Texas Natural Resources Code

§ 86.095 — ZONING COMMON RESERVOIRS

NR § 86.095Title 3. OIL AND GAS · Part B. CONSERVATION AND REGULATION OF OIL AND GAS · Ch. 86. REGULATION OF NATURAL GAS · Art. D. PRODUCTION OF GAS

Statute text

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(a)The commission shall zone a common reservoir if, on consideration of the evidence introduced at a hearing, it finds that either the prevention of waste or adjustment of correlative rights and opportunities, or both, as designated in Section 86.081 of this code, may be accomplished more adequately by zoning the common reservoir.

(b)If the commission zones a common reservoir, each zone shall be regarded as a separate common reservoir in making allocations of daily allowable production as provided in this chapter.

(c)If the commission zones a common reservoir, the commission:

(1)shall allocate to each zone its just proportion of the market demand for gas from the common reservoir;

(2)shall establish appropriate rules applicable to each zone;

(3)may adjust its orders to the practicable conditions that exist; and

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Legislative history

Acts 1977, 65th Leg., p. 2537, ch. 871, art. I, Sec. 1, eff. Sept. 1, 1977.