reglab/statecodes huggingface dataset:
2023 Texas Statutes › Natural Resources Code › Title 3 - Oil and Gas › Subtitle B - Conservation and Regulation of Oil and Gas › Chapter 91 - Provisions Generally Applicable › Subchapter F. Underground Natural Gas Storage and Conservation › Section 91.183. Rights of Purchasers of Native Gas

Sec. 91.183.  RIGHTS OF PURCHASERS OF NATIVE GAS.  (a)  In the event there are remaining reserves of native gas in the storage facility which are dedicated to a purchaser and the purchaser and storer are unable to agree on an equitable settlement of rights with respect to the remaining native gas within a period of time that will prevent interference with the operation of the storage facility, the storer or purchaser may apply to the commission for an adjudication concerning remaining reserves of native gas.
(b)  Upon application, the commission shall direct a settlement of remaining reserves of native gas that is equitable to all parties, but which does not interfere with the public benefits arising from the operation of the storage facility.
(c)  In addition to any other disposition that is equitable to all parties, the commission may make a finding of the quantity of remaining recoverable native gas and an allocation of future production on a reasonable production schedule and order delivery to the purchaser by the storer of the amounts of native gas that the commission finds would have been taken by the purchaser during the term of the purchase agreement.
Added by Acts 1979, 66th Leg., p. 1996, ch. 785, Sec. 3, eff. June 13, 1979.
2023 Texas Statutes › Natural Resources Code › Title 3 - Oil and Gas › Subtitle B - Conservation and Regulation of Oil and Gas › Chapter 91 - Provisions Generally Applicable › Subchapter F. Underground Natural Gas Storage and Conservation › Section 91.184. Abandonment

Sec. 91.184.  ABANDONMENT.  (a)  When a storer has permanently abandoned the storage facility, the storer shall file with the commission a notice of abandonment, and shall file an instrument in the deed records in the appropriate county or counties, stating that the storage has ceased, and that all property, both mineral and surface, condemned by the storer has reverted to those who owned the property at the time of condemnation, or their heirs, successors, or assigns.
(b)  The storer shall also file in the deed records in the appropriate county or counties a list of the owners of the mineral, royalty, and surface owners to whom the various interests have reverted, together with an affidavit that the storer has compiled the list from a current examination of title records and that the list is true and correct to the best of the knowledge of the affiant.
Added by Acts 1979, 66th Leg., p. 1996, ch. 785, Sec. 3, eff. June 13, 1979.
2023 Texas Statutes › Natural Resources Code › Title 3 - Oil and Gas › Subtitle B - Conservation and Regulation of Oil and Gas › Chapter 91 - Provisions Generally Applicable › Subchapter G. Underground Hydrocarbon Storage › Section 91.201. Definitions

Sec. 91.201.  DEFINITIONS.  In this subchapter:
(1)  "Underground hydrocarbon storage facility" or "storage facility" means a subsurface sand, stratum, or geological formation used for the underground storage of hydrocarbons, and includes surface or subsurface rights and appurtenances necessary for the operation of the facility.
(2)  "Hydrocarbons" means oil, gas, or products of oil or gas, as those terms are defined by Section 85.001 of this code.
(3)  "Waste" means surface or subsurface waste, as defined by Section 85.046 of this code, of hydrocarbons, including, but not limited to, the physical or economic waste or loss of hydrocarbons in the creation, operation, maintenance, or abandonment of an underground hydrocarbon storage facility.
(4)  "Commission" means the Railroad Commission of Texas.
Added by Acts 1981, 67th Leg., p. 3167, ch. 830, Sec. 3, eff. June 17, 1981.
2023 Texas Statutes › Natural Resources Code › Title 3 - Oil and Gas › Subtitle B - Conservation and Regulation of Oil and Gas › Chapter 91 - Provisions Generally Applicable › Subchapter G. Underground Hydrocarbon Storage › Section 91.202. Policy

Sec. 91.202.  POLICY.  It is the policy of this state and the purpose of this subchapter to prevent the waste of oil, gas, and products of oil or gas, to protect the ground and surface water of the state from unreasonable degradation, and to protect the public health, welfare, and physical property in the creation, operation, maintenance, and abandonment of underground hydrocarbon storage facilities.
Added by Acts 1981, 67th Leg., p. 3167, ch. 830, Sec. 3, eff. June 17, 1981.
2023 Texas Statutes › Natural Resources Code › Title 3 - Oil and Gas › Subtitle B - Conservation and Regulation of Oil and Gas › Chapter 91 - Provisions Generally Applicable › Subchapter G. Underground Hydrocarbon Storage › Section 91.203. Authority; Rules

Sec. 91.203.  AUTHORITY;  RULES.  (a)  The commission shall supervise or monitor the construction, operation, maintenance, and closure of storage facilities.
(b)  The commission may adopt reasonable rules or issue reasonable orders to implement the policies of this subchapter and may establish minimum standards regulating the creation, operation, maintenance, and abandonment of underground hydrocarbon storage facilities.  The rules and standards of the commission may include, but are not limited to, requirements for monitoring, recordkeeping, and reporting, the drilling and creation of the facility, selecting the site of the facility, and for proper closure of the facility on abandonment.
Added by Acts 1981, 67th Leg., p. 3167, ch. 830, Sec. 3, eff. June 17, 1981.
2023 Texas Statutes › Natural Resources Code › Title 3 - Oil and Gas › Subtitle B - Conservation and Regulation of Oil and Gas › Chapter 91 - Provisions Generally Applicable › Subchapter G. Underground Hydrocarbon Storage › Section 91.204. Permits

Sec. 91.204.  PERMITS.  (a)  The commission by rule may require a person who creates, operates, maintains, or abandons an underground hydrocarbon storage facility to obtain a permit from the commission.  A permit issued by the commission may contain provisions and conditions necessary to implement the policies of this subchapter.  The commission may adopt reasonable rules for the amendment, revocation, transfer, or suspension of a permit.
(b)  A person desiring to obtain a permit or to amend a permit must submit an application containing the information required by the commission.
Added by Acts 1981, 67th Leg., p. 3167, ch. 830, Sec. 3, eff. June 17, 1981.
2023 Texas Statutes › Natural Resources Code › Title 3 - Oil and Gas › Subtitle B - Conservation and Regulation of Oil and Gas › Chapter 91 - Provisions Generally Applicable › Subchapter G. Underground Hydrocarbon Storage › Section 91.205. Authority to Enter Property

Sec. 91.205.  AUTHORITY TO ENTER PROPERTY.  Members and employees of the commission may enter public or private property at reasonable times to inspect and investigate conditions relating to the creation, operation, maintenance, or abandonment of an underground hydrocarbon storage facility.  The members and employees may not enter private property having management in residence without notifying the management of their presence and shall observe safety, internal security, and fire protection rules of the establishment being inspected.
Added by Acts 1981, 67th Leg., p. 3167, ch. 830, Sec. 3, eff. June 17, 1981.
2023 Texas Statutes › Natural Resources Code › Title 3 - Oil and Gas › Subtitle B - Conservation and Regulation of Oil and Gas › Chapter 91 - Provisions Generally Applicable › Subchapter G. Underground Hydrocarbon Storage › Section 91.206. Authority to Examine Records

Sec. 91.206.  AUTHORITY TO EXAMINE RECORDS.  Members and employees of the commission may examine and copy during regular business hours records pertaining to the creation, operation, maintenance, or abandonment of an underground hydrocarbon storage facility.
Added by Acts 1981, 67th Leg., p. 3167, ch. 830, Sec. 3, eff. June 17, 1981.
2023 Texas Statutes › Natural Resources Code › Title 3 - Oil and Gas › Subtitle B - Conservation and Regulation of Oil and Gas › Chapter 91 - Provisions Generally Applicable › Subchapter G. Underground Hydrocarbon Storage › Section 91.207. Notice of Noncompliance

Sec. 91.207.  NOTICE OF NONCOMPLIANCE.  (a)  On receipt of notice from the commission that a person creating, operating, maintaining, or abandoning an underground hydrocarbon storage facility has violated this subchapter or a term, condition, or provision of a permit issued under this subchapter, an operator of the pipeline or other carrier connected to the facility shall disconnect from the facility and shall remain disconnected from the facility until notice of compliance has been received from the commission.
(b)  On receipt of notice from the commission of a violation of this subchapter, a rule of the commission issued under this subchapter, or a term, condition, or provision of a permit issued under this subchapter, the owner or operator of an underground hydrocarbon storage facility shall discontinue any removal of hydrocarbons from the facility or any addition of hydrocarbons to the facility and may not begin or renew removal of hydrocarbons from the facility or begin or renew addition of hydrocarbons to the facility until notice of compliance has been received from the commission.
Added by Acts 1981, 67th Leg., p. 3167, ch. 830, Sec. 3, eff. June 17, 1981.
2023 Texas Statutes › Natural Resources Code › Title 3 - Oil and Gas › Subtitle B - Conservation and Regulation of Oil and Gas › Chapter 91 - Provisions Generally Applicable › Subchapter H. Underground Storage Facilities for Natural Gas › Section 91.251. Definitions

Sec. 91.251.  DEFINITIONS.  In this subchapter:
(1)  "Intrastate gas pipeline facility" has the meaning assigned by the United States Department of Transportation under 49 U.S.C. Section 60101 et seq. and its subsequent amendments or a succeeding law.
(2)  "Natural gas" means any gaseous material composed primarily of methane in either its original or its manufactured state.
(3)  "Natural gas underground storage" means the storage of natural gas beneath the surface of the earth in a formation, stratum, or reservoir.
(4)  "Storage facility" has the meaning assigned by Section 91.173.
Added by Acts 1997, 75th Leg., ch. 166, Sec. 5, eff. Sept. 1, 1997.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 1177 (S.B. 901), Sec. 1, eff. September 1, 2013.
2023 Texas Statutes › Natural Resources Code › Title 3 - Oil and Gas › Subtitle B - Conservation and Regulation of Oil and Gas › Chapter 91 - Provisions Generally Applicable › Subchapter H. Underground Storage Facilities for Natural Gas › Section 91.252. Commission Jurisdiction

Sec. 91.252.  COMMISSION JURISDICTION.  (a)  The commission has jurisdiction over:
(1)  natural gas underground storage;  and
(2)  surface and subsurface equipment and facilities used for natural gas underground storage.
(b)  This subchapter does not apply to a storage facility that is:
(1)  part of an interstate gas pipeline facility as defined by the United States Department of Transportation; and
(2)  subject to federal minimum standards adopted under 49 U.S.C. Section 60101 et seq. and its subsequent amendments or a succeeding law.
Added by Acts 1997, 75th Leg., ch. 166, Sec. 5, eff. Sept. 1, 1997.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 1177 (S.B. 901), Sec. 2, eff. September 1, 2013.
2023 Texas Statutes › Natural Resources Code › Title 3 - Oil and Gas › Subtitle B - Conservation and Regulation of Oil and Gas › Chapter 91 - Provisions Generally Applicable › Subchapter H. Underground Storage Facilities for Natural Gas › Section 91.253. Commission Enforcement

Sec. 91.253.  COMMISSION ENFORCEMENT.  (a)  In addition to other authority specifically granted to the commission under this subchapter, the commission may enforce this subchapter or a rule adopted or an order or permit issued under this subchapter as provided by Section 91.207.
(b)  Section 91.003 does not apply to this subchapter.
Added by Acts 1997, 75th Leg., ch. 166, Sec. 5, eff. Sept. 1, 1997.
2023 Texas Statutes › Natural Resources Code › Title 3 - Oil and Gas › Subtitle B - Conservation and Regulation of Oil and Gas › Chapter 91 - Provisions Generally Applicable › Subchapter H. Underground Storage Facilities for Natural Gas › Section 91.254. Inspection; Examination; Credentials

Sec. 91.254.  INSPECTION;  EXAMINATION;  CREDENTIALS.  (a)  The commission may inspect a storage facility for compliance with the safety standards and practices and the recordkeeping requirements adopted under Sections 91.255, 91.257, and 91.258.
(b)  To conduct an inspection under this section, a commissioner or a designated commission employee or agent may enter property on which a storage facility is located at a reasonable time and in a reasonable manner to examine:
(1)  the facility and any related buildings or equipment;  and
(2)  the records required to be maintained at the storage facility under Section 91.258.
(c)  A commissioner or a commission employee or agent may not enter the premises of a storage facility having personnel on the premises of the facility unless proper credentials are first presented to the person at the facility who is in charge of the property.
Added by Acts 1997, 75th Leg., ch. 166, Sec. 5, eff. Sept. 1, 1997.
2023 Texas Statutes › Natural Resources Code › Title 3 - Oil and Gas › Subtitle B - Conservation and Regulation of Oil and Gas › Chapter 91 - Provisions Generally Applicable › Subchapter H. Underground Storage Facilities for Natural Gas › Section 91.255. Safety Standards and Practices

Sec. 91.255.  SAFETY STANDARDS AND PRACTICES.  (a)  The commission by rule shall adopt safety standards and practices for natural gas underground storage and storage facilities.  The standards and practices must:
(1)  require the installation and periodic testing of safety devices;
(2)  establish emergency notification procedures for the operator of a facility in the event of a release of a hazardous substance that poses a substantial risk to the public;
(3)  establish fire prevention and response procedures;
(4)  require training for the employees of the storage facility on the safe operation of the storage facility;  and
(5)  establish any other safety standard or practice that is reasonable and necessary for underground natural gas storage and the safe construction, operation, and maintenance of a storage facility.
(b)  The commission may adopt different standards and practices for different types of storage facilities and may distinguish among natural gas underground storage in salt dome caverns, depleted reservoirs, and embedded salt formations.
(c)  The commission may grant an exception to a standard or practice adopted under this section in a permit or amended permit issued to a storage facility if the exception will not constitute an unreasonable danger to the public.
(d)  The commission may impose an additional standard or practice in a permit or amended permit issued to a storage facility.
(e)  A safety standard or practice adopted by the commission for a storage facility that is part of an intrastate gas pipeline facility must be compatible with federal minimum standards.
(f)  The commission shall require that records of safety device tests required by Subsection (a)(1) be:
(1)  filed with the commission;  or
(2)  maintained by the owner or operator and made available for inspection by the commission.
Added by Acts 1997, 75th Leg., ch. 166, Sec. 5, eff. Sept. 1, 1997.
2023 Texas Statutes › Natural Resources Code › Title 3 - Oil and Gas › Subtitle B - Conservation and Regulation of Oil and Gas › Chapter 91 - Provisions Generally Applicable › Subchapter H. Underground Storage Facilities for Natural Gas › Section 91.256. Limitation on Powers of Municipalities and Counties

Sec. 91.256.  LIMITATION ON POWERS OF MUNICIPALITIES AND COUNTIES.  A municipality or county may not adopt or enforce an ordinance that establishes a safety standard or practice applicable to a storage facility that is subject to regulation under this subchapter, another state law, or a federal law.
Added by Acts 1997, 75th Leg., ch. 166, Sec. 5, eff. Sept. 1, 1997.
2023 Texas Statutes › Natural Resources Code › Title 3 - Oil and Gas › Subtitle B - Conservation and Regulation of Oil and Gas › Chapter 91 - Provisions Generally Applicable › Subchapter H. Underground Storage Facilities for Natural Gas › Section 91.257. Safety Procedure Manual

Sec. 91.257.  SAFETY PROCEDURE MANUAL.  The commission may require the owner or operator of a storage facility to prepare a safety procedure manual for each storage facility and to:
(1)  file a copy of the manual with the commission;  or
(2)  make the manual available for inspection under Section 91.254.
Added by Acts 1997, 75th Leg., ch. 166, Sec. 5, eff. Sept. 1, 1997.
2023 Texas Statutes › Natural Resources Code › Title 3 - Oil and Gas › Subtitle B - Conservation and Regulation of Oil and Gas › Chapter 91 - Provisions Generally Applicable › Subchapter H. Underground Storage Facilities for Natural Gas › Section 91.258. Records; Reports

Sec. 91.258.  RECORDS;  REPORTS.  (a)  An owner or operator of a storage facility shall:
(1)  maintain records and make reports relating to construction, operation, or maintenance of the facility as required by commission rule;  and
(2)  provide any other information required by the commission relating to construction, operation, or maintenance of the facility.
(b)  The commission may provide forms for reports required under Subsection (a).
Added by Acts 1997, 75th Leg., ch. 166, Sec. 5, eff. Sept. 1, 1997.
2023 Texas Statutes › Natural Resources Code › Title 3 - Oil and Gas › Subtitle B - Conservation and Regulation of Oil and Gas › Chapter 91 - Provisions Generally Applicable › Subchapter H. Underground Storage Facilities for Natural Gas › Section 91.259. Damage to Storage Facility; Disabling a Safety Device

Sec. 91.259.  DAMAGE TO STORAGE FACILITY;  DISABLING A SAFETY DEVICE.  A person may not:
(1)  intentionally damage or destroy a storage facility;  or
(2)  disable a safety device in a storage facility except to:
(A)  repair, maintain, test, or replace the device;  or
(B)  conduct other activities that are reasonably necessary for the safe operation of the storage facility.
Added by Acts 1997, 75th Leg., ch. 166, Sec. 5, eff. Sept. 1, 1997.
2023 Texas Statutes › Natural Resources Code › Title 3 - Oil and Gas › Subtitle B - Conservation and Regulation of Oil and Gas › Chapter 91 - Provisions Generally Applicable › Subchapter H. Underground Storage Facilities for Natural Gas › Section 91.260. Injunction; Civil Penalty

Sec. 91.260.  INJUNCTION;  CIVIL PENALTY.  (a)  The attorney general, at the request of the commission, shall bring a civil action against a person who has violated or is violating this subchapter or a rule adopted or an order or permit issued under this subchapter for:
(1)  injunctive relief to restrain the person from the violation;
(2)  the assessment and recovery of a civil penalty for a violation;  or
(3)  both injunctive relief and a civil penalty.
(b)  A civil penalty assessed under this section may not exceed $25,000 for each violation.
(c)  Each day of a continuing violation may be considered a separate violation for the purpose of penalty assessment.
(d)  The maximum penalty assessed for a related series of violations may not exceed $500,000.
Added by Acts 1997, 75th Leg., ch. 166, Sec. 5, eff. Sept. 1, 1997.
2023 Texas Statutes › Natural Resources Code › Title 3 - Oil and Gas › Subtitle B - Conservation and Regulation of Oil and Gas › Chapter 91 - Provisions Generally Applicable › Subchapter H. Underground Storage Facilities for Natural Gas › Section 91.261. Administrative Penalty

Sec. 91.261.  ADMINISTRATIVE PENALTY.  (a)  The commission may assess, as provided by this section and Sections 91.262, 91.263, and 91.264, an administrative penalty against a person who violates this subchapter or a rule adopted or an order or permit issued under this subchapter.
(b)  Except as provided by Subsection (c), the penalty for each violation may be in an amount not to exceed $10,000.  The maximum penalty assessed under this subsection for a related series of violations may not exceed $200,000.
(c)  The penalty for each violation of Section 91.259 may be in an amount not to exceed $25,000.  The maximum penalty assessed under this subsection for a continuing violation may not exceed $300,000.
(d)  Each day a violation continues or occurs may be considered a separate violation for the purpose of penalty assessment under Subsection (b) or (c).
(e)  In determining the amount of the penalty, the commission shall consider:
(1)  the seriousness of the violation, including the nature, circumstances, extent, and gravity of the prohibited act and the hazard or potential hazard created to the health, safety, or economic welfare of the public;
(2)  the economic harm to property or the environment caused by the violation;
(3)  the history of previous violations;
(4)  the amount necessary to deter future violations;
(5)  efforts to correct the violation;  and
(6)  any other matter that justice may require.
Added by Acts 1997, 75th Leg., ch. 166, Sec. 5, eff. Sept. 1, 1997.
2023 Texas Statutes › Natural Resources Code › Title 3 - Oil and Gas › Subtitle B - Conservation and Regulation of Oil and Gas › Chapter 91 - Provisions Generally Applicable › Subchapter H. Underground Storage Facilities for Natural Gas › Section 91.262. Administrative Penalty Assessment Procedure

Sec. 91.262.  ADMINISTRATIVE PENALTY ASSESSMENT PROCEDURE.  (a)  An administrative penalty may be assessed only after the person charged under Section 91.261 has been given an opportunity for a public hearing.  If a public hearing is held, the commission shall make findings of fact and issue a written decision as to the occurrence of the violation and the penalty amount warranted by the violation, incorporating, if appropriate, an order requiring that the penalty be paid.  If appropriate, the commission shall consolidate the hearing with other proceedings.
(b)  If a person charged under Section 91.261 fails to take advantage of the opportunity for a public hearing, a penalty may be assessed by the commission after it has determined that a violation occurred and the penalty amount warranted by the violation.  The commission shall then issue an order requiring the penalty to be paid.
(c)  The commission shall give notice of the commission's order to the person charged with the violation as provided by Chapter 2001, Government Code.  The notice must include a statement of the right of the person to judicial review of the order.
Added by Acts 1997, 75th Leg., ch. 166, Sec. 5, eff. Sept. 1, 1997.
2023 Texas Statutes › Natural Resources Code › Title 3 - Oil and Gas › Subtitle B - Conservation and Regulation of Oil and Gas › Chapter 91 - Provisions Generally Applicable › Subchapter H. Underground Storage Facilities for Natural Gas › Section 91.263. Payment of Administrative Penalty

Sec. 91.263.  PAYMENT OF ADMINISTRATIVE PENALTY.  (a)  Not later than the 30th day after the date on which the commission's order imposing an administrative penalty becomes final as provided by Section 2001.144, Government Code, the person charged with the violation shall:
(1)  pay the amount of the penalty;
(2)  pay the amount of the penalty and file a petition for judicial review contesting:
(A)  the amount of the penalty;
(B)  the fact of the violation;  or
(C)  both the amount of the penalty and the fact of the violation;  or
(3)  without paying the amount of the penalty, file a petition for judicial review contesting:
(A)  the amount of the penalty;
(B)  the fact of the violation;  or
(C)  both the amount of the penalty and the fact of the violation.
(b)  Within the 30-day period, a person who acts under Subsection (a)(3) may:
(1)  stay the enforcement of the penalty by:
(A)  paying the amount of the penalty to the court for placement in an escrow account;  or
(B)  giving to the court a supersedeas bond in a form approved by the court that is effective until all judicial review of the order or decision is final;  or
(2)  request the court to stay enforcement of the penalty by:
(A)  filing with the court a sworn affidavit stating that the person is financially unable to pay the amount of the penalty and is financially unable to give the supersedeas bond;  and
(B)  delivering a copy of the affidavit to the commission.
(c)  If the commission receives a copy of an affidavit under Subsection (b), the commission may file a contest to the affidavit with the court not later than the fifth day after the date the copy is received.  The court shall hold a hearing on the facts alleged in the affidavit as soon as practicable.  The person who files an affidavit has the burden of proving that the person is financially unable to pay the amount of the penalty and to give a supersedeas bond.
(d)  If the person does not pay the amount of the penalty and the penalty is not stayed, the commission may refer the matter to the attorney general for enforcement.
Added by Acts 1997, 75th Leg., ch. 166, Sec. 5, eff. Sept. 1, 1997.
2023 Texas Statutes › Natural Resources Code › Title 3 - Oil and Gas › Subtitle B - Conservation and Regulation of Oil and Gas › Chapter 91 - Provisions Generally Applicable › Subchapter H. Underground Storage Facilities for Natural Gas › Section 91.264. Judicial Review of Administrative Penalty

Sec. 91.264.  JUDICIAL REVIEW OF ADMINISTRATIVE PENALTY.  (a)  Judicial review of a commission order imposing an administrative penalty is:
(1)  instituted by filing a petition as provided by Subchapter G, Chapter 2001, Government Code;   and
(2)  under the substantial evidence rule.
(b)  If the person paid the amount of the penalty and that amount is reduced or is not assessed by the court, the court shall order that the appropriate amount plus accrued interest be remitted to the person.  The rate of interest is the rate charged on loans to depository institutions by the New York Federal Reserve Bank and shall be paid for the period beginning on the date the penalty is paid and ending on the date the penalty is remitted.  If the person gave a supersedeas bond, the court shall order the release of the bond:
(1)  without further action by the person if the penalty is not assessed by the court;  or
(2)  on payment of the penalty in the amount determined by the court.
(c)  A penalty collected under this section shall be deposited to the credit of the general revenue fund.
Added by Acts 1997, 75th Leg., ch. 166, Sec. 5, eff. Sept. 1, 1997.
Amended by:
Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 19.19, eff. September 28, 2011.
2023 Texas Statutes › Natural Resources Code › Title 3 - Oil and Gas › Subtitle B - Conservation and Regulation of Oil and Gas › Chapter 91 - Provisions Generally Applicable › Subchapter J. Payment for Proceeds of Sale › Section 91.401. Definitions

Sec. 91.401.  DEFINITIONS.  In this subchapter:
(1)  "Payee" means any person or persons legally entitled to payment from the proceeds derived from the sale of oil or gas from an oil or gas well located in this state.
(2)  "Payor" means the party who undertakes to distribute oil and gas proceeds to the payee, whether as the purchaser of the production of oil or gas generating such proceeds or as operator of the well from which such production was obtained or as lessee under the lease on which royalty is due.  The payor is the first purchaser of such production of oil or gas from an oil or gas well, unless the owner of the right to produce under an oil or gas lease or pooling order and the first purchaser have entered into arrangements providing that the proceeds derived from the sale of oil or gas are to be paid by the first purchaser to the owner of the right to produce who is thereby deemed to be the payor having the responsibility of paying those proceeds received from the first purchaser to the payee.
(3)  "Division order" means an agreement signed by the payee directing the distribution of proceeds from the sale of oil, gas, casinghead gas, or other related hydrocarbons.  The order directs and authorizes the payor to make payment for the products taken in accordance with the division order.  When used herein "division order" shall also include "transfer order".
(4)  "Transfer order" means an agreement signed by a payee and his transferee (new payee) directing the payor under the division order to pay another person a share in the oil or gas produced.
Added by Acts 1983, 68th Leg., p. 966, ch. 228, Sec. 1, eff. Sept. 1, 1983.  Amended by Acts 1991, 72nd Leg., ch. 650, Sec. 1, eff. Aug. 26, 1991.
2023 Texas Statutes › Natural Resources Code › Title 3 - Oil and Gas › Subtitle B - Conservation and Regulation of Oil and Gas › Chapter 91 - Provisions Generally Applicable › Subchapter J. Payment for Proceeds of Sale › Section 91.403. Payment of Interest on Late Payments

Sec. 91.403.  PAYMENT OF INTEREST ON LATE PAYMENTS.  (a)  If payment has not been made for any reason in the time limits specified in Section 91.402 of this code, the payor must pay interest to a payee beginning at the expiration of those time limits at two percentage points above the percentage rate charged on loans to depository institutions by the New York Federal Reserve Bank, unless a different rate of interest is specified in a written agreement between payor and payee.
(b)  Subsection (a) of this section does not apply where payments are withheld or suspended by a payor beyond the time limits specified in Section 91.402 of this code because of the conditions enumerated in Section 91.402 of this code.
(c)  The payor's obligation to pay interest and the payee's right to receive interest under Subsection (a) of this section terminate on delivery of the proceeds and accumulated interest to the comptroller as provided by Title 6, Property Code.
Added by Acts 1983, 68th Leg., p. 966, ch. 228, Sec. 1, eff. Sept. 1, 1983.  Amended by Acts 1985, 69th Leg., ch. 230, Sec. 18, eff. Sept. 1, 1985;  Acts 1991, 72nd Leg., ch. 650, Sec. 3, eff. Aug. 26, 1991;  Acts 1991, 72nd Leg., ch. 676, Sec. 1, eff. Sept. 1, 1991;  Acts 1997, 75th Leg., ch. 1037, Sec. 39, eff. Sept. 1, 1997;  Acts 1997, 75th Leg., ch. 1423, Sec. 14.15, eff. Sept. 1, 1997.
2023 Texas Statutes › Natural Resources Code › Title 3 - Oil and Gas › Subtitle B - Conservation and Regulation of Oil and Gas › Chapter 91 - Provisions Generally Applicable › Subchapter J. Payment for Proceeds of Sale › Section 91.404. Nonpayment of Oil and Gas Proceeds or Interest

Sec. 91.404.  NONPAYMENT OF OIL AND GAS PROCEEDS OR INTEREST.  (a)  If a payee seeks relief for the failure of a payor to make timely payment of proceeds from the sale of oil or gas or an interest in oil or gas as required under Section 91.402 or 91.403 of this code, the payee must give the payor written notice by mail of that failure as a prerequisite to beginning judicial action against the payor for nonpayment.
(b)  The payor has 30 days after receipt of the required notice from the payee in which to pay the proceeds due, or to respond by stating in writing a reasonable cause for nonpayment.
(c)  A payee has a cause of action for nonpayment of oil or gas proceeds or interest on those proceeds as required in Section 91.402 or 91.403 of this code in any court of competent jurisdiction in the county in which the oil or gas well is located.
Added by Acts 1983, 68th Leg., p. 966, ch. 228, Sec. 1, eff. Sept. 1, 1983.
2023 Texas Statutes › Natural Resources Code › Title 3 - Oil and Gas › Subtitle B - Conservation and Regulation of Oil and Gas › Chapter 91 - Provisions Generally Applicable › Subchapter J. Payment for Proceeds of Sale › Section 91.405. Exemptions

Sec. 91.405.  EXEMPTIONS.  This subchapter does not apply to any royalties that are payable to:
(1)  the board of regents of The University of Texas System under a lease of land dedicated to the permanent university fund;  or
(2)  the General Land Office as provided by Subchapter D, Chapter 52, of this code.
Added by Acts 1983, 68th Leg., p. 966, ch. 228, Sec. 1, eff. Sept. 1, 1983.
2023 Texas Statutes › Natural Resources Code › Title 3 - Oil and Gas › Subtitle B - Conservation and Regulation of Oil and Gas › Chapter 91 - Provisions Generally Applicable › Subchapter J. Payment for Proceeds of Sale › Section 91.406. Attorney's Fees and Minimum Award

Sec. 91.406.  ATTORNEY'S FEES AND MINIMUM AWARD.  If a suit is filed to collect proceeds and interest under this subchapter, the court shall include in any final judgment in favor of the plaintiff an award of:
(1)  reasonable attorney's fees;  and
(2)  if the actual damages to the plaintiff are less than $200, an additional amount so that the total amount of damages equals $200.
Added by Acts 1987, 70th Leg., ch. 1011, Sec. 1, eff. Aug. 31, 1987.
2023 Texas Statutes › Natural Resources Code › Title 3 - Oil and Gas › Subtitle B - Conservation and Regulation of Oil and Gas › Chapter 91 - Provisions Generally Applicable › Subchapter J. Payment for Proceeds of Sale › Section 91.407. Notice of Change of Payor

Sec. 91.407.  NOTICE OF CHANGE OF PAYOR.  (a)  Following a change in payor, the new payor shall give written notice to each payee to whom the payor is responsible for distributing oil or gas proceeds.  The notice must be given to the payee or the payee's designee at the payee's or designee's most recent known address.
(b)  Upon receipt of payee's address from the operator or lessee, the payor must provide the notice within the time permitted for payment of proceeds and in accordance with the conditions for payment provided by Section 91.402.  The notice must include:
(1)  the information required by Sections 91.502(1), (2), and (12) and Section 91.503;  and
(2)  the payor's telephone number.
(c)  The notice may be given by any writing, including a division order, check stub, or attachment to a payment form.
(d)  A payor that is obligated to pay interest to a payee under Section 91.403 and that does not give the payee a notice required by this section is liable to the payee for interest under that section at a rate that is two percent more than the rate provided by that section.
Added by Acts 1997, 75th Leg., ch. 1432, Sec. 1, eff. Sept. 1, 1997.
2023 Texas Statutes › Natural Resources Code › Title 3 - Oil and Gas › Subtitle B - Conservation and Regulation of Oil and Gas › Chapter 91 - Provisions Generally Applicable › Subchapter J. Payment for Proceeds of Sale › Section 91.408. Information for Payees of Proceeds of Production From Certain Gas Wells

Sec. 91.408.  INFORMATION FOR PAYEES OF PROCEEDS OF PRODUCTION FROM CERTAIN GAS WELLS.  (a)  A payor of proceeds from the sale of gas produced from a tight formation as defined by Section 29(c)(2)(B), Internal Revenue Code of 1986,  annually shall furnish the payee a statement providing the information necessary to compute the federal income tax credit provided by that section for the gas for which payment was made in the preceding year, including:
(1)  information as described in Section 91.502(1) of this code;  and
(2)  the volume of the gas, measured in:
(A)  thousands of cubic feet and heating value;  or
(B)  millions of British thermal units for each thousand cubic feet.
(b)  A payor shall furnish a statement required by Subsection (a) not later than March 15 each year.
Added by Acts 1999, 76th Leg., ch. 609, Sec. 1, eff. Sept. 1, 1999;  Acts 1999, 76th Leg., ch. 1483, Sec. 5, eff. Sept. 1, 1999.
2023 Texas Statutes › Natural Resources Code › Title 3 - Oil and Gas › Subtitle B - Conservation and Regulation of Oil and Gas › Chapter 91 - Provisions Generally Applicable › Subchapter K. Saltwater Disposal Pits › Section 91.451. Definition

Sec. 91.451.  DEFINITION.  In this subchapter, "saltwater disposal pit" means a collecting pit on the surface of the ground used to store or evaporate oil field brines, geothermal resource water, or other mineralized water.
Added by Acts 1983, 68th Leg., p. 5305, ch. 975, Sec. 1, eff. Sept. 1, 1983.
2023 Texas Statutes › Natural Resources Code › Title 3 - Oil and Gas › Subtitle B - Conservation and Regulation of Oil and Gas › Chapter 91 - Provisions Generally Applicable › Subchapter K. Saltwater Disposal Pits › Section 91.452. Prohibited Activity

Sec. 91.452.  PROHIBITED ACTIVITY.  Except as provided by this subchapter, a person conducting oil and gas development or production operations, geothermal operations, or underground hydrocarbon storage operations may not use a saltwater disposal pit for storage or evaporation of oil field brines.
Added by Acts 1983, 68th Leg., p. 5305, ch. 975, Sec. 1, eff. Sept. 1, 1983.
2023 Texas Statutes › Natural Resources Code › Title 3 - Oil and Gas › Subtitle B - Conservation and Regulation of Oil and Gas › Chapter 91 - Provisions Generally Applicable › Subchapter K. Saltwater Disposal Pits › Section 91.453. Commission Authorized

Sec. 91.453.  COMMISSION AUTHORIZED.  (a)  On written application, the commission or its designated employee may administratively authorize a person to use a saltwater disposal pit on a temporary emergency basis.
(b)  On written application, the commission or its designated employee may administratively authorize a person to use an impervious surface pit in conjunction with a geothermal operation, an underground hydrocarbon storage operation, or an approved saltwater disposal operation.
(c)  In cases where it may be conclusively shown that use of a saltwater disposal pit can cause no pollution of surrounding productive agricultural land and no pollution of ground or surface water supplies, either because of the absence of such waters, or due to physical isolation of such waters by naturally occurring impervious barriers, the commission or its designated employee may administratively authorize a person to use a saltwater disposal pit.
(d)  An authorization under this section must be in writing and must state the conditions under which any pit may be operated.
Added by Acts 1983, 68th Leg., p. 5305, ch. 975, Sec. 1, eff. Sept. 1, 1983.
2023 Texas Statutes › Natural Resources Code › Title 3 - Oil and Gas › Subtitle B - Conservation and Regulation of Oil and Gas › Chapter 91 - Provisions Generally Applicable › Subchapter K. Saltwater Disposal Pits › Section 91.454. Removal of Authorized Pits

Sec. 91.454.  REMOVAL OF AUTHORIZED PITS.  (a)  A person who is authorized to operate a saltwater disposal pit under Section 91.453 of this code shall close the pit within 45 days after being ordered to close the pit by the commission;  provided that the commission may grant an extension or extensions for a reasonable period or periods of time on a showing of good cause or upon request for an extension by the surface owner or owners of the land upon which the pit is situated.
(b)  A saltwater disposal pit must be closed in compliance with this subchapter and rules, standards, and specifications adopted by the commission.
(c)  In closing a saltwater disposal pit, the person authorized to operate the pit shall remove all salt water and wastes and shall backfill and compact in compliance with commission-approved procedures.
Added by Acts 1983, 68th Leg., p. 5305, ch. 975, Sec. 1, eff. Sept. 1, 1983.
2023 Texas Statutes › Natural Resources Code › Title 3 - Oil and Gas › Subtitle B - Conservation and Regulation of Oil and Gas › Chapter 91 - Provisions Generally Applicable › Subchapter K. Saltwater Disposal Pits › Section 91.455. Rules, Standards, and Specifications

Sec. 91.455.  RULES, STANDARDS, AND SPECIFICATIONS.  (a)  The commission shall adopt rules that:
(1)  define the procedures for obtaining authorization to operate a saltwater disposal pit;
(2)  define the conditions under which authorizations for saltwater disposal pits will be granted;
(3)  establish standards for saltwater disposal pits authorized by the commission;
(4)  provide for standards for the proper closing of saltwater disposal pits authorized by the commission;  and
(5)  provide other standards, procedures, and requirements necessary to carry out this subchapter.
(b)  The commission, by rule, shall require:
(1)  liner specifications and installation procedures that are adequate to insulate a saltwater disposal pit;  and
(2)  the draining, cleaning, and closing of saltwater disposal pits.
Added by Acts 1983, 68th Leg., p. 5305, ch. 975, Sec. 1, eff. Sept. 1, 1983.
2023 Texas Statutes › Natural Resources Code › Title 3 - Oil and Gas › Subtitle B - Conservation and Regulation of Oil and Gas › Chapter 91 - Provisions Generally Applicable › Subchapter K. Saltwater Disposal Pits › Section 91.456. Injunctive Relief

Sec. 91.456.  INJUNCTIVE RELIEF.  If a person is operating a saltwater disposal pit in violation of this subchapter or the commission's rules, standards, or specifications, the commission may have the attorney general institute a suit in a district court in the county in which the saltwater disposal pit is located for injunctive relief to restrain the person from continuing to operate the pit in violation of this subchapter or the rules, standards, or specifications of the commission.
Added by Acts 1983, 68th Leg., p. 5305, ch. 975, Sec. 1, eff. Sept. 1, 1983.
2023 Texas Statutes › Natural Resources Code › Title 3 - Oil and Gas › Subtitle B - Conservation and Regulation of Oil and Gas › Chapter 91 - Provisions Generally Applicable › Subchapter K. Saltwater Disposal Pits › Section 91.457. Removal of Unauthorized Pit

Sec. 91.457.  REMOVAL OF UNAUTHORIZED PIT.  (a)  The commission may order a person who is operating a saltwater disposal pit in violation of this subchapter to close the pit in compliance with this subchapter and commission rules, standards, and specifications, at the pit operator's own expense.
(b)  If a person ordered to close a saltwater disposal pit under Subsection (a) fails or refuses to close the pit in compliance with the commission's order and rules, the commission may close the pit using money from the oil and gas regulation and cleanup fund and may direct the attorney general to file suits in any courts of competent jurisdiction in Travis County to recover applicable penalties and the costs incurred by the commission in closing the saltwater disposal pit.
Added by Acts 1983, 68th Leg., p. 5305, ch. 975, Sec. 1, eff. Sept. 1, 1983.  Amended by Acts 1991, 72nd Leg., ch. 603, Sec. 18, eff. Sept. 1, 1991.
Amended by:
Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 19.20, eff. September 28, 2011.
2023 Texas Statutes › Natural Resources Code › Title 3 - Oil and Gas › Subtitle B - Conservation and Regulation of Oil and Gas › Chapter 91 - Provisions Generally Applicable › Subchapter K. Saltwater Disposal Pits › Section 91.458. Criminal Penalty

Sec. 91.458.  CRIMINAL PENALTY.  (a)  A person who violates Section 91.452 of this code or an order of the commission under Subsection (a), Section 91.457, commits an offense.
(b)  An offense under this section is a Class A misdemeanor.
Added by Acts 1983, 68th Leg., p. 5305, ch. 975, Sec. 1, eff. Sept. 1, 1983.
2023 Texas Statutes › Natural Resources Code › Title 3 - Oil and Gas › Subtitle B - Conservation and Regulation of Oil and Gas › Chapter 91 - Provisions Generally Applicable › Subchapter K. Saltwater Disposal Pits › Section 91.459. Civil Penalty

Sec. 91.459.  CIVIL PENALTY.  (a)  A person who violates this subchapter or a rule, standard, or specification of the commission or who fails to close a saltwater disposal pit in compliance with this subchapter, a rule, standard, or specification of the commission, an order of the commission, or the authorization for the pit is subject to a civil penalty of not less than $100 nor more than $10,000 for each act of violation or failure to comply.
(b)  The attorney general shall recover the civil penalty provided by Subsection (a) of this section in a court of competent jurisdiction.
(c)  Any costs recovered by the attorney general under this subchapter shall be deposited in the oil and gas regulation and cleanup fund.
(d)  Repealed by Acts 1991, 72nd Leg., ch. 603, Sec. 32(1), eff. Sept. 1, 1991.
Added by Acts 1983, 68th Leg., p. 5305, ch. 975, Sec. 1, eff. Sept. 1, 1983.  Amended by Acts 1991, 72nd Leg., ch. 603, Secs. 19, 32(1), eff. Sept. 1, 1991.
Amended by:
Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 19.21, eff. September 28, 2011.
2023 Texas Statutes › Natural Resources Code › Title 3 - Oil and Gas › Subtitle B - Conservation and Regulation of Oil and Gas › Chapter 91 - Provisions Generally Applicable › Subchapter L. Royalty Reporting Standards › Section 91.5001. Definition

Sec. 91.5001.  DEFINITION.  In this subchapter, "payor" has the meaning assigned by Section 91.401.
Added by Acts 2001, 77th Leg., ch. 824, Sec. 1, eff. Jan. 1, 2002.
2023 Texas Statutes › Natural Resources Code › Title 3 - Oil and Gas › Subtitle B - Conservation and Regulation of Oil and Gas › Chapter 91 - Provisions Generally Applicable › Subchapter L. Royalty Reporting Standards › Section 91.501. Information Required

Sec. 91.501.  INFORMATION REQUIRED.  If payment is made to a royalty interest owner from the proceeds derived from the sale of oil or gas production pursuant to a division order, lease, servitude, or other agreement, the payor shall include the information required by Section 91.502 on the check stub, an attachment to the payment form, or another remittance advice that accompanies the payment.
Added by Acts 1985, 69th Leg., ch. 199, Sec. 1, eff. Sept. 1, 1985.  Amended by Acts 2001, 77th Leg., ch. 824, Sec. 2, eff. Sept. 1, 2002.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 232 (H.B. 129), Sec. 1, eff. September 1, 2017.
2023 Texas Statutes › Natural Resources Code › Title 3 - Oil and Gas › Subtitle B - Conservation and Regulation of Oil and Gas › Chapter 91 - Provisions Generally Applicable › Subchapter L. Royalty Reporting Standards › Section 91.502. Types of Information Provided

Sec. 91.502.  TYPES OF INFORMATION PROVIDED.  Each check stub, attachment to a payment form, or other remittance advice must include:
(1)  the lease, property, or well name, any lease, property, or well identification number used to identify the lease, property, or well, and a county and state in which the lease, property, or well is located;
(2)  the month and year during which the sales occurred for which payment is being made;
(3)  the total number of barrels of oil or the total amount of gas sold;
(4)  the price per barrel or per MCF of oil or gas sold;
(5)  the total amount of state severance and other production taxes paid;
(6)  the windfall profit tax paid on the owner's interest;
(7)  any other deductions or adjustments;
(8)  the net value of total sales after deductions;
(9)  the owner's interest in sales from the lease, property, or well expressed as a decimal;
(10)  the owner's share of the total value of sales before any tax deductions;
(11)  the owner's share of the sales value less deductions;  and
(12)  an address and telephone number at which additional information regarding the payment may be obtained and questions may be answered.
Added by Acts 1985, 69th Leg., ch. 199, Sec. 1, eff. Sept. 1, 1985.  Amended by Acts 2001, 77th Leg., ch. 824, Sec. 2, eff. Sept. 1, 2002.
2023 Texas Statutes › Natural Resources Code › Title 3 - Oil and Gas › Subtitle B - Conservation and Regulation of Oil and Gas › Chapter 91 - Provisions Generally Applicable › Subchapter L. Royalty Reporting Standards › Section 91.503. Lease, Property, or Well Description

Sec. 91.503.  LEASE, PROPERTY, OR WELL DESCRIPTION.  If a division order is not provided that includes the information required by Section 91.402(c)(1)(B), the payor must, at a minimum, provide prior to or with the first payment to which this subchapter applies the information required by Section 91.402(c)(1)(B) for the lease, property, or well for which payment of proceeds is being reported.
Added by Acts 1985, 69th Leg., ch. 199, Sec. 1, eff. Sept. 1, 1985.  Amended by Acts 2001, 77th Leg., ch. 824, Sec. 2, eff. Jan. 1, 2002.