Texas 2009 - 81st Regular

Texas House Bill HB2915 Compare Versions

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1	1	81R23229 SMH-F
2	2	By: McReynolds H.B. No. 2915
3	3	Substitute the following for H.B. No. 2915:
4	4	By: Crownover C.S.H.B. No. 2915
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to oil and gas operations in connection with certain state
10	10	land.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 32.002, Natural Resources Code, is
13	13	amended by amending Subsections (a) and (b) and adding Subsections
14	14	(a-1) and (f) to read as follows:
15	15	(a) This chapter does not apply to:
16	16	(1) land dedicated by the constitution or a law of this
17	17	state to The University of Texas System, land donated by a will or
18	18	instrument in writing or otherwise to The University of Texas
19	19	System, as trustee, for a scientific, educational, or other
20	20	charitable or public purpose, or any other land under the control of
21	21	the Board of Regents of The University of Texas System;
22	22	(2) land whose title is vested in the state for the use
23	23	and benefit of any part of The Texas A&M University System or land
24	24	under the control of the Board of Regents of The Texas A&M
25	25	University System;
26	26	(3) minerals subject to lease under Subchapter F,
27	27	Chapter 52, [of this code,] commonly known as the Relinquishment
28	28	Act, and Subchapters B and C, Chapter 53[, of this code];
29	29	(4) [oil and gas underlying land owned by the state
30	30	that was acquired to construct or maintain a highway, road, street,
31	31	or alley, which is located in a producing area, unless the oil or
32	32	gas is leased for the specific purpose of drilling a horizontal
33	33	well;
34	34	[(5) oil and gas underlying land owned by the state
35	35	that was acquired to construct or maintain a highway, road, street,
36	36	or alley if the Texas Transportation Commission has determined that
37	37	such right-of-way is no longer needed for use by citizens as a road
38	38	pursuant to Section 202.021, Transportation Code;
39	39	[(6)] land owned by the [Texas] Parks and Wildlife
40	40	Department; or
41	41	(5) [(7)] land owned by the Texas Board of Criminal
42	42	Justice.
43	43	(a-1) Oil and gas underlying land that is owned by this
44	44	state, was acquired to construct or maintain a highway, road,
45	45	street, or alley, is located in a producing area, and is subject to
46	46	an oil or gas lease may be pooled or unitized only prospectively and
47	47	is subject to Sections 32.201, 32.202, and 32.203.
48	48	(b) For purposes of Subsection (a-1) [Subsection (a)(4) of
49	49	this section], land is located in a producing area if the closest
50	50	boundary line of the surface of such land is within 2,500 feet of a
51	51	well capable of producing oil or gas in paying quantities [as of
52	52	January 1, 1985].
53	53	(f) This chapter does not authorize drilling or other
54	54	operations on the surface of land during the period in which the
55	55	land is used by this state as a highway, road, street, or alley.
56	56	SECTION 2. Section 32.203, Natural Resources Code, is
57	57	amended to read as follows:
58	58	Sec. 32.203. COMPENSATORY ROYALTY. Compensatory royalty
59	59	shall be paid to the state on any lease offered and granted under
60	60	Section 32.201 of this code if the lease is not being held by
61	61	production on the tract, by production from a pooled unit, or by
62	62	payment of shut-in royalties in accordance with the terms of the
63	63	lease, and if oil or gas is sold and delivered in paying quantities
64	64	from a well located within 2,500 feet of the leased premises and
65	65	completed in a producible reservoir underlying the state lease or
66	66	in any case in which drainage is occurring. Such compensatory
67	67	royalty shall be paid at the royalty rate provided in the state
68	68	lease based on the value of production from the well as provided in
69	69	the lease on which such well is located. The compensatory royalty
70	70	shall be paid in the same proportion that the acreage of the state
71	71	lease has to the acreage of the state lease plus the acreage of a
72	72	standard [the] proration unit under statewide field rules or, if
73	73	applicable, the special field rules adopted by the Railroad
74	74	Commission of Texas for the field in which [surrounding] the
75	75	[draining] well has been completed. The compensatory royalty is to
76	76	be paid monthly to the commissioner on or before the last day of the
77	77	month next succeeding the month in which the oil or gas is sold and
78	78	delivered from the well [causing the drainage or from the well
79	79	located within 2,500 feet of the leased premises and completed in a
80	80	producible reservoir under the state lease]. Notwithstanding
81	81	anything herein to the contrary, compensatory royalty payable under
82	82	this section shall be no less than an amount equal to double the
83	83	annual rental payable under the state lease. Payment of
84	84	compensatory royalty shall maintain the state lease in force and
85	85	effect for so long as such payments are made as provided in this
86	86	section.
87	87	SECTION 3. Subchapter F, Chapter 32, Natural Resources
88	88	Code, is amended by adding Section 32.207 to read as follows:
89	89	Sec. 32.207. ADVERTISING FOR BIDS; POOLING. Section 52.076
90	90	applies to oil and gas under land owned by this state that was
91	91	acquired to construct or maintain a highway, road, street, or alley
92	92	in the same manner as that section applies to oil and gas under a
93	93	riverbed or channel.
94	94	SECTION 4. The change in law made by this Act does not
95	95	authorize:
96	96	(1) any person, including this state or a local
97	97	government, to claim damages relating to production from a legally
98	98	permitted and legally producing well the drilling of which was
99	99	commenced before the effective date of this Act; or
100	100	(2) a state or local taxing authority to reallocate
101	101	liability for severance or ad valorem taxes or increase the amount
102	102	of those taxes imposed based on production from or the value
103	103	attributable to production from a legally permitted and legally
104	104	producing well the drilling of which was commenced before the
105	105	effective date of this Act.
106	106	SECTION 5. This Act takes effect September 1, 2009.