NATURAL RESOURCES CODE
CHAPTER 86. REGULATION OF NATURAL GAS
SUBCHAPTER A. GENERAL PROVISIONS
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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 of
this code and Subchapters E and J of Chapter 85 of this code.
Acts 1977, 65th Leg., p. 2532, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
[Sections 86.005 to 86.010 reserved for expansion]
SUBCHAPTER B. WASTE OF GAS
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977. Amended by Acts 1977, 65th Leg., p. 2695, ch. 871, art. II,
§ 8, eff. Sept. 1, 1977; Acts 1979, 66th Leg., p. 674, ch. 300,
§ 2, eff. May 29, 1979; Acts 1995, 74th Leg., ch. 870, § 2,
eff. Sept. 1, 1995.
[Sections 86.013 to 86.040 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES OF THE COMMISSION
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
[Sections 86.044 to 86.080 reserved for expansion]
SUBCHAPTER D. PRODUCTION OF GAS
§ 86.081. REGULATION OF PRODUCTION. (a) For the
protection of public and private interests, the commission shall
prorate and regulate the daily gas well production from each common
reservoir to:
(1) prevent waste; and
(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 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 prorate, allocate,
and regulate 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 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 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. 2534, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 1981, 67th Leg., p. 2580, ch. 688, § 3,
eff. June 16, 1981; Acts 1995, 74th Leg., ch. 435, § 3, eff. Aug.
28, 1995.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 86.084. DETERMINATION OF STATUS OF
PRODUCTION. (a) The commission shall determine the status of gas
production from all reservoirs 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, § 1, eff. Sept. 1,
1977.
§ 86.085. DETERMINATION OF DEMAND AND VOLUME. On or
before the 25th day of each month, the commission, after notice and
hearing, shall determine:
(1) the lawful market demand for gas to be produced
from each reservoir during the following month; and
(2) the volume of gas that can be produced without
waste from the reservoir and each well in the reservoir during the
following month.
Acts 1977, 65th Leg., p. 2534, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 1993, 73rd Leg., ch. 270, § 1, eff. May 24,
1993.
§ 86.086. MONTHLY RESERVOIR ALLOWABLE. After
determining demand and volume of production as provided in Section
86.085 of this code, 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, § 1, eff. Sept. 1,
1977.
§ 86.087. MONTHLY WELL ALLOWABLE. The monthly
reservoir allowable shall be allocated among all wells entitled to
produce gas from the 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 86.089. FACTORS IN DETERMINING ALLOWABLE. (a) In
determining the daily allowable production for each gas well, 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, § 1, eff. Sept. 1,
1977. Amended by Acts 1985, 69th Leg., ch. 745, § 2, eff. June
14, 1985.
§ 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, § 1, eff. Sept. 1,
1977. Amended by Acts 1985, 69th Leg., ch. 745, § 1, eff. June
14, 1985.
§ 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, § 1, eff. Sept. 1,
1977. Amended by Acts 1985, 69th Leg., ch. 745, § 2, eff. June
14, 1985; Acts 1995, 74th Leg., ch. 361, § 1, eff. Aug. 28, 1995;
Acts 1997, 75th Leg., ch. 299, § 1, eff. May 26, 1997.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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 to
which he is connected, the distributor, transporter, or purchaser
may increase his take ratably from all these wells in order to
supply his 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, at its next hearing,
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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
[Sections 86.098 to 86.140 reserved for expansion]
SUBCHAPTER E. METER AND PRESSURE TESTS
§ 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, § 1, eff. Sept. 1,
1977. Amended by Acts 1995, 74th Leg., ch. 26, § 1, eff. Sept. 1,
1995.
§ 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, § 1, eff. Sept. 1,
1977. Amended by Acts 1995, 74th Leg., ch. 26, § 2, eff. Sept. 1,
1995.
§ 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, § 1, eff. Sept. 1,
1977. Amended by Acts 1995, 74th Leg., ch. 26, § 3, eff. Sept. 1,
1995.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
[Sections 86.146 to 86.180 reserved for expansion]
SUBCHAPTER F. USE OF GAS
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977. Amended by Acts 1977, 65th Leg., p. 2696, ch. 871, art. II,
§ 9, eff. Sept. 1, 1977.
[Sections 86.186 to 86.220 reserved for expansion]
SUBCHAPTER G. ENFORCEMENT; JUDICIAL REVIEW
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977. Amended by Acts 1983, 68th Leg., p. 5251, ch. 967, § 1,
eff. Sept. 1, 1983.
§ 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, § 1, eff. Sept. 1,
1977. Amended by Acts 1983, 68th Leg., p. 5251, ch. 967, § 1,
eff. Sept. 1, 1983.
§ 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, § 1, eff. Sept. 1,
1977.
§ 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, § 1, eff. Sept. 1,
1977.
