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.