By: Haywood S.B. No. 1551
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the repeal of certain limitations on the authority of
1-2 the Railroad Commission of Texas to regulate production from
1-3 multiple stratigraphic oil and gas reservoirs.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subsection (b), Section 85.053, Natural Resources
1-6 Code, is amended to read as follows:
1-7 (b) When, as provided in Subsection (b) of Section 85.046 or
1-8 Subsection (b) of Section 86.012 of this code, as amended, the
1-9 commission has permitted production by commingling oil or gas or
1-10 oil and gas from multiple stratigraphic or lenticular accumulations
1-11 of oil or gas or oil and gas, the commission may distribute,
1-12 prorate, apportion, or allocate the production of such commingled
1-13 separate multiple stratigraphic or lenticular accumulations of oil
1-14 or gas or oil and gas as if they were a single pool; provided,
1-15 however, that:
1-16 (i) <the commingling and distribution, proration,
1-17 apportionment, or allocation of separate accumulations with
1-18 commission established discovery dates after January 1, 1940, and
1-19 prior to June 1, 1945, shall not serve to expand, add to, or extend
1-20 the vertical or areal extent of any single pool;>
1-21 <(ii)> such commingling shall not cause the allocation
1-22 of allowable production from a well producing from any separate
1-23 accumulation or accumulations to be less than that which would
2-1 result from the commission applying the provisions of Section
2-2 86.095 of this code to such accumulation or accumulations; and
2-3 (ii) <(iii)> the allocation of the allowable for such
2-4 commingled production shall be based on not less than two factors
2-5 which the Railroad Commission shall take into account as directed
2-6 by Section 86.089 of this code<; and>
2-7 <(iv) No gas well in any field falling within the
2-8 classification under Subdivision (i) above where commingled
2-9 separate accumulations of gas are being prorated under the
2-10 authority granted by this Subsection (b) shall be assigned an
2-11 allowable in excess of its production during the most recent
2-12 production period reported to the commission and in the absence of
2-13 any reported production the assigned allowable shall not exceed the
2-14 open-flow potential of such well as reported to the commission;
2-15 provided, however, that the commission may, if it finds special
2-16 conditions require such, make a greater assignment>.
2-17 SECTION 2. Subsection (d), Section 85.055, Natural Resources
2-18 Code, is amended to read as follows:
2-19 (d) When, as provided in Subsection (b) of Section 85.046 or
2-20 Subsection (b) of Section 86.012 of this code, as amended, the
2-21 commission has permitted production by commingling oil or gas or
2-22 oil and gas from multiple stratigraphic or lenticular accumulations
2-23 of oil or gas or oil and gas, the commission may allocate,
2-24 distribute, or apportion the production of such commingled separate
2-25 multiple stratigraphic or lenticular accumulations of oil or gas or
3-1 oil and gas as if they were a single common source of supply;
3-2 provided, however, that:
3-3 (i) <the commingling and distribution, proration,
3-4 apportionment, or allocation of separate accumulations with
3-5 commission established discovery dates after January 1, 1940, and
3-6 prior to June 1, 1945, shall not serve to expand, add to, or extend
3-7 the vertical or areal extent of any single common source of supply;>
3-8 <(ii)> such commingling shall not cause the allocation
3-9 of allowable production from a well producing from any separate
3-10 accumulation or accumulations to be less than that which would
3-11 result from the commission applying the provisions of Section
3-12 86.095 of this code to such accumulation or accumulations; and
3-13 (ii) <(iii)> the allocation of the allowable for such
3-14 commingled production shall be based on not less than two factors
3-15 which the Railroad Commission shall take into account as directed
3-16 by Section 86.089 of this code<; and>
3-17 <no gas well in any field falling within the classification under
3-18 (i) above where commingled separate accumulations of gas are being
3-19 prorated under the authority granted by this Subsection (d) shall
3-20 be assigned an allowable in excess of its production during the
3-21 most recent production period reported to the commission and in the
3-22 absence of any reported production the assigned allowable shall not
3-23 exceed the open-flow potential of such well as reported to the
3-24 commission; provided, however, that the commission may, if it finds
3-25 special conditions require such, make a greater assignment>.
4-1 SECTION 3. Subsection (b), Section 86.081, Natural Resources
4-2 Code, is amended to read as follows:
4-3 (b) When, as provided in Subsection (b) of Section 85.046 or
4-4 Subsection (b) of Section 86.012 of this code, as amended, the
4-5 commission has permitted production by commingling oil or gas or
4-6 oil and gas from multiple stratigraphic or lenticular accumulations
4-7 of oil or gas or oil and gas, the commission may prorate, allocate,
4-8 and regulate the production of such commingled, separate multiple
4-9 stratigraphic or lenticular accumulations of oil or gas or oil and
4-10 gas as if they were a single common reservoir; provided, however,
4-11 that:
4-12 (i) <the commingling and distribution, proration,
4-13 apportionment, or allocation of separate accumulations with
4-14 commission established discovery dates after January 1, 1940, and
4-15 prior to June 1, 1945, shall not serve to expand, add to, or extend
4-16 the vertical or areal extent of any single common reservoir;>
4-17 <(ii)> such commingling shall not cause the allocation
4-18 of allowable production from a well producing from any separate
4-19 accumulation or accumulations to be less than that which would
4-20 result from the commission applying the provisions of Section
4-21 86.095 of this code to such accumulation or accumulations; and
4-22 (ii) <(iii)> the allocation of the allowable for such
4-23 commingled production shall be based on not less than two factors
4-24 which the Railroad Commission shall take into account as directed
4-25 by Section 86.089 of this code<; and>
5-1 <no gas well in any field falling within the classification under
5-2 Subdivision (i) above where commingled separate accumulations of
5-3 gas are being prorated under the authority granted by this
5-4 Subsection (b) shall be assigned an allowable in excess of its
5-5 production during the most recent production period reported to the
5-6 commission and in the absence of any reported production the
5-7 assigned allowable shall not exceed the open-flow potential of such
5-8 well as reported to the commission; provided, however, that the
5-9 commission may, if it finds special conditions require such, make a
5-10 greater assignment>.
5-11 SECTION 4. The importance of this legislation and the
5-12 crowded condition of the calendars in both houses create an
5-13 emergency and an imperative public necessity that the
5-14 constitutional rule requiring bills to be read on three several
5-15 days in each house be suspended, and this rule is hereby suspended,
5-16 and that this Act take effect and be in force from and after its
5-17 passage, and it is so enacted.