Texas 2015 - 84th Regular

Texas Senate Bill SB118 Compare Versions

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Old	New	Differences
1	1	84R151 SMH-F
2	2	By: Taylor of Collin S.B. No. 118
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to unit operations for oil, gas, or oil and gas production
8	8	from depleting reservoirs or carbon dioxide storage; authorizing a
9	9	fee.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subtitle C, Title 3, Natural Resources Code, is
12	12	amended by adding Chapter 104 to read as follows:
13	13	CHAPTER 104. UNITIZATION
14	14	SUBCHAPTER A. GENERAL PROVISIONS
15	15	Sec. 104.001. SHORT TITLE. This chapter may be cited as the
16	16	Oil and Gas Majority Rights Protection Act for Secondary and
17	17	Tertiary Recovery Operations.
18	18	Sec. 104.002. DEFINITIONS. In this chapter:
19	19	(1) "Commission" means the Railroad Commission of
20	20	Texas.
21	21	(2) "Common source of supply" means:
22	22	(A) a common reservoir as defined by Section
23	23	86.002 the boundaries of which have been determined from geological
24	24	or other scientific data or experiments or from drilling
25	25	operations; or
26	26	(B) separate multiple stratigraphic or
27	27	lenticular accumulations of oil, gas, or oil and gas that have been
28	28	recognized and regulated as a common reservoir by the commission
29	29	under Section 86.081(b).
30	30	(3) "Extraneous substances" are substances, including
31	31	hydrocarbons or carbon dioxide, purchased or otherwise obtained
32	32	from outside a common source of supply for injection into the common
33	33	source of supply during unit operations.
34	34	(4) "Oil and gas" means "oil" and "gas" as defined by
35	35	Section 85.001.
36	36	(5) "Plan of unitization" means a plan or agreement
37	37	that is consistent with the requirements of this chapter between
38	38	working interest owners and royalty owners in a common source of
39	39	supply or part of a common source of supply the geological limits of
40	40	which have been sufficiently defined and in which unit operations
41	41	may be conducted to enhance the production of oil, gas, or oil and
42	42	gas from the common source of supply or part of the common source of
43	43	supply to greater volumes than would otherwise be produced by
44	44	primary recovery operations only.
45	45	(6) "Primary recovery" means the displacement of oil,
46	46	gas, or oil and gas from a common source of supply or part of a
47	47	common source of supply in a unit area by means of the natural
48	48	pressure of the reservoir, including artificial lift, but in the
49	49	absence of unit operations.
50	50	(7) "Royalty interest" means the right to, or an
51	51	interest in, oil and gas or proceeds of oil and gas production free
52	52	of costs, other than a working interest. The term includes a
53	53	royalty interest attributable to the interest of an unleased
54	54	mineral interest owner under Section 104.057(1).
55	55	(8) "Royalty owner" means the owner of a royalty
56	56	interest.
57	57	(9) "Tract" means a parcel of land lying within the
58	58	unit area that is under uniform royalty and working interest
59	59	ownership.
60	60	(10) "Tract participation" means the percentage shown
61	61	in the plan of unitization participation formula for allocating
62	62	unit production to a tract, which is measured by the value
63	63	calculated for each tract for oil, gas, or oil and gas purposes
64	64	based on its contributing value to the unit in relation to like
65	65	values of other tracts in the unit, the sum of which is 100 percent.
66	66	(11) "Unit area" includes the surface area inside the
67	67	boundaries of the unit and the common source of supply or the part
68	68	of the common source of supply underlying the surface area that may
69	69	be reasonably required for the conduct of unit operations.
70	70	(12) "Unit cost" or "unit expense" includes any cost
71	71	or expense incurred in the conduct of unit operations.
72	72	(13) "Unit operations" means:
73	73	(A) operations intended to increase the ultimate
74	74	recovery of oil, gas, or oil and gas from a common source of supply
75	75	related to the production of oil, gas, or oil and gas from the unit
76	76	area, including:
77	77	(i) repressuring;
78	78	(ii) waterflooding;
79	79	(iii) pressure maintenance;
80	80	(iv) tertiary recovery operations; or
81	81	(v) any other similar operations that are
82	82	incidental or necessary to increase the ultimate recovery of oil,
83	83	gas, oil and gas, or other hydrocarbons from the proposed unit area;
84	84	and
85	85	(B) the establishment and operation of the
86	86	necessary facilities for the operations listed in Paragraph (A).
87	87	(14) "Unit operator" means the person designated under
88	88	the plan of unitization to conduct unit operations, acting as
89	89	operator and not merely as a working interest owner.
90	90	(15) "Unit participation of a royalty owner" means the
91	91	percentage equal to the sum of the products obtained by multiplying
92	92	the royalty interest of each royalty owner in each tract in which
93	93	the owner owns a royalty interest by the tract participation of that
94	94	tract in the unit.
95	95	(16) "Unit participation of a working interest owner"
96	96	means the percentage equal to the sum of the products obtained by
97	97	multiplying the working interest of each working interest owner in
98	98	each tract in which the owner owns a working interest by the tract
99	99	participation of that tract in the unit.
100	100	(17) "Unit production" includes all oil, gas, or oil
101	101	and gas produced and saved from a unit area after the effective date
102	102	of the unit regardless of the well or tract in the unit area from
103	103	which the oil, gas, or oil and gas are produced. The term does not
104	104	include the following substances if the working interest owners
105	105	under a lease, contract, agreement, or unit plan have excluded the
106	106	substances from unit production:
107	107	(A) recoverable extraneous substances injected
108	108	into the common source of supply or used in well treatment or
109	109	pressure maintenance;
110	110	(B) any production that is reinjected into the
111	111	unit area, unless the reinjected production is later removed from
112	112	the unit area for nonunit purposes or sold, in which case it will be
113	113	considered to be unit production; or
114	114	(C) any production used or consumed in unit
115	115	operations.
116	116	(18) "Working interest" means an interest in oil and
117	117	gas by virtue of a lease, operating agreement, fee title, or
118	118	otherwise, including a carried interest, the owner of which is
119	119	obligated to pay, in cash, out of production, or otherwise, the
120	120	owner's share of the unit expense under the proposed or approved
121	121	plan of unitization. The term includes a working interest
122	122	attributable to the interest of an unleased mineral interest owner
123	123	under Section 104.057(2).
124	124	(19) "Working interest owner" means the owner of a
125	125	working interest.
126	126	Sec. 104.003. POWER AND AUTHORITY OF COMMISSION. (a) The
127	127	commission shall adopt any necessary rule, issue and enforce any
128	128	necessary order, and perform all required acts necessary to carry
129	129	out the purposes of this chapter.
130	130	(b) The commission in accordance with this chapter shall
131	131	determine whether a plan of unitization, including the
132	132	participation formula, proposed under this chapter for all or part
133	133	of a common source of supply is fair, reasonable, and equitable for
134	134	all interests concerned and necessary to carry out the purposes of
135	135	this chapter.
136	136	Sec. 104.004. APPLICABILITY TO EXPLORATORY OR PRIMARY
137	137	RECOVERY OPERATIONS. This chapter does not affect or apply to
138	138	exploratory or primary recovery operations.
139	139	Sec. 104.005. APPLICABILITY TO VOLUNTARY COOPERATIVE
140	140	AGREEMENTS IN SECONDARY RECOVERY OPERATIONS. This chapter does not
141	141	affect or apply to a voluntary cooperative agreement in secondary
142	142	recovery operations as provided by Subchapter B, Chapter 101,
143	143	unless application is made under this chapter for unit operations.
144	144	Sec. 104.006. APPLICABILITY TO POOLING OF INTERESTS IN
145	145	PRORATION UNIT. This chapter does not affect or apply to the
146	146	pooling of separately owned interests in oil and gas within an
147	147	existing or proposed proration unit in a common reservoir as
148	148	provided by Subchapter B, Chapter 102.
149	149	Sec. 104.007. APPLICABILITY TO PUBLIC LAND. (a) This
150	150	chapter does not apply to land owned by the state or land in which
151	151	the state has a direct or indirect interest.
152	152	(b) Except as provided by Subsection (c), this chapter does
153	153	not amend, repeal, change, alter, or affect in any manner the
154	154	authority or jurisdiction of the state, the commissioner of the
155	155	General Land Office, or any board or agency of the state with
156	156	respect to any land or interest in land in which the state, the
157	157	commissioner of the General Land Office, or any board or agency of
158	158	the state has jurisdiction or the unitization of such land.
159	159	(c) Land in which the state has an interest as described in
160	160	this chapter may be unitized under this chapter only:
161	161	(1) at the instance of the commissioner of the General
162	162	Land Office; or
163	163	(2) with the approval of or consent to a plan of
164	164	unitization by the state, the commissioner of the General Land
165	165	Office, or the board or agency having jurisdiction.
166	166	(d) If land in which the state has an interest is to be
167	167	unitized as provided for by Subsection (c), the plan of unitization
168	168	and unit operating agreement is subject to and must incorporate by
169	169	reference all statutes and rules that apply to the land in which the
170	170	state has an interest.
171	171	Sec. 104.008. CONFLICT WITH ANTITRUST ACTS. (a) A plan of
172	172	unitization and operation under an agreement that complies with
173	173	this chapter, is approved by commission order, and is found by the
174	174	commission to be necessary to prevent waste and conserve the
175	175	natural resources of this state may not be construed to be in
176	176	violation of Chapter 15, Business & Commerce Code.
177	177	(b) If a court finds a conflict between this chapter and
178	178	Chapter 15, Business & Commerce Code, this chapter is intended as a
179	179	reasonable exception to that law that is necessary for the public
180	180	interest of preventing waste and conserving the natural resources
181	181	of this state.
182	182	(c) If a court finds a conflict between this chapter and
183	183	Chapter 15, Business & Commerce Code, and finds that this chapter is
184	184	not a reasonable exception to Chapter 15, Business & Commerce Code,
185	185	the legislature intends that this chapter, or any conflicting part
186	186	of this chapter, be declared invalid rather than that Chapter 15,
187	187	Business & Commerce Code, or any portion of that chapter, be
188	188	declared invalid.
189	189	Sec. 104.009. APPEALS. A person affected by an order of the
190	190	commission issued under this chapter is entitled to judicial review
191	191	of that order in accordance with Subchapter G, Chapter 85. The
192	192	petition for review must be filed in Travis County.
193	193	SUBCHAPTER B. APPLICATION PROCEDURES; CONSIDERATION
194	194	AND APPROVAL OF PLAN
195	195	Sec. 104.051. APPLICATION FOR UNITIZATION. (a) A working
196	196	interest owner or proposed unit operator may file an application
197	197	with the commission requesting an order under this chapter for the
198	198	unit operation of a common source of supply or a part of that common
199	199	source of supply.
200	200	(b) The application must contain:
201	201	(1) a description of the proposed unit area and the
202	202	vertical limits and producing horizons to be included in that unit
203	203	area with a map or plat attached;
204	204	(2) a statement of the type of operations contemplated
205	205	for the unit area;
206	206	(3) a copy of a proposed plan of unitization and all
207	207	agreements related to that plan that the applicant considers fair,
208	208	reasonable, and equitable, including a unit operating agreement
209	209	that contains provisions dealing with:
210	210	(A) the manner in which the costs and expenses of
211	211	unit operations are to be apportioned among and assessed against
212	212	the tracts and interests chargeable with those costs and expenses,
213	213	including a detailed accounting procedure governing all charges and
214	214	credits incident to unit operations and providing for audits of
215	215	those charges and credits;
216	216	(B) voting and approval procedures;
217	217	(C) the designation, resignation, removal, or
218	218	replacement of the unit operator;
219	219	(D) the division of interest or formula for
220	220	allocation of unit production, payment of interests free of costs,
221	221	and allocation of unit expenses;
222	222	(E) the time when the plan of unitization takes
223	223	effect; and
224	224	(F) the time when, conditions under which, and
225	225	method by which the unit shall or may be dissolved and its affairs
226	226	wound up;
227	227	(4) an allegation of the facts required to be found by
228	228	the commission under Section 104.054;
229	229	(5) an allegation that the applicant has obtained at
230	230	least the minimum required approval of the plan of unitization as
231	231	required by Section 104.056; and
232	232	(6) an allegation that:
233	233	(A) each owner of an interest in the oil and gas
234	234	under each tract in the proposed unit area has been given an
235	235	opportunity to enter into the unit on the same basis; and
236	236	(B) the applicant or proposed unit operator has
237	237	made a good faith effort to voluntarily unitize all interests in the
238	238	proposed unit area.
239	239	(c) The applicant shall submit with the application a list
240	240	including:
241	241	(1) the name of each person owning or having a working
242	242	interest, royalty interest, or unleased mineral interest in the
243	243	proposed unit area and each offset operator and unleased mineral
244	244	interest owner adjacent to the proposed unit area; and
245	245	(2) for each person listed:
246	246	(A) an address; or
247	247	(B) a statement that the person's address is
248	248	unknown.
249	249	Sec. 104.052. HEARING REQUIRED. (a) On receipt of an
250	250	application, the commission promptly shall set the matter for
251	251	hearing and cause notice of the hearing to be given as provided by
252	252	Section 104.053.
253	253	(b) At the hearing, an affected person is entitled to be
254	254	heard, to introduce evidence, and to introduce and cross-examine
255	255	witnesses.
256	256	Sec. 104.053. NOTICE. (a) Notice of the application and
257	257	the time and place of the hearing on the application must be mailed,
258	258	postage prepaid, not later than the 31st day before the hearing date
259	259	to each working interest owner, operator, unleased mineral interest
260	260	owner, and royalty owner in the unit area and to each offset
261	261	operator and unleased mineral interest owner whose name and address
262	262	is shown on the list provided under Section 104.051.
263	263	(b) Notice of the application and the time and place of
264	264	hearing must be published once a week for four consecutive weeks in
265	265	a newspaper of general circulation authorized by law to publish
266	266	legal notices in the county or counties in which the land involved
267	267	is located. The first publication must be made not later than the
268	268	31st day before the hearing date.
269	269	(c) Typographical errors in a notice that are not material
270	270	to the purpose of the notice do not affect the validity of the
271	271	notice.
272	272	Sec. 104.054. COMMISSION FINDINGS. After notice and a
273	273	hearing, the commission shall determine whether:
274	274	(1) the unitized operation of the common source of
275	275	supply or the part of the common source of supply involved in the
276	276	plan of unitization is reasonably necessary to conduct unit
277	277	operations and the plan of unitization is reasonably necessary to
278	278	prevent waste, protect correlative rights, and promote the
279	279	conservation of oil, gas, or oil and gas;
280	280	(2) the estimated incremental recovery of oil, gas, or
281	281	oil and gas from the common source of supply is reasonably
282	282	anticipated to exceed the estimated incremental expenses incident
283	283	to conducting unit operations;
284	284	(3) the productive limits of the common source of
285	285	supply or the part of the common source of supply proposed for
286	286	unitization have been reasonably defined by exploration,
287	287	development, or other definable means so as to establish that the
288	288	area proposed for unitization is reasonably necessary and
289	289	sufficient for unit operations;
290	290	(4) if only a portion of the common source of supply is
291	291	proposed for unitization, unit operations will have a material
292	292	adverse effect on the remainder of the common source of supply;
293	293	(5) the unsigned owners of interests in the oil and gas
294	294	under each tract of land in the proposed unit area have been given a
295	295	reasonable opportunity to enter into the unit on the same basis as
296	296	the owners of interests in the oil and gas under the other tracts in
297	297	the unit area and the applicant or proposed unit operator has made a
298	298	good faith effort to voluntarily unitize all interests within the
299	299	proposed unit area;
300	300	(6) the applicant has obtained approval for the plan
301	301	of unitization from at least the minimum number of working interest
302	302	and royalty interest owners required by Section 104.056;
303	303	(7) the expense of establishing the unit and unit
304	304	expenses that are to be charged as unit expenses are reasonable and
305	305	necessary;
306	306	(8) the expenses relating to unit operations will:
307	307	(A) be for the common benefit of all persons with
308	308	interests in the unit;
309	309	(B) be allocated on a fair and equitable basis;
310	310	and
311	311	(C) not result in a profit or other benefit that
312	312	favors the unit operator over other unitized interest owners;
313	313	(9) a working interest owner has a reasonable right to
314	314	review all records pertaining to unit operations and a reasonable
315	315	amount of time to audit unit expenses;
316	316	(10) the plan of unitization meets the requirements of
317	317	Subchapter C and reasonably conforms to the requirements of this
318	318	chapter; and
319	319	(11) the plan of unitization, including the tract
320	320	participation formula and percentages, is in all respects fair,
321	321	reasonable, and equitable.
322	322	Sec. 104.055. UNITIZATION ORDER; EFFECT OF OPERATIONS. (a)
323	323	If the commission finds that all the requirements of Section
324	324	104.054 are met, the commission shall issue an order providing for:
325	325	(1) the unitized operation of the unit area in the
326	326	common source of supply as set forth in the plan of unitization; and
327	327	(2) unitization of all working interests and royalty
328	328	interests in the unit area.
329	329	(b) The order must:
330	330	(1) unitize all interests of all owners in the area
331	331	covered by the plan of unitization with the same effect as if those
332	332	owners had executed the plan of unitization and had been parties to
333	333	the unit agreement;
334	334	(2) approve the area of the common source of supply or
335	335	the part of the common source of supply to be included in the unit
336	336	area and the vertical limits of the common source of supply as
337	337	defined in the plan of unitization;
338	338	(3) approve the plan of unitization, including the
339	339	allocation of production and costs among tracts; and
340	340	(4) approve the designation of the initial unit
341	341	operator as named in the plan of unitization.
342	342	(c) Unit operations on and production from any lease in the
343	343	unit area for which a unitization order has been entered are
344	344	considered for all purposes the conduct of unit operations on and
345	345	production from each separately owned lease and tract in the unit.
346	346	(d) If only a part of a lease is included in the unit, unit
347	347	operations on or production from the unit maintains an oil and gas
348	348	lease as to the part excluded from the unit only if the excluded
349	349	part of the lease otherwise would have been maintained under the
350	350	terms of the lease by the unit production attributable to the
351	351	included tract or tracts.
352	352	Sec. 104.056. APPROVAL OF PROPOSED PLAN OF UNITIZATION BY
353	353	WORKING INTEREST AND ROYALTY OWNERS. (a) An order of the
354	354	commission creating a unit and prescribing the plan of unitization
355	355	takes effect only when the proposed plan of unitization has been
356	356	approved in writing by:
357	357	(1) the owners, on a unit participation basis, of a
358	358	supermajority consisting of at least 70 percent of the aggregate
359	359	unit working interests; and
360	360	(2) a supermajority consisting of at least 70 percent
361	361	of the owners, on a unit participation basis, of the aggregate unit
362	362	royalty interests that complete and return an approval or
363	363	ratification together with the ballot distributed under Subsection
364	364	(b).
365	365	(b) A ballot distributed to the owners of royalty interests
366	366	must:
367	367	(1) state that the applicant will confirm by mail that
368	368	the ballot has been received and whether it has been counted as a
369	369	vote for or against the proposed plan;
370	370	(2) be sent by certified mail, return receipt
371	371	requested, to each owner of a royalty interest in the proposed unit
372	372	area, including the interest attributable to each owner of an
373	373	unleased mineral interest;
374	374	(3) be sent a second time by certified mail, return
375	375	receipt requested, to any interest owner for whom a receipt from the
376	376	first mailing is not returned after a reasonable effort has been
377	377	made between the first and the second mailings to correct any
378	378	address that appears to be inaccurate; and
379	379	(4) be accompanied by:
380	380	(A) a copy of the proposed plan of unitization;
381	381	(B) an objective summary of the proposed plan
382	382	that is reasonably calculated to provide an ordinary royalty owner
383	383	with an adequate understanding of how the royalty owner's property
384	384	interest would be affected by a favorable vote and how that interest
385	385	would be affected by an unfavorable vote; and
386	386	(C) a postage-paid reply envelope.
387	387	(c) A royalty owner may not be required to return a ballot
388	388	earlier than the 14th day after the date the owner receives the
389	389	ballot and other information required by Subsection (b).
390	390	(d) The applicant shall:
391	391	(1) confirm the receipt of each ballot; and
392	392	(2) indicate to the royalty owner returning the ballot
393	393	whether the ballot has been counted as a vote for or a vote against
394	394	the proposed plan.
395	395	(e) The commission shall dismiss the application if the
396	396	commission finds that the applicant has not reasonably complied
397	397	with Subsection (b), (c), or (d).
398	398	(f) Notwithstanding Sections 104.054 and 104.055, the
399	399	commission may issue an order approving the plan of unitization
400	400	before the requirements of Subsection (a)(2) of this section have
401	401	been met. If the commission issues an order approving the plan of
402	402	unitization under that circumstance, the requirements of
403	403	Subsection (a)(2) must be met not later than six months after the
404	404	date the commission issues the order. If after an additional notice
405	405	and hearing as provided by Sections 104.052 and 104.053 the
406	406	commission determines that the requirements of Subsection (a)(2) of
407	407	this section have been met before the expiration of the required
408	408	period, the order takes effect. If after the additional notice and
409	409	hearing the commission determines that the requirements of
410	410	Subsection (a)(2) have not been met before the expiration of the
411	411	required period, the order has no effect, and the commission shall
412	412	revoke the order.
413	413	Sec. 104.057. STATUS OF UNLEASED MINERAL INTERESTS. Any
414	414	mineral interest in the unit area that is unleased on the effective
415	415	date of unitization is considered for purposes of unit
416	416	participation:
417	417	(1) to have a royalty interest of one-sixth of that
418	418	interest, free and clear of all unit expenses; and
419	419	(2) to be a working interest to the extent of
420	420	five-sixths of that interest, with all the rights and obligations
421	421	of a lessee as if the mineral rights were leased.
422	422	SUBCHAPTER C. PLAN OF UNITIZATION
423	423	Sec. 104.101. AUTHORIZED PLANS. (a) A plan of unitization
424	424	may be proposed under this chapter only to establish units and
425	425	cooperative facilities necessary for unit operations that are
426	426	reasonably anticipated to substantially increase the ultimate
427	427	recovery of oil, gas, or oil and gas to greater volumes than would
428	428	be recovered by primary recovery alone.
429	429	(b) The proposed plan of unitization and the commission
430	430	order approving the plan may provide for unit operation of less than
431	431	the whole of a common source of supply if:
432	432	(1) the unit area is of a size and shape that is
433	433	reasonably required for successful and efficient conduct of the
434	434	type of unit operations proposed; and
435	435	(2) the type of unit operations proposed will not have
436	436	a material adverse effect on the part of the common source of supply
437	437	that is not included in the plan of unitization.
438	438	Sec. 104.102. SINGLE OR MULTIPLE AGREEMENTS. The plan of
439	439	unitization may consist of one or more agreements that the
440	440	applicant considers to be fair, reasonable, and equitable if the
441	441	applicant submits each agreement to the commission as required by
442	442	Section 104.051(b)(3).
443	443	Sec. 104.103. PARTICIPATION; ALLOCATION OF UNIT
444	444	PRODUCTION. (a) The proposed plan must provide for the
445	445	apportionment and allocation of the unit production among the
446	446	tracts in the unit area in order to reasonably permit a person
447	447	entitled to share in, or benefit by, the production from a tract in
448	448	the unit to receive a fair share of the unit production or other
449	449	benefits.
450	450	(b) A tract's fair share of the unit production must be
451	451	measured by the value of each tract and its contributing value to
452	452	the unit in relation to like values of other tracts in the unit,
453	453	taking into account acreage, the quantity of oil, gas, or oil and
454	454	gas recoverable from the tract, the tract's location on the
455	455	geological structure, the tract's probable productivity of oil,
456	456	gas, or oil and gas in the absence of unit operations, or as many
457	457	other factors, including other pertinent engineering, geological,
458	458	or operating factors, as are reasonably susceptible of
459	459	determination.
460	460	Sec. 104.104. VOTING BY WORKING INTEREST OWNERS. The
461	461	proposed plan of unitization must establish a voting procedure for
462	462	decisions by the working interest owners. The voting procedure
463	463	need not be the same for each type of decision that may be made by
464	464	the working interest owners. However, each voting procedure must
465	465	provide that each working interest owner has a voting interest
466	466	equal to that owner's unit participation.
467	467	Sec. 104.105. OPERATING AGREEMENT. The proposed plan of
468	468	unitization must include a proposed operating agreement
469	469	establishing:
470	470	(1) the manner in which the unit will be operated,
471	471	supervised, and managed by the unit operator in the conduct of unit
472	472	operations;
473	473	(2) the grounds on which a unit operator may be
474	474	replaced for cause;
475	475	(3) a procedure by which a unit operator may resign or
476	476	be replaced without cause;
477	477	(4) allocation of and provision for payment of unit
478	478	costs; and
479	479	(5) the other matters required by Section
480	480	104.051(b)(3).
481	481	Sec. 104.106. EFFECTIVE DATE AND TERMINATION DATE OF PLAN
482	482	OF UNITIZATION. (a) The proposed plan of unitization must provide
483	483	for the date on which the plan takes effect, the manner in which and
484	484	the circumstances under which unit operations terminate, the
485	485	settlement of accounts on termination, and notice by the unit
486	486	operator to the public within 30 days after the effective date of
487	487	the unit. After the commission by order adopts the plan of
488	488	unitization and declares the unit effective, the unit operator must
489	489	give public notice by filing for record, in the real property
490	490	records of the county or counties in which the unit area or any part
491	491	of the unit area is located, a certificate containing:
492	492	(1) the name of the unit;
493	493	(2) the legal description of each tract included in
494	494	the unit area and a description of the common source of supply or
495	495	the part of the common source of supply included in the unit area;
496	496	(3) the commission docket number;
497	497	(4) the date of the commission order, including any
498	498	supplemental orders, relating to approval of the plan of
499	499	unitization or the approval by the royalty owners;
500	500	(5) the effective date of unit operations; and
501	501	(6) a survey plat setting out the unit boundaries.
502	502	(b) The plan of unitization must require the unit operator,
503	503	not later than the 60th day after the date of termination of the
504	504	unit, to file for record in each county in which any part of the unit
505	505	area is located a certificate stating the date the unit operations
506	506	terminated.
507	507	Sec. 104.107. FINANCING UNIT OPERATIONS. (a) The plan of
508	508	unitization must provide the manner in which unit costs, including
509	509	overhead and interest, are determined, allocated, and charged to
510	510	the separately owned tracts or interests and must include a
511	511	detailed accounting procedure for all charges and credits incident
512	512	to unit operations. The unit costs chargeable to a tract or
513	513	interest must be paid by each working interest owner on a unit
514	514	participation basis.
515	515	(b) The plan also must:
516	516	(1) provide for the auditing of all records of the unit
517	517	operator pertaining to unit operation;
518	518	(2) require the operator to maintain records
519	519	sufficient to show the reasonableness of any payments to affiliates
520	520	of the operator and of other unit costs;
521	521	(3) provide for disclosure so that working interest
522	522	owners will be informed in a timely manner whether particular costs
523	523	and expenses relate to activities undertaken by an affiliate of the
524	524	operator; and
525	525	(4) include provisions that disallow situations in
526	526	which a profit or other benefit would accrue solely to the operator
527	527	as unit operator.
528	528	Sec. 104.108. ATTACHMENT OF OR LIEN ON PROCEEDS OF
529	529	PRODUCTION TO COVER DEBTS OF NONPAYING WORKING INTEREST OWNERS.
530	530	(a) The plan of unitization must provide for the attachment of or a
531	531	lien on proceeds of production due to any working interest owner who
532	532	is not paying the owner's share of the costs of unit operation as
533	533	compensation to the paying owner or owners. The compensation
534	534	amount may not exceed 300 percent of the nonpaying working interest
535	535	owner's share of unit costs, which is considered to include all
536	536	penalties and interest.
537	537	(b) The plan of unitization must provide that all of the
538	538	unit production allocated to a nonpaying working interest owner who
539	539	does not pay the share of the unit expenses charged and any
540	540	additional compensation amounts applied to that nonpaying owner
541	541	under Subsection (a) may be appropriated by the unit operator and
542	542	marketed and sold for the payment of unit expenses and additional
543	543	compensation amounts. Any sale proceeds remaining after payment of
544	544	unit expenses and additional compensation amounts must be remitted
545	545	to the nonpaying working interest owner.
546	546	(c) As to an interest located in the unit that is not leased
547	547	by the effective date of unitization, one-sixth of the production
548	548	attributable to the unleased interest is considered as royalty
549	549	interest and is free and clear of all unit expenses and additional
550	550	compensation amounts. Five-sixths of the unleased interest is
551	551	considered as working interest and is subject to being financed or
552	552	carried under this section.
553	553	Sec. 104.109. SALE BY NONSIGNING WORKING INTEREST OWNER.
554	554	The plan of unitization must provide that a nonsigning working
555	555	interest owner may elect to offer through the unit operator to sell
556	556	and assign all of that owner's working interest in the unit area to
557	557	the unit operator and to other working interest owners who desire to
558	558	acquire a portion of the interest.
559	559	Sec. 104.110. INVESTMENT ADJUSTMENTS AND PROPERTY TAKEN
560	560	OVER. The plan of unitization must provide for the procedure and
561	561	basis for adjustment among the working interest owners in the unit
562	562	area of their respective investment in wells, tanks, pumps,
563	563	machinery, materials, equipment, facilities, and other items of
564	564	value taken over and used in unit operations. Investment
565	565	adjustments and credits for property taken over may not be used as a
566	566	factor in setting participation percentages and allocations of unit
567	567	production under Section 104.103.
568	568	Sec. 104.111. ADDITIONAL PLAN PROVISIONS. The plan of
569	569	unitization may include any additional provisions approved by the
570	570	commission that are consistent with the findings required by
571	571	Section 104.054.
572	572	SUBCHAPTER D. AMENDMENT OF PLAN OR ORDER OF
573	573	UNITIZATION; EXPANSION OF UNIT AREA
574	574	Sec. 104.151. AMENDMENT OF PLAN OR ORDER OF UNITIZATION.
575	575	(a) A commission order approving unitization may be amended in the
576	576	same manner and subject to the same conditions as are required for
577	577	an original order providing for unitized operations.
578	578	(b) Approval of an amendment by royalty owners is not
579	579	required if the amendment affects only the rights and interests of
580	580	working interest owners.
581	581	(c) An amendment to an order may not, without the aggregate
582	582	approval of at least the minimum percentage of the working interest
583	583	and royalty interest ownership required under Section 104.056 for
584	584	approval of unitization and compliance with Section 104.007,
585	585	change:
586	586	(1) the percentage of unit oil, gas, or oil and gas
587	587	production allocated to each tract in the plan approved by the
588	588	original or amended order approving the existing unit; or
589	589	(2) the percentage of unit expenses allocated to each
590	590	tract in the plan of unitization approved by the original or amended
591	591	order for the existing unit.
592	592	(d) An amendment to an order may not, without the aggregate
593	593	approval of at least the minimum percentage of the working interest
594	594	and royalty interest ownership required under Section 104.056 for
595	595	approval of unitization, the aggregate approval of a supermajority
596	596	consisting of at least 70 percent of the surface interest ownership
597	597	in the unit area, and compliance with Section 104.007, change the
598	598	unit operations from enhanced recovery operations to carbon dioxide
599	599	storage operations.
600	600	(e) This section does not apply to an order:
601	601	(1) expanding an existing unit area under Section
602	602	104.152;
603	603	(2) creating a new unit area under Section 104.153; or
604	604	(3) under Section 104.209 authorizing an operator of
605	605	an enhanced recovery project to document geologic storage of carbon
606	606	dioxide while the common source of supply is operated for the
607	607	economic recovery of oil, gas, or oil and gas.
608	608	(f) For purposes of Subsection (e)(3), the common source of
609	609	supply is considered to be operated for the economic recovery of
610	610	oil, gas, or oil and gas if there is a reasonable expectation of
611	611	more than insignificant future production volumes of oil, gas, or
612	612	oil and gas.
613	613	Sec. 104.152. EXPANSION OF UNIT AREA. (a) In accordance
614	614	with this section and subject to Section 104.153, an existing unit
615	615	area may be expanded to include additional nonunitized tracts under
616	616	the terms contained in the plan of unitization for the existing unit
617	617	if the working interest owners and the royalty owners in each
618	618	additional tract and in the existing unit area approve the
619	619	expansion by the same percentages and in the same manner as required
620	620	by Section 104.056 and Section 104.007(c), if applicable, for the
621	621	creation of a unit. The requirements for creating a unit under this
622	622	chapter apply to the expansion of the unit area under this section.
623	623	(b) Allocation of unit production from the expanded unit
624	624	must be calculated first by allocating to the expansion area a
625	625	portion of the total production of oil, gas, or oil and gas from the
626	626	unit area as enlarged. That allocation must be based on the
627	627	relative contribution to the total production of oil, gas, or oil
628	628	and gas that the expansion area is expected to make during the
629	629	remaining course of unit operations. If the expansion area
630	630	consists of separately owned tracts, the production allocated to
631	631	the expansion area must be allocated to the separately owned tracts
632	632	in proportion to the relative contribution of each of those tracts
633	633	as provided by Section 104.103. The remaining portion of unit
634	634	production must be allocated among the tracts in the existing unit
635	635	area in the same proportions as those set out in the existing plan
636	636	of unitization.
637	637	Sec. 104.153. ENLARGEMENT INCLUDING ALL OF PREVIOUSLY
638	638	ESTABLISHED UNIT. (a) The commission may not combine two or more
639	639	units created under this chapter unless the owners, on a unit
640	640	participation basis, of a supermajority consisting of at least 70
641	641	percent of the aggregate unit working interests and a supermajority
642	642	consisting of at least 70 percent of the aggregate unit royalty
643	643	interests in each unit to be combined have agreed to the
644	644	combination.
645	645	(b) A commission order combining units created under this
646	646	chapter, in allocating unit production between the previously
647	647	established units to be combined, must first treat each unit to be
648	648	combined as a single tract for purposes of production allocation.
649	649	The part of unit production that is allocated to each unit to be
650	650	combined must then be allocated among the separately owned tracts
651	651	included in the previously established units in the same proportion
652	652	as provided in each previous commission order establishing a unit
653	653	that is combined under this section.
654	654	SUBCHAPTER E. UNIT OPERATIONS
655	655	Sec. 104.201. STATUS OF PRODUCTION PROCEEDS; STANDARD OF
656	656	CARE; DISTRIBUTION. (a) Unit production, proceeds from the sale of
657	657	production, or other receipts may not be treated or taxed as income
658	658	or profit of the unit. All unit production and proceeds are income
659	659	of the owners to whom or to whose credit the production or proceeds
660	660	are payable under the plan of unitization.
661	661	(b) The unit operator does not become an agent or fiduciary
662	662	of a working interest owner to whom production or proceeds are
663	663	payable solely by reason of receiving or disbursing production or
664	664	proceeds. When disposing of production for working interest
665	665	owners, a unit operator who is not an agent or fiduciary shall act
666	666	with the same standard of care as is required in the plan of
667	667	unitization. In the absence of such a standard, the operator shall
668	668	act in the same manner in which a reasonably prudent operator would
669	669	act under the same or similar circumstances. A unit operator who is
670	670	not an agent or a fiduciary who has acted according to these
671	671	standards is not liable to any working interest owner who elects to
672	672	have the owner's share of unit production disposed of by the unit
673	673	operator for losses sustained or liability incurred as a result of
674	674	the unit operator's actions under this section in selling or
675	675	disposing of others' production.
676	676	(c) The unit operator shall make available, to any working
677	677	interest owner, or to any royalty owner who has the preexisting
678	678	right to take the owner's production in kind, to whom production or
679	679	proceeds are payable, who makes adequate provision for receipt of
680	680	the production, the owner's share of production in kind or for sale.
681	681	The unit operator, at the request of an owner who elects to have the
682	682	owner's production marketed by the unit operator, may market the
683	683	production of the owner. A unit operator that markets the
684	684	production of such an owner shall do so in such a manner that the
685	685	owner receives the same price and proportionate share of premiums
686	686	and other compensation as the unit operator receives for the unit
687	687	operator's share of unit production, except to the extent that a
688	688	previous contractual commitment or express specific term of a
689	689	contract entered into in good faith prohibits such sharing or
690	690	marketing of additional production. This subsection may not be
691	691	construed to require that any profit, compensation, or other
692	692	benefit received by the unit operator that is realized on a
693	693	transaction occurring beyond the point of first sale at the unit or
694	694	in the vicinity of the unit be shared with or distributed to any
695	695	owner electing to have the owner's production marketed by the unit
696	696	operator.
697	697	Sec. 104.202. LIABILITY OF WORKING INTEREST OWNER. (a) The
698	698	liability of a working interest owner for payment of unit expense is
699	699	several and not joint or collective.
700	700	(b) Except as provided by this subsection and Section
701	701	104.108, a working interest owner in a tract is not liable, directly
702	702	or indirectly, for more than the amount charged to that owner's
703	703	interest in the tract.
704	704	(c) Unless otherwise specifically agreed to by the parties
705	705	as part of a plan of unitization approved by the commission, any
706	706	environmental condition or liability existing before the effective
707	707	date of the commission order approving the unit remains the sole
708	708	responsibility of the party or parties responsible for that
709	709	environmental condition or liability before the effective date of
710	710	the commission order approving the unit.
711	711	Sec. 104.203. LIEN FOR COSTS. (a) Subject to any
712	712	reasonable limitations in the plan of unitization, a unit operator
713	713	has a lien on the leasehold estate and other oil, gas, or oil and gas
714	714	rights in each separately owned tract, the interest of the owners in
715	715	the unit production, and all equipment in the possession of the unit
716	716	to secure the payment of the amount of the unit expense and other
717	717	additional compensation charges as provided for in Section 104.108
718	718	charged to each separate working interest.
719	719	(b) The lien established under this section does not attach
720	720	to the royalty interest under lease or the one-sixth royalty
721	721	interest attributable to an unleased mineral interest or to any
722	722	interest in land directly or indirectly owned by the state.
723	723	Sec. 104.204. EFFECT OF UNIT OPERATIONS ON EXPRESSED OR
724	724	IMPLIED COVENANTS AND CONDITIONS. (a) To the extent a lease,
725	725	division order, or contract covering lands in the unit area relates
726	726	to the common source of supply or the part of the common source of
727	727	supply included in the unit area, all terms of the lease, division
728	728	order, or contract, express or implied, must be construed by giving
729	729	due regard to the plan of unitization approved by the commission.
730	730	Operations conducted in accordance with a plan of unitization
731	731	approved by the commission are presumed to comply with those terms
732	732	unless there is an irreconcilable conflict between the lease,
733	733	division order, or contract and the approved plan of unitization.
734	734	If there is an irreconcilable conflict between the lease, division
735	735	order, or contract and the approved plan of unitization, the plan
736	736	controls, but the lease, division order, or contract terms must be
737	737	regarded as modified only to the extent necessary to conform to the
738	738	plan.
739	739	(b) Notwithstanding any other provision of this chapter,
740	740	without a separate voluntary agreement supported by consideration,
741	741	a plan of unitization may not:
742	742	(1) cause a royalty interest to become liable for any
743	743	part of unit expense that the interest is not otherwise obligated to
744	744	pay;
745	745	(2) reduce a royalty interest fraction; or
746	746	(3) alter a provision of a lease or contract providing
747	747	for indemnification or similar compensation in the event the
748	748	actions of one person cause another person to become liable for
749	749	damages to the environment or for a violation of a statute, rule, or
750	750	common-law standard that serves to protect the environment.
751	751	(c) Lease or surface use provisions that conflict with the
752	752	use of the surface for unit operations in such a manner as to
753	753	prevent or render uneconomical the implementation of the plan of
754	754	unitization as approved by the commission must be amended by the
755	755	unit order to the extent, and only to the extent, necessary to
756	756	implement the plan in an economical and efficient manner.
757	757	(d) Section 104.201 may not be construed to diminish a
758	758	working interest owner's duty to market production on behalf of a
759	759	royalty owner.
760	760	Sec. 104.205. DISTRIBUTION OF UNIT PRODUCTION. Except as
761	761	authorized by this chapter or in a plan of unitization approved by
762	762	the commission, the unit production must be distributed among, or
763	763	the proceeds paid to, the owners entitled to share in the production
764	764	from each tract in the same manner that those owners would have
765	765	shared in the production or proceeds from the tract if the unit had
766	766	not been established.
767	767	Sec. 104.206. MODIFICATION OF PROPERTY RIGHTS OR TITLES.
768	768	Except to the extent that the parties affected by the plan of
769	769	unitization otherwise agree, a commission order entered under
770	770	Section 104.055 does not alienate, convey, cross-convey, transfer,
771	771	or change title or ownership, legal or equitable, of a person in a
772	772	parcel of land or the oil and gas rights in that parcel.
773	773	Sec. 104.207. ROYALTY OBLIGATIONS; BURDENS; UNLEASED
774	774	INTERESTS. (a) Each working interest owner who is the owner of an
775	775	interest in an oil and gas lease is responsible for the payment of
776	776	all royalty, overriding royalty, or other lease burdens affecting
777	777	the owner's leasehold estate unless the plan of unitization
778	778	provides otherwise.
779	779	(b) One-sixth of the production or proceeds attributable to
780	780	any unleased interest located in the unit area, free of all unit
781	781	expense and free of any lien, must be allocated to that interest.
782	782	Five-sixths of any unleased interest in the production or proceeds
783	783	must bear its pro rata share of all unit expense and is subject to
784	784	any lien provided by this chapter or the plan of unitization.
785	785	Sec. 104.208. UNIT OWNERSHIP OF PRODUCTION, PROCEEDS, AND
786	786	ACQUIRED PROPERTY. (a) The part of the unit production allocated
787	787	to any tract and the proceeds from the sale of that production are
788	788	the property and income of the owners to whom or to whose credit the
789	789	production and proceeds are allocated or payable under the order
790	790	and the plan for unit operations.
791	791	(b) Any property that is acquired in the conduct of unit
792	792	operations and charged as an item of unit expense is owned by the
793	793	working interest owners in the unit area as provided in the plan of
794	794	unitization.
795	795	Sec. 104.209. UNIT OPERATIONS FOR PERMANENT GEOLOGIC
796	796	STORAGE OF CARBON DIOXIDE IN COMMON SOURCE OF SUPPLY FOR WHICH THERE
797	797	IS POTENTIAL FOR FURTHER ECONOMIC RECOVERY OF OIL, GAS, OR OIL AND
798	798	GAS. The commission, on application, by order shall authorize an
799	799	operator of an enhanced recovery project to document geologic
800	800	storage of anthropogenic carbon dioxide, including anthropogenic
801	801	carbon dioxide stored in conjunction with the injection of
802	802	naturally sourced carbon dioxide, while continuing to perform
803	803	enhanced recovery operations for oil, gas, or oil and gas.
804	804	Sec. 104.210. UNIT OPERATIONS FOR PERMANENT GEOLOGIC
805	805	STORAGE OF CARBON DIOXIDE IN COMMON SOURCE OF SUPPLY FOR WHICH THERE
806	806	IS NO POTENTIAL FOR FURTHER ECONOMIC RECOVERY OF OIL, GAS, OR OIL
807	807	AND GAS. (a) The commission shall adopt rules as necessary to
808	808	regulate unit operations for the geologic storage of carbon dioxide
809	809	for the purpose of enhancing the public welfare and protecting the
810	810	natural resources of this state.
811	811	(b) Unit operations for the geologic storage of carbon
812	812	dioxide may be conducted in a common source of supply previously
813	813	included in a plan of unitization approved by the commission for the
814	814	enhanced recovery of oil, gas, or oil and gas under the other
815	815	provisions of this chapter if the commission amends the order
816	816	approving the plan of unitization in the manner provided by Section
817	817	104.151 to authorize operations for carbon dioxide storage. The
818	818	commission may amend the order as provided by this subsection only
819	819	if:
820	820	(1) the unit area is not being revised;
821	821	(2) the applicant submits a plan of unitization that
822	822	includes operations for carbon dioxide storage and meets the
823	823	requirements for commission approval; and
824	824	(3) the commission determines, following notice,
825	825	hearing, and presentation of evidence, that the ultimate recovery
826	826	of oil, gas, or oil and gas from the common source of supply has
827	827	reached the economic limit for continued enhanced recovery
828	828	operations.
829	829	(c) Unit operations for the geologic storage of carbon
830	830	dioxide may be conducted in a common source of supply that has not
831	831	previously been unitized under the other provisions of this chapter
832	832	if the commission adopts a storage unitization order authorizing
833	833	the operations. The commission may adopt the order only on
834	834	application and after notice and hearing as required by Sections
835	835	104.052 and 104.053, except that notice must also be mailed in the
836	836	manner provided by Section 104.053 to each surface owner in the unit
837	837	area. The application must contain:
838	838	(1) a description of the proposed unit area and the
839	839	vertical limits and the formerly productive horizons to be included
840	840	in that unit area with a map or plat attached that meets the
841	841	requirements of Section 104.054(3);
842	842	(2) a statement that the common source of supply has no
843	843	further economic utility for the production of oil, gas, or oil and
844	844	gas and that uncontroverted evidence to that effect will be
845	845	provided at the hearing;
846	846	(3) a statement that:
847	847	(A) the applicant or proposed unit operator has
848	848	made a good faith effort to:
849	849	(i) voluntarily unitize all interests in
850	850	the proposed unit area; or
851	851	(ii) acquire by option, lease, conveyance,
852	852	or other negotiated means the interests of a supermajority
853	853	consisting of at least 70 percent of the group of persons consisting
854	854	of the owners of working interests, royalty interests, unleased
855	855	mineral interests, and surface interests in the proposed unit area;
856	856	and
857	857	(B) the number of owners of interests in the
858	858	proposed unit area who have voluntarily agreed to unitize their
859	859	interests, when combined with the number of owners of working
860	860	interests, royalty interests, unleased mineral interests, and
861	861	surface interests in the proposed unit area whose interests the
862	862	applicant or proposed unit operator has acquired by option, lease,
863	863	conveyance, or other negotiated means, equals a supermajority
864	864	consisting of at least 70 percent of the group of persons consisting
865	865	of the owners of working interests, royalty interests, unleased
866	866	mineral interests, and surface interests in the proposed unit area;
867	867	(4) the name of each person owning or having a working
868	868	interest, royalty interest, unleased mineral interest, or surface
869	869	interest in the proposed unit area and each offset operator or
870	870	unleased mineral interest owner adjacent to the proposed unit area;
871	871	(5) for each person listed:
872	872	(A) an address; or
873	873	(B) a statement that the person's address is
874	874	unknown; and
875	875	(6) a plan of unitization that includes operations for
876	876	the injection of carbon dioxide for carbon dioxide storage,
877	877	including the proposed division of interests for working interest,
878	878	royalty interest, unleased mineral interest, and surface interest
879	879	owners for purposes of sharing of expenses and payment of storage
880	880	fees.
881	881	(d) Royalty interests and surface interests must be free of
882	882	costs of the storage operations. Unleased mineral interests are
883	883	considered to have the royalty interests and working interests
884	884	specified by Section 104.057.
885	885	(e) The commission may not approve a proposed unitization
886	886	plan for carbon dioxide storage unless the requirements of
887	887	Subsection (c)(3)(B) have been satisfied.
888	888	(f) Rules adopted by the commission under this section must:
889	889	(1) provide for mailing notice of the application and
890	890	the time and place of the hearing on the application in the manner
891	891	provided by Section 104.053;
892	892	(2) require a fair and equitable division of interest
893	893	between the owners of working interests, royalty interests,
894	894	unleased mineral interests, and surface interests in the proposed
895	895	unit area;
896	896	(3) require that the unit operations cover the entire
897	897	common source of supply, taking into consideration the necessity,
898	898	if any, for buffer acreage for monitoring of the carbon dioxide
899	899	storage site and any attendant storage facilities unique to the
900	900	storage operations; and
901	901	(4) incorporate the provisions of this chapter
902	902	relating to enhanced oil, gas, or oil and gas recovery to the extent
903	903	the commission considers those provisions to be applicable to the
904	904	regulation of unit operations for the geologic storage of carbon
905	905	dioxide in a common source of supply under the jurisdiction of this
906	906	state.
907	907	(g) Unit operations for the geologic storage of carbon
908	908	dioxide in the common source of supply may not begin until the
909	909	commission determines that the unit operations will comply with
910	910	state and federal law.
911	911	SECTION 2. Except as provided by Section 3 of this Act, not
912	912	later than January 1, 2016, the Railroad Commission of Texas shall
913	913	adopt rules as necessary to implement Chapter 104, Natural
914	914	Resources Code, as added by this Act.
915	915	SECTION 3. Not later than April 1, 2016, the Railroad
916	916	Commission of Texas may adopt rules as necessary to permit the
917	917	commission to assess a fee or fees in an amount sufficient to
918	918	recover any costs incurred by the commission in implementing
919	919	Chapter 104, Natural Resources Code, as added by this Act, that are
920	920	in addition to the costs incurred by the commission in performing
921	921	its other functions. This section does not authorize the
922	922	commission to assess a fee for performing any function that is not
923	923	specific to the implementation of that chapter.
924	924	SECTION 4. This Act takes effect immediately if it receives
925	925	a vote of two-thirds of all the members elected to each house, as
926	926	provided by Section 39, Article III, Texas Constitution. If this
927	927	Act does not receive the vote necessary for immediate effect, this
928	928	Act takes effect September 1, 2015.