CHAPTER 103. COOPERATIVE FACILITIES FOR CONSERVATION AND UTILIZATION OF GAS - Texas Statutes

NATURAL RESOURCES CODE

TITLE 3. OIL AND GAS

SUBTITLE C. POOLING AND COOPERATIVE AGREEMENTS

CHAPTER 103. COOPERATIVE FACILITIES FOR CONSERVATION AND

UTILIZATION OF GAS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 103.001. DEFINITION. In this chapter, "commission" means

the Railroad Commission of Texas.

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

Sept. 1, 1977.

Sec. 103.002. RIGHTS EXISTING ON MAY 12, 1953. None of the

provisions in this chapter restrict any of the rights that

persons had on May 12, 1953, to make and enter into contracts for

the construction and operation of cooperative facilities as

provided in this chapter.

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

Sept. 1, 1977.

Sec. 103.003. CONFLICT WITH ANTITRUST LAWS. (a) Agreements and

operations under agreements that are in accordance with the

provisions in this chapter, being necessary to prevent waste and

conserve the natural resources of this state, shall not be

construed to be in violation of the provisions of Chapter 15,

Business & Commerce Code, as amended.

(b) If a court finds a conflict between the provisions in this

chapter and Chapter 15, Business & Commerce Code, as amended,

the provisions in this chapter are intended as a reasonable

exception necessary for the public interest stated in Subsection

(a) of this section.

(c) If a court finds that a conflict exists between the

provisions in this chapter and the laws cited in Subsections (a)

and (b) of this section and finds that the provisions in this

chapter are not a reasonable exception, it is the intent of the

legislature that the provisions in this chapter, or any

conflicting portion of them, shall be declared invalid rather

than declaring the cited laws, or any portion of them, invalid.

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

Sept. 1, 1977.

SUBCHAPTER B. FACILITIES FOR CONSERVATION AND UTILIZATION OF GAS

Sec. 103.041. AUTHORIZED COOPERATIVE FACILITIES FOR SEPARATELY

OWNED PROPERTY. The commission may approve agreements by persons

owning or controlling leases or other interests in separate

property in oil fields, gas fields, or oil and gas fields for the

construction and operation of cooperative facilities necessary

for the conservation and utilization of gas, including facilities

for extracting and separating hydrocarbons from gas or casinghead

gas.

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

Sept. 1, 1977.

Sec. 103.042. COMMISSION APPROVAL. Agreements for the

construction and operation of cooperative facilities shall be

approved by the commission only after application, notice, and

hearing, and a finding by the commission that the cooperative

facilities are in the interest of conservation and that secondary

recovery operations are not feasible or necessary.

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

Sept. 1, 1977.

Sec. 103.043. COOPERATIVE REFINING. (a) No agreement for the

construction or operation of cooperative facilities may provide

directly or indirectly for the cooperative refining of oil,

distillate, condensate, or gas, or any by-product of oil,

distillate, condensate, or gas.

(b) The extraction of liquid hydrocarbons from gas and the

separation of liquid hydrocarbons into butanes, propanes,

ethanes, distillate, condensate, and natural gasoline without any

additional processing of any of them is not considered to be

refining.

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

Sept. 1, 1977.

Sec. 103.044. COOPERATIVE MARKETING. No agreement for the

construction or operation of cooperative facilities may provide

for the cooperative marketing of oil, condensate, distillate, or

gas, or any by-product of oil, condensate, distillate, or gas.

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

Sept. 1, 1977.

Sec. 103.045. EFFECT OF APPROVAL ON OPERATIONS IN OTHER FIELDS.

The approval of an agreement authorized by this chapter is not of

itself a finding that similar operations in other fields are

wasteful or not in the interest of conservation.

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

Sept. 1, 1977.

Sec. 103.046. JOINTLY OWNED PROPERTY. None of the provisions in

this chapter require the approval of the commission of voluntary

agreements for the joint development and operation of jointly

owned property.

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

Sept. 1, 1977.