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A BILL TO BE ENTITLED
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AN ACT
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relating to the effect of operations in a unit created under the |
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provisions of an oil or gas lease following the expiration of the |
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primary term of the lease. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle C, Title 3, Natural Resources Code, is |
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amended by adding Chapter 104 to read as follows: |
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CHAPTER 104. VOLUNTARY POOLING |
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Sec. 104.001. APPLICABILITY. (a) This chapter applies |
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only to a unit created voluntarily under the provisions of an oil or |
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gas lease. In the event of a conflict between this chapter and the |
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provisions of an oil or gas lease entered into before September 1, |
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2015, the provisions of the lease prevail. |
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(b) This chapter does not apply to land: |
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(1) that is owned by this state; or |
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(2) in which this state has an interest, directly or |
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indirectly. |
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Sec. 104.002. EFFECT OF OPERATIONS IN UNIT IN SECONDARY |
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TERM OF LEASE. If only part of a tract subject to an oil or gas |
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lease is pooled into a unit for an oil or gas well, unit production |
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of oil or gas, unit operations, or payment of shut-in |
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royalties from |
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a unit gas well will not serve to hold the lease in force as to any |
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area outside the unit after the fifth anniversary of the date the |
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primary term of the lease expires. |
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SECTION 2. This Act takes effect September 1, 2015. |