Texas Natural Resources Code

§ 102.015 — PROHIBITED PROVISIONS IN OPERATING AGREEMENT

NR § 102.015Title 3. OIL AND GAS · Part C. POOLING AND COOPERATIVE AGREEMENTS · Ch. 102. POOLING · Art. B. REQUIREMENTS AND PROCEDURE FOR POOLING

Statute text

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A pooling agreement, offer to pool, or pooling order is not considered fair and reasonable if it provides for an operating agreement containing any of the following provisions:

(1)preferential right of the operator to purchase mineral interests in the unit;

(2)a call on or option to purchase production from the unit;

(3)operating charges that include any part of district or central office expense other than reasonable overhead charges; or

(4)prohibition against nonoperators questioning the operation of the unit.

Legislative history

Acts 1977, 65th Leg., p. 2572, ch. 871, art. I, Sec. 1, eff. Sept. 1, 1977.