Relating to wind energy agreements and the right of a surface estate owner to capture and employ wind energy.

The text as introduced · 726 words

90R4042 RAL-D

By: Garcia of Bexar
H.B. No. 514

A BILL TO BE ENTITLED

AN ACT

relating to wind energy agreements and the right of a surface estate

owner to capture and employ wind energy.

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

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

Chapter 304 to read as follows:

CHAPTER 304. WIND ENERGY RIGHTS AND AGREEMENTS

Sec. 304.0001. DEFINITIONS. In this chapter:

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

easement, or other agreement between the owner of a surface estate

and a wind energy developer to develop wind-powered energy

generation by means of the installation of equipment and necessary

facilities on the subject property.

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

easement holder, licensee, or similar party under a wind energy

agreement.

(3) "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. 304.0002. RIGHT OF SURFACE ESTATE OWNER TO CAPTURE AND

EMPLOY WIND ENERGY. The owner of a surface estate has an inherent

right, either directly or through a wind energy developer under a

wind energy agreement, to capture and employ the kinetic energy of

the wind. The right described by this section is not severable from

the surface estate.

Sec. 304.0003. WIND ENERGY AGREEMENT. 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.

Sec. 304.0004. TERMINATION; RELEASE. (a) If a wind energy

agreement expires or is terminated, each wind energy developer that

owned the wind energy agreement at the time the agreement expired or

terminated shall record a release of the expired or terminated

agreement in the office of the county clerk in the county where the

land subject to the agreement is located.

(b) If a wind energy developer fails to record a release as

required by Subsection (a), the owner of the surface estate or the

owner's agent may request a wind energy developer shown as the wind

energy developer of record for the agreement to record the release.

The request must be:

(1) in writing; and

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

energy developer:

(A) personally; or

(B) by certified mail, first class postage

prepaid, and return receipt requested.

(c) In the absence of a good faith claim that the wind energy

agreement is in force and effect, a wind energy developer who

receives a request under Subsection (b) shall, not later than 90

days after the date the request is received:

(1) record the release as required by Subsection (a);

or

(2) inform the owner of the surface estate or the

owner's agent:

(A) that the wind energy developer no longer owns

the wind energy agreement; and

(B) of the name of the party that succeeded to the

wind energy developer's interest.

(d) An owner of the surface estate or the owner's agent that

receives notice under Subsection (c)(2) may request the successor

in interest to record a release in the manner provided by Subsection

(b). If the interest of a wind energy developer 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 or record a notice of the transfer

and then record the release required by Subsection (c); or

(2) cause the wind energy developer shown as the wind

energy developer of record for the agreement 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.

Sec. 304.0005. 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, 2027.