Earlier today the Senate Natural Resources Committee unanimously approved SB 1094 by Sen. Juan Hinojosa (D-McAllen). The bill ensures that an innocent downstream purchaser of oil and gas does not have to pay twice for the same product by clarifying that the security interest of the upstream producer is cut off when a first purchaser sells oil and gas to a subsequent purchaser and is paid for that sale. The bill also protects the upstream producer’s security interest in oil and gas production by establishing that the producer’s interest is perfected automatically, without the need for a Texas producer or interest owner to file a UCC financing statement.
Sen. Juan Hinojosa
Rep. Myra Crownover
The companion legislation, HB 1859 by Rep. Myra Crownover, will be heard in House Energy Resources Committee tomorrow.
