For many years, the general rule related to Texas mineral estate issues has been “first in time, first in right.” However, beginning Jan. 1, 2016, the recently passed Texas House Bill 2207 amends the current law relating to the foreclosure sale of property subject to an oil and gas lease.
The new law provides that, if a mortgage is foreclosed, and if an oil and gas lease covering the property was entered into after the mortgage, the oil and gas lease remains in effect and is not cut off by the foreclosure. The bill was sponsored by the following six elected officials: Rep. Jim Keffer, R–Eastland; Rep. Rafael Anchia, D-Dallas; Rep. Phil King, R–Weatherford; Rep. Travis Clardy, R-Nacogdoches; Rep. Oscar Longoria, D–Mission; and Rep. Kevin Eltife, R–Tyler. The bill was passed by the Texas House on May 4 and by the Texas Senate on May 20. Governor Greg Abbott signed it June 15.
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