S.B. No. 1357
AN ACT
1-1 relating to surface commingling of production of oil or gas or oil
1-2 and gas.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 85.046, Natural Resources Code, is
1-5 amended by adding Subsection (c) to read as follows:
1-6 (c) The commission, after notice and opportunity for
1-7 hearing, may permit surface commingling of production of oil or gas
1-8 or oil and gas from two or more tracts of land producing from the
1-9 same reservoir or from one or more tracts of land producing from
1-10 different reservoirs if the commission finds that the commingling
1-11 will prevent waste, promote conservation, or protect correlative
1-12 rights. The commission may permit the commingling regardless of
1-13 whether the tracts or commission-designated reservoirs have the
1-14 same working or royalty interest ownership. The amount of
1-15 production attributable to each tract or commission-designated
1-16 reservoir shall be determined in a manner consistent with this
1-17 title. The commission has broad discretion in administering this
1-18 subsection and shall adopt and enforce rules or orders as necessary
1-19 to administer this subsection.
1-20 SECTION 2. This Act takes effect September 1, 1995.
1-21 SECTION 3. The importance of this legislation and the
1-22 crowded condition of the calendars in both houses create an
1-23 emergency and an imperative public necessity that the
2-1 constitutional rule requiring bills to be read on three several
2-2 days in each house be suspended, and this rule is hereby suspended.