CHAPTER 86. REGULATION OF NATURAL GAS

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NATURAL RESOURCES CODE

TITLE 3. OIL AND GAS

SUBTITLE B. CONSERVATION AND REGULATION OF OIL AND GAS

CHAPTER 86. REGULATION OF NATURAL GAS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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

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

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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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,

Subchapter J of Chapter 85, and Subchapter P of Chapter 91.

Acts 1977, 65th Leg., p. 2532, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977.

Amended by:

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

816, Sec. 3, eff. September 1, 2007.

SUBCHAPTER B. WASTE OF GAS

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977. Amended by Acts 1977, 65th Leg., p. 2695, ch. 871,

art. II, Sec. 8, eff. Sept. 1, 1977; Acts 1979, 66th Leg., p.

674, ch. 300, Sec. 2, eff. May 29, 1979; Acts 1995, 74th Leg.,

ch. 870, Sec. 2, eff. Sept. 1, 1995.

SUBCHAPTER C. POWERS AND DUTIES OF THE COMMISSION

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

SUBCHAPTER D. PRODUCTION OF GAS

Sec. 86.081. REGULATION OF PRODUCTION. (a) For the protection

of public and private interests, the commission, on written

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

notice and an opportunity for a hearing, shall prorate and

regulate the daily gas well production from a common reservoir 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 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, 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 regulate all activities that are

under its jurisdiction and associated with such commingled,

separate multiple stratigraphic or lenticular accumulations of

oil or gas or oil and gas as if the accumulations 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 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.

Acts 1977, 65th Leg., p. 2534, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977. Amended by Acts 1981, 67th Leg., p. 2580, ch. 688,

Sec. 3, eff. June 16, 1981; Acts 1995, 74th Leg., ch. 435, Sec.

3, eff. Aug. 28, 1995.

Amended by:

Acts 2005, 79th Leg., Ch.

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

Acts 2005, 79th Leg., Ch.

1119, Sec. 1, eff. June 18, 2005.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 86.084. DETERMINATION OF STATUS OF PRODUCTION. (a) The

commission, on written complaint by an affected party or on its

own initiative, may determine the status of gas production from

any reservoir 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, Sec. 1, eff.

Sept. 1, 1977.

Amended by:

Acts 2005, 79th Leg., Ch.

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

Sec. 86.085. DETERMINATION OF DEMAND AND VOLUME. On or before

the last day of each month, the commission or a person authorized

by the commission shall determine:

(1) the lawful market demand for gas to be produced from each

prorated reservoir during the following month; and

(2) the volume of gas that can be produced without waste from

each prorated reservoir and each well in the reservoir during the

following month.

Acts 1977, 65th Leg., p. 2534, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977. Amended by Acts 1993, 73rd Leg., ch. 270, Sec. 1,

eff. May 24, 1993.

Amended by:

Acts 2005, 79th Leg., Ch.

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

Sec. 86.086. MONTHLY RESERVOIR ALLOWABLE. After determining

demand for and volume of production from a prorated reservoir as

provided in Section 86.085, 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, Sec. 1, eff.

Sept. 1, 1977.

Amended by:

Acts 2005, 79th Leg., Ch.

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

Sec. 86.087. MONTHLY WELL ALLOWABLE. The monthly reservoir

allowable shall be allocated among all wells entitled to produce

gas from a prorated 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, Sec. 1, eff.

Sept. 1, 1977.

Amended by:

Acts 2005, 79th Leg., Ch.

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

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 86.089. FACTORS IN DETERMINING ALLOWABLE. (a) In

determining the daily allowable production for each gas well in a

prorated reservoir, 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.

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, Sec. 1, eff.

Sept. 1, 1977. Amended by Acts 1985, 69th Leg., ch. 745, Sec. 2,

eff. June 14, 1985.

Amended by:

Acts 2005, 79th Leg., Ch.

881, Sec. 6, eff. June 17, 2005.

Sec. 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.

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, Sec. 1, eff.

Sept. 1, 1977. Amended by Acts 1985, 69th Leg., ch. 745, Sec. 1,

eff. June 14, 1985.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977. Amended by Acts 1985, 69th Leg., ch. 745, Sec. 2,

eff. June 14, 1985; Acts 1995, 74th Leg., ch. 361, Sec. 1, eff.

Aug. 28, 1995; Acts 1997, 75th Leg., ch. 299, Sec. 1, eff. May

26, 1997.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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 in a prorated

reservoir to which the person is connected, the distributor,

transporter, or purchaser may increase the person's take ratably

from all these wells in order to supply the person's 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 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, Sec. 1, eff.

Sept. 1, 1977.

Amended by:

Acts 2005, 79th Leg., Ch.

881, Sec. 7, eff. June 17, 2005.

Sec. 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.

(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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

SUBCHAPTER E. METER AND PRESSURE TESTS

Sec. 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, Sec. 1, eff.

Sept. 1, 1977. Amended by Acts 1995, 74th Leg., ch. 26, Sec. 1,

eff. Sept. 1, 1995.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977. Amended by Acts 1995, 74th Leg., ch. 26, Sec. 2,

eff. Sept. 1, 1995.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977. Amended by Acts 1995, 74th Leg., ch. 26, Sec. 3,

eff. Sept. 1, 1995.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

SUBCHAPTER F. USE OF GAS

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977. Amended by Acts 1977, 65th Leg., p. 2696, ch. 871,

art. II, Sec. 9, eff. Sept. 1, 1977.

SUBCHAPTER G. ENFORCEMENT; JUDICIAL REVIEW

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

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

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

Sec. 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, Sec. 1, eff.

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

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

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

Sec. 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, Sec. 1, eff.

Sept. 1, 1977.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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