Applying penalties for nonpayment of royalties under terms of oil and natural gas leases

The penalty provision was narrowed to apply strictly to conventional vertical wells and their derivative natural gas liquids, removing the broader reference to natural gas liquids production in the main clause.

New subsections were added to establish that the law applies to disputes filed on or after July 1, 2025, and to grant jurisdiction in the county where the well is located.

A new provision was added allowing the prevailing party in a royalty dispute to be awarded reasonable attorney's fees and costs.

The liability amount was clarified to be based on the 'unpaid royalty' rather than the 'extracted minerals,' and the text was split into four specific subsections (a through d) for better readability.

The bill title was replaced with a more comprehensive description that explicitly lists all provisions including enhanced damages, jurisdiction, venue, attorney's fees, and the effective date for disputes.