By: Haywood S.B. No. 1357
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the administrative approval of surface commingling of
1-2 oil or gas or oil and gas production.
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) In order to prevent waste and the premature abandonment
1-7 of oil and gas resources the Commission may permit surface
1-8 commingling of oil or gas or oil and gas production from two or
1-9 more tracts of land producing from the same horizon or from
1-10 different horizons from one or more tracts when the following
1-11 conditions are met:
1-12 1. When the tracts or horizons have the same working
1-13 interest and royalty interest parties or when production from each
1-14 tract or horizon is separately measured, approval may be granted
1-15 administratively by the Commission upon application or
1-16 2. When the tracts or horizons have different working
1-17 interest or royalty interest parties, the Commission may
1-18 administratively approve an application for surface commingling
1-19 when:
1-20 i. applicant provides evidence that
1-21 a. all parties of record have been
1-22 notified by certified letter or have provided applicant with
1-23 waivers of notice requirements, or
2-1 b. in the event the applicant is unable to
2-2 provide actual notice to all parties of record, then the applicant
2-3 shall provide evidence that notice has been published for four
2-4 consecutive weeks in a newspaper of general circulation in the
2-5 county in which the tracts are located; and
2-6 ii. applicant provides an acceptable method of
2-7 allocation of production to ensure the protection of correlative
2-8 rights, such as by well test or by other acceptable means; and
2-9 iii. the Commission has received no protests
2-10 totaling more than 10% interest, either working or royalty or
2-11 combined interest, against approval of the application within 21
2-12 days of the notice being mailed or if publication is required,
2-13 within 21 days of the date of last publication.
2-14 SECTION 2. This Act becomes effective on September 1, 1995.
2-15 SECTION 3. The importance of this legislation and the
2-16 crowded condition of the calendars in both houses create an
2-17 emergency and an imperative public necessity that the
2-18 constitutional rule requiring bills to be read on three several
2-19 days in each house be suspended, and this rule is hereby suspended.