CHAPTER 88. CONTROL OF OIL PROPERTY
NATURAL RESOURCES CODE
TITLE 3. OIL AND GAS
SUBTITLE B. CONSERVATION AND REGULATION OF OIL AND GAS
CHAPTER 88. CONTROL OF OIL PROPERTY
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 88.001. DEFINITIONS. In this chapter:
(1) "Commission" means the Railroad Commission of Texas.
(2) "Governmental agent" or "governmental agency" means the
Railroad Commission of Texas and any other administrative
governmental board and governmental agent to which the
legislature delegates the duty of supervising the production of
oil and gas in the State of Texas.
(3) "Oil property" means a well producing oil, gas, or oil and
gas, and any group of such contiguous wells of any number owned,
operated, or controlled as a producing unit by the same person in
the same locality, and any leasehold estate to the extent that it
is owned, operated, and controlled by the same person.
Acts 1977, 65th Leg., p. 2547, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
SUBCHAPTER B. RULES
Sec. 88.011. ADOPTION OF RULES. (a) The governmental agency
may promulgate and adopt rules:
(1) to provide for the method of measuring oil and gas produced
from any well in this state and to provide for the type of
measuring devices to be used in obtaining the measurement;
(2) for the inspection of all oil properties to ascertain that
the prescribed measuring devices are installed, are in accurate
working condition, and are being accurately used;
(3) to provide that no oil or gas is being permitted to leave
the possession of the producer without first being accurately
measured and an accurate record of production made and preserved;
(4) to provide that no oil is being produced from a well
producing both oil and gas without burning a flare or flares if
the installation and use of a flare or flares is required by the
terms of this chapter;
(5) for the keeping of complete and accurate records correctly
reflecting the amount of oil or gas or both produced from each
oil property each calendar day and the disposition and method of
disposition of all the oil and gas produced, and for the monthly
filing with the governmental agency of monthly reports accurately
reflecting the true facts with respect to all such matters; and
(6) for the inspection and examination by the governmental
agency, or its agents, servants, and employees, of all oil
properties and the records provided for in this chapter.
(b) The rules shall be adopted in the manner provided by law for
adoption of rules of the commission.
Acts 1977, 65th Leg., p. 2547, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 88.012. RULES AND ORDERS RELATING TO RECORDS AND REPORTS.
The rules and orders of the governmental agency relating to
records and reports shall prescribe the form in which the records
and reports will be made and kept, but the records and reports
shall contain the data and information provided for in this
chapter.
Acts 1977, 65th Leg., p. 2548, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 88.013. NOTICE BY PUBLICATION. (a) When the governmental
agency adopts a rule under this chapter, the governmental agency
shall publish a complete copy of the rule once each day for three
consecutive days in three newspapers of general circulation in
the state, to be selected by the governmental agency.
(b) Notice of any amendment, repeal, alteration, or modification
of the order may be similarly adopted and will become effective
after similar notice.
Acts 1977, 65th Leg., p. 2548, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
SUBCHAPTER C. PRACTICES PROHIBITED IN THE PRODUCTION OF OIL AND
GAS
Sec. 88.051. PRODUCTION PROHIBITED IN EXCESS OF ALLOWABLE
AMOUNT. No person owning, leasing, operating, producing, or
controlling an oil property or any oil well in this state may
produce or cause to be produced on any day from any oil property
or oil well any oil in excess of the amount allowed to be
produced each day from the oil property or oil well under an
order previously adopted by the governmental agency and in force
at the time.
Acts 1977, 65th Leg., p. 2548, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 88.052. PROHIBITED PASSAGE FROM CONTROL OF PRODUCER WITHOUT
MEASUREMENT AND RECORD OF AMOUNT. No person owning, leasing,
operating, or controlling an oil property in this state may
permit the oil or gas produced to pass beyond the possession or
control of that person to the possession or control of any other
person without first accurately measuring the amount of the oil
or gas and making and preserving an accurate record of the
amount.
Acts 1977, 65th Leg., p. 2548, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 88.053. PROHIBITED EVASION OR PREVENTION OF ACCURATE
MEASUREMENT. No person owning, leasing, operating, or
controlling an oil property in this state may use a method or
device to evade or prevent obtaining the accurate measurement as
provided in Section 88.052 of this code.
Acts 1977, 65th Leg., p. 2548, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 88.0531. CRIMINAL PENALTY. (a) A person who knowingly
violates Section 88.052 or 88.053 of this code commits an
offense.
(b) An offense under this section is a Class A misdemeanor
unless the actor has been convicted previously under this
section, in which event the offense is a felony of the third
degree.
Added by Acts 1983, 68th Leg., p. 5231, ch. 960, Sec. 2, eff.
Sept. 1, 1983.
Sec. 88.054. PASSAGE FROM CONTROL OF PRODUCER PROHIBITED IF TANK
NOT UNDER HIS CONTROL. No person owning, leasing, operating, or
controlling an oil property may permit oil produced by him in
this state to pass from his possession or control to the
possession or control of any other person except from a tank or
tanks under the control of the person producing the oil.
Acts 1977, 65th Leg., p. 2549, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 88.055. PRODUCTION PROHIBITED WITHOUT FLARE. If the gas
from a well producing both oil and gas is not trapped and used
and the gas is capable of being burned in a flare, no person
owning, leasing, operating, or controlling an oil property in
this state may produce oil from the well at any time without
simultaneously and continuously burning a flare to consume all
gas that otherwise would be permitted to escape into the open
air. The Railroad Commission of Texas shall have the authority to
grant exceptions to this section.
Acts 1977, 65th Leg., p. 2549, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1989, 71st Leg., ch. 565, Sec. 1,
eff. June 14, 1989.
Sec. 88.056. IDENTIFYING SIGNS. Each oil property in this
state, each tank owned or controlled by such person to which the
property is connected, and each flare to which the property is
connected shall be posted at all times with a sign written in the
English language with letters at least one inch in height,
stating:
(1) the name of the owner of the property;
(2) the operator of the property;
(3) the number of acres contained in the property; and
(4) the name by which the property is commonly known and
identified.
Acts 1977, 65th Leg., p. 2549, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
SUBCHAPTER D. INSPECTION AND EXAMINATION OF OIL PROPERTY
Sec. 88.091. ACCESS TO PROPERTY AND RECORDS. The governmental
agency shall have access at all times to:
(1) the oil property of all persons for inspection and
examination; and
(2) the records of all these persons for inspection,
examination, and audit.
Acts 1977, 65th Leg., p. 2549, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 88.092. PROHIBITED INTERFERENCE WITH ACCESS AND INSPECTION.
No person may:
(1) refuse to permit the governmental agency, or an agent,
servant, representative, or employee of the governmental agency,
to have access to an oil property for inspection and examination;
(2) interfere with the inspection and examination;
(3) remove, tamper with, mutilate, or destroy a device, seal, or
meter on an oil property placed there or used in the inspection
and examination; or
(4) refuse to permit the governmental agency, or an agent,
servant, representative, or employee of the governmental agency,
to have access, for inspection, examination, and audit, to the
books, documents, and records pertaining to, used in connection
with, or required to be used in connection with an oil property.
Acts 1977, 65th Leg., p. 2549, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 88.093. PROHIBITED EQUIPMENT OR ENCLOSURE. No person
owning, leasing, operating, or controlling an oil property in
this state may equip or enclose his oil property, or any part of
his oil property, in a manner that:
(1) prevents inspection and examination; or
(2) prevents an inspection and examination from revealing the
true facts with respect to:
(A) the amount of oil or oil and gas being produced from the oil
property;
(B) the manner in which the oil property is being operated; or
(C) the manner and method by which the production from the oil
property is produced, stored, or delivered from the possession or
control of that person.
Acts 1977, 65th Leg., p. 2550, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 88.094. PROHIBITED GIFT OR GRATUITY. No person may
corruptly give, offer, or promise to give a member of the
governmental agency, chief supervisor, deputy supervisor, or any
agent or employee of the governmental agency a gift or gratuity
with intent to influence the officer or person in his acts or
conduct with respect to:
(1) enforcing any provision of the law applicable to oil and gas
in force at the time in this state;
(2) enforcing any order or rule of the governmental agency
adopted under the power and authority given to it; or
(3) the discharge of any duty imposed on him by the oil and gas
laws, orders, and rules duly promulgated and in force at the time
in this state.
Acts 1977, 65th Leg., p. 2550, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
SUBCHAPTER E. ENFORCEMENT; PENALTIES
Sec. 88.131. VENUE. The courts of the county in which the oil
property or any part of the oil property is located and with
respect to which a violation of the provisions of this chapter is
charged, the courts of Travis County, or the courts of the county
of the residence of any defendant, have jurisdiction of all
prosecutions for violations of the provisions of this chapter.
Acts 1977, 65th Leg., p. 2550, 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. 88.132. SERVICE OF PROCESS. (a) In a suit or action
involving the enforcement of the conservation laws of this state
or the orders of the commission affecting the conservation of the
natural resources of this state, a Texas Ranger or an agent of
the commission may serve civil or judicial process, citation,
notice, warrant, subpoena, or writ, including process of every
character in contempt proceedings, the same and as fully as a
sheriff or constable of a county to whom the process, writ,
notice, citation, subpoena, or warrant might be directed could
within the limits of his own county.
(b) A ranger or an agent of the commission may serve the process
anywhere in the State of Texas although it may be directed to
"any sheriff or constable" of a particular county. He shall make
the same return as any other officer, sign his name, and add
under his name the title of "State Ranger" or "Agent, Railroad
Commission of Texas," as the case may be, which is sufficient to
make it valid if the writ otherwise is properly prepared.
(c) No fees are allowed the rangers or agents of the commission
other than their regular salary or compensation.
Acts 1977, 65th Leg., p. 2550, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 88.133. RESPONSIBILITY FOR COMPLIANCE AND LIABILITY TO
PROSECUTION. The president of each corporation, the chief
managing executive of each association, all active members of
each firm and partnership, and all trustees of each trust subject
to the provisions of this chapter shall be responsible for the
compliance with the terms of this chapter by the corporation,
association, firm, partnership, or trust of which he is,
respectively, president, chief managing executive, member, or
trustee, and he shall be liable to prosecution under and subject
to the criminal penalties provided in this chapter for violations
of this chapter by the respective corporation, association, firm,
partnership, or trust of which he has actual knowledge or to
which he assents.
Acts 1977, 65th Leg., p. 2551, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 88.134. PENALTIES. (a) A person who violates any of the
provisions of Sections 88.091 through 88.093 of this code, or any
person who fails to comply with any of the provisions of those
sections, is guilty of a misdemeanor and on conviction shall be
subject to a fine of not more than $500, or by confinement in the
county jail for not more than six months, or by both.
(b) A person who violates any other provision of this chapter
other than those covered by Subsection (a), a person who fails to
comply with any of the other terms of this chapter, a person who
fails to comply with the terms of a rule or order adopted by the
governmental agency under the terms of this chapter, or a person
who violates any of the rules or orders of the governmental
agency adopted under the provisions of this chapter on conviction
is considered guilty of a felony and on conviction shall be
punished by imprisonment in the Texas Department of Criminal
Justice for a term of not less than two nor more than four years.
Acts 1977, 65th Leg., p. 2551, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 25.135, eff. September 1, 2009.
Sec. 88.135. CIVIL PENALTIES AND INJUNCTIONS. In addition to
the powers specifically granted to the commission under this
chapter, the commission may enforce this chapter or any rule,
order, or permit of the commission adopted under this chapter in
the same manner and subject to the same conditions as provided by
Chapters 81 and 85 of this code, including recovering civil
penalties and seeking injunctive relief as provided by those
chapters.
Added by Acts 1983, 68th Leg., p. 5260, ch. 967, Sec. 7, eff.
Sept. 1, 1983.