By: __________________ ___B. ____



relating to the licensing and regulation of petroleum landmen



SECTION 1. The Texas Occupation Code is amended by adding Section 1072.

SECTION 2. Section 1072.001. Short Title.

The chapter may be cited as the Petroleum Landman Practices Act.

SECTION 3. Section 1072.002. Definitions.

In this chapter,

(1) Board means the Texas Board of Petroleum Landmen.

(2) Landwork means:

(a) Negotiating with property owners for the acquisition or

divestiture of mineral rights;

(b) Negotiating business arrangements for exploring for

and development of minerals;

(c) Determining ownership in minerals through the

research of public and private records;

(d) Managing rights or obligations derived from

ownership of minerals; and

(e) Unitizing or pooling mineral interests.

(3) AAPL means the American Association of Professional


(4) Licensed Landman means an individual engaged in

Landwork and licensed under this Act.

(5) Registered Landman (RL) means an individual engaged in

Landwork and so designated by the Board and approved by the Board to conduct

landwork under the guidance of a Certified Professional Landman or a Registered

Professional Landman.

(6) Registered Professional Landman means an individual

engaged in landwork and so designated by the Board.

(7) Certified Professional Landman means an individual

engaged in landwork and so designated by the Board.

(8) Land Professional means one engaged in the practice of any

of (a) through (e) above.


SECTION 4. Section 1072.010.

The Texas Board of Petroleum Landmen shall be subject to Chapter 325,

Government Code (Texas Sunset Act).

SECTION 5. Section 1072.011. Board membership.

(a) The Board will consist of seven members appointed by the

Governor with the advice and consent of the Senate. The Board shall be made up of

five Certified Professional Landmen and two public members.

(b) Public members or their spouses may not be engaged in Landwork,

own more than ten percent (10%) interest in any business performing Landwork or be

employed by any business engaged in Landwork.

SECTION 6. Section 1072.012. Term of Office, Oath, Vacancy.

(a) Board members will serve staggered six-year (6) terms with two or

three of those members’ terms expiring on January 31 of each odd-numbered year.

(b) A board member may not serve more than two (2) consecutive


(c) Before assuming the dates of office, the Board members must take

and file with the Secretary of State a copy of their oath of office.

(d) The Governor shall fill any vacancy pursuant to the same

qualifications of an initial applicant.

SECTION 7. Section 1072.013. Officers.

(a) The Governor shall select a presiding officer for a two-year (2)


(b) The Board shall select an assistant presiding officer at its first

meeting. He will serve a two-year (2) term.

SECTION 8. Section 1072.014. Grounds for Removal.

(a) If not qualified at the time of swearing in or becomes disqualified

while serving.

(b) Cannot continue serving because of illness or disability.

(c) Unexcused absences of more than one-half of the regularly

scheduled board meetings during any one calendar year.

SECTION 9. Section 1072.015. Per Diem.

Each board member is entitled to receive a legislatively set per diem

allowance for each day the member engages in official board duties, including travel.


SECTION 10. Section 1072.100.

(a) The Board shall hire persons as necessary to properly perform the

Board’s work under this chapter.

(b) With the advice of the Attorney General of Texas, the Board shall

enter into an agreement with AAPL to conduct the licensing process for each landman;

administer testing, maintain records and consult freely with the Board regarding

standards, quality control and improvements. The licensing process must be reviewed

and approved by the Board in consultation with AAPL. Any amendments to AAPL’s

process must be approved by the Board in consultation with AAPL.

(c) Subject to further clarification by the Board, each applicant for a

landman’s license will be required to have a four-year degree from a regionally

accredited university and in order to maintain the license will be required to obtain 10

hours of related continuing education per year and abide by the Code of Ethics and

Standards of Practice shown below.

(d) The Board shall adopt rules to implement and define the policies of

the Board and this statute.

(e) A license issued by the Board shall remain active and valid as long

as the licensee pays an annual renewal fee to the Board, maintains the required

continuing professional education, follows the Code of Ethics and Standards of Practice

(enumerated below), and is not revoked, suspended, or denied by the Board.


SECTION 11. Section 1072.200. Disciplinary Action.

(a) The Board may revoke, suspend, refuse to grant, or review or place

a license on probation if it determines that the licensee commits one or more of the


(1) use of fraud or deceit to obtain a license;

(2) a finding by the Board of incompetence, misconduct, fraud,

gross negligence, or serious acts of negligence in performing land work;

(3) conviction of a felony or crime involving moral turpitude;

(4) a violation of this act or rules promulgated by the Board;

(5) a violation of the Code of Ethics or Standards of Practice;

(6) publicly practicing Landwork without a license granted under

this act.

(b) A hearing held pursuant to this Act shall be conducted by an

Administrative Law Judge retained by the Board. No licensee shall be revoked,

suspended, or placed on probation prior to a hearing before an Administrative Law


(c) No person shall practice Landwork without a license issued by the

Board except:

(1) for personal business;

(2) when acting in an administrative capacity and not negotiating

with the public.

(d) Attorneys licensed by the State Bar of Texas are exempt from this

licensing requirement. Landmen or Land Professionals licensed in other states with

which the Board reaches a reciprocity agreement shall be considered to be licensed in

Texas for the practice of Landwork as well as attorneys licensed in those states.

(e) Persons engaged in Landwork are exempt from the degree

requirement and the testing requirement of this Act if so engaged or employed as of the

effective date of this Act. Such persons will be required to make application within one

year from the effective date of this Act and pass a background check as required by the


(f) Licensed Landmen shall be exempt from the requirement to obtain

a Right-of-Way license under the Real Estate License Act, Article 6573a, Vernon’s

Texas Civil Statutes.


SECTION 12. Penalties.

Section 1072.300. The Board may impose an administrative penalty on a

person who violates this chapter or promulgated rule or order adopted pursuant this


Section 1070.301.

(a) The penalty for each offense shall not exceed $50,000.

(b) In determining a penalty amount, the Board shall consider:

(1) the severity of the violation;

(2) any economic damage caused by the violation;

(3) prior violations;

(4) efforts to cure the violation; and

(5) amounts necessary to deter further violations.

Section 1070.302.

Members of AAPL who are certified as Certified Professional

Landmen (CPL), Registered Professional Landmen (RPL) or Registered Landmen (RL)

will be initially granted a landman’s license without the background check and may

maintain their license by maintaining their AAPL certification and payment of fees as

determined by the Board. The AAPL bylaws and certification procedure are attached for


SECTION 13. Code of Ethics and Standards of Practice

(a) Code of Ethics.

(1) It shall be the duty of the Land Professional at all times to

promote and, in a fair and honest manner, represent the industry to the public at large

with the view of establishing and maintaining goodwill between the industry and the

public and among industry parties.

The Land Professional, in his dealings with

landowners, industry parties, and others outside the industry, shall conduct himself in a

manner consistent with fairness and honesty, such as to maintain the respect of the


(2) Competition among those engaged in the mineral and

energy industries shall be kept at a high level with careful adherence to established

rules of honesty and courtesy.

A Land Professional shall not betray his partner’s,

employer’s, or client’s trust by directly turning confidential information to personal gain.

The Land Professional shall exercise the utmost good faith

and loyalty to his employer (or client) and shall not act adversely or engage in any

enterprise in conflict with the interest of his employer (or client). Further, he shall act in

good faith in his dealings with the industry associates.

The Land Professional shall represent others only in his

areas of expertise and shall not represent himself to be skilled in professional areas in

which he is not professionally qualified.

(b) Standards of Practice.

The Code of Ethics is the basis of conduct, business

principles and ideals for Land Professionals. This standard of professional conduct and

these guiding principles and ideals mandated by the Code of Ethics are summarized as


(1) Fair and honest dealing with landowners, industry associates

and the general public so as to preserve the integrity of the profession;

(2) Adherence to a high standard of conduct in fulfilling his

fiduciary duties to a principal;

(3) Avoiding business activity which may conflict with the

interest of his employer or client or result in the unauthorized disclosure or misuse of

confidential information;

(4) Performance of professional services in a competent


(5) Adherence to any provisions of the Bylaws, Code of Ethics,

or any rule, regulation, or order adopted pursuant thereto;

(6) Avoiding the aiding or abetting of any unauthorized use of

the title "Certified Professional Landman," "Registered Professional Landman,"

"Registered Landman," or “Licensed Landman.”

(7) Avoiding any act or conduct which causes disrespect for or

lack of confidence in the member to act professionally as a land professional.

In order to inform Licensed Landmen of the specific

conduct, business principles and ideals mandated by the Code of Ethics, the the

following Standards of Practice are provided and every Land Professional shall conduct

his business in accordance therewith:

(a) In justice to those who place their interests in his care, a land

professional shall be informed regarding laws, proposed legislation, governmental

regulations, public policies, and current market conditions in his area of represented

expertise, in order to be in a position to advise his employer or client properly (4, 5).* [(*)

References are to the foregoing summary of the standards of professional conduct and

guiding principles and ideals mandated by the Code of Ethics.]

(b) It is the duty of the land professional to protect the members of the

public with whom he deals against fraud, misrepresentation, and unethical practices. He

shall eliminate any practices which could be damaging to the public or bring discredit to

the petroleum, mining or environmental industries.

(c) In accepting employment, the land professional pledges himself to

protect and promote the interests of his employer or client. This obligation of absolute

fidelity to the employer's or client's interest is primary but it does not relieve the land

professional of his obligation to treat fairly all parties to any transaction, or act in an

ethical manner (1, 2).

(d) The land professional shall not accept compensation from more than

one principal for providing the same service, nor accept compensation from more than

one party to a transaction, without the full knowledge of all principals or parties to the

transaction (2, 3).

(e) The land professional shall not deny equal professional services to

any person for reasons of race, creed, sex or country of national origin. The land

professional shall not be a party to any plan or agreement to discriminate against a

person or persons on the basis of race, creed, sex or country of national origin (1, 6).

(f) A land professional shall provide a level of competent service in

keeping with the standards of practice in those fields in which a land professional

customarily engages. The land professional shall not represent himself to be skilled in

nor shall he engage in professional areas in which he is not qualified such as the

practice of law, geology, engineering or other disciplines (4).

(g) The land professional shall not undertake to provide professional

services concerning a property or a transaction where he has a present or contemplated

interest, unless such interest is specifically disclosed to all affected parties (3).

(h) The land professional shall not acquire for himself or others an

interest in property which he is called upon to purchase for his principal, employer or

client without the consent of said principal, employer or client. He shall disclose his

interest in the area which might be in conflict with his principal, employer or client. In

leasing any property or negotiating for the sale of any block of leases, including lands

owned by himself or in which he has any interest, a land professional shall reveal the

facts of his ownership or interest to the potential buyer (3).

(i) If a land professional is charged with unethical practice or is asked

to present evidence in any disciplinary proceeding or investigation, or has direct

knowledge of apparent unethical misconduct of another member, he shall place all

pertinent facts before the proper authority (5).

(j) The land professional shall not accept any commission, rebate,

interest, overriding royalty or other profit on transactions made for an employer or client

without the employer's or client's knowledge and consent (2).

(k) The land professional shall assure that monies coming into his

possession in trust for other persons, such as escrows, advances for expenses, fee

advances, and other like items, are properly accounted for and administered in a

manner approved by his employer or client (2).

(l) The land professional shall avoid business activity which may

conflict with the interest of his employer or client or result in the unauthorized disclosure

or misuse of confidential information (3).

(m) The land professional shall at all times present an accurate

representation in his advertising and disclosures to the public (1).

(n) The land professional shall not participate in conduct which causes

him to be convicted, adjudged or otherwise recorded as guilty by any court of competent

jurisdiction of any felony, any offense involving fraud as an essential element, or any

other serious crime.


SECTION 14. This Act shall become effective January 1, 2010.