do not reside on the leased
property. Because they are away from the property, they may be unaware for
several years that a breach has occurred. Consequently, parties may
discover that the statute of limitations has run out on their claim for
breach of contract.  House Bill 736 provides that  a cause of action does
not accrue until certain facts are discovered. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 736 amends the Civil Practice and Remedies Code to provide that
a cause of action arising under an oil and gas lease does not accrue until
the facts giving rise to the cause of action are discovered or by the
exercise of reasonable diligence should have been discovered. 

EFFECTIVE DATE

September 1, 2001.