Relating to the abandonment of mineral proceeds for purposes of certain unclaimed property laws.
Summary
HB 5103 amends the Property Code definition of “mineral” and “mineral proceeds” for purposes of Texas unclaimed property law. The bill expressly includes lithium in the list of minerals and clarifies that the definition applies regardless of the depth at which the substance is found or whether it is contained within a liquid, gas, or solid that would otherwise be considered nonmineral material.
The bill also expands and restates what counts as “mineral proceeds.” It includes obligations to pay arising from the production and sale of minerals, such as net revenue interests, royalties, overriding royalties, production payments, and joint operating agreements, as well as obligations tied to acquiring or retaining a mineral lease, including bonuses, delay rentals, shut-in royalties, and minimum royalties. The act would take effect September 1, 2025.
Impact
HB 5103 would update Texas Property Code Section 75.001, which governs unclaimed property treatment of mineral-related assets, by broadening and clarifying the statutory definitions used to determine when mineral proceeds may be presumed abandoned and reported under the state’s unclaimed property framework. The practical effect is to ensure that a wider range of mineral interests and payment obligations, including lithium-related interests, are covered by the law and handled consistently by holders and the state.
Sentiment
There is limited recorded public debate in the available materials, and no committee transcript or vote history is provided. Based on the bill’s narrow, technical nature and its referral to the Energy Resources committee, the measure appears to be a specialized cleanup and modernization bill rather than a controversial policy change. Its status as left pending in committee suggests it had not yet advanced to a floor vote at the time of the available record.
Contention
No specific points of contention are documented in the provided materials. Potential areas of interest, however, could include the inclusion of lithium in the mineral definition and the broader treatment of mineral proceeds for unclaimed property purposes, since those changes may affect mineral owners, operators, royalty interest holders, and holders of unclaimed property. Without committee testimony or votes, no side of a dispute can be identified from the record.
The definitions of critical minerals and rare earth minerals and descriptions and definitions of minerals in leases and conveyances; and to provide for retroactive application.
AN ACT to create and enact a new section to chapter 38-12 of the North Dakota Century Code, relating to critical minerals and rare earth minerals and royalties; to amend and reenact sections 38-12-01 and 47-10-24 of the North Dakota Century Code, relating to the definitions of critical minerals and rare earth minerals and descriptions and definitions of minerals in leases and conveyances; and to provide for retroactive application.