HB 4511 creates new statutory provisions under Chapter 303 of the Texas Utilities Code to govern the legal treatment of wind energy agreements between surface estate owners and wind energy developers. The bill defines a "wind energy agreement" as any lease, easement, license, or similar contract that permits the installation of wind-powered energy generation equipment on a landowner’s property. It clarifies that the right to capture and use wind energy is an inherent and non-severable component of the surface estate, effectively prohibiting the sale or separation of wind rights from land ownership.
The legislation codifies that wind energy agreements are to be treated as real property instruments, subject to the same legal standards and enforceability. A significant administrative provision requires that, upon the expiration or termination of such agreements, the wind energy developer must file a release with the county clerk in the county where the land is located. This formal record ensures that clouded titles or lingering encumbrances do not affect future transactions involving the property.
Further, if the developer fails to file the required release, the surface estate owner can request this action in writing. If the developer no longer holds the agreement, they must notify the owner of the successor. The bill outlines procedural requirements for these communications and the form of the release. Finally, it affirms that parties to wind energy agreements retain the right to transfer their interests, including the right to payments under the agreement, without restriction.
The Committee Substitute introduces key changes from the originally filed version that significantly alter how wind energy rights are treated under Texas law. One of the most notable shifts is the elimination of the concept of a "severable" wind energy right. In the filed version, wind energy rights could be separated from surface ownership and independently transferred or encumbered, similar to mineral rights. The substitute version reverses this approach, declaring that the right to capture wind energy is inherently tied to the surface estate and cannot be severed. This change reinforces traditional property principles and avoids the creation of a new class of real property interest.
Additionally, the Committee Substitute removes the enforcement mechanism present in the filed bill that imposed civil liability on wind energy developers who failed to properly record a release after the termination or expiration of an agreement. The originally filed bill created a cause of action for damages against developers and any unrecorded transferees. The substitute eliminates this liability section, opting instead for a compliance-focused model that emphasizes notice and procedural obligations without introducing new legal risks or penalties.
Finally, the Committee Substitute simplifies the bill’s structure and language. It eliminates specialized definitions such as “wind energy right” and “wind energy developer of record,” and avoids complex record-keeping burdens related to successive ownership of wind agreements. These revisions streamline the administrative process, reduce ambiguity, and make compliance easier for both landowners and developers. Overall, the substitute version shifts the bill's emphasis from expansive property rights and liability enforcement toward clarity, consistency, and protection of surface estate integrity.