By:  Haywood                                          S.B. No. 1357
                                 A BILL TO BE ENTITLED
                                        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 horizons have the same working or royalty
   1-14  interest ownership.  The amount of production attributable to each
   1-15  tract or horizon shall be determined in a manner consistent with
   1-16  this title.  The commission has broad discretion in administering
   1-17  this subsection and shall adopt and enforce rules or orders as
   1-18  necessary to administer this subsection.
   1-19        SECTION 2.  This Act takes effect September 1, 1995.
   1-20        SECTION 3.  The importance of this legislation and the
   1-21  crowded condition of the calendars in both houses create an
   1-22  emergency and an imperative public necessity that the
   1-23  constitutional rule requiring bills to be read on three several
   1-24  days in each house be suspended, and this rule is hereby suspended.
    2-1                       COMMITTEE AMENDMENT NO. 1
    2-2        Amend S.B. 1357 on page 1, lines 13 and 15 by striking the
    2-3  word "horizons" and "horizon" and substituting "commission
    2-4  designated reservoirs" and "commission designated reservoir",
    2-5  respectively.
    2-6                                                          Holzheauser