CHAPTER 85. CONSERVATION OF OIL AND GAS
NATURAL RESOURCES CODE
TITLE 3. OIL AND GAS
SUBTITLE B. CONSERVATION AND REGULATION OF OIL AND GAS
CHAPTER 85. CONSERVATION OF OIL AND GAS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 85.001. DEFINITIONS. (a) In this chapter:
(1) "Commission" means the Railroad Commission of Texas.
(2) "Pool," "common pool," "field," or "common source of supply"
means a common reservoir.
(3) "Pool" means an underground reservoir containing a connected
accumulation of crude petroleum oil, or natural gas, or both.
(4) "Product" and "product of oil or gas" mean a commodity or
thing made or manufactured from oil or gas and derivatives or
by-products of oil or gas, including refined crude oil, crude
tops, topped crude, processed crude petroleum, residue from crude
petroleum, cracking stock, uncracked fuel oil, treated crude oil,
fuel oil, residuum, gas oil, naphtha, distillate, gasoline,
kerosene, benzine, wash oil, waste oil, lubricating oil,
casinghead gas, casinghead gasoline, blended gasoline, and blends
or mixtures of oil, or gas, or any derivatives or by-products of
them.
(b) "Oil" means crude petroleum oil, crude petroleum, and crude
oil, and "gas" means natural gas. These terms shall not be
construed as referring to substances different from those
referred to in this chapter and other laws as "oil and gas" and
these terms mean the same whether used in this chapter or in
other laws relating to the conservation of oil and gas.
Acts 1977, 65th Leg., p. 2514, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.002. ANTITRUST AND MONOPOLY STATUTES. (a) The
provisions of this chapter that were formerly a part of Chapter
26, Acts of the 42nd Legislature, 1st Called Session, 1931, as
amended, Chapter 2, Acts of the 42nd Legislature, 4th Called
Session, 1932, as amended, and Chapter 76, General Laws, Acts of
the 44th Legislature, Regular Session, 1935, as amended, do not
affect, alter, diminish, change, or modify the antitrust and
monopoly laws of this state and do not directly or indirectly
authorize a violation of the antitrust and monopoly laws of this
state.
(b) It is the legislative intent that no provision of this
chapter that was formerly a part of Chapter 26, Acts of the 42nd
Legislature, 1st Called Session, 1931, as amended, Chapter 2,
Acts of the 42nd Legislature, 4th Called Session, 1932, as
amended, or Chapter 76, General Laws, Acts of the 44th
Legislature, Regular Session, 1935, as amended, shall affect,
alter, diminish, or amend in any manner a provision of the
antitrust and monopoly laws of this state or authorize a
violation of the antitrust and monopoly laws. The legislative
intent expressed in this subsection shall prevail and take
precedence over sections cited in this subsection regardless of
any statement in these sections to the contrary.
(c) If any provision of this chapter that was formerly a part of
Chapter 26, Acts of the 42nd Legislature, 1st Called Session,
1931, as amended, Chapter 2, Acts of the 42nd Legislature, 4th
Called Session, 1932, as amended, or Chapter 76, General Laws,
Acts of the 44th Legislature, Regular Session, 1935, as amended,
is construed by a court of this state in a manner that will
affect, alter, diminish, or modify any provision of the antitrust
and monopoly laws of this state, this provision which is in
conflict is declared null and void rather than the antitrust and
monopoly laws.
Acts 1977, 65th Leg., p. 2515, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
SUBCHAPTER B. ADMINISTRATIVE PROVISIONS
Sec. 85.011. SUPERVISORS, DEPUTY SUPERVISORS, AND UMPIRES. The
commission shall employ all supervisors, deputy supervisors, and
umpires necessary to carry out the provisions of this chapter and
other related laws and rules and orders of the commission.
Acts 1977, 65th Leg., p. 2515, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.012. ASSISTANTS AND CLERICAL HELP. The commission shall
employ other assistants and clerical help necessary to carry out
the provisions of this chapter and other related laws and rules
and orders of the commission.
Acts 1977, 65th Leg., p. 2515, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.013. PERSONS ENFORCING RULES AND ORDERS. A person
entrusted with the enforcement of the rules and orders of the
commission shall be a regular employee of the state and paid by
the state. No person other than a regular employee of the state
may be charged with or relied on for the performance of these
duties.
Acts 1977, 65th Leg., p. 2516, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
SUBCHAPTER C. PROVISIONS GENERALLY APPLICABLE TO THE CONSERVATION
OF OIL AND GAS
Sec. 85.041. ACTS PROHIBITED IN VIOLATION OF LAWS, RULES, AND
ORDERS. (a) The purchase, acquisition, or sale, or the
transporting, refining, processing, or handling in any other way,
of oil or gas, produced in whole or in part in violation of any
oil or gas conservation statute of this state or of any rule or
order of the commission under such a statute, is prohibited.
(b) The purchase, acquisition, or sale, or the transporting,
refining, processing, or handling in any other way, of any
product of oil or gas which is derived in whole or in part from
oil or gas or any product of either, which was in whole or part
produced, purchased, acquired, sold, transported, refined,
processed, or handled in any other way, in violation of any oil
or gas conservation statute of this state, or of any rule or
order of the commission under such a statute, is prohibited.
Acts 1977, 65th Leg., p. 2516, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.042. RULES AND ORDERS. (a) The commission may
promulgate and enforce rules and orders necessary to carry into
effect the provisions of Section 85.041 of this code and to
prevent that section's violation.
(b) When necessary, the commission shall make and enforce rules
either general in their nature or applicable to particular fields
for the prevention of actual waste of oil or operations in the
field dangerous to life or property.
Acts 1977, 65th Leg., p. 2516, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.043. APPLICATION OF CERTAIN RULES AND ORDERS. If the
commission requires a showing that refined products were
manufactured from oil legally produced, the requirement shall be
of uniform application throughout the state; provided that, if
the rule or order is promulgated for the purpose of controlling a
condition in any local area or preventing a violation in any
local area, then on the complaint of a person that the same or
similar conditions exist in some other local area and the
promulgation and enforcement of the rule could be beneficially
applied to that additional area, the commission may determine
whether or not those conditions do exist, and if it is shown that
they do, the rule or order may be enlarged to include the
additional area.
Acts 1977, 65th Leg., p. 2516, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Amended by:
Acts 2005, 79th Leg., Ch.
346, Sec. 1, eff. June 17, 2005.
Sec. 85.044. EXEMPT PURCHASES. The provisions of Sections
85.041 through 85.043 of this code do not apply to the purchase
of products of oil if made by the ultimate consumer from a retail
distributor of the products.
Acts 1977, 65th Leg., p. 2516, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.045. WASTE ILLEGAL AND PROHIBITED. The production,
storage, or transportation of oil or gas in a manner, in an
amount, or under conditions that constitute waste is unlawful and
is prohibited.
Acts 1977, 65th Leg., p. 2517, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.046. WASTE. (a) The term "waste," among other things,
specifically includes:
(1) operation of any oil well or wells with an inefficient
gas-oil ratio and the commission may determine and prescribe by
order the permitted gas-oil ratio for the operation of oil wells;
(2) drowning with water a stratum or part of a stratum that is
capable of producing oil or gas or both in paying quantities;
(3) underground waste or loss, however caused and whether or not
the cause of the underground waste or loss is defined in this
section;
(4) permitting any natural gas well to burn wastefully;
(5) creation of unnecessary fire hazards;
(6) physical waste or loss incident to or resulting from
drilling, equipping, locating, spacing, or operating a well or
wells in a manner that reduces or tends to reduce the total
ultimate recovery of oil or gas from any pool;
(7) waste or loss incident to or resulting from the unnecessary,
inefficient, excessive, or improper use of the reservoir energy,
including the gas energy or water drive, in any well or pool;
however, it is not the intent of this section or the provisions
of this chapter that were formerly a part of Chapter 26, Acts of
the 42nd Legislature, 1st Called Session, 1931, as amended, to
require repressuring of an oil pool or to require that the
separately owned properties in any pool be unitized under one
management, control, or ownership;
(8) surface waste or surface loss, including the temporary or
permanent storage of oil or the placing of any product of oil in
open pits or earthen storage, and other forms of surface waste or
surface loss including unnecessary or excessive surface losses,
or destruction without beneficial use, either of oil or gas;
(9) escape of gas into the open air in excess of the amount
necessary in the efficient drilling or operation of the well from
a well producing both oil and gas;
(10) production of oil in excess of transportation or market
facilities or reasonable market demand, and the commission may
determine when excess production exists or is imminent and
ascertain the reasonable market demand; and
(11) surface or subsurface waste of hydrocarbons, including the
physical or economic waste or loss of hydrocarbons in the
creation, operation, maintenance, or abandonment of an
underground hydrocarbon storage facility.
(b) Notwithstanding the provisions contained in this section or
elsewhere in this code or in other statutes or laws, the
commission may permit production by commingling oil or gas or oil
and gas from multiple stratigraphic or lenticular accumulations
of oil or gas or oil and gas where the commission, after notice
and opportunity for hearing, has found that producing oil or gas
or oil and gas in a commingled state will prevent waste, promote
conservation, or protect correlative rights.
(c) The commission, after notice and opportunity for hearing,
may permit surface commingling of production of oil or gas or oil
and gas from two or more tracts of land producing from the same
reservoir or from one or more tracts of land producing from
different reservoirs if the commission finds that the commingling
will prevent waste, promote conservation, or protect correlative
rights. The commission may permit the commingling regardless of
whether the tracts or commission-designated reservoirs have the
same working or royalty interest ownership. The amount of
production attributable to each tract or commission-designated
reservoir shall be determined in a manner consistent with this
title. The commission has broad discretion in administering this
subsection and shall adopt and enforce rules or orders as
necessary to administer this subsection.
Acts 1977, 65th Leg., p. 2517, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1979, 66th Leg., p. 673, ch. 300,
Sec. 1, eff. May 29, 1979; Acts 1981, 67th Leg., p. 3166, ch.
830, Sec. 2, eff. June 17, 1981; Acts 1995, 74th Leg., ch. 870,
Sec. 1, eff. Sept. 1, 1995; Acts 1995, 74th Leg., ch. 871, Sec.
1, eff. Sept. 1, 1995.
Sec. 85.047. EXCLUSION FROM DEFINITION OF WASTE. The use of gas
produced from an oil well within the permitted gas-oil ratio for
manufacture of natural gasoline shall not be included in the
definition of waste.
Acts 1977, 65th Leg., p. 2517, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.048. AUTHORITY TO LIMIT PRODUCTION. (a) Under the
provisions of Subsection (10), Section 85.046 of this code, the
commission shall not restrict the production of oil from any new
field brought into production by exploration until the total
production from that field is 10,000 barrels of oil a day in the
aggregate.
(b) The commission's authority to restrict production from a new
field under other provisions of Section 85.046 of this code is
not limited by this section.
Acts 1977, 65th Leg., p. 2517, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.049. HEARING. (a) On verified complaint of any person
interested in the subject matter that waste of oil or gas is
taking place in this state or is reasonably imminent, or on its
own initiative, the commission, after proper notice, may hold a
hearing to determine whether or not waste is taking place or is
reasonably imminent and if any rule or order should be adopted or
if any other action should be taken to correct, prevent, or
lessen the waste.
(b) The hearing shall be held at the time and place determined
by the commission.
Acts 1977, 65th Leg., p. 2517, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.050. PROCEDURE AT HEARING. (a) At the hearing,
interested parties shall be entitled to be heard and to introduce
evidence and require the attendance of witnesses.
(b) The production of evidence may be required as provided by
law.
Acts 1977, 65th Leg., p. 2518, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.051. ADOPTION OF RULE OR ORDER. If the commission finds
at the hearing that waste is taking place or is reasonably
imminent, it shall adopt a rule or order in the manner provided
by law as it considers reasonably required to correct, prevent,
or lessen the waste.
Acts 1977, 65th Leg., p. 2518, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.052. COMPLIANCE WITH RULE OR ORDER. From and after the
promulgation of a rule or order of the commission, it is the duty
of each person affected by the rule or order to comply with it.
Acts 1977, 65th Leg., p. 2518, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.053. DISTRIBUTION, PRORATION, AND APPORTIONMENT OF
ALLOWABLE PRODUCTION. (a) If a rule or order of the commission
limits or fixes in a pool or portion of a pool the production of
oil, or the production of gas from wells producing gas only, the
commission, on written complaint by an affected party or on its
own initiative and after notice and an opportunity for a hearing,
shall distribute, prorate, or otherwise apportion or allocate the
allowable production among the various producers on a reasonable
basis if the commission finds that action to be necessary to:
(1) prevent waste; or
(2) adjust the correlative rights and opportunities of each
owner of oil or gas in a common reservoir to produce and use or
sell the oil or gas as permitted in this chapter.
(b) When, as provided in Subsection (b) of Section 85.046 or
Subsection (b) of Section 86.012 of this code, as amended, the
commission has permitted production by commingling oil or gas or
oil and gas from multiple stratigraphic or lenticular
accumulations of oil or gas or oil and gas, the commission may
distribute, prorate, apportion, or allocate the production of
such commingled separate multiple stratigraphic or lenticular
accumulations of oil or gas or oil and gas as if they were a
single pool; provided, however, that:
(i) such commingling shall not cause the allocation of allowable
production from a well producing from any separate accumulation
or accumulations to be less than that which would result from the
commission applying the provisions of Section 86.095 of this code
to such accumulation or accumulations; and
(ii) the allocation of the allowable for such commingled
production shall be based on not less than two factors which the
Railroad Commission shall take into account as directed by
Section 86.089 of this code.
Acts 1977, 65th Leg., p. 2518, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1981, 67th Leg., p. 2578, ch. 688,
Sec. 1, eff. June 16, 1981; Acts 1995, 74th Leg., ch. 435, Sec.
1, eff. Aug. 28, 1995.
Amended by:
Acts 2005, 79th Leg., Ch.
346, Sec. 2, eff. June 17, 2005.
Sec. 85.054. ALLOWABLE PRODUCTION OF OIL. (a) To prevent
unreasonable discrimination in favor of one pool as against
another, and on written complaint and proof of such
discrimination or if the commission on its own initiative finds
such an action to be necessary, the commission may allocate or
apportion the allowable production of oil on a fair and
reasonable basis among the various pools in the state.
(b) In allocating or ascertaining the reasonable market demand
for the entire state, the reasonable market demand of one pool
shall not be discriminated against in favor of another pool.
(c) The commission may determine the reasonable market demand of
the respective pool as the basis for determining the allotments
to be assigned to the respective pool so that discrimination may
be prevented.
Acts 1977, 65th Leg., p. 2518, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Amended by:
Acts 2005, 79th Leg., Ch.
346, Sec. 3, eff. June 17, 2005.
Sec. 85.055. ALLOWABLE PRODUCTION OF GAS. (a) If, on written
complaint by an affected party or on its own initiative and after
notice and an opportunity for a hearing, the commission finds
that full production from wells producing gas only from a common
source of supply of gas in this state is in excess of the
reasonable market demand, the commission shall inquire into the
production and reasonable market demand for the gas and shall
determine the allowable production from the common source of
supply.
(b) The allowable production from a prorated common source of
supply is that portion of the reasonable market demand that can
be produced without waste.
(c) The commission shall allocate, distribute, or apportion the
allowable production from the prorated common source of supply
among the various producers on a reasonable basis and shall limit
the production of each producer to the amount allocated or
apportioned to the producer.
(d) When, as provided in Subsection (b) of Section 85.046 or
Subsection (b) of Section 86.012 of this code, as amended, the
commission has permitted production by commingling oil or gas or
oil and gas from multiple stratigraphic or lenticular
accumulations of oil or gas or oil and gas, the commission may
allocate, distribute, or apportion the production of such
commingled separate multiple stratigraphic or lenticular
accumulations of oil or gas or oil and gas as if they were a
single common source of supply; provided, however, that:
(i) such commingling shall not cause the allocation of allowable
production from a well producing from any separate accumulation
or accumulations to be less than that which would result from the
commission applying the provisions of Section 86.095 of this code
to such accumulation or accumulations; and
(ii) the allocation of the allowable for such commingled
production shall be based on not less than two factors which the
Railroad Commission shall take into account as directed by
Section 86.089 of this code.
Acts 1977, 65th Leg., p. 2518, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1981, 67th Leg., p. 2579, ch. 688,
Sec. 2, eff. June 16, 1981; Acts 1995, 74th Leg., ch. 435, Sec.
2, eff. Aug. 28, 1995.
Amended by:
Acts 2005, 79th Leg., Ch.
346, Sec. 4, eff. June 17, 2005.
Sec. 85.056. PUBLIC INTEREST. In the administration of the
provisions of this chapter that were formerly a part of Chapter
2, Acts of the 42nd Legislature, 4th Called Session, 1932, as
amended, the commission shall take into consideration and protect
the rights and interests of the purchasing and consuming public
in oil and all its products, such as gasoline and lubricating
oil.
Acts 1977, 65th Leg., p. 2519, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.057. RESTRICTION ON UNEXPLORED TERRITORY. The
provisions of this chapter that were formerly a part of Chapter
2, Acts of the 42nd Legislature, 4th Called Session, 1932, as
amended, shall not be construed to grant the commission any
authority to restrict or in any manner limit the drilling of
wells to explore for oil or gas or both in territory that is not
known to produce either oil or gas.
Acts 1977, 65th Leg., p. 2519, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.058. COMMISSION INQUIRY AND DETERMINATION. From time to
time, the commission may inquire into the production, storage,
transportation, refining, reclaiming, treating, marketing, and
processing of oil and gas, and the reasonable market demand for
oil and gas, so that it may determine whether or not waste exists
or is imminent or whether the oil and gas conservation laws of
this state or the rules and orders of the commission promulgated
under those laws are being violated.
Acts 1977, 65th Leg., p. 2519, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Amended by:
Acts 2005, 79th Leg., Ch.
346, Sec. 5, eff. June 17, 2005.
Sec. 85.059. RECORDS. Each person who produces, stores,
transports, refines, reclaims, treats, markets, or processes oil
or gas or the products of either shall keep in this state
accurate records of the amount of oil or gas which such person
produced, stored, transported, refined, reclaimed, treated,
marketed, or processed and of the source from which the person
produced, obtained, or received the oil or gas or the products of
either and the disposition made of them.
Acts 1977, 65th Leg., p. 2519, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.060. SWORN STATEMENTS AND REPORTS. The commission may
require a person who produces, stores, transports, refines,
reclaims, treats, markets, or processes oil or gas or the
products of either to make and file with the commission sworn
statements or reports as to facts within his knowledge or
possession pertaining to the reasonable market demand for oil and
to the production, storage, transportation, refining, reclaiming,
treating, marketing, or processing of oil or gas and the products
of either. The report shall include those facts enumerated in
Section 85.059 of this code.
Acts 1977, 65th Leg., p. 2519, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.061. INSPECTION AND GAUGING. The commission may require
any well, lease, refinery, plant, tank or storage, pipeline, or
gathering line that belongs to or is under the control of a
person who produces, stores, transports, refines, reclaims,
treats, markets, or processes oil or gas or the products of
either to be inspected or gauged by the agents of the commission
whenever and as often as and for such periods as the commission
considers necessary.
Acts 1977, 65th Leg., p. 2519, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.062. EXAMINATION OF BOOKS AND RECORDS. The commission
and its agents and the attorney general and his assistants and
representatives may examine the books and records of a person who
produces, stores, transports, refines, reclaims, treats, markets,
or processes oil or gas or the products of either as often as
considered necessary for the purpose of determining the facts
concerning matters covered by Sections 85.058 through 85.061 of
this code.
Acts 1977, 65th Leg., p. 2520, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.063. VIOLATIONS BY CORPORATIONS. (a) The failure of a
corporation chartered under the laws of this state to comply with
the provisions of Sections 85.059 through 85.062 of this code and
to keep the records required by Section 85.059 of this code in
this state or the refusal to permit officers designated in
Section 85.062 of this code to inspect and examine the records
required by Section 85.059 of this code shall constitute grounds
for forfeiture of the corporation's charter rights and privileges
and dissolution of its corporate existence.
(b) The failure of a foreign corporation to comply with the
provisions of Sections 85.059 through 85.062 of this code and to
keep the records required by Section 85.059 of this code in this
state or the refusal to permit officers designated in Section
85.062 of this code to inspect and examine the records required
by Section 85.059 of this code shall be grounds for enjoining and
forever prohibiting such corporation from doing business in this
state.
Acts 1977, 65th Leg., p. 2520, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.064. ACTION AGAINST CORPORATION. (a) If he determines
that the public interest requires it, the attorney general shall
institute suit or other appropriate action in Travis County for
forfeiture of charter rights of a domestic corporation or to
enjoin a foreign corporation from doing business in this state
when a corporation is deemed guilty of violating the provisions
of Sections 85.059 through 85.062 of this code. The attorney
general may take this action on his own motion and without leave
or order of any judge or court.
(b) On judgment against a defendant for violating the provisions
of Sections 85.059 through 85.062 of this code, the court may, if
in its judgment the public interest requires it, forfeit the
charter rights of a defendant domestic corporation or enjoin a
defendant foreign corporation from doing business in this state.
Acts 1977, 65th Leg., p. 2520, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.065. INFORMAL COMPLAINT PROCESS REGARDING LOSS OF OR
INABILITY TO ACCOUNT FOR NATURAL GAS GATHERED OR TRANSPORTED.
(a) A producer may submit a written request to a person who
gathers or transports gas for the producer for an explanation of
any loss of or inability to account for the gas tendered to the
person by the producer. The request may ask the person to
provide any or all of the information that would be required to
be included in an accounting under Subsection (c). Not later
than the 30th day after the date the person receives the request
from the producer, the person must provide the producer a written
explanation of any loss of or inability to account for the gas
tendered to the person by the producer. The response must
include any relevant information requested by the producer that
is available to the person and that would be required to be
included in an accounting under Subsection (c).
(b) If a producer submits a request under Subsection (a) to a
person who gathers or transports gas for the producer and the
person provides an inadequate explanation of any loss of or
inability to account for the gas, or fails to provide any
explanation of any loss of or inability to account for the gas by
the deadline provided by that subsection, the producer may file
with the commission an informal complaint against the person. An
informal complaint may not be filed before the 30th day after the
end of the production period covered by the complaint. An
informal complaint must:
(1) specify the production period covered by the complaint;
(2) state that at least 30 days have elapsed since the end of
the production period covered by the complaint; and
(3) if the producer metered the volume of gas tendered to the
person who gathered or transported the gas:
(A) describe the type of meter used; and
(B) state the date the meter was last calibrated.
(c) Not later than the 14th day after the date the complaint is
filed, the person who gathered or transported the gas shall
provide to the producer and the commission an accounting of the
gas tendered to the person by the producer for gathering or
transport during the production period covered by the complaint.
The accounting may be provided on a thousand cubic feet or a
million British thermal unit basis, as applicable, and must
include the information the commission determines to be necessary
to resolve an informal complaint under this section, which may
include:
(1) the amount of gas tendered by the producer from each well
that has a meter;
(2) a laboratory analysis of the composition and heating value
of the gas and other substances tendered by the producer, if such
an analysis has been performed;
(3) if available, a schematic drawing of the person's system for
gathering or transporting gas that shows:
(A) each meter type;
(B) the date each meter was last calibrated;
(C) the accuracy of each meter; and
(D) all equipment that alters, disposes of, or otherwise
consumes any of the gas tendered to the person;
(4) the estimated amount of gas used for fuel, flared, or vented
for construction, repair, maintenance, or other operational uses
and, if the information is available, the location of that use;
(5) the estimated amount of contaminants or other impurities
removed from the gas and the location at which the impurities
were removed;
(6) the estimated amount of liquid hydrocarbons and condensate
removed from the gas and the location at which the liquid
hydrocarbons and condensate were removed;
(7) the estimated amount of gas lost and the location at which
the gas was lost;
(8) the estimated amount of gas redelivered by the person,
including the amount of gas sold that was allocated to the
producer, and the location at which the redelivery of the gas
occurred;
(9) any amount of gas received from the producer by the person
that remains unaccounted for; and
(10) any other information the person who gathered or
transported the gas considers relevant to the resolution of the
complaint.
(d) The commission may grant an extension of time to the person
who gathered or transported the gas to provide the accounting
required by Subsection (c). An extension may not permit the
accounting to be provided later than the 45th day after the date
the informal complaint was filed.
(e) If the person who gathered or transported the gas does not
have the information necessary to provide the accounting required
by Subsection (c), the person must provide to the producer and to
the commission a written explanation of the reason the person
does not have the information.
(f) If the person who gathered or transported the gas fails to
provide the accounting required by Subsection (c) or the
explanation required by Subsection (e), the informal complaint
filed by the producer is considered to be valid.
(g) If Subsection (f) applies or the commission determines that
the person who gathered or transported the gas committed waste,
the commission may take any action it considers appropriate,
including issuing an order in a formal proceeding to prevent
waste by the person who gathered or transported the gas.
(h) This subsection applies only to a producer and a person who
gathers or transports gas for the producer under a contract
between the producer and that person that is entered into or
renewed on or after September 1, 2007. On written request, the
producer is entitled to audit the books and records of the person
that pertain to the contract between the producer and the person
for the purpose of verifying whether any gas tendered to the
person by the producer that the person has lost or is unable to
account for has been allocated to the volume of gas tendered to
the person by the producer as required by the contract. A
producer is not entitled to conduct an audit under this
subsection more frequently than annually.
Added by Acts 2007, 80th Leg., R.S., Ch.
696, Sec. 1, eff. September 1, 2007.
SUBCHAPTER D. MARGINAL WELLS
Sec. 85.121. DEFINITIONS. (a) In this subchapter, "marginal
well" means an oil well that is incapable of producing its
maximum capacity of oil except by pumping, gas lift, or other
means of artificial lift, and which well so equipped is capable,
under normal unrestricted operating conditions, of producing such
daily quantities of oil, as provided in this subchapter, that
would be damaged, or result in a loss of production ultimately
recoverable, or cause the premature abandonment of the well, if
its maximum daily production were artificially curtailed.
(b) As used in Subsection (a), Section 85.121 and Section 85.122
of this code, "gas lift" means gas lift by the use of gas not in
solution with oil produced.
Acts 1977, 65th Leg., p. 2520, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.122. WELLS CONSIDERED AS MARGINAL WELLS. Wells that are
considered marginal wells include any oil well in this state that
is incapable of producing its maximum daily capacity of oil
except by pumping, gas lift, or other means of artificial lift
and having:
(1) when producing from a depth of 2,000 feet or less, a maximum
daily capacity for production of 10 barrels or less, averaged
over the preceding 10 consecutive days of stabilized production;
(2) when producing from a horizon deeper than 2,000 feet and
less in depth than 4,000 feet, a maximum daily capacity for
production of 20 barrels or less, averaged over the preceding 10
consecutive days of stabilized production;
(3) when producing from a horizon deeper than 4,000 feet and
less in depth than 6,000 feet, a maximum daily capacity for
production of 25 barrels or less, averaged over the preceding 10
consecutive days of stabilized production;
(4) when producing from a horizon deeper than 6,000 feet and
less in depth than 8,000 feet, a maximum daily capacity for
production of 30 barrels or less, averaged over the preceding 10
consecutive days of stabilized production; or
(5) when producing from a horizon deeper than 8,000 feet, a
maximum daily capacity for production of 35 barrels or less,
averaged over the preceding 10 consecutive days of stabilized
production.
Acts 1977, 65th Leg., p. 2521, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1983, 68th Leg., p. 325, ch. 73,
Sec. 1, eff. May 3, 1983.
Sec. 85.123. CURTAILMENT OF MARGINAL WELL PRODUCTION AS WASTE.
To artificially curtail the production of a marginal well below
the marginal limit as set out in Sections 85.121 through 85.122
of this code before the marginal well's ultimate plugging and
abandonment is declared to be waste.
Acts 1977, 65th Leg., p. 2521, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.124. RULES AND ORDERS RESTRICTING MARGINAL WELLS. No
rule or order of the commission or of any other constituted legal
authority shall be adopted requiring the restriction of the
production of a marginal well.
Acts 1977, 65th Leg., p. 2521, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.125. EFFECT OF OTHER SUBCHAPTERS. None of the
provisions of this chapter that were formerly a part of Chapter
26, Acts of the 42nd Legislature, 1st Called Session, 1931, as
amended, Chapter 2, Acts of the 42nd Legislature, 4th Called
Session, 1932, as amended, or Chapter 76, General Laws, Acts of
the 44th Legislature, Regular Session, 1935, as amended,
authorize or may be construed to limit, modify, or repeal the
provisions of this subchapter.
Acts 1977, 65th Leg., p. 2521, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
SUBCHAPTER F. RULES AND ORDERS OF THE COMMISSION
Sec. 85.201. ADOPTION OF RULES AND ORDERS. The commission shall
make and enforce rules and orders for the conservation of oil and
gas and prevention of waste of oil and gas.
Acts 1977, 65th Leg., p. 2522, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.202. PURPOSES OF RULES AND ORDERS. (a) The rules and
orders of the commission shall include rules and orders:
(1) to prevent waste, as defined in Section 85.046 of this code,
of oil and gas in drilling and producing operations and in the
storage, piping, and distribution of oil and gas;
(2) to require dry or abandoned wells to be plugged in a manner
that will confine oil, gas, and water in the strata in which they
are found and prevent them from escaping into other strata;
(3) for the drilling of wells and preserving a record of the
drilling of wells;
(4) to require wells to be drilled and operated in a manner that
will prevent injury to adjoining property;
(5) to prevent oil and gas and water from escaping from the
strata in which they are found into other strata;
(6) to provide rules for shooting wells and for separating oil
from gas;
(7) to require records to be kept and reports made; and
(8) to provide for issuance of permits, tenders, and other
evidences of permission when the issuance of the permits,
tenders, or permission is necessary or incident to the
enforcement of the commission's rules or orders for the
prevention of waste.
(b) The commission shall do all things necessary for the
conservation of oil and gas and prevention of waste of oil and
gas and may adopt other rules and orders as may be necessary for
those purposes.
Acts 1977, 65th Leg., p. 2522, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.2021. DRILLING PERMIT FEE. (a) With each application
or materially amended application for a permit to drill, deepen,
plug back, or reenter a well, the applicant shall submit to the
commission a nonrefundable fee of:
(1) $200 if the total depth of the well is 2,000 feet or less;
(2) $225 if the total depth of the well is greater than 2,000
feet but less than or equal to 4,000 feet;
(3) $250 if the total depth of the well is greater than 4,000
feet but less than or equal to 9,000 feet;
(4) $300 if the total depth of the well is greater than 9,000
feet.
(b) An applicant shall submit an additional nonrefundable fee of
$200 when a Rule 37 spacing or a Rule 38 density exception review
is requested.
(c) An applicant shall submit an additional nonrefundable fee of
$150 when requesting that the commission expedite the application
for a permit to drill, deepen, plug back, or reenter a well.
(d) All fees collected under this section shall be deposited in
the state oil-field cleanup fund.
Added by Acts 1983, 68th Leg., p. 5260, ch. 967, Sec. 7, eff.
Sept. 1, 1983. Amended by Acts 1985, 69th Leg., ch. 239, Sec. 74,
eff. Sept. 1, 1985; Acts 1991, 72nd Leg., ch. 603, Sec. 5, eff.
Sept. 1, 1991; Acts 1999, 76th Leg., ch. 1089, Sec. 2, eff. Sept.
1, 1999; Acts 2001, 77th Leg., ch. 1233, Sec. 9, eff. Sept. 1,
2001; Acts 2001, 77th Leg., ch. 1233, Sec. 10, eff. Sept. 1,
2004.
Sec. 85.203. CONSIDERATIONS IN ADOPTING RULES AND ORDERS TO
PREVENT WASTE. The commission may consider any or all of the
definitions of waste stated in Section 85.046 of this code,
whenever the facts, circumstances, or conditions make them
applicable, in adopting rules or orders to prevent waste of oil
or gas.
Acts 1977, 65th Leg., p. 2523, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.204. PROHIBITED RULES AND ORDERS. The commission is not
authorized to adopt a rule or order or to make a determination or
holding that any mode, manner, or process of refining oil
constitutes waste.
Acts 1977, 65th Leg., p. 2523, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.205. NOTICE AND HEARING. No rule or order pertaining to
the conservation of oil and gas or to the prevention of waste of
oil and gas may be adopted by the commission except after notice
and hearing as provided by law.
Acts 1977, 65th Leg., p. 2523, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.206. EMERGENCY ORDER. (a) If the commission finds an
emergency to exist, that in the commission's judgment requires
the adoption of an order without giving notice or holding a
hearing, the emergency order may be adopted and shall be valid as
though notice had been given and a hearing held.
(b) The emergency order shall remain in force no longer than 15
days from its effective date.
(c) The emergency order shall expire, in any event, at the time
an order relating to the same subject matter and adopted after
proper notice and hearing becomes effective.
Acts 1977, 65th Leg., p. 2523, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.207. EFFECT OF AMENDMENT, REPEAL, OR EXPIRATION OF A
RULE OR ORDER. The amendment, repeal, or expiration of a rule or
order of the commission adopted under the provisions of this
chapter that were formerly a part of Chapter 76, General Laws,
Acts of the 44th Legislature, Regular Session, 1935, as amended,
or the provisions of Title 102, Revised Civil Statutes of Texas,
1925, as amended, including provisions of this code formerly
included in that title, shall not have the effect of releasing or
discharging from liability, penalty, or forfeiture any person
violating the rule or order before the effective date of the
amendment, repeal, or expiration. Prosecutions and suits for
these violations, liabilities, penalties, and forfeitures shall
be instituted and proceeded with in all respects as if the rule
or order had not been amended or repealed, or had not expired.
Acts 1977, 65th Leg., p. 2523, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
SUBCHAPTER G. SUITS CHALLENGING THE VALIDITY OF LAWS AND ORDERS
Sec. 85.241. SUITS BY INTERESTED PERSONS. Any interested person
who is affected by the conservation laws of this state or orders
of the commission relating to oil or gas and the waste of oil or
gas, and who is dissatisfied with any of these laws or orders,
may file suit against the commission or its members in a court of
competent jurisdiction in Travis County to test the validity of
the law or order.
Acts 1977, 65th Leg., p. 2524, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.242. EXPEDITIOUS TRIAL. A suit brought under Section
85.241 of this code shall be advanced for trial and shall be
determined as expeditiously as possible. No postponement or
continuance shall be granted except for reasons considered
imperative by the court.
Acts 1977, 65th Leg., p. 2524, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.243. BURDEN OF PROOF. In the trial of a suit brought
under Section 85.241 of this code, the burden of proof shall be
on the party complaining of the law or order, and the law or
order is deemed prima facie valid.
Acts 1977, 65th Leg., p. 2524, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.244. CONDITIONS FOR INJUNCTIVE RELIEF. No temporary
restraining order, temporary or permanent injunction, or other
form of injunctive relief may be granted against the commission,
its members, agents, and representatives to restrain it or them
from enforcing any rule or order adopted by the commission under
the oil and gas conservation laws of this state or from enforcing
any of these laws unless notice is given to the commission and a
hearing is held as provided in this subchapter.
Acts 1977, 65th Leg., p. 2524, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.245. NOTICE TO COMMISSION. (a) At the time a petition
or application is filed requesting a temporary restraining order
or any form of temporary injunctive relief, the clerk of the
court in which the petition or application is filed shall issue
notice in writing to the commission.
(b) The notice shall include:
(1) the docket number;
(2) the style of the case; and
(3) a brief statement of the nature of the suit.
(c) The notice shall be served on the commission in Travis
County by delivering a copy of the citation to the commission, a
member of the commission, or the secretary of the commission for
the service of other citations.
(d) Five days after the citation has been served a hearing may
be held on the petition or application.
Acts 1977, 65th Leg., p. 2524, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.246. INTERVENTION IN SUIT. In the discretion of the
court, any person who is interested in the subject matter of the
suit may intervene.
Acts 1977, 65th Leg., p. 2524, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.247. RULES AND ORDERS PRIMA FACIE VALID. The rule or
order complained of in the suit is prima facie valid, and the use
and introduction of the verified petition of the plaintiff shall
not be sufficient to overcome the prima facie validity of the
rule or order or to authorize the court to grant any injunctive
relief against the enforcement of the rule or order.
Acts 1977, 65th Leg., p. 2524, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.248. BOND. Before an order granting injunctive relief
against an oil and gas conservation law, rule, or order of the
commission becomes effective, the plaintiff shall be required by
the court to execute a bond with good and sufficient sureties in
a reasonably sufficient amount determined by the court to
indemnify any persons whom the court may find from the facts
proven will suffer damage as a result of the violation of the
law, rule, or order in question. The persons shall be named in
the order of the judge at the time the amount of the bond is
fixed by the court and entered in the record.
Acts 1977, 65th Leg., p. 2525, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.249. CONDITIONS OF BOND. (a) In determining the amount
of the bond, the judge shall consider all facts and circumstances
surrounding the parties and the ability of the plaintiff to make
the bond so that the judge can determine the amount and
reasonableness of the bond under the facts and circumstances.
(b) A bond made or executed by a bonding or surety company shall
be by a company authorized to do business in Texas.
(c) The bond shall be approved by the judge and shall be for the
use and benefit of and may be sued on by any person named in the
order who suffers damage as a result of violation of the law,
rule, or order.
Acts 1977, 65th Leg., p. 2525, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.250. CHANGING AMOUNT, PARTIES, AND SURETIES. On a
motion and for good cause shown, and after notice to the parties,
the court periodically may:
(1) increase or decrease the amount of the bond;
(2) add new beneficiaries; and
(3) require new and additional sureties that the facts may
justify.
Acts 1977, 65th Leg., p. 2525, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.251. SUITS ON BONDS. A suit on a bond must be
instituted within six months from the date of the final
determination of the validity in whole or in part of the rule or
order.
Acts 1977, 65th Leg., p. 2525, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.252. INADMISSIBLE EVIDENCE. A finding by the court that
any party is likely to suffer damage is not admissible as
evidence of damages in a suit on the bond.
Acts 1977, 65th Leg., p. 2525, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.253. APPEAL. After notice and hearing on an application
for injunctive relief, either party to the suit is entitled to
appeal the judgment or order granting or refusing the temporary
restraining order, temporary or permanent injunction, or other
form of injunctive relief or granting or overruling a motion to
dissolve the temporary restraining order, temporary or permanent
injunction, or other form of injunctive relief.
Acts 1977, 65th Leg., p. 2525, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.254. APPEAL HAS PRECEDENCE. The appeal is returnable at
once to the appellate court and the action appealed shall have
precedence in the appellate court over all cases, proceedings,
and causes of a different character that are pending.
Acts 1977, 65th Leg., p. 2525, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.255. EARLY DECISION BY COURT OF APPEALS. The court of
appeals shall decide the question in the appeal at as early a
date as possible.
Acts 1977, 65th Leg., p. 2526, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1981, 67th Leg., p. 800, ch. 291,
Sec. 92, eff. Sept. 1, 1981.
Sec. 85.256. APPEAL PROCEDURES. The provisions and requirements
of Article 4662, Revised Civil Statutes of Texas, 1925, as
amended, and Rule 385 of the Texas Rules of Civil Procedure, as
amended, relating to temporary injunctions, apply to appeals from
any order granting or refusing a temporary restraining order, or
granting or overruling a motion to dissolve a temporary
restraining order under the provisions of this subchapter.
Acts 1977, 65th Leg., p. 2526, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.257. CERTIFIED QUESTIONS AND WRITS OF ERROR. (a) If a
question is certified or writ of error requested or granted to
the supreme court, the supreme court shall set the cause for
hearing immediately and shall decide the cause at as early a date
as possible.
(b) The cause shall have precedence over all other causes,
proceedings, and causes of a different character in the court.
Acts 1977, 65th Leg., p. 2526, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.258. AUTHORITY OF COURT OF APPEALS TO ISSUE WRITS. The
court of appeals and its judges have the jurisdiction to issue
writs of prohibition, mandamus, and injunction to prevent the
enforcement of any order or judgment of a trial court or judge
who grants any type of injunctive relief without notice and
hearing in violation of the requirements of Sections 85.244 and
85.245 of this code.
Acts 1977, 65th Leg., p. 2526, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1981, 67th Leg., p. 800, ch. 291,
Sec. 93, eff. Sept. 1, 1981.
Sec. 85.259. ISSUANCE OF WRITS BY COURT OF APPEALS. If it
appears that the provisions of Sections 85.244 and 85.245 of this
code have not been complied with, then on proper application from
the commission to the court of appeals having jurisdiction, the
court shall issue instanter the necessary writs of prohibition,
mandamus, or injunction to prohibit and restrain the trial judge
from enforcing or attempting to enforce the provisions of the
injunction issued by him and to prohibit and restrain the party
or parties in whose favor the order is entered from acting or
attempting to act under the protection of the order or from
violating the law, rule, or order of the commission attacked.
Acts 1977, 65th Leg., p. 2526, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1981, 67th Leg., p. 800, ch. 291,
Sec. 94, eff. Sept. 1, 1981.
SUBCHAPTER H. RECEIVERSHIP
Sec. 85.291. REQUEST FOR RECEIVER. If a rule or order of the
commission has been finally adjudicated to be valid in whole or
part in a suit to which the commission is a party, and if after
that time a party to the suit or other proceedings in which the
rule or order was declared valid violates the rule, order, or
judgment or shall thereafter use or permit to be used any
property owned or controlled by him in violation of the rule,
order, or judgment, the commission shall make application to the
judge of the trial court setting out the rule, order, or judgment
and stating that the party subsequent to the date of the judgment
violated or is violating the rule, order, or judgment and
requesting that a receiver be appointed as provided in this
subchapter.
Acts 1977, 65th Leg., p. 2526, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.292. APPOINTMENT OF RECEIVER AND BOND. After an
application is submitted as provided in Section 85.291 of this
code, the judge of the trial court, after notice and hearing, may
appoint a receiver of the property involved or used in violation
of the rule, order, or judgment and shall set a proper bond for
the receiver.
Acts 1977, 65th Leg., p. 2527, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.293. DUTIES OF RECEIVER. As soon as the receiver is
qualified, he shall take possession of the property and shall
perform his duties as receiver of the property under the orders
of the court, strictly observing the rule, order, or judgment.
Acts 1977, 65th Leg., p. 2527, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.294. DISSOLUTION OF RECEIVERSHIP. A party whose
property is placed in receivership may move to dissolve the
receivership and to discharge the receiver on the terms the court
may prescribe.
Acts 1977, 65th Leg., p. 2527, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
SUBCHAPTER I. DAMAGES
Sec. 85.321. SUIT FOR DAMAGES. A party who owns an interest in
property or production that may be damaged by another party
violating the provisions of this chapter that were formerly a
part of Chapter 26, Acts of the 42nd Legislature, 1st Called
Session, 1931, as amended, or another law of this state
prohibiting waste or a valid rule or order of the commission may
sue for and recover damages and have any other relief to which he
may be entitled at law or in equity. Provided, however, that in
any action brought under this section or otherwise, alleging
waste to have been caused by an act or omission of a lease owner
or operator, it shall be a defense that the lease owner or
operator was acting as a reasonably prudent operator would act
under the same or similar facts and circumstances.
Acts 1977, 65th Leg., p. 2527, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1987, 70th Leg., ch. 1071, Sec. 1,
eff. Aug. 31, 1987.
Sec. 85.322. PROCEEDINGS NOT TO IMPAIR SUIT FOR DAMAGES. None
of the provisions of this chapter that were formerly a part of
Chapter 26, Acts of the 42nd Legislature, 1st Called Session,
1931, as amended, no suit by or against the commission, and no
penalties imposed on or claimed against any party violating a
law, rule, or order of the commission shall impair or abridge or
delay a cause of action for damages or other relief that an owner
of land or a producer of oil or gas, or any other party at
interest, may have or assert against any party violating any rule
or order of the commission or any judgment under this chapter.
Acts 1977, 65th Leg., p. 2527, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
SUBCHAPTER J. INJUNCTIONS
Sec. 85.351. SUIT FOR INJUNCTION. (a) If it appears that a
person is violating or threatening to violate the provisions of
this chapter that were formerly a part of Chapter 76, General
Laws, Acts of the 44th Legislature, Regular Session, 1935, as
amended, or Title 102, Revised Civil Statutes of Texas, 1925, as
amended, including provisions of this code formerly included in
that title, or any rule or order of the commission adopted under
those laws, the commission, through the attorney general, shall
bring suit in the name of the state to restrain the violation or
threatened violation.
(b) The suit shall be brought against the person violating or
threatening to violate the law, rule, or order in a court of
competent jurisdiction in Travis County, in the county in which
the violation occurred, or in the county of residence of any
defendant.
Acts 1977, 65th Leg., p. 2527, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1983, 68th Leg., p. 5255, ch. 967,
Sec. 2, eff. Sept. 1, 1983.
Sec. 85.352. TYPES OF COURT ORDERS. In the suit, the commission
in the name of the state may obtain prohibitory and mandatory
injunctions, including temporary restraining orders and temporary
injunctions, that the facts may warrant.
Acts 1977, 65th Leg., p. 2528, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.353. APPOINTMENT OF RECEIVER. (a) The violation by a
person of any injunction granted under the provisions of this
subchapter shall be sufficient grounds for appointment by the
court of a receiver to take charge of the person's property and
to exercise authority that in the judgment of the court is
necessary to bring about compliance with the injunction. The
court may appoint the receiver either on its own motion or on
motion of the commission in the name of the state.
(b) No receiver may be appointed until after notice is given and
a hearing is held.
(c) The authority to appoint a receiver is in addition to and
cumulative of the authority to punish for contempt.
Acts 1977, 65th Leg., p. 2528, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
SUBCHAPTER K. PENALTIES, IMPRISONMENT, AND CONFINEMENT
Sec. 85.381. PENALTY FOR VIOLATION OF LAWS, RULES, AND ORDERS.
(a) In addition to being subject to any forfeiture provided by
law and to any penalty imposed by the commission for contempt for
violation of its rules or orders, any person who violates the
provisions of Sections 85.045 and 85.046 of this code, Title 102,
Revised Civil Statutes of Texas, 1925, as amended, including
provisions of this code formerly included in that title, or any
rule or order of the commission promulgated under those laws is
subject to a penalty of not more than:
(1) $10,000 when the provision, rule, or order pertains to
safety or the prevention or control of pollution; or
(2) $1,000 when the provision, rule, or order does not pertain
to safety or the prevention or control of pollution.
(b) The applicable maximum penalty may be assessed for each and
every day of violation and for each and every act of violation.
Acts 1977, 65th Leg., p. 2528, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1983, 68th Leg., p. 5251, ch. 967,
Sec. 1, eff. Sept. 1, 1983.
Sec. 85.382. VENUE. The penalty provided in Section 85.381 of
this code shall be recovered in a court of competent jurisdiction
in Travis County, in the county in which the violation occurred,
or in the county of the residence of any defendant.
Acts 1977, 65th Leg., p. 2528, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1983, 68th Leg., p. 5251, ch. 967,
Sec. 1, eff. Sept. 1, 1983.
Sec. 85.383. SUIT. By direction of the commission, the suit to
recover the penalty shall be instituted and conducted in the name
of the state by the attorney general or by the county or district
attorney in the county in which the suit is brought.
Acts 1977, 65th Leg., p. 2528, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.384. EFFECT OF RECOVERY OR PAYMENT OF PENALTY. The
recovery or payment of the penalty shall not authorize the
violation of any provision of Section 85.045 or 85.046 of this
code, Title 102, Revised Civil Statutes of Texas, 1925, as
amended, including provisions of this code formerly included in
that title, or any rule or order of the commission adopted under
those laws.
Acts 1977, 65th Leg., p. 2528, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.385. PERSONS AIDING OR ABETTING VIOLATION. Any person
who aids or abets any other person in violating Section 85.045 or
85.046 of this code, Title 102, Revised Civil Statutes of Texas,
1925, as amended, including provisions of this code formerly
included in that title, or any rule or order adopted by the
commission under those laws is subject to the same penalties as
provided in Section 85.381 of this code.
Acts 1977, 65th Leg., p. 2529, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 85.3855. ADMINISTRATIVE PENALTY. (a) The commission may
impose an administrative penalty on a person who:
(1) violates Section 91.705 or 91.706 or a rule or order adopted
under Section 91.705 or 91.706; or
(2) knowingly destroys, breaks, removes, or otherwise tampers
with, or attempts to destroy, break, remove, or otherwise tamper
with, a cap, seal, or other device placed by the commission on an
oil well, gas well, oil and gas well, or other associated oil or
gas gathering equipment.
(b) The amount of the penalty may not exceed $10,000 for each
violation. The amount shall be based on:
(1) the seriousness of the violation, including the nature,
circumstances, extent, and gravity of the violation;
(2) the economic harm to property or the environment caused by
the violation;
(3) the history of previous violations;
(4) efforts to correct the violation; and
(5) any other matter that justice may require.
(c) The enforcement of the penalty may be stayed during the time
the ord