CHAPTER 86. REGULATION OF NATURAL GAS
NATURAL RESOURCES CODE
TITLE 3. OIL AND GAS
SUBTITLE B. CONSERVATION AND REGULATION OF OIL AND GAS
CHAPTER 86. REGULATION OF NATURAL GAS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 86.001. DECLARATION OF POLICY. In recognition of past,
present, and imminent evils occurring in the production and use
of gas as a result of waste in this production and use of gas in
the absence of correlative opportunities of owners of gas in a
common reservoir to produce and use the gas, the provisions of
this chapter are enacted for the protection of public and private
interests against these evils by prohibiting waste and compelling
ratable production.
Acts 1977, 65th Leg., p. 2531, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 86.002. DEFINITIONS. In this chapter:
(1) "Oil" means crude petroleum oil.
(2) "Gas" means natural gas.
(3) "Commission" means the Railroad Commission of Texas.
(4) "Common reservoir" means all or part of any oil or gas field
or oil and gas field that comprises and includes any area that is
underlaid or that, from geological or other scientific data or
experiments or from drilling operations or other evidence,
appears to be underlaid by a common pool or accumulation of oil
or gas or oil and gas.
(5) "Gas well" means a well that:
(A) produces gas not associated or blended with oil at the time
of production;
(B) produces more than 100,000 cubic feet of gas to each barrel
of oil from the same producing horizon; or
(C) produces gas from a formation or producing horizon
productive of gas only encountered in a well bore through which
oil also is produced through the inside of another string of
casing.
(6) "Oil well" means any well that produces one barrel or more
of oil to each 100,000 cubic feet of gas.
(7) "Dry gas" means gas produced from a stratum that does not
produce oil.
(8) "Sour gas" means gas:
(A) containing more than one and one-half grains of hydrogen
sulphide per 100 cubic feet;
(B) containing more than 30 grains of total sulphur per 100
cubic feet; or
(C) which in its natural state is found by the commission to be
unfit for use in generating light or fuel for domestic purposes.
(9) "Sweet gas" means all gas except sour gas and casinghead
gas.
(10) "Casinghead gas" means any gas or vapor indigenous to an
oil stratum and produced from the stratum with oil.
(11) "Natural gasoline" means gasoline manufactured from
casinghead gas or from any gas.
(12) "Cubic foot of gas" or "standard cubic foot of gas" means
the volume of gas, including natural and casinghead gas,
contained in one cubic foot of space at a standard pressure base
of 14.65 pounds per square inch absolute and at a standard
temperature base of 60 degrees Fahrenheit, and if the conditions
of pressure and temperature differ from this standard, conversion
of the volume from the differing conditions to the standard
conditions shall be made in accordance with the ideal gas laws,
corrected for deviation.
Acts 1977, 65th Leg., p. 2531, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 86.003. DETERMINATION OF SEPARATE WELLS. If oil or gas, or
both, is produced through different strings of casing set in the
same well bore, the inner string through which oil or gas, or
both, is produced shall be regarded as one well, and each
successive additional string of casing through which oil or gas,
or both, is produced from a different producing horizon through
the same well bore shall be regarded as another well.
Acts 1977, 65th Leg., p. 2532, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 86.004. APPLICABILITY. The provisions in this chapter do
not impair the authority of the commission to prevent waste under
the oil and gas conservation laws of this state and do not
repeal, modify, or impair any of the provisions relating to oil
and gas conservation in Sections 85.002, 85.041 through 85.055,
85.056 through 85.064, 85.125, 85.201 through 85.207, 85.241
through 85.243, 85.249 through 85.252, and 85.381 through 85.385,
Subchapter J of Chapter 85, and Subchapter P of Chapter 91.
Acts 1977, 65th Leg., p. 2532, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
816, Sec. 3, eff. September 1, 2007.
SUBCHAPTER B. WASTE OF GAS
Sec. 86.011. PROHIBITION AGAINST WASTE. The production,
transportation, or use of gas in a manner, in an amount, or under
conditions which constitute waste is unlawful and is prohibited.
Acts 1977, 65th Leg., p. 2532, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 86.012. DEFINITION OF WASTE. (a) The term "waste"
includes:
(1) the operation of an oil well or wells with an inefficient
gas-oil ratio;
(2) the drowning with water of a stratum or part of a stratum
capable of producing gas in paying quantities;
(3) permitting a gas well to burn wastefully;
(4) the creation of unnecessary fire hazards;
(5) physical waste or loss incident to or resulting from so
drilling, equipping, or operating a well or wells as to reduce or
tend to reduce the ultimate recovery of gas from any pool;
(6) the escape of gas from a well producing both oil and gas
into the open air in excess of the amount that is necessary in
the efficient drilling or operation of the well;
(7) the production of gas in excess of transportation or market
facilities or reasonable market demand for the type of gas
produced;
(8) the use of gas for the manufacture of carbon black without
first having extracted the natural gasoline content from the gas,
except it shall not be necessary to first extract the natural
gasoline content from the gas where it is utilized in a plant
producing an average recovery of not less than five pounds of
carbon black to each 1,000 cubic feet of gas;
(9) the use of sweet gas produced from a gas well for the
manufacture of carbon black unless it is used in a plant
producing an average recovery of not less than five pounds of
carbon black to each 1,000 cubic feet and unless the sweet gas is
produced from a well located in a common reservoir producing both
sweet and sour gas;
(10) permitting gas produced from a gas well to escape into the
air before or after the gas has been processed for its gasoline
content, unless authorized as provided in Section 86.185 of this
code;
(11) the production of natural gas from a well producing oil
from a stratum other than that in which the oil is found unless
the gas is produced in a separate string of casing from that in
which the oil is produced;
(12) the production of more than 100,000 cubic feet of gas to
each barrel of crude petroleum oil unless the gas is put to one
or more of the uses authorized for the type of gas so produced
under allocations made by the commission or unless authorized as
provided in Section 86.185 of this code; and
(13) underground waste or loss however caused and whether or not
defined in other subdivisions of this section.
(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.
Acts 1977, 65th Leg., p. 2532, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1977, 65th Leg., p. 2695, ch. 871,
art. II, Sec. 8, eff. Sept. 1, 1977; Acts 1979, 66th Leg., p.
674, ch. 300, Sec. 2, eff. May 29, 1979; Acts 1995, 74th Leg.,
ch. 870, Sec. 2, eff. Sept. 1, 1995.
SUBCHAPTER C. POWERS AND DUTIES OF THE COMMISSION
Sec. 86.041. IN GENERAL. The commission has broad discretion in
administering the provisions of this chapter and may adopt any
rule or order in the manner provided by law that it finds
necessary to effectuate the provisions and purposes of this
chapter.
Acts 1977, 65th Leg., p. 2533, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 86.042. RULES AND ORDERS. The commission shall adopt and
enforce rules and orders to:
(1) conserve and prevent the waste of gas;
(2) prevent the waste of gas in drilling and producing
operations and in the piping and distribution of gas;
(3) require dry or abandoned wells to be plugged in a way that
confines gas and water in the strata in which they are found and
prevents them from escaping into other strata;
(4) provide for drilling wells and preserving a record of them;
(5) require wells to be drilled and operated in a manner that
prevents injury to adjoining property;
(6) prevent gas and water from escaping from the strata in which
they are found into other strata;
(7) require records to be kept and reports made;
(8) provide for the issuance of permits and other evidences of
permission when the issuance of the permit or permission is
necessary or incident to the enforcement of its blanket grant of
authority to make any rules necessary to effectuate the law; and
(9) otherwise accomplish the purposes of this chapter.
Acts 1977, 65th Leg., p. 2533, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 86.043. DETERMINING GAS-OIL RATIO. The commission may fix
and determine the gas-oil ratio of all oil wells in the state but
none of the provisions of this chapter may be construed to
authorize the limitation of the production of marginal wells
below the amount fixed by statute. If a restriction imposed by
the commission on the production of oil from an oil well operates
to increase the gas-oil ratio of the well so as to then classify
it as a gas well under the provisions of this chapter, the well
nevertheless shall be considered to be an oil well.
Acts 1977, 65th Leg., p. 2534, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
SUBCHAPTER D. PRODUCTION OF GAS
Sec. 86.081. REGULATION OF PRODUCTION. (a) For the protection
of public and private interests, the commission, on written
complaint by an affected party or on its own initiative and after
notice and an opportunity for a hearing, shall prorate and
regulate the daily gas well production from a common reservoir 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 gas in a common reservoir to produce and use or sell the
gas as permitted in this chapter.
(b) When, as provided in Subsection (b) of Section 85.046 or
Subsection (b) of Section 86.012, 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 regulate all activities that are
under its jurisdiction and associated with such commingled,
separate multiple stratigraphic or lenticular accumulations of
oil or gas or oil and gas as if the accumulations were a single
common reservoir; 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 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.
Acts 1977, 65th Leg., p. 2534, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1981, 67th Leg., p. 2580, ch. 688,
Sec. 3, eff. June 16, 1981; Acts 1995, 74th Leg., ch. 435, Sec.
3, eff. Aug. 28, 1995.
Amended by:
Acts 2005, 79th Leg., Ch.
881, Sec. 1, eff. June 17, 2005.
Acts 2005, 79th Leg., Ch.
1119, Sec. 1, eff. June 18, 2005.
Sec. 86.082. EXERCISE OF AUTHORITY TO PREVENT WASTE. The
commission shall exercise its authority to prevent waste when the
presence or imminence of waste is supported by a finding based on
the evidence introduced at a hearing after proper notice.
Acts 1977, 65th Leg., p. 2534, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 86.083. EXERCISE OF AUTHORITY TO ADJUST CORRELATIVE RIGHTS
AND OPPORTUNITIES. The commission shall exercise its authority
to adjust correlative rights and opportunities of each owner of
gas in a common reservoir to produce and use or sell the gas when
evidence introduced at a hearing after proper notice will support
a finding made by the commission that the aggregate lawful volume
of the open flow or daily potential capacity to produce of all
gas wells located in a common reservoir is in excess of the daily
reasonable market demand for gas from gas wells that may be
produced from the common reservoir, to be used as permitted in
this chapter.
Acts 1977, 65th Leg., p. 2534, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 86.084. DETERMINATION OF STATUS OF PRODUCTION. (a) The
commission, on written complaint by an affected party or on its
own initiative, may determine the status of gas production from
any reservoir in the state.
(b) If the commission finds that waste exists or is imminent in
the production of gas from a reservoir, or that the capacity of
the wells to produce gas from a reservoir exceeds the market
demand for gas from the reservoir, the commission by proper order
shall prorate and regulate the gas production from the reservoir
on a reasonable basis.
Acts 1977, 65th Leg., p. 2534, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Amended by:
Acts 2005, 79th Leg., Ch.
881, Sec. 2, eff. June 17, 2005.
Sec. 86.085. DETERMINATION OF DEMAND AND VOLUME. On or before
the last day of each month, the commission or a person authorized
by the commission shall determine:
(1) the lawful market demand for gas to be produced from each
prorated reservoir during the following month; and
(2) the volume of gas that can be produced without waste from
each prorated reservoir and each well in the reservoir during the
following month.
Acts 1977, 65th Leg., p. 2534, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1993, 73rd Leg., ch. 270, Sec. 1,
eff. May 24, 1993.
Amended by:
Acts 2005, 79th Leg., Ch.
881, Sec. 3, eff. June 17, 2005.
Sec. 86.086. MONTHLY RESERVOIR ALLOWABLE. After determining
demand for and volume of production from a prorated reservoir as
provided in Section 86.085, the commission shall fix the monthly
reservoir allowable of gas to be produced from the reservoir at
the lawful market demand for the gas or at the volume that can be
produced from the reservoir without waste, whichever is the
smaller quantity.
Acts 1977, 65th Leg., p. 2535, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Amended by:
Acts 2005, 79th Leg., Ch.
881, Sec. 4, eff. June 17, 2005.
Sec. 86.087. MONTHLY WELL ALLOWABLE. The monthly reservoir
allowable shall be allocated among all wells entitled to produce
gas from a prorated reservoir to give each well its fair share of
the gas to be produced from the reservoir, but each well is
restricted to the amount of gas that can be produced from it
without waste. The volume of gas allocated to each well is the
monthly allowable for that well.
Acts 1977, 65th Leg., p. 2535, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Amended by:
Acts 2005, 79th Leg., Ch.
881, Sec. 5, eff. June 17, 2005.
Sec. 86.088. DAILY ALLOWABLE. The daily market demand for gas
and the daily allowable shall be determined by dividing the
monthly demand and the monthly allowable by the number of days in
the month.
Acts 1977, 65th Leg., p. 2535, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 86.089. FACTORS IN DETERMINING ALLOWABLE. (a) In
determining the daily allowable production for each gas well in a
prorated reservoir, the commission shall take into account:
(1) the size of the tract segregated with respect to the surface
position and common ownership on which the gas well or wells are
located;
(2) the relation between the daily producing capacity of each
gas well and the aggregate daily capacity of all gas wells
producing the same kind of gas in the same common reservoir or
zone; and
(3) other factors that are pertinent.
(b) In determining the daily allowable production for each gas
well, the commission shall not take into account the size of the
tract on which any gas well or wells are located in excess of the
efficient drainage area of the well or wells. The drainage area
shall be determined by the commission.
(c) In ascertaining the drainage area of a well, the commission
shall take into account such factors as are reflected in the
productive capacity of a gas well, including formation pressure,
the permeability and porosity of the producing formation, and the
well bore's structural position, together with all other factors
taken into account by a reasonably prudent operator in
determining the drainage area for a gas well.
Acts 1977, 65th Leg., p. 2535, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1985, 69th Leg., ch. 745, Sec. 2,
eff. June 14, 1985.
Amended by:
Acts 2005, 79th Leg., Ch.
881, Sec. 6, eff. June 17, 2005.
Sec. 86.090. AUTHORIZING OVERPRODUCTION AND UNDERPRODUCTION.
(a) In order to adjust the correlative rights and opportunities
of each owner to produce, use, and sell gas from a common
reservoir from which a portion of the market demand is seasonal
or where a portion of the market demand fluctuates from month to
month, the commission may permit the wells in the reservoir to be
produced in excess of the monthly allowable, in accordance with
the conditions and limitations set forth in Subsections (b), (c),
(d), and (e) of this section, if no waste would be caused by such
production.
(b) Except as authorized in Subsection (e) of this section, no
well may be permitted in any one month to produce in excess of
two times its monthly allowable, except if there exists or there
is threatened a situation causing an increase in the demand for
the gas from the reservoir which cannot be satisfied otherwise
from the reservoir, then the commission may allow a well to be
produced in excess of two times its monthly allowable.
(c) Except as authorized in Subsection (e) of this section, no
well may ever be allowed to produce in excess of twice its
allowable for more than two months in any period of six months
beginning on the first day of March and September of each year.
If a well has produced twice its allowable or more during a
period of six months beginning on the first day of March or
September, it shall be shut in or, by appropriate commission
order, have its production restricted to a fractional part of its
monthly allowable until its production and allowable are in
balance.
(d) On the first day of March and September of each year, the
commission shall restrict production from all wells that are then
overproduced to the fractional part of their monthly allowable
that will bring the accumulated allowables and the accumulated
monthly production in balance during the next six months. If the
overproduction is not balanced during that six-month period, the
overproduced well shall be shut in or, by appropriate commission
order, have its production restricted to a fractional part of its
monthly allowable until its production and allowable are in
balance.
(e) The commission by appropriate order may permit a gas well to
be underproduced for a period of six consecutive months and may
allow the accumulated underproduction to be produced in addition
to the regular monthly allowable during the following six-month
period. If the underproduction is not balanced during this
six-month period, the remaining accumulated underproduction may,
by appropriate commission order, be produced in addition to the
regular monthly allowable during subsequent consecutive six-month
periods.
Acts 1977, 65th Leg., p. 2535, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1985, 69th Leg., ch. 745, Sec. 1,
eff. June 14, 1985.
Sec. 86.091. MARGINAL GAS WELL AND LIMITS ON WELL RESTRICTIONS.
A "marginal gas well," as applied to a well classified by the
commission as a gas well, means a well that is incapable of
producing under normal operating conditions more than 250,000
cubic feet of gas per day. None of the provisions of this chapter
shall require the commission to limit the production from a
marginal gas well to a quantity less than its actual
deliverability if the well:
(1) has a daily deliverability of 100,000 cubic feet of gas or
less; or
(2) is in a field for which special field rules are not in
effect.
Acts 1977, 65th Leg., p. 2536, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1985, 69th Leg., ch. 745, Sec. 2,
eff. June 14, 1985; Acts 1995, 74th Leg., ch. 361, Sec. 1, eff.
Aug. 28, 1995; Acts 1997, 75th Leg., ch. 299, Sec. 1, eff. May
26, 1997.
Sec. 86.093. EFFECT OF OIL AND GAS STRATUM ON GAS ONLY STRATUM.
If gas is produced from one stratum and oil and gas are produced
from another stratum in the same well bore, the commission shall
take into account the amount of gas produced from the oil stratum
in determining the amount of gas that may be produced from the
stratum producing gas only. The commission may subtract the
amount of the casinghead gas produced from the dry gas that would
be allocated to the well if it produced dry gas and may restrict
the dry gas production accordingly.
Acts 1977, 65th Leg., p. 2536, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 86.094. AUTHORITY TO INCREASE TAKE ABOVE ALLOWABLE. If
unforeseen contingencies increase the demand for gas required by
a distributor, transporter, or purchaser to an amount in excess
of the total allowable production of the wells in a prorated
reservoir to which the person is connected, the distributor,
transporter, or purchaser may increase the person's take ratably
from all these wells in order to supply the person's demand for
gas, provided that notice of the increase and the amount of the
increase are given to the commission within five days; and
provided further, the commission shall adjust the inequality of
withdrawals caused by the increase in fixing the allowable
production of the various wells in the common reservoir or zone.
Acts 1977, 65th Leg., p. 2537, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Amended by:
Acts 2005, 79th Leg., Ch.
881, Sec. 7, eff. June 17, 2005.
Sec. 86.095. ZONING COMMON RESERVOIRS. (a) The commission
shall zone a common reservoir if, on consideration of the
evidence introduced at a hearing, it finds that either the
prevention of waste or adjustment of correlative rights and
opportunities, or both, as designated in Section 86.081 of this
code, may be accomplished more adequately by zoning the common
reservoir.
(b) If the commission zones a common reservoir, each zone shall
be regarded as a separate common reservoir in making allocations
of daily allowable production as provided in this chapter.
(c) If the commission zones a common reservoir, the commission:
(1) shall allocate to each zone its just proportion of the
market demand for gas from the common reservoir;
(2) shall establish appropriate rules applicable to each zone;
(3) may adjust its orders to the practicable conditions that
exist; and
(4) may enter any reasonable order necessary to effectuate the
purposes of this chapter.
(d) The commission may segregate a sour gas area from a sweet
gas area and is not required to restrict the allowable production
of the sour gas zone to the same percentages that may be produced
from the sweet gas zone.
Acts 1977, 65th Leg., p. 2537, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 86.096. FAILURE TO USE OR SELL ALLOWABLE PRODUCTION. If
the commission finds that the owner of a gas well failed or
refused to use or sell the allowable production from his well
when the owner was offered a connection or market for the gas at
a reasonable price, the well shall be excluded from consideration
in allocating the daily allowable production from the reservoir
or zone in which it is located until the owner of the well
signifies to the commission his desire to use or sell the gas. In
all other cases, all gas wells shall be taken into account in
allocating the allowable production among wells producing the
same type of gas.
Acts 1977, 65th Leg., p. 2537, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 86.097. PRODUCTION OF GAS FROM OIL WELL. No person in
possession of or operating an oil well may produce from the oil
well gas found in a horizon productive of gas only.
Acts 1977, 65th Leg., p. 2537, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
SUBCHAPTER E. METER AND PRESSURE TESTS
Sec. 86.141. DUTY TO TEST GAS WELLS. The commission may require
persons producing gas from any gas well to determine periodically
through an appropriate test the deliverability and wellhead
pressure of each gas well from which gas is produced.
Acts 1977, 65th Leg., p. 2538, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1995, 74th Leg., ch. 26, Sec. 1,
eff. Sept. 1, 1995.
Sec. 86.142. TEST REQUIREMENTS. A test to determine the
deliverability and pressure of a gas well shall be made:
(1) under uniform and generally recognized methods; and
(2) under rules prescribed by the commission.
Acts 1977, 65th Leg., p. 2538, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1995, 74th Leg., ch. 26, Sec. 2,
eff. Sept. 1, 1995.
Sec. 86.143. TEST REPORTS. (a) Verified reports of the tests
to determine deliverability and pressure shall be filed with the
commission within a time period after the end of the test period
as set by the commission.
(b) The reports are a public record. They shall be kept on file
with the commission for a period of time determined by the
commission and shall be open to the inspection and examination of
the public.
Acts 1977, 65th Leg., p. 2538, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1995, 74th Leg., ch. 26, Sec. 3,
eff. Sept. 1, 1995.
Sec. 86.144. DEMANDING SECOND TEST. A person producing gas from
the same common reservoir who is dissatisfied with the test as
made and reported may demand that a second test be made in the
manner provided in this subchapter and in the presence of the
person making the demand or his representative.
Acts 1977, 65th Leg., p. 2538, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 86.145. DUTY TO TEST METER. The commission shall require
one of its duly authorized agents to inspect, read, or test any
meter or meters through which gas is being measured or gauged on
the request of a lessor, lessee, operator, or royalty owner from
whose land, lease, or royalty interest gas is being produced.
Acts 1977, 65th Leg., p. 2538, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
SUBCHAPTER F. USE OF GAS
Sec. 86.181. USE OF SWEET GAS PRODUCED FROM GAS WELL. No sweet
gas produced from a gas well may be used for any purpose except:
(1) light or fuel;
(2) efficient chemical manufacture, other than the manufacture
of carbon black, provided that sweet gas produced from wells
located in a common reservoir producing both sweet and sour gas
may be used for the manufacture of carbon black if it is used in
a plant producing an average recovery of not less than five
pounds of carbon black to each 1,000 cubic feet of gas;
(3) bona fide introduction of gas into oil or gas bearing
horizon in order to maintain or increase the rock pressure, or
otherwise increase the ultimate recovery of oil or gas from the
horizon; and
(4) the extraction of natural gasoline when the residue is
returned to the horizon from which it is produced.
Acts 1977, 65th Leg., p. 2538, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 86.182. USE OF SOUR GAS. In addition to the purposes for
which sweet gas produced from a gas well may be used, sour gas
may be used for efficient chemical manufacturing purposes
including the manufacture of carbon black provided:
(1) it is utilized in a plant producing a recovery of not less
than one pound of carbon black to each 1,000 cubic feet of gas;
and
(2) the gasoline content is removed and saved from the sour gas
before the gas is used for carbon black.
Acts 1977, 65th Leg., p. 2539, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 86.183. USE OF CASINGHEAD GAS. Casinghead gas may be used
for any beneficial purpose, which includes the manufacture of
natural gasoline.
Acts 1977, 65th Leg., p. 2539, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 86.184. USE AS GAS LIFT. (a) A producer of either sweet
or sour gas or casinghead gas may use the gas as gas lift in the
bona fide production of oil if the gas is not used in excess of
10,000 cubic feet per barrel of oil produced.
(b) To prevent waste in a case where the facts in the case
warrant it, the commission may permit the use of additional
quantities of gas to lift oil provided:
(1) all the gas used in excess of 10,000 cubic feet for each
barrel of oil is processed for natural gasoline; and
(2) the residue is burned for carbon black when it is
reproduced.
Acts 1977, 65th Leg., p. 2539, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 86.185. PROHIBITION AGAINST GAS IN AIR. No gas from a gas
well may be permitted to escape into the air after the expiration
of 10 days from the time the gas is encountered in the gas well,
or from the time of perforating the casing opposite a gas-bearing
zone if casing is set through the zone, whichever is later, but
the commission may permit the escape of gas into the air for an
additional time if the operator of a well or other facility
presents information to show the necessity for the escape;
provided that the amount of gas which is flared under that
authority is charged to the operator's allowable production. A
necessity includes but is not limited to the following
situations:
(1) cleaning a well of sand or acid or both following
stimulation treatment of a well; and
(2) repairing or modifying a gas-gathering system.
Acts 1977, 65th Leg., p. 2539, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1977, 65th Leg., p. 2696, ch. 871,
art. II, Sec. 9, eff. Sept. 1, 1977.
SUBCHAPTER G. ENFORCEMENT; JUDICIAL REVIEW
Sec. 86.221. UNAUTHORIZED PRODUCTION PROHIBITED. No person may
produce gas from a gas well in violation of the valid orders of
the commission.
Acts 1977, 65th Leg., p. 2539, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 86.222. PENALTIES. (a) Any person who violates a
provision of this chapter or a rule or order adopted under this
chapter is liable for a penalty of not more than:
(1) $10,000 for each offense when the provision, rule, or order
pertains to safety or the prevention or control of pollution; or
(2) $1,000 for each offense when the provision, rule, or order
does not pertain to safety or the prevention or control of
pollution.
(b) Each day a violation occurs constitutes a separate offense.
Acts 1977, 65th Leg., p. 2539, 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. 86.223. SUIT FOR PENALTY. The penalty may be recovered
with the cost of suit by the State of Texas through the attorney
general or the county or district attorney when joined by the
attorney general in a civil action instituted in Travis County,
in the county in which the violation occurred, or in the county
of residence of the defendant.
Acts 1977, 65th Leg., p. 2539, 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. 86.224. SUIT FOR INJUNCTION. A violation or threatened
violation of this chapter may be enjoined by any court of
competent jurisdiction in which the suit for penalty may be
brought. The court may issue mandatory or prohibitory writs of
injunction that the facts justify.
Acts 1977, 65th Leg., p. 2539, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 86.225. JUDICIAL REVIEW. Any person affected by an order
of the commission adopted under the authority of this chapter is
entitled to judicial review of that order in a manner other than
trial de novo.
Acts 1977, 65th Leg., p. 2540, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.