Bill Text: TX HB2994 | 2013-2014 | 83rd Legislature | Introduced
Bill Title: Relating to the effect of operations in a unit created under the provisions of an oil or gas lease following the expiration of the primary term of the lease.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-03-19 - Referred to Energy Resources [HB2994 Detail]
Download: Texas-2013-HB2994-Introduced.html
| 83R8281 SMH-D | ||
| By: King of Zavala | H.B. No. 2994 | |
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| relating to the effect of operations in a unit created under the | ||
| provisions of an oil or gas lease following the expiration of the | ||
| primary term of the lease. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subtitle C, Title 3, Natural Resources Code, is | ||
| amended by adding Chapter 104 to read as follows: | ||
| CHAPTER 104. VOLUNTARY POOLING | ||
| Sec. 104.001. APPLICABILITY. (a) This chapter applies only | ||
| to a unit created voluntarily under the provisions of an oil or gas | ||
| lease. In the event of a conflict between this chapter and the | ||
| provisions of an oil or gas lease entered into before September 1, | ||
| 2013, the provisions of the lease prevail. | ||
| (b) This chapter does not apply to land: | ||
| (1) that is owned by this state; or | ||
| (2) in which this state has an interest, directly or | ||
| indirectly. | ||
| Sec. 104.002. EFFECT OF OPERATIONS IN UNIT IN SECONDARY | ||
| TERM OF LEASE. If only part of a tract subject to an oil or gas | ||
| lease is pooled into a unit for an oil or gas well, unit production | ||
| of oil or gas, unit operations, or payment of shut-in royalties from | ||
| a unit gas well will not serve to hold the lease in force as to any | ||
| area outside the unit after the fifth anniversary of the date the | ||
| primary term of the lease expires. | ||
| SECTION 2. This Act takes effect September 1, 2013. | ||
