Texas Estates Code

§ 358.151 — AUTHORIZATION FOR POOLING OR UNITIZATION

ES § 358.151Title 2. ESTATES OF DECEDENTS; DURABLE POWERS OF ATTORNEY · Part H. CONTINUATION OF ADMINISTRATION · Ch. 358. MATTERS RELATING TO MINERAL PROPERTIES · Art. D. POOLING OR UNITIZATION OF ROYALTIES OR MINERALS

Statute text

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(a)If an existing lease or leases on property owned by an estate being administered do not adequately provide for pooling or unitization, the court in which the proceedings are pending may, in the manner provided by this subchapter, authorize the commitment of royalty or mineral interests in oil, liquid hydrocarbons, gas, gaseous elements, and other minerals, or any one or more of them, owned by the estate, to agreements that provide for the operation of areas as a pool or unit for the exploration for, development of, and production of all of those minerals, if the court finds that:

(1)the pool or unit to which the agreement relates will be operated in a manner that protects correlative rights or prevents the physical or economic waste of oil, liquid hydrocarbons, gas, gaseous elements, or other minerals subject to the agreement; and

(2)it is in the best interest of the estate to execute the agreement.

(b)An agreement authorized under Subsection (a) may, among other things, provide that:

(1)operations incident to the drilling of or production from a well on any portion of a pool or unit shall be considered for all purposes to be the conduct of operations on or production from each separately owned tract in the pool or unit;

(2)any lease covering any part of the area committed to a pool or unit continues in effect in its entirety as long as:

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Legislative history

Added by Acts 2009, 81st Leg., R.S., Ch. 680 (H.B. 2502), Sec. 1, eff. January 1, 2014.