bill tying wind rights to the surface owner

The text as introduced · 912 words

89R16313 RAL-D

By: Smithee
H.B. No. 4511

A BILL TO BE ENTITLED

AN ACT

relating to wind energy rights and wind energy development

agreements.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Title 6, Utilities Code, is amended by adding

Chapter 303 to read as follows:

CHAPTER 303. WIND ENERGY RIGHTS AND RELATED AGREEMENTS

Sec. 303.0001. DEFINITIONS. In this chapter:

(1) "Wind energy agreement" means a lease, license,

easement, or other agreement between the owner of a wind energy

right and a wind energy developer to develop wind-powered energy

generation.

(2) "Wind energy developer" means the lessee, easement

holder, licensee, or similar party under a wind energy agreement.

(3) "Wind energy developer of record" means the wind

energy developer named in a recorded wind energy agreement or, if

the wind energy agreement has been transferred by a recorded

document, the most recent transferee of the rights of the original

wind energy developer identified in the recorded document.

(4) "Wind energy right" means the right of the owner of

a surface estate, either directly or through a wind energy

developer under a wind energy agreement, to capture and employ the

kinetic energy of the wind or a person to whom that right has been

transferred.

(5) "Wind-powered energy generation" means the

generation of electricity by means of a turbine or other device that

captures and employs the kinetic energy of the wind.

Sec. 303.0002. WIND ENERGY RIGHT. A wind energy right is

severable from the surface estate and may be transferred,

encumbered, or modified by agreement.

Sec. 303.0003. WIND ENERGY AGREEMENT. (a) A wind energy

agreement is subject to statutory and other rules of law to the same

extent as other agreements creating interests in or rights to use

real property.

(b) A wind energy agreement:

(1) may be recorded in the office of the county clerk

in the county where the land subject to the agreement is located;

and

(2) unless recorded as described in Subdivision (1),

is void as to any person who subsequently purchases rights in or to

the land for a valuable consideration, except as between the

parties to the agreement and as to those having notice of the

agreement.

(c) The county clerk shall index a wind energy agreement in

both the grantor and grantee indices under the name of each party to

the wind energy agreement.

(d) This section applies to any modification, assignment,

or encumbrance of a wind energy agreement.

Sec. 303.0004. TERMINATION; RELEASE. (a) If a wind energy

agreement expires or is terminated, the wind energy developer of

record shall record a release in the office of the county clerk in

the county where the land subject to the agreement is located.

(b) If the wind energy developer of record fails to record a

release as described by Subsection (a), the owner of the surface

estate or the owner of the wind energy right that is the subject of

the agreement or the owner's agent may request the wind energy

developer of record to record the release. The request must be:

(1) in writing; and

(2) delivered to the last-known address of the wind

energy developer of record:

(A) personally; or

(B) by certified mail, first class postage

prepaid, and return receipt requested.

(c) A wind energy developer of record who receives a request

under Subsection (b) shall, not later than 90 days after the date

the request is received, record the release as described by

Subsection (a).

(d) If the interest of the wind energy developer of record

has been transferred by an instrument that has not been recorded,

the transferee shall:

(1) first record the instrument by which the

transferee acquired the interest and then record the release

required by Subsection (c); or

(2) cause the wind energy developer of record to

record the release required by Subsection (c).

(e) A release recorded under this section must:

(1) identify the wind energy agreement with reasonable

clarity; and

(2) include:

(A) the names of the parties;

(B) the legal description of the land subject to

the agreement; and

(C) the applicable recording information of the

agreement.

(f) The county clerk shall index the release in both the

grantor and grantee indices under the name of each party identified

in the release.

Sec. 303.0005. FAILURE TO RECORD RELEASE; LIABILITY. (a) If

a wind energy developer of record who receives a request under

Section 303.0004(b) fails to record the release as required by

Section 303.0004(c), the wind energy developer of record is liable

to the owner of the surface estate and the owner of the wind energy

right that is the subject of the agreement for any damages caused by

the failure.

(b) The wind energy developer of record and every transferee

described in Section 303.0004(d) are jointly and severally liable

for any damages caused by the failure of:

(1) the wind energy developer of record to record the

release as required by Section 303.0004(c); or

(2) a transferee to comply with Section 303.0004(d).

Sec. 303.0006. TRANSFER OF PARTY'S INTEREST IN AGREEMENT.

Nothing in this chapter restricts the transfer of any interest of a

party to a wind energy agreement, including the transfer of the

right of the owner of the surface estate to receive payments under

the wind energy agreement.

SECTION 2. Nothing in this Act affects the validity of an

agreement entered into before the effective date of this Act.

SECTION 3. This Act takes effect September 1, 2025.