CHAPTER 85. CONSERVATION OF OIL AND GAS

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NATURAL RESOURCES CODE

TITLE 3. OIL AND GAS

SUBTITLE B. CONSERVATION AND REGULATION OF OIL AND GAS

CHAPTER 85. CONSERVATION OF OIL AND GAS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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.

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, Sec. 1, eff.

Sept. 1, 1977.

SUBCHAPTER B. ADMINISTRATIVE PROVISIONS

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

SUBCHAPTER C. PROVISIONS GENERALLY APPLICABLE TO THE CONSERVATION

OF OIL AND GAS

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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 may determine

whether or not those conditions do exist, and if it is shown that

they do, the rule or order may be enlarged to include the

additional area.

Acts 1977, 65th Leg., p. 2516, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977.

Amended by:

Acts 2005, 79th Leg., Ch.

346, Sec. 1, eff. June 17, 2005.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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.

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, Sec. 1, eff.

Sept. 1, 1977. Amended by Acts 1979, 66th Leg., p. 673, ch. 300,

Sec. 1, eff. May 29, 1979; Acts 1981, 67th Leg., p. 3166, ch.

830, Sec. 2, eff. June 17, 1981; Acts 1995, 74th Leg., ch. 870,

Sec. 1, eff. Sept. 1, 1995; Acts 1995, 74th Leg., ch. 871, Sec.

1, eff. Sept. 1, 1995.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, on written complaint by an affected party or on its

own initiative and after notice and an opportunity for a hearing,

shall distribute, prorate, or otherwise apportion or allocate the

allowable production among the various producers on a reasonable

basis if the commission finds that action to be necessary to:

(1) prevent waste; or

(2) adjust the correlative rights and opportunities of each

owner of oil or gas in a common reservoir to produce and use or

sell the oil or 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

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, Sec. 1, eff.

Sept. 1, 1977. Amended by Acts 1981, 67th Leg., p. 2578, ch. 688,

Sec. 1, eff. June 16, 1981; Acts 1995, 74th Leg., ch. 435, Sec.

1, eff. Aug. 28, 1995.

Amended by:

Acts 2005, 79th Leg., Ch.

346, Sec. 2, eff. June 17, 2005.

Sec. 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 or if the commission on its own initiative finds

such an action to be necessary, 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.

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, Sec. 1, eff.

Sept. 1, 1977.

Amended by:

Acts 2005, 79th Leg., Ch.

346, Sec. 3, eff. June 17, 2005.

Sec. 85.055. ALLOWABLE PRODUCTION OF GAS. (a) If, on written

complaint by an affected party or on its own initiative and after

notice and an opportunity for a hearing, the commission finds

that 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 prorated common source of

supply is that portion of the reasonable market demand that can

be produced without waste.

allowable production from the prorated 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, Sec. 1, eff.

Sept. 1, 1977. Amended by Acts 1981, 67th Leg., p. 2579, ch. 688,

Sec. 2, eff. June 16, 1981; Acts 1995, 74th Leg., ch. 435, Sec.

2, eff. Aug. 28, 1995.

Amended by:

Acts 2005, 79th Leg., Ch.

346, Sec. 4, eff. June 17, 2005.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 85.058. COMMISSION INQUIRY AND DETERMINATION. From time to

time, the commission may 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, Sec. 1, eff.

Sept. 1, 1977.

Amended by:

Acts 2005, 79th Leg., Ch.

346, Sec. 5, eff. June 17, 2005.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 85.065. INFORMAL COMPLAINT PROCESS REGARDING LOSS OF OR

INABILITY TO ACCOUNT FOR NATURAL GAS GATHERED OR TRANSPORTED.

(a) A producer may submit a written request to a person who

gathers or transports gas for the producer for an explanation of

any loss of or inability to account for the gas tendered to the

person by the producer. The request may ask the person to

provide any or all of the information that would be required to

be included in an accounting under Subsection (c). Not later

than the 30th day after the date the person receives the request

from the producer, the person must provide the producer a written

explanation of any loss of or inability to account for the gas

tendered to the person by the producer. The response must

include any relevant information requested by the producer that

is available to the person and that would be required to be

included in an accounting under Subsection (c).

(b) If a producer submits a request under Subsection (a) to a

person who gathers or transports gas for the producer and the

person provides an inadequate explanation of any loss of or

inability to account for the gas, or fails to provide any

explanation of any loss of or inability to account for the gas by

the deadline provided by that subsection, the producer may file

with the commission an informal complaint against the person. An

informal complaint may not be filed before the 30th day after the

end of the production period covered by the complaint. An

informal complaint must:

(1) specify the production period covered by the complaint;

(2) state that at least 30 days have elapsed since the end of

the production period covered by the complaint; and

(3) if the producer metered the volume of gas tendered to the

person who gathered or transported the gas:

(A) describe the type of meter used; and

(B) state the date the meter was last calibrated.

filed, the person who gathered or transported the gas shall

provide to the producer and the commission an accounting of the

gas tendered to the person by the producer for gathering or

transport during the production period covered by the complaint.

The accounting may be provided on a thousand cubic feet or a

million British thermal unit basis, as applicable, and must

include the information the commission determines to be necessary

to resolve an informal complaint under this section, which may

include:

(1) the amount of gas tendered by the producer from each well

that has a meter;

(2) a laboratory analysis of the composition and heating value

of the gas and other substances tendered by the producer, if such

an analysis has been performed;

(3) if available, a schematic drawing of the person's system for

gathering or transporting gas that shows:

(A) each meter type;

(B) the date each meter was last calibrated;

(D) all equipment that alters, disposes of, or otherwise

consumes any of the gas tendered to the person;

(4) the estimated amount of gas used for fuel, flared, or vented

for construction, repair, maintenance, or other operational uses

and, if the information is available, the location of that use;

(5) the estimated amount of contaminants or other impurities

removed from the gas and the location at which the impurities

were removed;

(6) the estimated amount of liquid hydrocarbons and condensate

removed from the gas and the location at which the liquid

hydrocarbons and condensate were removed;

(7) the estimated amount of gas lost and the location at which

the gas was lost;

(8) the estimated amount of gas redelivered by the person,

including the amount of gas sold that was allocated to the

producer, and the location at which the redelivery of the gas

occurred;

(9) any amount of gas received from the producer by the person

that remains unaccounted for; and

(10) any other information the person who gathered or

transported the gas considers relevant to the resolution of the

complaint.

(d) The commission may grant an extension of time to the person

who gathered or transported the gas to provide the accounting

required by Subsection (c). An extension may not permit the

accounting to be provided later than the 45th day after the date

the informal complaint was filed.

(e) If the person who gathered or transported the gas does not

have the information necessary to provide the accounting required

by Subsection (c), the person must provide to the producer and to

the commission a written explanation of the reason the person

does not have the information.

(f) If the person who gathered or transported the gas fails to

provide the accounting required by Subsection (c) or the

explanation required by Subsection (e), the informal complaint

filed by the producer is considered to be valid.

(g) If Subsection (f) applies or the commission determines that

the person who gathered or transported the gas committed waste,

the commission may take any action it considers appropriate,

including issuing an order in a formal proceeding to prevent

waste by the person who gathered or transported the gas.

(h) This subsection applies only to a producer and a person who

gathers or transports gas for the producer under a contract

between the producer and that person that is entered into or

renewed on or after September 1, 2007. On written request, the

producer is entitled to audit the books and records of the person

that pertain to the contract between the producer and the person

for the purpose of verifying whether any gas tendered to the

person by the producer that the person has lost or is unable to

account for has been allocated to the volume of gas tendered to

the person by the producer as required by the contract. A

producer is not entitled to conduct an audit under this

subsection more frequently than annually.

Added by Acts 2007, 80th Leg., R.S., Ch.

696, Sec. 1, eff. September 1, 2007.

SUBCHAPTER D. MARGINAL WELLS

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977. Amended by Acts 1983, 68th Leg., p. 325, ch. 73,

Sec. 1, eff. May 3, 1983.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

SUBCHAPTER F. RULES AND ORDERS OF THE COMMISSION

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 85.2021. DRILLING PERMIT FEE. (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.

$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, Sec. 7, eff.

Sept. 1, 1983. Amended by Acts 1985, 69th Leg., ch. 239, Sec. 74,

eff. Sept. 1, 1985; Acts 1991, 72nd Leg., ch. 603, Sec. 5, eff.

Sept. 1, 1991; Acts 1999, 76th Leg., ch. 1089, Sec. 2, eff. Sept.

1, 1999; Acts 2001, 77th Leg., ch. 1233, Sec. 9, eff. Sept. 1,

2001; Acts 2001, 77th Leg., ch. 1233, Sec. 10, eff. Sept. 1,

2004.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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.

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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

SUBCHAPTER G. SUITS CHALLENGING THE VALIDITY OF LAWS AND ORDERS

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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.

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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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.

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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977. Amended by Acts 1981, 67th Leg., p. 800, ch. 291,

Sec. 92, eff. Sept. 1, 1981.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977. Amended by Acts 1981, 67th Leg., p. 800, ch. 291,

Sec. 93, eff. Sept. 1, 1981.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977. Amended by Acts 1981, 67th Leg., p. 800, ch. 291,

Sec. 94, eff. Sept. 1, 1981.

SUBCHAPTER H. RECEIVERSHIP

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

SUBCHAPTER I. DAMAGES

Sec. 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, Sec. 1, eff.

Sept. 1, 1977. Amended by Acts 1987, 70th Leg., ch. 1071, Sec. 1,

eff. Aug. 31, 1987.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

SUBCHAPTER J. INJUNCTIONS

Sec. 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, Sec. 1, eff.

Sept. 1, 1977. Amended by Acts 1983, 68th Leg., p. 5255, ch. 967,

Sec. 2, eff. Sept. 1, 1983.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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.

cumulative of the authority to punish for contempt.

Acts 1977, 65th Leg., p. 2528, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977.

SUBCHAPTER K. PENALTIES, IMPRISONMENT, AND CONFINEMENT

Sec. 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, Sec. 1, eff.

Sept. 1, 1977. Amended by Acts 1983, 68th Leg., p. 5251, ch. 967,

Sec. 1, eff. Sept. 1, 1983.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977. Amended by Acts 1983, 68th Leg., p. 5251, ch. 967,

Sec. 1, eff. Sept. 1, 1983.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 85.3855. ADMINISTRATIVE PENALTY. (a) The commission may

impose an administrative penalty on a person who:

(1) violates Section 91.705 or 91.706 or a rule or order adopted

under Section 91.705 or 91.706; 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.

the ord

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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