By: Earley H.B. No. 1739
73R5100 JJT-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the measurement of gas produced from certain wells.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 88.052, Natural Resources Code, is
1-5 amended to read as follows:
1-6 Sec. 88.052. PROHIBITED PASSAGE FROM CONTROL OF PRODUCER
1-7 WITHOUT MEASUREMENT AND RECORD OF AMOUNT; EXCEPTION FOR MARGINAL
1-8 GAS PRODUCTION. (a) Except as provided by Subsection (b) of this
1-9 section, no <No> person owning, leasing, operating, or controlling
1-10 an oil property in this state may permit the oil or gas produced to
1-11 pass beyond the possession or control of that person to the
1-12 possession or control of any other person without first accurately
1-13 measuring the amount of the oil or gas and making and preserving an
1-14 accurate record of the amount.
1-15 (b) A person is not required to measure the amount of a
1-16 well's gas production if:
1-17 (1) the well produces less than 20,000 cubic feet of
1-18 gas in a day; and
1-19 (2) all affected parties, including any well operator,
1-20 royalty owner, or pipeline operator, agree to the management of
1-21 production and transfer of possession or control under estimates of
1-22 production as provided by Subsection (c) of this section.
1-23 (c) The commission by rule shall require the operator of a
1-24 well for which the accurate measurement of gas production is not
2-1 required to submit to the commission an estimate of the well's gas
2-2 production for each month's operation. The commission annually
2-3 shall verify or review the estimates.
2-4 SECTION 2. This Act takes effect September 1, 1993.
2-5 SECTION 3. The importance of this legislation and the
2-6 crowded condition of the calendars in both houses create an
2-7 emergency and an imperative public necessity that the
2-8 constitutional rule requiring bills to be read on three several
2-9 days in each house be suspended, and this rule is hereby suspended.