1-1        By:  Haywood                                    S.B. No. 1357
    1-2        (In the Senate - Filed March 10, 1995; March 20, 1995, read
    1-3  first time and referred to Committee on Natural Resources;
    1-4  April 7, 1995, reported adversely, with favorable Committee
    1-5  Substitute by the following vote:  Yeas 10, Nays 0; April 7, 1995,
    1-6  sent to printer.)
    1-7  COMMITTEE SUBSTITUTE FOR S.B. No. 1357                 By:  Haywood
    1-8                         A BILL TO BE ENTITLED
    1-9                                AN ACT
   1-10  relating to surface commingling of production of oil or gas or oil
   1-11  and gas.
   1-12        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-13        SECTION 1.  Section 85.046, Natural Resources Code, is
   1-14  amended by adding Subsection (c) to read as follows:
   1-15        (c)  The commission, after notice and opportunity for
   1-16  hearing, may permit surface commingling of production of oil or gas
   1-17  or oil and gas from two or more tracts of land producing from the
   1-18  same reservoir or from one or more tracts of land producing from
   1-19  different reservoirs if the commission finds that the commingling
   1-20  will prevent waste, promote conservation, or protect correlative
   1-21  rights.  The commission may permit the commingling regardless of
   1-22  whether the tracts or horizons have the same working or royalty
   1-23  interest ownership.  The amount of production attributable to each
   1-24  tract or horizon shall be determined in a manner consistent with
   1-25  this title.  The commission has broad discretion in administering
   1-26  this subsection and shall adopt and enforce rules or orders as
   1-27  necessary to administer this subsection.
   1-28        SECTION 2.  This Act takes effect September 1, 1995.
   1-29        SECTION 3.  The importance of this legislation and the
   1-30  crowded condition of the calendars in both houses create an
   1-31  emergency and an imperative public necessity that the
   1-32  constitutional rule requiring bills to be read on three several
   1-33  days in each house be suspended, and this rule is hereby suspended.
   1-34                               * * * * *