NATURAL RESOURCES CODE
SUBTITLE B. CONSERVATION AND REGULATION OF OIL AND GAS
CHAPTER 85. CONSERVATION OF OIL AND GAS
SUBCHAPTER A. GENERAL PROVISIONS
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
[Sections 85.003 to 85.010 reserved for expansion]
SUBCHAPTER B. ADMINISTRATIVE PROVISIONS
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
[Sections 85.014 to 85.040 reserved for expansion]
SUBCHAPTER C. PROVISIONS GENERALLY APPLICABLE TO THE CONSERVATION
OF OIL AND GAS
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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 shall determine whether or not
those conditions do exist, and if it is shown that they do, the rule
or order shall be enlarged to include the additional area.
Acts 1977, 65th Leg., p. 2516, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977. Amended by Acts 1979, 66th Leg., p. 673, ch. 300, § 1, eff.
May 29, 1979; Acts 1981, 67th Leg., p. 3166, ch. 830, § 2, eff.
June 17, 1981; Acts 1995, 74th Leg., ch. 870, § 1, eff. Sept. 1,
1995; Acts 1995, 74th Leg., ch. 871, § 1, eff. Sept. 1, 1995.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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 shall distribute, prorate, or otherwise apportion or
allocate the allowable production among the various producers on a
reasonable basis.
(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, § 1, eff. Sept. 1,
1977. Amended by Acts 1981, 67th Leg., p. 2578, ch. 688, § 1,
eff. June 16, 1981; Acts 1995, 74th Leg., ch. 435, § 1, eff. Aug.
28, 1995.
§ 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,
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 shall 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, § 1, eff. Sept. 1,
1977.
§ 85.055. ALLOWABLE PRODUCTION OF GAS. (a) If 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 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 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, § 1, eff. Sept. 1,
1977. Amended by Acts 1981, 67th Leg., p. 2579, ch. 688, § 2,
eff. June 16, 1981; Acts 1995, 74th Leg., ch. 435, § 2, eff. Aug.
28, 1995.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 85.058. COMMISSION INQUIRY AND DETERMINATION. From
time to time, the commission shall 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
[Sections 85.065 to 85.120 reserved for expansion]
SUBCHAPTER D. MARGINAL WELLS
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977. Amended by Acts 1983, 68th Leg., p. 325, ch. 73, § 1, eff.
May 3, 1983.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
[Sections 85.126 to 85.160 reserved for expansion]
SUBCHAPTER E. CERTIFICATE OF COMPLIANCE
§ 85.161. WELL OWNERS AND OPERATORS CERTIFICATES. The
owner or operator of any well subject to the jurisdiction of the
commission shall secure from the commission a certificate showing
compliance with the oil or gas conservation laws of the state and
conservation rules and orders of the commission.
Acts 1977, 65th Leg., p. 2521, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 2001, 77th Leg., ch. 1233, § 9, eff. Sept.
1, 2001.
§ 85.162. PROHIBITED CONNECTION. No operator of a
pipeline or other carrier shall connect with any oil or gas well
until the owner or operator of the well furnishes a certificate from
the commission that the owner or operator has complied with the
conservation laws of this state and the rules and orders of the
commission.
Acts 1977, 65th Leg., p. 2521, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 85.163. TEMPORARY CONNECTION. The provisions of this
subchapter do not prevent a temporary connection with a well in
order to take care of production and prevent waste until
opportunity shall have been given the owner or operator of the well
to secure the certificate.
Acts 1977, 65th Leg., p. 2522, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 85.164. CANCELLATION OF CERTIFICATE. The commission
may cancel any certificate of compliance issued under the
provisions of this subchapter if it appears that the owner or
operator of a well covered by the provisions of the certificate, in
the operation of the well or the production of oil or gas from the
well, has violated or is violating the oil and gas conservation laws
of this state or rules or orders of the commission adopted under
those laws. Before canceling a certificate of compliance, the
commission shall give notice to the owner or operator by personal
service or by registered or certified mail of the facts or conduct
alleged to warrant the cancellation and shall give the owner or
operator an opportunity to show compliance with all requirements of
law for retention of the certificate as required by Section
2001.054, Government Code.
Acts 1977, 65th Leg., p. 2522, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 1991, 72nd Leg., ch. 603, § 3, eff. Sept.
1, 1991; Acts 1995, 74th Leg., ch. 76, § 5.95(69), eff. Sept. 1,
1995.
§ 85.165. EFFECT OF CANCELLATION ON OPERATOR OF PIPELINE
OR OTHER CARRIER. (a) On notice from the commission to the
operator of a pipeline or other carrier connected to an oil or gas
well that the certificate of compliance pertaining to that well has
been cancelled, the operator of the pipeline or other carrier shall
disconnect from the well.
(b) It shall be unlawful for the operator of a pipeline or
other carrier to transport oil from the well until a new certificate
of compliance has been issued by the commission.
Acts 1977, 65th Leg., p. 2522, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 85.166. EFFECT OF CANCELLATION ON OWNER OR OPERATOR OF
WELL. On notice from the commission that a certificate of
compliance for an oil or gas well has been cancelled, it shall be
unlawful for the owner or operator of the well to produce oil or gas
from the well until a new certificate of compliance covering the
well has been issued by the commission.
Acts 1977, 65th Leg., p. 2522, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 85.167. FEE FOR REISSUED CERTIFICATE. (a) If a
certificate of compliance for an oil lease or gas well has been
canceled for violation of one or more commission rules, the
commission may not issue a new certificate of compliance until the
owner or operator submits to the commission a nonrefundable fee of
$300 for each severance or seal order issued for the lease or well.
(b) Fees collected under this section shall be deposited to
the oil-field cleanup fund.
Added by Acts 1991, 72nd Leg., ch. 603, § 4, eff. Sept. 1, 1991.
Amended by Acts 2003, 78th Leg., ch. 521, § 1, eff. Sept. 1,
2003.
[Sections 85.168 to 85.200 reserved for expansion]
SUBCHAPTER F. RULES AND ORDERS OF THE COMMISSION
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 85.2021. DRILLING PERMIT FEE.
Text of section effective until September, 1, 2004.
(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 required.
(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) With each application for an extension of time to plug a
well pursuant to commission rules, an applicant shall submit to the
commission a nonrefundable fee of $300, unless the applicant has
filed a bond, letter of credit, or cash deposit under Section
91.104(b)(1), (2), or (3).
(e) 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, § 7, eff. Sept.
1, 1983. Amended by Acts 1985, 69th Leg., ch. 239, § 74, eff.
Sept. 1, 1985; Acts 1991, 72nd Leg., ch. 603, § 5, eff. Sept. 1,
1991; Acts 1999, 76th Leg., ch. 1089, § 2, eff. Sept. 1, 1999;
Acts 2001, 77th Leg., ch. 1233, § 9, eff. Sept. 1, 2001.
For text of section effective September 1, 2004, see § 85.2021,
post.
§ 85.2021. DRILLING PERMIT FEE.
Text of section effective September 1, 2004
(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, § 7, eff. Sept.
1, 1983. Amended by Acts 1985, 69th Leg., ch. 239, § 74, eff.
Sept. 1, 1985; Acts 1991, 72nd Leg., ch. 603, § 5, eff. Sept. 1,
1991; Acts 1999, 76th Leg., ch. 1089, § 2, eff. Sept. 1, 1999;
Acts 2001, 77th Leg., ch. 1233, § 9, eff. Sept. 1, 2001; Acts
2001, 77th Leg., ch. 1233, § 10, eff. Sept. 1, 2004.
For text of section effective until September 1, 2004, see §
85.2021, ante.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
[Sections 85.208 to 85.240 reserved for expansion]
SUBCHAPTER G. SUITS CHALLENGING THE VALIDITY OF LAWS AND ORDERS
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977. Amended by Acts 1981, 67th Leg., p. 800, ch. 291, § 92,
eff. Sept. 1, 1981.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977. Amended by Acts 1981, 67th Leg., p. 800, ch. 291, § 93,
eff. Sept. 1, 1981.
§ 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, § 1, eff. Sept. 1,
1977. Amended by Acts 1981, 67th Leg., p. 800, ch. 291, § 94,
eff. Sept. 1, 1981.
[Sections 85.260 to 85.290 reserved for expansion]
SUBCHAPTER H. RECEIVERSHIP
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
[Sections 85.295 to 85.320 reserved for expansion]
SUBCHAPTER I. DAMAGES
§ 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, § 1, eff. Sept. 1,
1977. Amended by Acts 1987, 70th Leg., ch. 1071, § 1, eff. Aug.
31, 1987.
§ 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, § 1, eff. Sept. 1,
1977.
[Sections 85.323 to 85.350 reserved for expansion]
SUBCHAPTER J. INJUNCTIONS
§ 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, § 1, eff. Sept. 1,
1977. Amended by Acts 1983, 68th Leg., p. 5255, ch. 967, § 2,
eff. Sept. 1, 1983.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
[Sections 85.354 to 85.380 reserved for expansion]
SUBCHAPTER K. PENALTIES, IMPRISONMENT, AND CONFINEMENT
§ 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, § 1, eff. Sept. 1,
1977. Amended by Acts 1983, 68th Leg., p. 5251, ch. 967, § 1,
eff. Sept. 1, 1983.
§ 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, § 1, eff. Sept. 1,
1977. Amended by Acts 1983, 68th Leg., p. 5251, ch. 967, § 1,
eff. Sept. 1, 1983.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 85.3855. ADMINISTRATIVE PENALTY. (a) The commission
may impose an administrative penalty on a person who:
(1) violates Section 85.165 or 85.166 or a rule or
order adopted under Section 85.165 or 85.166; 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 order is under judicial review if the person pays the
penalty to the clerk of the court or files a supersedeas bond with
the court in the amount of the penalty. A person who cannot afford
to pay the penalty or file the bond may stay the enforcement by
filing an affidavit in the manner required by the Texas Rules of
Civil Procedure for a party who cannot afford to file security for
costs, subject to the right of the commission to contest the
affidavit as provided by those rules.
(d) The attorney general may sue to collect the penalty.
(e) A proceeding to impose the penalty is considered to be a
contested case under Chapter 2001, Government Code.
(f) A penalty imposed under this section is in addition to a
forfeiture provided by law or a penalty imposed by the commission
for contempt for violation of a commission rule or order.
Added by Acts 1999, 76th Leg., ch. 1252, § 1, eff. Sept. 1, 1999.
§ 85.386. FORGING NAMES ON PERMITS AND TENDERS. A
person shall be imprisoned in the penitentiary for not less than two
nor more than five years if he:
(1) forges the name of an agent, officer, or employee
of the commission to a permit or tender of the commission relating
to oil or gas or any product or by-product of oil or gas;
(2) forges the name of any person to such a tender or
permit; or
(3) knowingly uses a forged instrument to induce
another to handle or transport oil or gas or any product or
by-product of oil or gas.
Acts 1977, 65th Leg., p. 2529, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 85.387. PROCURING TENDERS AND PERMITS. A person shall
be imprisoned in the penitentiary for not less than two nor more
than five years if he:
(1) knowingly procures or causes an agent, officer, or
employee of the commission to approve or issue a permit or tender of
the commission relating to oil or gas or any product or by-product
of oil or gas that includes a statement or representation that is
false and that materially misrepresents the true facts respecting
the oil or gas or any product or by-product of either; or
(2) procures or causes an agent, officer, or employee
of the commission to issue to him a permit or tender relating to oil
or gas or any product or by-product of either with the intent to
defraud.
Acts 1977, 65th Leg., p. 2529, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 85.388. POSSESSING A FORGED PERMIT OR TENDER. Any
person who knowingly has in his possession a forged tender or permit
of the commission relating to oil or gas or any product or
by-product of oil or gas for the purpose of transporting, handling,
or selling oil or gas shall be guilty of a misdemeanor and on
conviction shall be fined not less than $25 nor more than $1,000 or
shall be confined in the county jail for not less than 30 days nor
more than one year, or both.
Acts 1977, 65th Leg., p. 2529, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 85.389. CRIMINAL PENALTY. (a) A person who is not
the owner or operator of an oil well, gas well, or oil and gas well,
a purchaser under contract of oil, gas, or oil and gas from a well, a
gatherer with written authorization from the owner, operator, or
purchaser, or an authorized representative of the commission who
knowingly destroys, breaks, removes, or otherwise tampers with or
attempts to destroy, break, remove, or otherwise tamper with any
cap, seal, or other device placed on an oil well, gas well, oil and
gas well, or associated oil or gas gathering equipment by the owner
or operator for the purpose of controlling or limiting the
operation of the well or associated equipment commits an offense.
(b) An offense under this section is a felony of the third
degree.
Added by Acts 1983, 68th Leg., p. 5230, ch. 960, § 1, eff. Sept.
1, 1983.
