Texas Statutes (Last Updated: January 4, 2014) |
NATURAL RESOURCES CODE |
Title 3. OIL AND GAS |
Subtitle C. POOLING AND COOPERATIVE AGREEMENTS |
Chapter 102. POOLING |
Subchapter B. REQUIREMENTS AND PROCEDURE FOR POOLING |
Sec. 102.015. PROHIBITED PROVISIONS IN OPERATING AGREEMENT
Latest version.
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A pooling agreement, offer to pool, or pooling order is not considered fair and reasonable if it provides for an operating agreement containing any of the following provisions:
(1) preferential right of the operator to purchase mineral interests in the unit;
(2) a call on or option to purchase production from the unit;
(3) operating charges that include any part of district or central office expense other than reasonable overhead charges; or
(4) prohibition against nonoperators questioning the operation of the unit.
Acts 1977, 65th Leg., p. 2572, ch. 871, art. I, Sec. 1, eff. Sept. 1, 1977.