State Codes and Statutes
Statutes > Texas > Natural-resources-code > Title-3-oil-and-gas > Chapter-87-regulation-of-sour-natural-gas
NATURAL RESOURCES CODE
TITLE 3. OIL AND GAS
SUBTITLE B. CONSERVATION AND REGULATION OF OIL AND GAS
CHAPTER 87. REGULATION OF SOUR NATURAL GAS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 87.001. DEFINITIONS. In this chapter, the words "oil,"
"gas," "commission," "common reservoir," "gas well," "oil well,"
"sour gas," "sweet gas," "natural gasoline," "cubic foot of gas,"
and "casinghead gas" are defined as provided in Section 86.002 of
this code.
Acts 1977, 65th Leg., p. 2541, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
SUBCHAPTER B. POWERS AND DUTIES OF COMMISSION
Sec. 87.011. RULES AND ORDERS. (a) In administering the
provisions of this chapter, the commission shall hold hearings,
make determinations, and promulgate rules and orders as provided
in Sections 86.084-86.090 of this code and other laws of this
state.
(b) After notice and hearing as provided by law, the commission
shall promulgate any other rule or order it finds necessary to
carry out the provisions of this chapter.
Acts 1977, 65th Leg., p. 2541, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.012. VALIDITY. (a) Rules and orders adopted by the
commission under the terms of this chapter are considered prima
facie valid.
(b) A person affected by an order may sue to test the validity
of the order adopted by the commission under this chapter in the
same manner, on the same conditions, and in the same court or
courts as prescribed for suits testing the validity of orders of
the commission promulgated under the general oil conservation
statutes of this state.
Acts 1977, 65th Leg., p. 2541, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.013. HEARINGS. From time to time, the commission shall
hold hearings, after proper notice, to hear evidence and to adopt
rules and orders to enforce the provisions of this chapter.
Acts 1977, 65th Leg., p. 2541, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.014. INSPECTION OF RECORDS; REPORTS. In addition to
authority given by existing law, the commission or its agents
may:
(1) inspect the books and records of any person who is affected
by the provisions of this chapter; and
(2) require sworn reports to be filed from time to time as the
commission finds necessary.
Acts 1977, 65th Leg., p. 2541, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
SUBCHAPTER C. PRODUCTION OF SOUR GAS
Sec. 87.051. LIMITATION OF SOUR GAS PRODUCTION. No person may
produce sour gas from any sour gas well in a reservoir producing
both sweet and sour gas in excess of the daily allowable
production for the gas well as fixed by the orders and schedules
of the commission. The rate of production from a sour gas well is
considered to be the daily average rate of production for the
calendar month.
Acts 1977, 65th Leg., p. 2542, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.052. MAXIMUM PRODUCTION OF SOUR GAS FOR CARBON BLACK
MANUFACTURE. (a) In any common reservoir in the state producing
both sweet and sour gas, there shall never be produced from the
common reservoir for use in carbon black manufacture a maximum
daily volume of sour gas from the gas wells in excess of 750
million cubic feet.
(b) The commission shall prorate the daily volume of sour gas
from gas wells among all the sour gas wells in the reservoir to
prevent cognizable and preventable drainage of gas from tracts of
land in the sour gas producing area segregated as to surface
position and common ownership on which the sour gas wells are
located.
Acts 1977, 65th Leg., p. 2542, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.053. EFFECT OF DEMAND BELOW MAXIMUM ALLOWABLE
PRODUCTION. (a) If the daily demand for sour gas from gas wells
for use in carbon black manufacture is less than the daily
maximum allowable permitted in Section 87.052 of this code, the
total daily volume of gas from gas wells from the sour gas area
for use in carbon black manufacture shall be equal to the daily
demand.
(b) The commission shall determine the daily demand and prorate
it among all the sour gas wells in the area as provided in
Section 87.052 of this code.
Acts 1977, 65th Leg., p. 2542, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.054. EFFECT OF DEMAND FOR OTHER PURPOSES THAN CARBON
BLACK MANUFACTURE. (a) If a lawful daily demand exists for sour
gas from gas wells for purposes of utilization permitted by law,
other than the manufacture of carbon black, the additional demand
shall be added to the daily demand for carbon black manufacture,
and that sum shall constitute the daily volume of sour gas from
gas wells that may be withdrawn from the common reservoir for
utilization.
(b) The commission shall prorate the daily volume provided for
in Subsection (a) of this section among the sour gas wells in the
area on the basis set forth in Section 87.052 of this code.
Acts 1977, 65th Leg., p. 2542, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
SUBCHAPTER D. PLANTS EXTRACTING NATURAL GASOLINE
Sec. 87.091. PROHIBITED COMMINGLING OF GAS. In a plant for the
extraction of natural gasoline content of gas, no sweet gas may
be commingled with sour gas and no casinghead gas may be
commingled with sweet gas or sour gas or both, except on the
conditions and requirements stated in this subchapter.
Acts 1977, 65th Leg., p. 2543, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.092. PERMIT REQUIRED. In any common reservoir in this
state producing both sweet and sour gas, no person may operate a
plant for the extraction of the natural gasoline content of gas
in which sweet gas and sour gas are commingled, or plant
casinghead gas is commingled with either sweet gas or sour gas or
both, until the person secures from the commission a permit
authorizing the operation of the plant.
Acts 1977, 65th Leg., p. 2543, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.093. ISSUANCE OF PERMIT. The commission shall issue a
permit if it appears that the plant is being operated and the
residue gas from the plant is and will be disposed of in
accordance with the provisions of this subchapter.
Acts 1977, 65th Leg., p. 2543, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.094. CANCELLATION OF PERMIT. (a) If it appears to the
commission that a plant is operating in violation of any of the
provisions of this subchapter, the commission shall cancel the
permit issued to the plant.
(b) After the cancellation of the permit, no operator of the
plant may commingle either sweet gas and sour gas or casinghead
gas with sweet gas or sour gas in the plant for the purpose of
extracting the natural gasoline content.
Acts 1977, 65th Leg., p. 2543, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.095. RESIDUE GAS ALLOWED IN AIR. (a) Except as
provided in Subsection (b) of this section, if a plant operating
under this subchapter commingles casinghead gas with sweet gas or
sour gas or both, the operator of the plant shall not blow, or
permit to be blown, in the air any of the residue gas remaining
after the gasoline content of the gas is extracted.
(b) The operator of a plant may blow in the air an amount of
residue gas from the plant that is determined by the commission
to be necessary to accomplish uninterrupted deliveries in
required amounts to carbon black plants for carbon black
manufacture.
Acts 1977, 65th Leg., p. 2543, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.096. RESIDUE GAS: DETERMINATION BY COMMISSION. If a
plant operating under this subchapter commingles casinghead gas
with sweet gas or sweet gas with sour gas, the commission shall
ascertain:
(1) the quantity of residue gas required to be used for fuel
purposes in the efficient operation of the plant; and
(2) the quantity of residue gas required to be returned by the
operator of the plant to the leases to which the plant is
connected for use as fuel in the operation of the leases.
Acts 1977, 65th Leg., p. 2543, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.097. USE OF RESIDUE GAS FOR OTHER PURPOSES. (a) The
operator of the plant is required to use, or cause to be used,
for one or more of the uses provided for sweet gas by law a
quantity of the residue gas from the plant equal to the quantity
of sweet gas taken into the plant for processing, less the
extraction loss from the processing.
(b) The operator shall not be credited with use of residue for
plant-fuel or lease-fuel operations in an amount in excess of the
quantity of the residue gas found by the commission to be
necessary for the efficient operation of the plant and return to
the leases for fuel for lease operations.
Acts 1977, 65th Leg., p. 2544, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
SUBCHAPTER E. USE OF GAS WITHOUT EXTRACTION OF NATURAL GASOLINE
Sec. 87.131. USE OF SWEET GAS FOR CARBON BLACK MANUFACTURE.
Sweet gas produced from any gas well in this state may be used
without the prior extraction of its gasoline content 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 for
each 1,000 cubic feet of gas.
Acts 1977, 65th Leg., p. 2544, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.132. USE OF GAS FROM CERTAIN WELLS FOR CARBON BLACK
MANUFACTURE. (a) Gas from any gas well completed on or before
September 5, 1947, within a common reservoir producing both sweet
and sour gas from which the gas was not sold off the leased
premises to an interstate pipeline company during the year
immediately preceding September 5, 1947, or gas from any gas well
completed after September 5, 1947, within a common reservoir
producing both sweet and sour gas, may be used for the
manufacture of carbon black without the prior extraction of its
natural gasoline content if:
(1) it is used in a plant producing an average recovery of not
less than one and one-half pounds of carbon black for each 1,000
cubic feet of gas; and
(2) the royalty rate and market price paid for the gas at the
wellhead at least equals the royalty rate and market price paid
at the wellhead in the immediate area for gas used for light and
fuel purposes.
(b) In arriving at the market price of sour gas, a reduction of
not more than one-half cent per 1,000 cubic feet shall be allowed
for purifying the gas to render it suitable for light and fuel
purposes.
(c) If the gas is used by a producer, any royalty rate paid
shall be paid on the same basis.
Acts 1977, 65th Leg., p. 2544, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.134. EFFECT OF SUBCHAPTER. The provisions of this
subchapter are cumulative of existing laws relating to the uses
of gas and do not restrict or affect the manufacture of carbon
black from processed sour gas as authorized by Section 86.182 of
this code.
Acts 1977, 65th Leg., p. 2545, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
SUBCHAPTER F. USE OF GAS DETERMINED BY HYDROCARBON CONTENT
Sec. 87.171. GAS CONTAINING LOW HYDROCARBON CONTENT. Any
natural gas, including casinghead gas, produced from any gas well
or oil well in this state, containing less than one and one-half
gallons of propane and heavier hydrocarbons per 1,000 cubic feet,
as determined by fractional analysis made of the gas, may be used
for the manufacture of carbon black in a plant producing an
average recovery of at least one and one-half pounds of carbon
black for each 1,000 cubic feet of gas consumed.
Acts 1977, 65th Leg., p. 2545, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.172. GAS CONTAINING HIGH HYDROCARBON CONTENT. (a)
Except as provided in Subsection (b) of this section, no natural
gas, including casinghead gas, produced from any gas well or oil
well in this state, containing one and one-half gallons or more
of propane and heavier hydrocarbons per 1,000 cubic feet, as
determined by fractional analysis made of the gas, may be used
for the manufacture of carbon black in a plant producing an
average recovery of at least one and one-half pounds of carbon
black for each 1,000 cubic feet of gas consumed without the prior
extraction of its natural gasoline content.
(b) On the filing of an application and after proper notice and
hearing as provided by law, the commission may authorize the use
of any natural gas, including casinghead gas, containing one and
one-half gallons or more of propane and heavier hydrocarbons per
1,000 cubic feet, as determined by fractional analysis made of
the gas, in the manufacture of carbon black in a plant producing
an average recovery of at least one and one-half pounds of carbon
black for each 1,000 cubic feet of gas consumed if the commission
finds it is unprofitable to first extract the natural gasoline
content of the gas.
Acts 1977, 65th Leg., p. 2545, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.173. ADDITIONAL EXTRACTION TO ALLEVIATE SHORTAGE. If a
general shortage of propane or heavier liquid hydrocarbons
occurs, the commission, after notice and hearing, may require
additional extraction of hydrocarbons from the gas to alleviate
the shortage, but additional extraction shall not be required if
it is not economically feasible to do so.
Acts 1977, 65th Leg., p. 2545, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.174. APPLICABILITY OF THIS SUBCHAPTER. The provisions
of this subchapter shall not apply to:
(1) gas produced from a common reservoir that contains both
sweet and sour gas which was being lawfully used for the
manufacture of carbon black under the provisions of the source
law codified in Subchapters D and E of this chapter at the time
of the passage of the source law for this section; or
(2) gas from gas wells located in these reservoirs which were
entitled to be so used under the provisions of the source law
codified in Subchapters D and E of this chapter at the time of
the passage of the source law for this section.
Acts 1977, 65th Leg., p. 2545, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
SUBCHAPTER G. CARBON BLACK PLANTS
Sec. 87.211. PROHIBITED LOCATION. Unless adequate precaution is
taken to minimize the emission of smoke from the plant, no
channel-type carbon black plant shall be erected or constructed
closer than five miles to:
(1) the limits of a city, town, or village incorporated at or
before the time the erection or construction of the plant is
begun; or
(2) a commercially operated citrus fruit orchard planted not
less than one year before the time the erection or construction
of the plant is commenced.
Acts 1977, 65th Leg., p. 2546, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
SUBCHAPTER H. ENFORCEMENT
Sec. 87.241. PENALTY. (a) A person who violates this chapter
is liable to a penalty of not more than $1,000 for each offense.
(b) Each day a violation occurs constitutes a separate offense.
(c) The penalty may be recovered by the State of Texas, with
costs of suit, in a civil action instituted by the attorney
general 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. 2546, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1983, 68th Leg., p. 5255, ch. 967,
Sec. 3, eff. Sept. 1, 1983.
Sec. 87.242. INJUNCTIVE RELIEF. (a) A violation or threatened
violation of this chapter may be enjoined by any court of
competent jurisdiction in which suit for penalty may be brought.
(b) The court shall issue the writs or prohibitory or mandatory
injunctions that the facts justify.
Acts 1977, 65th Leg., p. 2546, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
State Codes and Statutes
Statutes > Texas > Natural-resources-code > Title-3-oil-and-gas > Chapter-87-regulation-of-sour-natural-gas
NATURAL RESOURCES CODE
TITLE 3. OIL AND GAS
SUBTITLE B. CONSERVATION AND REGULATION OF OIL AND GAS
CHAPTER 87. REGULATION OF SOUR NATURAL GAS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 87.001. DEFINITIONS. In this chapter, the words "oil,"
"gas," "commission," "common reservoir," "gas well," "oil well,"
"sour gas," "sweet gas," "natural gasoline," "cubic foot of gas,"
and "casinghead gas" are defined as provided in Section 86.002 of
this code.
Acts 1977, 65th Leg., p. 2541, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
SUBCHAPTER B. POWERS AND DUTIES OF COMMISSION
Sec. 87.011. RULES AND ORDERS. (a) In administering the
provisions of this chapter, the commission shall hold hearings,
make determinations, and promulgate rules and orders as provided
in Sections 86.084-86.090 of this code and other laws of this
state.
(b) After notice and hearing as provided by law, the commission
shall promulgate any other rule or order it finds necessary to
carry out the provisions of this chapter.
Acts 1977, 65th Leg., p. 2541, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.012. VALIDITY. (a) Rules and orders adopted by the
commission under the terms of this chapter are considered prima
facie valid.
(b) A person affected by an order may sue to test the validity
of the order adopted by the commission under this chapter in the
same manner, on the same conditions, and in the same court or
courts as prescribed for suits testing the validity of orders of
the commission promulgated under the general oil conservation
statutes of this state.
Acts 1977, 65th Leg., p. 2541, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.013. HEARINGS. From time to time, the commission shall
hold hearings, after proper notice, to hear evidence and to adopt
rules and orders to enforce the provisions of this chapter.
Acts 1977, 65th Leg., p. 2541, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.014. INSPECTION OF RECORDS; REPORTS. In addition to
authority given by existing law, the commission or its agents
may:
(1) inspect the books and records of any person who is affected
by the provisions of this chapter; and
(2) require sworn reports to be filed from time to time as the
commission finds necessary.
Acts 1977, 65th Leg., p. 2541, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
SUBCHAPTER C. PRODUCTION OF SOUR GAS
Sec. 87.051. LIMITATION OF SOUR GAS PRODUCTION. No person may
produce sour gas from any sour gas well in a reservoir producing
both sweet and sour gas in excess of the daily allowable
production for the gas well as fixed by the orders and schedules
of the commission. The rate of production from a sour gas well is
considered to be the daily average rate of production for the
calendar month.
Acts 1977, 65th Leg., p. 2542, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.052. MAXIMUM PRODUCTION OF SOUR GAS FOR CARBON BLACK
MANUFACTURE. (a) In any common reservoir in the state producing
both sweet and sour gas, there shall never be produced from the
common reservoir for use in carbon black manufacture a maximum
daily volume of sour gas from the gas wells in excess of 750
million cubic feet.
(b) The commission shall prorate the daily volume of sour gas
from gas wells among all the sour gas wells in the reservoir to
prevent cognizable and preventable drainage of gas from tracts of
land in the sour gas producing area segregated as to surface
position and common ownership on which the sour gas wells are
located.
Acts 1977, 65th Leg., p. 2542, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.053. EFFECT OF DEMAND BELOW MAXIMUM ALLOWABLE
PRODUCTION. (a) If the daily demand for sour gas from gas wells
for use in carbon black manufacture is less than the daily
maximum allowable permitted in Section 87.052 of this code, the
total daily volume of gas from gas wells from the sour gas area
for use in carbon black manufacture shall be equal to the daily
demand.
(b) The commission shall determine the daily demand and prorate
it among all the sour gas wells in the area as provided in
Section 87.052 of this code.
Acts 1977, 65th Leg., p. 2542, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.054. EFFECT OF DEMAND FOR OTHER PURPOSES THAN CARBON
BLACK MANUFACTURE. (a) If a lawful daily demand exists for sour
gas from gas wells for purposes of utilization permitted by law,
other than the manufacture of carbon black, the additional demand
shall be added to the daily demand for carbon black manufacture,
and that sum shall constitute the daily volume of sour gas from
gas wells that may be withdrawn from the common reservoir for
utilization.
(b) The commission shall prorate the daily volume provided for
in Subsection (a) of this section among the sour gas wells in the
area on the basis set forth in Section 87.052 of this code.
Acts 1977, 65th Leg., p. 2542, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
SUBCHAPTER D. PLANTS EXTRACTING NATURAL GASOLINE
Sec. 87.091. PROHIBITED COMMINGLING OF GAS. In a plant for the
extraction of natural gasoline content of gas, no sweet gas may
be commingled with sour gas and no casinghead gas may be
commingled with sweet gas or sour gas or both, except on the
conditions and requirements stated in this subchapter.
Acts 1977, 65th Leg., p. 2543, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.092. PERMIT REQUIRED. In any common reservoir in this
state producing both sweet and sour gas, no person may operate a
plant for the extraction of the natural gasoline content of gas
in which sweet gas and sour gas are commingled, or plant
casinghead gas is commingled with either sweet gas or sour gas or
both, until the person secures from the commission a permit
authorizing the operation of the plant.
Acts 1977, 65th Leg., p. 2543, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.093. ISSUANCE OF PERMIT. The commission shall issue a
permit if it appears that the plant is being operated and the
residue gas from the plant is and will be disposed of in
accordance with the provisions of this subchapter.
Acts 1977, 65th Leg., p. 2543, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.094. CANCELLATION OF PERMIT. (a) If it appears to the
commission that a plant is operating in violation of any of the
provisions of this subchapter, the commission shall cancel the
permit issued to the plant.
(b) After the cancellation of the permit, no operator of the
plant may commingle either sweet gas and sour gas or casinghead
gas with sweet gas or sour gas in the plant for the purpose of
extracting the natural gasoline content.
Acts 1977, 65th Leg., p. 2543, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.095. RESIDUE GAS ALLOWED IN AIR. (a) Except as
provided in Subsection (b) of this section, if a plant operating
under this subchapter commingles casinghead gas with sweet gas or
sour gas or both, the operator of the plant shall not blow, or
permit to be blown, in the air any of the residue gas remaining
after the gasoline content of the gas is extracted.
(b) The operator of a plant may blow in the air an amount of
residue gas from the plant that is determined by the commission
to be necessary to accomplish uninterrupted deliveries in
required amounts to carbon black plants for carbon black
manufacture.
Acts 1977, 65th Leg., p. 2543, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.096. RESIDUE GAS: DETERMINATION BY COMMISSION. If a
plant operating under this subchapter commingles casinghead gas
with sweet gas or sweet gas with sour gas, the commission shall
ascertain:
(1) the quantity of residue gas required to be used for fuel
purposes in the efficient operation of the plant; and
(2) the quantity of residue gas required to be returned by the
operator of the plant to the leases to which the plant is
connected for use as fuel in the operation of the leases.
Acts 1977, 65th Leg., p. 2543, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.097. USE OF RESIDUE GAS FOR OTHER PURPOSES. (a) The
operator of the plant is required to use, or cause to be used,
for one or more of the uses provided for sweet gas by law a
quantity of the residue gas from the plant equal to the quantity
of sweet gas taken into the plant for processing, less the
extraction loss from the processing.
(b) The operator shall not be credited with use of residue for
plant-fuel or lease-fuel operations in an amount in excess of the
quantity of the residue gas found by the commission to be
necessary for the efficient operation of the plant and return to
the leases for fuel for lease operations.
Acts 1977, 65th Leg., p. 2544, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
SUBCHAPTER E. USE OF GAS WITHOUT EXTRACTION OF NATURAL GASOLINE
Sec. 87.131. USE OF SWEET GAS FOR CARBON BLACK MANUFACTURE.
Sweet gas produced from any gas well in this state may be used
without the prior extraction of its gasoline content 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 for
each 1,000 cubic feet of gas.
Acts 1977, 65th Leg., p. 2544, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.132. USE OF GAS FROM CERTAIN WELLS FOR CARBON BLACK
MANUFACTURE. (a) Gas from any gas well completed on or before
September 5, 1947, within a common reservoir producing both sweet
and sour gas from which the gas was not sold off the leased
premises to an interstate pipeline company during the year
immediately preceding September 5, 1947, or gas from any gas well
completed after September 5, 1947, within a common reservoir
producing both sweet and sour gas, may be used for the
manufacture of carbon black without the prior extraction of its
natural gasoline content if:
(1) it is used in a plant producing an average recovery of not
less than one and one-half pounds of carbon black for each 1,000
cubic feet of gas; and
(2) the royalty rate and market price paid for the gas at the
wellhead at least equals the royalty rate and market price paid
at the wellhead in the immediate area for gas used for light and
fuel purposes.
(b) In arriving at the market price of sour gas, a reduction of
not more than one-half cent per 1,000 cubic feet shall be allowed
for purifying the gas to render it suitable for light and fuel
purposes.
(c) If the gas is used by a producer, any royalty rate paid
shall be paid on the same basis.
Acts 1977, 65th Leg., p. 2544, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.134. EFFECT OF SUBCHAPTER. The provisions of this
subchapter are cumulative of existing laws relating to the uses
of gas and do not restrict or affect the manufacture of carbon
black from processed sour gas as authorized by Section 86.182 of
this code.
Acts 1977, 65th Leg., p. 2545, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
SUBCHAPTER F. USE OF GAS DETERMINED BY HYDROCARBON CONTENT
Sec. 87.171. GAS CONTAINING LOW HYDROCARBON CONTENT. Any
natural gas, including casinghead gas, produced from any gas well
or oil well in this state, containing less than one and one-half
gallons of propane and heavier hydrocarbons per 1,000 cubic feet,
as determined by fractional analysis made of the gas, may be used
for the manufacture of carbon black in a plant producing an
average recovery of at least one and one-half pounds of carbon
black for each 1,000 cubic feet of gas consumed.
Acts 1977, 65th Leg., p. 2545, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.172. GAS CONTAINING HIGH HYDROCARBON CONTENT. (a)
Except as provided in Subsection (b) of this section, no natural
gas, including casinghead gas, produced from any gas well or oil
well in this state, containing one and one-half gallons or more
of propane and heavier hydrocarbons per 1,000 cubic feet, as
determined by fractional analysis made of the gas, may be used
for the manufacture of carbon black in a plant producing an
average recovery of at least one and one-half pounds of carbon
black for each 1,000 cubic feet of gas consumed without the prior
extraction of its natural gasoline content.
(b) On the filing of an application and after proper notice and
hearing as provided by law, the commission may authorize the use
of any natural gas, including casinghead gas, containing one and
one-half gallons or more of propane and heavier hydrocarbons per
1,000 cubic feet, as determined by fractional analysis made of
the gas, in the manufacture of carbon black in a plant producing
an average recovery of at least one and one-half pounds of carbon
black for each 1,000 cubic feet of gas consumed if the commission
finds it is unprofitable to first extract the natural gasoline
content of the gas.
Acts 1977, 65th Leg., p. 2545, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.173. ADDITIONAL EXTRACTION TO ALLEVIATE SHORTAGE. If a
general shortage of propane or heavier liquid hydrocarbons
occurs, the commission, after notice and hearing, may require
additional extraction of hydrocarbons from the gas to alleviate
the shortage, but additional extraction shall not be required if
it is not economically feasible to do so.
Acts 1977, 65th Leg., p. 2545, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.174. APPLICABILITY OF THIS SUBCHAPTER. The provisions
of this subchapter shall not apply to:
(1) gas produced from a common reservoir that contains both
sweet and sour gas which was being lawfully used for the
manufacture of carbon black under the provisions of the source
law codified in Subchapters D and E of this chapter at the time
of the passage of the source law for this section; or
(2) gas from gas wells located in these reservoirs which were
entitled to be so used under the provisions of the source law
codified in Subchapters D and E of this chapter at the time of
the passage of the source law for this section.
Acts 1977, 65th Leg., p. 2545, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
SUBCHAPTER G. CARBON BLACK PLANTS
Sec. 87.211. PROHIBITED LOCATION. Unless adequate precaution is
taken to minimize the emission of smoke from the plant, no
channel-type carbon black plant shall be erected or constructed
closer than five miles to:
(1) the limits of a city, town, or village incorporated at or
before the time the erection or construction of the plant is
begun; or
(2) a commercially operated citrus fruit orchard planted not
less than one year before the time the erection or construction
of the plant is commenced.
Acts 1977, 65th Leg., p. 2546, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
SUBCHAPTER H. ENFORCEMENT
Sec. 87.241. PENALTY. (a) A person who violates this chapter
is liable to a penalty of not more than $1,000 for each offense.
(b) Each day a violation occurs constitutes a separate offense.
(c) The penalty may be recovered by the State of Texas, with
costs of suit, in a civil action instituted by the attorney
general 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. 2546, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1983, 68th Leg., p. 5255, ch. 967,
Sec. 3, eff. Sept. 1, 1983.
Sec. 87.242. INJUNCTIVE RELIEF. (a) A violation or threatened
violation of this chapter may be enjoined by any court of
competent jurisdiction in which suit for penalty may be brought.
(b) The court shall issue the writs or prohibitory or mandatory
injunctions that the facts justify.
Acts 1977, 65th Leg., p. 2546, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
State Codes and Statutes
Statutes >
Texas >
Natural-resources-code >
Title-3-oil-and-gas >
Chapter-87-regulation-of-sour-natural-gas NATURAL RESOURCES CODE
TITLE 3. OIL AND GAS
SUBTITLE B. CONSERVATION AND REGULATION OF OIL AND GAS
CHAPTER 87. REGULATION OF SOUR NATURAL GAS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 87.001. DEFINITIONS. In this chapter, the words "oil,"
"gas," "commission," "common reservoir," "gas well," "oil well,"
"sour gas," "sweet gas," "natural gasoline," "cubic foot of gas,"
and "casinghead gas" are defined as provided in Section 86.002 of
this code.
Acts 1977, 65th Leg., p. 2541, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
SUBCHAPTER B. POWERS AND DUTIES OF COMMISSION
Sec. 87.011. RULES AND ORDERS. (a) In administering the
provisions of this chapter, the commission shall hold hearings,
make determinations, and promulgate rules and orders as provided
in Sections 86.084-86.090 of this code and other laws of this
state.
(b) After notice and hearing as provided by law, the commission
shall promulgate any other rule or order it finds necessary to
carry out the provisions of this chapter.
Acts 1977, 65th Leg., p. 2541, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.012. VALIDITY. (a) Rules and orders adopted by the
commission under the terms of this chapter are considered prima
facie valid.
(b) A person affected by an order may sue to test the validity
of the order adopted by the commission under this chapter in the
same manner, on the same conditions, and in the same court or
courts as prescribed for suits testing the validity of orders of
the commission promulgated under the general oil conservation
statutes of this state.
Acts 1977, 65th Leg., p. 2541, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.013. HEARINGS. From time to time, the commission shall
hold hearings, after proper notice, to hear evidence and to adopt
rules and orders to enforce the provisions of this chapter.
Acts 1977, 65th Leg., p. 2541, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.014. INSPECTION OF RECORDS; REPORTS. In addition to
authority given by existing law, the commission or its agents
may:
(1) inspect the books and records of any person who is affected
by the provisions of this chapter; and
(2) require sworn reports to be filed from time to time as the
commission finds necessary.
Acts 1977, 65th Leg., p. 2541, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
SUBCHAPTER C. PRODUCTION OF SOUR GAS
Sec. 87.051. LIMITATION OF SOUR GAS PRODUCTION. No person may
produce sour gas from any sour gas well in a reservoir producing
both sweet and sour gas in excess of the daily allowable
production for the gas well as fixed by the orders and schedules
of the commission. The rate of production from a sour gas well is
considered to be the daily average rate of production for the
calendar month.
Acts 1977, 65th Leg., p. 2542, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.052. MAXIMUM PRODUCTION OF SOUR GAS FOR CARBON BLACK
MANUFACTURE. (a) In any common reservoir in the state producing
both sweet and sour gas, there shall never be produced from the
common reservoir for use in carbon black manufacture a maximum
daily volume of sour gas from the gas wells in excess of 750
million cubic feet.
(b) The commission shall prorate the daily volume of sour gas
from gas wells among all the sour gas wells in the reservoir to
prevent cognizable and preventable drainage of gas from tracts of
land in the sour gas producing area segregated as to surface
position and common ownership on which the sour gas wells are
located.
Acts 1977, 65th Leg., p. 2542, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.053. EFFECT OF DEMAND BELOW MAXIMUM ALLOWABLE
PRODUCTION. (a) If the daily demand for sour gas from gas wells
for use in carbon black manufacture is less than the daily
maximum allowable permitted in Section 87.052 of this code, the
total daily volume of gas from gas wells from the sour gas area
for use in carbon black manufacture shall be equal to the daily
demand.
(b) The commission shall determine the daily demand and prorate
it among all the sour gas wells in the area as provided in
Section 87.052 of this code.
Acts 1977, 65th Leg., p. 2542, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.054. EFFECT OF DEMAND FOR OTHER PURPOSES THAN CARBON
BLACK MANUFACTURE. (a) If a lawful daily demand exists for sour
gas from gas wells for purposes of utilization permitted by law,
other than the manufacture of carbon black, the additional demand
shall be added to the daily demand for carbon black manufacture,
and that sum shall constitute the daily volume of sour gas from
gas wells that may be withdrawn from the common reservoir for
utilization.
(b) The commission shall prorate the daily volume provided for
in Subsection (a) of this section among the sour gas wells in the
area on the basis set forth in Section 87.052 of this code.
Acts 1977, 65th Leg., p. 2542, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
SUBCHAPTER D. PLANTS EXTRACTING NATURAL GASOLINE
Sec. 87.091. PROHIBITED COMMINGLING OF GAS. In a plant for the
extraction of natural gasoline content of gas, no sweet gas may
be commingled with sour gas and no casinghead gas may be
commingled with sweet gas or sour gas or both, except on the
conditions and requirements stated in this subchapter.
Acts 1977, 65th Leg., p. 2543, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.092. PERMIT REQUIRED. In any common reservoir in this
state producing both sweet and sour gas, no person may operate a
plant for the extraction of the natural gasoline content of gas
in which sweet gas and sour gas are commingled, or plant
casinghead gas is commingled with either sweet gas or sour gas or
both, until the person secures from the commission a permit
authorizing the operation of the plant.
Acts 1977, 65th Leg., p. 2543, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.093. ISSUANCE OF PERMIT. The commission shall issue a
permit if it appears that the plant is being operated and the
residue gas from the plant is and will be disposed of in
accordance with the provisions of this subchapter.
Acts 1977, 65th Leg., p. 2543, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.094. CANCELLATION OF PERMIT. (a) If it appears to the
commission that a plant is operating in violation of any of the
provisions of this subchapter, the commission shall cancel the
permit issued to the plant.
(b) After the cancellation of the permit, no operator of the
plant may commingle either sweet gas and sour gas or casinghead
gas with sweet gas or sour gas in the plant for the purpose of
extracting the natural gasoline content.
Acts 1977, 65th Leg., p. 2543, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.095. RESIDUE GAS ALLOWED IN AIR. (a) Except as
provided in Subsection (b) of this section, if a plant operating
under this subchapter commingles casinghead gas with sweet gas or
sour gas or both, the operator of the plant shall not blow, or
permit to be blown, in the air any of the residue gas remaining
after the gasoline content of the gas is extracted.
(b) The operator of a plant may blow in the air an amount of
residue gas from the plant that is determined by the commission
to be necessary to accomplish uninterrupted deliveries in
required amounts to carbon black plants for carbon black
manufacture.
Acts 1977, 65th Leg., p. 2543, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.096. RESIDUE GAS: DETERMINATION BY COMMISSION. If a
plant operating under this subchapter commingles casinghead gas
with sweet gas or sweet gas with sour gas, the commission shall
ascertain:
(1) the quantity of residue gas required to be used for fuel
purposes in the efficient operation of the plant; and
(2) the quantity of residue gas required to be returned by the
operator of the plant to the leases to which the plant is
connected for use as fuel in the operation of the leases.
Acts 1977, 65th Leg., p. 2543, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.097. USE OF RESIDUE GAS FOR OTHER PURPOSES. (a) The
operator of the plant is required to use, or cause to be used,
for one or more of the uses provided for sweet gas by law a
quantity of the residue gas from the plant equal to the quantity
of sweet gas taken into the plant for processing, less the
extraction loss from the processing.
(b) The operator shall not be credited with use of residue for
plant-fuel or lease-fuel operations in an amount in excess of the
quantity of the residue gas found by the commission to be
necessary for the efficient operation of the plant and return to
the leases for fuel for lease operations.
Acts 1977, 65th Leg., p. 2544, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
SUBCHAPTER E. USE OF GAS WITHOUT EXTRACTION OF NATURAL GASOLINE
Sec. 87.131. USE OF SWEET GAS FOR CARBON BLACK MANUFACTURE.
Sweet gas produced from any gas well in this state may be used
without the prior extraction of its gasoline content 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 for
each 1,000 cubic feet of gas.
Acts 1977, 65th Leg., p. 2544, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.132. USE OF GAS FROM CERTAIN WELLS FOR CARBON BLACK
MANUFACTURE. (a) Gas from any gas well completed on or before
September 5, 1947, within a common reservoir producing both sweet
and sour gas from which the gas was not sold off the leased
premises to an interstate pipeline company during the year
immediately preceding September 5, 1947, or gas from any gas well
completed after September 5, 1947, within a common reservoir
producing both sweet and sour gas, may be used for the
manufacture of carbon black without the prior extraction of its
natural gasoline content if:
(1) it is used in a plant producing an average recovery of not
less than one and one-half pounds of carbon black for each 1,000
cubic feet of gas; and
(2) the royalty rate and market price paid for the gas at the
wellhead at least equals the royalty rate and market price paid
at the wellhead in the immediate area for gas used for light and
fuel purposes.
(b) In arriving at the market price of sour gas, a reduction of
not more than one-half cent per 1,000 cubic feet shall be allowed
for purifying the gas to render it suitable for light and fuel
purposes.
(c) If the gas is used by a producer, any royalty rate paid
shall be paid on the same basis.
Acts 1977, 65th Leg., p. 2544, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.134. EFFECT OF SUBCHAPTER. The provisions of this
subchapter are cumulative of existing laws relating to the uses
of gas and do not restrict or affect the manufacture of carbon
black from processed sour gas as authorized by Section 86.182 of
this code.
Acts 1977, 65th Leg., p. 2545, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
SUBCHAPTER F. USE OF GAS DETERMINED BY HYDROCARBON CONTENT
Sec. 87.171. GAS CONTAINING LOW HYDROCARBON CONTENT. Any
natural gas, including casinghead gas, produced from any gas well
or oil well in this state, containing less than one and one-half
gallons of propane and heavier hydrocarbons per 1,000 cubic feet,
as determined by fractional analysis made of the gas, may be used
for the manufacture of carbon black in a plant producing an
average recovery of at least one and one-half pounds of carbon
black for each 1,000 cubic feet of gas consumed.
Acts 1977, 65th Leg., p. 2545, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.172. GAS CONTAINING HIGH HYDROCARBON CONTENT. (a)
Except as provided in Subsection (b) of this section, no natural
gas, including casinghead gas, produced from any gas well or oil
well in this state, containing one and one-half gallons or more
of propane and heavier hydrocarbons per 1,000 cubic feet, as
determined by fractional analysis made of the gas, may be used
for the manufacture of carbon black in a plant producing an
average recovery of at least one and one-half pounds of carbon
black for each 1,000 cubic feet of gas consumed without the prior
extraction of its natural gasoline content.
(b) On the filing of an application and after proper notice and
hearing as provided by law, the commission may authorize the use
of any natural gas, including casinghead gas, containing one and
one-half gallons or more of propane and heavier hydrocarbons per
1,000 cubic feet, as determined by fractional analysis made of
the gas, in the manufacture of carbon black in a plant producing
an average recovery of at least one and one-half pounds of carbon
black for each 1,000 cubic feet of gas consumed if the commission
finds it is unprofitable to first extract the natural gasoline
content of the gas.
Acts 1977, 65th Leg., p. 2545, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.173. ADDITIONAL EXTRACTION TO ALLEVIATE SHORTAGE. If a
general shortage of propane or heavier liquid hydrocarbons
occurs, the commission, after notice and hearing, may require
additional extraction of hydrocarbons from the gas to alleviate
the shortage, but additional extraction shall not be required if
it is not economically feasible to do so.
Acts 1977, 65th Leg., p. 2545, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 87.174. APPLICABILITY OF THIS SUBCHAPTER. The provisions
of this subchapter shall not apply to:
(1) gas produced from a common reservoir that contains both
sweet and sour gas which was being lawfully used for the
manufacture of carbon black under the provisions of the source
law codified in Subchapters D and E of this chapter at the time
of the passage of the source law for this section; or
(2) gas from gas wells located in these reservoirs which were
entitled to be so used under the provisions of the source law
codified in Subchapters D and E of this chapter at the time of
the passage of the source law for this section.
Acts 1977, 65th Leg., p. 2545, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
SUBCHAPTER G. CARBON BLACK PLANTS
Sec. 87.211. PROHIBITED LOCATION. Unless adequate precaution is
taken to minimize the emission of smoke from the plant, no
channel-type carbon black plant shall be erected or constructed
closer than five miles to:
(1) the limits of a city, town, or village incorporated at or
before the time the erection or construction of the plant is
begun; or
(2) a commercially operated citrus fruit orchard planted not
less than one year before the time the erection or construction
of the plant is commenced.
Acts 1977, 65th Leg., p. 2546, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
SUBCHAPTER H. ENFORCEMENT
Sec. 87.241. PENALTY. (a) A person who violates this chapter
is liable to a penalty of not more than $1,000 for each offense.
(b) Each day a violation occurs constitutes a separate offense.
(c) The penalty may be recovered by the State of Texas, with
costs of suit, in a civil action instituted by the attorney
general 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. 2546, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1983, 68th Leg., p. 5255, ch. 967,
Sec. 3, eff. Sept. 1, 1983.
Sec. 87.242. INJUNCTIVE RELIEF. (a) A violation or threatened
violation of this chapter may be enjoined by any court of
competent jurisdiction in which suit for penalty may be brought.
(b) The court shall issue the writs or prohibitory or mandatory
injunctions that the facts justify.
Acts 1977, 65th Leg., p. 2546, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
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