Section 31.002 - Cause Of Action For Bad Faith Washout A person may bring a cause of action for a bad faith washout of the person's overriding royalty interest in an oil and gas lease. The person is entitled to a remedy under this chapter if the person proves by a preponderance of the evidence that:
(1) the person owned or had a legal right to the overriding royalty interest; (2) the defendant had control over the oil and gas lease burdened by the overriding royalty interest; (3) the defendant caused a washout of the person's overriding royalty interest; and (4) the defendant acted in bad faith by knowingly or intentionally causing the washout. Added by Acts 2023, Texas Acts of the 88th Leg.- Regular Session, ch. 7,Sec. 1, eff. 9/1/2023, app. only to a washout that occurs on or after the effective date of this Act..