| 1 | 1 | | By: King of Uvalde H.B. No. 3946 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to the effect of operations in a unit created under the |
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| 7 | 7 | | provisions of an oil or gas lease following the expiration of the |
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| 8 | 8 | | primary term of the lease. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subtitle C, Title 3, Natural Resources Code, is |
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| 11 | 11 | | amended by adding Chapter 104 to read as follows: |
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| 12 | 12 | | CHAPTER 104. VOLUNTARY POOLING |
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| 13 | 13 | | Sec. 104.001. APPLICABILITY. (a) This chapter applies |
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| 14 | 14 | | only to a unit created voluntarily under the provisions of an oil or |
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| 15 | 15 | | gas lease. In the event of a conflict between this chapter and the |
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| 16 | 16 | | provisions of an oil or gas lease entered into before September 1, |
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| 17 | 17 | | 2015, the provisions of the lease prevail. |
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| 18 | 18 | | (b) This chapter does not apply to land: |
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| 19 | 19 | | (1) that is owned by this state; or |
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| 20 | 20 | | (2) in which this state has an interest, directly or |
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| 21 | 21 | | indirectly. |
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| 22 | 22 | | Sec. 104.002. EFFECT OF OPERATIONS IN UNIT IN SECONDARY |
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| 23 | 23 | | TERM OF LEASE. If only part of a tract subject to an oil or gas |
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| 24 | 24 | | lease is pooled into a unit for an oil or gas well, unit production |
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| 25 | 25 | | of oil or gas, unit operations, or payment of shut-in |
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| 26 | 26 | | royalties from |
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| 27 | 27 | | a unit gas well will not serve to hold the lease in force as to any |
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| 28 | 28 | | area outside the unit after the fifth anniversary of the date the |
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| 29 | 29 | | primary term of the lease expires. |
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| 30 | 30 | | SECTION 2. This Act takes effect September 1, 2015. |
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