Senate Bill 785 (Relating to the ownership of the geothermal energy and associated resources below the surface of the land) got 2/3 of the votes in each chamber. It was neither signed into law or vetoed by the Governor, which means that it becomes law without this signature.
SB 785 amends Section 141.003 (5) of the Natural Resources Code to define heat as a by-product of geothermal energy and association resources, but excludes mineral, oil or gas, or any product of oil or gas.
It also adds Section 141.004 to the Natural Resources Code to define the ownership of geothermal energy. The new section reads as follows:
Sec. 141.004. OWNERSHIP OF GEOTHERMAL ENERGY AND ASSOCIATED RESOURCES.
(a) Except as otherwise expressly provided by a conveyance, contract, deed, reservation, exception, limitation, lease, or other binding obligation, the geothermal energy and associated resources below the surface of land are owned as real property by
(1) the landowner; or
(2) if the surface estate and the mineral estate of the land have been severed, the owner of the surface estate of the land.
(b) Subject to the provisions of this chapter, the property rights described by this section entitle the owner of the geothermal energy and associated resources below the surface of land and the owner’s lessee, heir, or assignee to drill for and produce the geothermal energy and associated resources.
(c) This section does not apply to minerals dissolved or otherwise contained in groundwater, including in hot brines.
