CHAPTER 103. COOPERATIVE FACILITIES FOR CONSERVATION AND UTILIZATION OF GAS
NATURAL RESOURCES CODE
TITLE 3. OIL AND GAS
SUBTITLE C. POOLING AND COOPERATIVE AGREEMENTS
CHAPTER 103. COOPERATIVE FACILITIES FOR CONSERVATION AND
UTILIZATION OF GAS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 103.001. DEFINITION. In this chapter, "commission" means
the Railroad Commission of Texas.
Acts 1977, 65th Leg., p. 2575, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 103.002. RIGHTS EXISTING ON MAY 12, 1953. None of the
provisions in this chapter restrict any of the rights that
persons had on May 12, 1953, to make and enter into contracts for
the construction and operation of cooperative facilities as
provided in this chapter.
Acts 1977, 65th Leg., p. 2575, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 103.003. CONFLICT WITH ANTITRUST LAWS. (a) Agreements and
operations under agreements that are in accordance with the
provisions in this chapter, being necessary to prevent waste and
conserve the natural resources of this state, shall not be
construed to be in violation of the provisions of Chapter 15,
Business & Commerce Code, as amended.
(b) If a court finds a conflict between the provisions in this
chapter and Chapter 15, Business & Commerce Code, as amended,
the provisions in this chapter are intended as a reasonable
exception necessary for the public interest stated in Subsection
(a) of this section.
(c) If a court finds that a conflict exists between the
provisions in this chapter and the laws cited in Subsections (a)
and (b) of this section and finds that the provisions in this
chapter are not a reasonable exception, it is the intent of the
legislature that the provisions in this chapter, or any
conflicting portion of them, shall be declared invalid rather
than declaring the cited laws, or any portion of them, invalid.
Acts 1977, 65th Leg., p. 2575, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
SUBCHAPTER B. FACILITIES FOR CONSERVATION AND UTILIZATION OF GAS
Sec. 103.041. AUTHORIZED COOPERATIVE FACILITIES FOR SEPARATELY
OWNED PROPERTY. The commission may approve agreements by persons
owning or controlling leases or other interests in separate
property in oil fields, gas fields, or oil and gas fields for the
construction and operation of cooperative facilities necessary
for the conservation and utilization of gas, including facilities
for extracting and separating hydrocarbons from gas or casinghead
gas.
Acts 1977, 65th Leg., p. 2575, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 103.042. COMMISSION APPROVAL. Agreements for the
construction and operation of cooperative facilities shall be
approved by the commission only after application, notice, and
hearing, and a finding by the commission that the cooperative
facilities are in the interest of conservation and that secondary
recovery operations are not feasible or necessary.
Acts 1977, 65th Leg., p. 2575, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 103.043. COOPERATIVE REFINING. (a) No agreement for the
construction or operation of cooperative facilities may provide
directly or indirectly for the cooperative refining of oil,
distillate, condensate, or gas, or any by-product of oil,
distillate, condensate, or gas.
(b) The extraction of liquid hydrocarbons from gas and the
separation of liquid hydrocarbons into butanes, propanes,
ethanes, distillate, condensate, and natural gasoline without any
additional processing of any of them is not considered to be
refining.
Acts 1977, 65th Leg., p. 2575, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 103.044. COOPERATIVE MARKETING. No agreement for the
construction or operation of cooperative facilities may provide
for the cooperative marketing of oil, condensate, distillate, or
gas, or any by-product of oil, condensate, distillate, or gas.
Acts 1977, 65th Leg., p. 2576, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 103.045. EFFECT OF APPROVAL ON OPERATIONS IN OTHER FIELDS.
The approval of an agreement authorized by this chapter is not of
itself a finding that similar operations in other fields are
wasteful or not in the interest of conservation.
Acts 1977, 65th Leg., p. 2576, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 103.046. JOINTLY OWNED PROPERTY. None of the provisions in
this chapter require the approval of the commission of voluntary
agreements for the joint development and operation of jointly
owned property.
Acts 1977, 65th Leg., p. 2576, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.