NATURAL RESOURCES CODE

CHAPTER 103. COOPERATIVE FACILITIES FOR CONSERVATION AND 
UTILIZATION OF GAS

SUBCHAPTER A. GENERAL PROVISIONS


	§ 103.001.  DEFINITION.  In this chapter, "commission" 
means the Railroad Commission of Texas.

Acts 1977, 65th Leg., p. 2575, ch. 871, art. I, § 1, eff. Sept. 1, 
1977. 


	§ 103.002.  RIGHTS EXISTING ON MAY 12, 1953.  None of the 
provisions in this chapter restrict any of the rights that persons 
had on May 12, 1953, to make and enter into contracts for the 
construction and operation of cooperative facilities as provided in 
this chapter.

Acts 1977, 65th Leg., p. 2575, ch. 871, art. I, § 1, eff. Sept. 1, 
1977. 


	§ 103.003.  CONFLICT WITH ANTITRUST 
LAWS.  (a)  Agreements and operations under agreements that are in 
accordance with the provisions in this chapter, being necessary to 
prevent waste and conserve the natural resources of this state, 
shall not be construed to be in violation of the provisions of 
Chapter 15, Business & Commerce Code, as amended.
	(b)  If a court finds a conflict between the provisions in 
this chapter and Chapter 15, Business & Commerce Code, as amended, 
the provisions in this chapter are intended as a reasonable 
exception necessary for the public interest stated in Subsection 
(a) of this section.
	(c)  If a court finds that a conflict exists between the 
provisions in this chapter and the laws cited in Subsections (a) and 
(b) of this section and finds that the provisions in this chapter 
are not a reasonable exception, it is the intent of the legislature 
that the provisions in this chapter, or any conflicting portion of 
them, shall be declared invalid rather than declaring the cited 
laws, or any portion of them, invalid.

Acts 1977, 65th Leg., p. 2575, ch. 871, art. I, § 1, eff. Sept. 1, 
1977. 
	[Sections 103.004 to 103.040 reserved for expansion]                           

SUBCHAPTER B. FACILITIES FOR CONSERVATION AND UTILIZATION OF GAS


	§ 103.041.  AUTHORIZED COOPERATIVE FACILITIES FOR 
SEPARATELY OWNED PROPERTY.  The commission may approve agreements 
by persons owning or controlling leases or other interests in 
separate property in oil fields, gas fields, or oil and gas fields 
for the construction and operation of cooperative facilities 
necessary for the conservation and utilization of gas, including 
facilities for extracting and separating hydrocarbons from gas or 
casinghead gas.

Acts 1977, 65th Leg., p. 2575, ch. 871, art. I, § 1, eff. Sept. 1, 
1977. 


	§ 103.042.  COMMISSION APPROVAL.  Agreements for the 
construction and operation of cooperative facilities shall be 
approved by the commission only after application, notice, and 
hearing, and a finding by the commission that the cooperative 
facilities are in the interest of conservation and that secondary 
recovery operations are not feasible or necessary.

Acts 1977, 65th Leg., p. 2575, ch. 871, art. I, § 1, eff. Sept. 1, 
1977. 


	§ 103.043.  COOPERATIVE REFINING.  (a)  No agreement for 
the construction or operation of cooperative facilities may provide 
directly or indirectly for the cooperative refining of oil, 
distillate, condensate, or gas, or any by-product of oil, 
distillate, condensate, or gas.
	(b)  The extraction of liquid hydrocarbons from gas and the 
separation of liquid hydrocarbons into butanes, propanes, ethanes, 
distillate, condensate, and natural gasoline without any 
additional processing of any of them is not considered to be 
refining.

Acts 1977, 65th Leg., p. 2575, ch. 871, art. I, § 1, eff. Sept. 1, 
1977. 


	§ 103.044.  COOPERATIVE MARKETING.  No agreement for the 
construction or operation of cooperative facilities may provide for 
the cooperative marketing of oil, condensate, distillate, or gas, 
or any by-product of oil, condensate, distillate, or gas.

Acts 1977, 65th Leg., p. 2576, ch. 871, art. I, § 1, eff. Sept. 1, 
1977. 


	§ 103.045.  EFFECT OF APPROVAL ON OPERATIONS IN OTHER 
FIELDS.  The approval of an agreement authorized by this chapter is 
not of itself a finding that similar operations in other fields are 
wasteful or not in the interest of conservation.

Acts 1977, 65th Leg., p. 2576, ch. 871, art. I, § 1, eff. Sept. 1, 
1977. 


	§ 103.046.  JOINTLY OWNED PROPERTY.  None of the 
provisions in this chapter require the approval of the commission 
of voluntary agreements for the joint development and operation of 
jointly owned property.

Acts 1977, 65th Leg., p. 2576, ch. 871, art. I, § 1, eff. Sept. 1, 
1977.