Texas Natural Resources Code
§ 52.173 — OFFSET WELLS
NR § 52.173Title 2. PUBLIC DOMAIN · Part D. DISPOSITION OF THE PUBLIC DOMAIN · Ch. 52. OIL AND GAS · Art. F. RELINQUISHMENT
Statute text
View on source(a)In this section:
(1)"Horizontal drainhole well" means a well with a horizontal drainhole that may produce oil or gas along at least 100 feet of the drainhole.
(2)"Take point" means any point in a horizontal drainhole well where oil or gas can be produced from the reservoir or field interval recognized by the Railroad Commission of Texas.
(3)"Unconventional fracture treated field" means an oil or gas field in which horizontal well development and hydraulic fracture treatment must be used to recover resources from all or part of the field. (a-1) Except as provided by Subsection (a-2), if oil or gas is produced in commercial quantities within 1,000 feet of land subject to this subchapter or if production of oil or gas is draining land subject to this subchapter, the owner, lessee, sublessee, receiver, or other agent in control of land subject to this subchapter shall in good faith begin the drilling of a well or wells upon such state land within 100 days after the draining well or wells or the well or wells completed within 1,000 feet of the state land commence to produce in commercial quantities and shall prosecute such drilling with diligence to reasonably develop the state land and to protect such state land against drainage. (a-2) If the well producing oil or gas in commercial quantities under Subsection (a-1) is a horizontal drainhole well located in an unconventional fracture treated field, the owner, lessee, sublessee, receiver, or other agent in control of land subject to this subchapter is not required to drill an offset well as provided by Subsection (a-1) unless any take point in the horizontal drainhole well is located closer to the state land than the greater of:
(1)the minimum distance established by the applicable lease-line spacing requirement of the Railroad Commission of Texas; or
(2)a perpendicular distance of 330 feet.
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Legislative history
Acts 2021, 87th Leg., R.S., Ch. 392 (S.B. 1258), Sec. 2, eff. September 1, 2021.