Texas HB5105 mandates payors to notify payees of suspended oil or gas well payments and pay interest on suspended amounts.
Texas HB5105 amends the Natural Resources Code to require payors to notify payees within 30 days when payments from oil or gas wells are suspended, detailing the reason. If a payor fails to notify the payee, they must pay interest on the suspended amount at a rate two points higher than the New York Federal Reserve Bank's loan rate to depository institutions. This Act applies to suspensions occurring after its effective date of September 1, 2025.
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