TX NATURAL RESOURCES CODE

TITLE 3. OIL AND GAS

SUBTITLE A. ADMINISTRATION

CHAPTER 86. REGULATION OF NATURAL GAS

SUBCHAPTER A. GENERAL PROVISIONS



§ 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, § 1, eff. Sept. 1, 1977.

§ 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
               (C) produces gas from a formation or producing horizon 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
               (C) which in its natural state is found by the commission to be 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, § 1, eff. Sept. 1, 1977.

§ 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, § 1, eff. Sept. 1, 1977.

§ 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 of this code and Subchapters E and J of Chapter 85 of this code.

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