House Bill Could Make Impairment of Mineral Estates a Compensable Regulatory Taking

04/05/2011

Texas Representative James L. Keffer has introduced new legislation that would require cities to compensate mineral owners when city regulations diminish the value of mineral estates. House Bill 3105, called “Regulatory Takings/Oil and Gas,” would make a city regulation that “damages, destroys, impairs, or prohibits development of a mineral interest” equivalent to a regulatory taking and subject to the Private Real Property Rights Preservation Act. Once subject to the Act, this would:

(1) waive sovereign immunity to suit and liability for a regulatory taking;

(2) authorize a private real property owner to bring suit to determine whether the governmental action of a city results in a taking;

(3) require a city to prepare a "takings impact assessment" prior to imposing certain regulations; and

(4) require a city to post 30-days notice of the adoption of most regulations prior to adoption.

The House Energy Committee is holding a hearing to consider HB3105 on Wednesday, April 6.

As published in the American Bar Association Section of Litigation, Energy Litigation News & Developments on April 5, 2011.

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