2005 Texas Natural Resources Code CHAPTER 88. CONTROL OF OIL PROPERTY

NATURAL RESOURCES CODE

CHAPTER 88. CONTROL OF OIL PROPERTY

SUBCHAPTER A. GENERAL PROVISIONS


	§ 88.001. DEFINITIONS.  In this chapter:                                    
		(1)  "Commission" means the Railroad Commission of 
Texas.                   
		(2)  "Governmental agent" or "governmental agency" 
means the Railroad Commission of Texas and any other administrative 
governmental board and governmental agent to which the legislature 
delegates the duty of supervising the production of oil and gas in 
the State of Texas.
		(3)  "Oil property" means a well producing oil, gas, or 
oil and gas, and any group of such contiguous wells of any number 
owned, operated, or controlled as a producing unit by the same 
person in the same locality, and any leasehold estate to the extent 
that it is owned, operated, and controlled by the same person.

Acts 1977, 65th Leg., p. 2547, ch. 871, art. I, § 1, eff. Sept. 1, 
1977. 

SUBCHAPTER B. RULES


	§ 88.011. ADOPTION OF RULES.  (a) The governmental agency 
may promulgate and adopt rules:
		(1)  to provide for the method of measuring oil and gas 
produced from any well in this state and to provide for the type of 
measuring devices to be used in obtaining the measurement;
		(2)  for the inspection of all oil properties to 
ascertain that the prescribed measuring devices are installed, are 
in accurate working condition, and are being accurately used;
		(3)  to provide that no oil or gas is being permitted to 
leave the possession of the producer without first being accurately 
measured and an accurate record of production made and preserved;
		(4)  to provide that no oil is being produced from a 
well producing both oil and gas without burning a flare or flares if 
the installation and use of a flare or flares is required by the 
terms of this chapter;
		(5)  for the keeping of complete and accurate records 
correctly reflecting the amount of oil or gas or both produced from 
each oil property each calendar day and the disposition and method 
of disposition of all the oil and gas produced, and for the monthly 
filing with the governmental agency of monthly reports accurately 
reflecting the true facts with respect to all such matters;  and
		(6)  for the inspection and examination by the 
governmental agency, or its agents, servants, and employees, of all 
oil properties and the records provided for in this chapter.
	(b)  The rules shall be adopted in the manner provided by law 
for adoption of rules of the commission.

Acts 1977, 65th Leg., p. 2547, ch. 871, art. I, § 1, eff. Sept. 1, 
1977. 


	§ 88.012. RULES AND ORDERS RELATING TO RECORDS AND 
REPORTS.  The rules and orders of the governmental agency relating 
to records and reports shall prescribe the form in which the records 
and reports will be made and kept, but the records and reports shall 
contain the data and information provided for in this chapter.

Acts 1977, 65th Leg., p. 2548, ch. 871, art. I, § 1, eff. Sept. 1, 
1977. 


	§ 88.013. NOTICE BY PUBLICATION.  (a) When the 
governmental agency adopts a rule under this chapter, the 
governmental agency shall publish a complete copy of the rule once 
each day for three consecutive days in three newspapers of general 
circulation in the state, to be selected by the governmental 
agency.
	(b)  Notice of any amendment, repeal, alteration, or 
modification of the order may be similarly adopted and will become 
effective after similar notice.

Acts 1977, 65th Leg., p. 2548, ch. 871, art. I, § 1, eff. Sept. 1, 
1977. 

SUBCHAPTER C. PRACTICES PROHIBITED IN THE PRODUCTION OF OIL AND GAS


	§ 88.051. PRODUCTION PROHIBITED IN EXCESS OF ALLOWABLE 
AMOUNT.  No person owning, leasing, operating, producing, or 
controlling an oil property or any oil well in this state may 
produce or cause to be produced on any day from any oil property or 
oil well any oil in excess of the amount allowed to be produced each 
day from the oil property or oil well under an order previously 
adopted by the governmental agency and in force at the time.

Acts 1977, 65th Leg., p. 2548, ch. 871, art. I, § 1, eff. Sept. 1, 
1977. 


	§ 88.052. PROHIBITED PASSAGE FROM CONTROL OF PRODUCER 
WITHOUT MEASUREMENT AND RECORD OF AMOUNT.  No person owning, 
leasing, operating, or controlling an oil property in this state 
may permit the oil or gas produced to pass beyond the possession or 
control of that person to the possession or control of any other 
person without first accurately measuring the amount of the oil or 
gas and making and preserving an accurate record of the amount.

Acts 1977, 65th Leg., p. 2548, ch. 871, art. I, § 1, eff. Sept. 1, 
1977. 


	§ 88.053. PROHIBITED EVASION OR PREVENTION OF ACCURATE 
MEASUREMENT.  No person owning, leasing, operating, or controlling 
an oil property in this state may use a method or device to evade or 
prevent obtaining the accurate measurement as provided in Section 
88.052 of this code.

Acts 1977, 65th Leg., p. 2548, ch. 871, art. I, § 1, eff. Sept. 1, 
1977. 


	§ 88.0531. CRIMINAL PENALTY.  (a) A person who knowingly 
violates Section 88.052 or 88.053 of this code commits an offense.
	(b)  An offense under this section is a Class A misdemeanor 
unless the actor has been convicted previously under this section, 
in which event the offense is a felony of the third degree.

Added by Acts 1983, 68th Leg., p. 5231, ch. 960, § 2, eff. Sept. 
1, 1983.


	§ 88.054. PASSAGE FROM CONTROL OF PRODUCER PROHIBITED IF 
TANK NOT UNDER HIS CONTROL.  No person owning, leasing, operating, 
or controlling an oil property may permit oil produced by him in 
this state to pass from his possession or control to the possession 
or control of any other person except from a tank or tanks under the 
control of the person producing the oil.

Acts 1977, 65th Leg., p. 2549, ch. 871, art. I, § 1, eff. Sept. 1, 
1977. 


	§ 88.055. PRODUCTION PROHIBITED WITHOUT FLARE.  If the 
gas from a well producing both oil and gas is not trapped and used 
and the gas is capable of being burned in a flare, no person owning, 
leasing, operating, or controlling an oil property in this state 
may produce oil from the well at any time without simultaneously and 
continuously burning a flare to consume all gas that otherwise 
would be permitted to escape into the open air.  The Railroad 
Commission of Texas shall have the authority to grant exceptions to 
this section.

Acts 1977, 65th Leg., p. 2549, ch. 871, art. I, § 1, eff. Sept. 1, 
1977.  Amended by Acts 1989, 71st Leg., ch. 565, § 1, eff. June 
14, 1989.


	§ 88.056. IDENTIFYING SIGNS.  Each oil property in this 
state, each tank owned or controlled by such person to which the 
property is connected, and each flare to which the property is 
connected shall be posted at all times with a sign written in the 
English language with letters at least one inch in height, stating:
		(1)  the name of the owner of the property;                                   
		(2)  the operator of the property;                                            
		(3)  the number of acres contained in the property;  and                      
		(4)  the name by which the property is commonly known 
and identified.       

Acts 1977, 65th Leg., p. 2549, ch. 871, art. I, § 1, eff. Sept. 1, 
1977. 

SUBCHAPTER D. INSPECTION AND EXAMINATION OF OIL PROPERTY


	§ 88.091. ACCESS TO PROPERTY AND RECORDS.  The 
governmental agency shall have access at all times to:
		(1)  the oil property of all persons for inspection and 
examination;  and   
		(2)  the records of all these persons for inspection, 
examination, and audit.

Acts 1977, 65th Leg., p. 2549, ch. 871, art. I, § 1, eff. Sept. 1, 
1977. 


	§ 88.092. PROHIBITED INTERFERENCE WITH ACCESS AND 
INSPECTION.  No person may:
		(1)  refuse to permit the governmental agency, or an 
agent, servant, representative, or employee of the governmental 
agency, to have access to an oil property for inspection and 
examination;
		(2)  interfere with the inspection and examination;                           
		(3)  remove, tamper with, mutilate, or destroy a 
device, seal, or meter on an oil property placed there or used in 
the inspection and examination;  or
		(4)  refuse to permit the governmental agency, or an 
agent, servant, representative, or employee of the governmental 
agency, to have access, for inspection, examination, and audit, to 
the books, documents, and records pertaining to, used in connection 
with, or required to be used in connection with an oil property.

Acts 1977, 65th Leg., p. 2549, ch. 871, art. I, § 1, eff. Sept. 1, 
1977. 


	§ 88.093. PROHIBITED EQUIPMENT OR ENCLOSURE.  No person 
owning, leasing, operating, or controlling an oil property in this 
state may equip or enclose his oil property, or any part of his oil 
property, in a manner that:
		(1)  prevents inspection and examination;  or                                 
		(2)  prevents an inspection and examination from 
revealing the true facts with respect to:
			(A)  the amount of oil or oil and gas being 
produced from the oil property;
			(B)  the manner in which the oil property is being 
operated;  or           
			(C)  the manner and method by which the production 
from the oil property is produced, stored, or delivered from the 
possession or control of that person.

Acts 1977, 65th Leg., p. 2550, ch. 871, art. I, § 1, eff. Sept. 1, 
1977. 


	§ 88.094. PROHIBITED GIFT OR GRATUITY.  No person may 
corruptly give, offer, or promise to give a member of the 
governmental agency, chief supervisor, deputy supervisor, or any 
agent or employee of the governmental agency a gift or gratuity with 
intent to influence the officer or person in his acts or conduct 
with respect to:
		(1)  enforcing any provision of the law applicable to 
oil and gas in force at the time in this state;
		(2)  enforcing any order or rule of the governmental 
agency adopted under the power and authority given to it;  or
		(3)  the discharge of any duty imposed on him by the oil 
and gas laws, orders, and rules duly promulgated and in force at the 
time in this state.

Acts 1977, 65th Leg., p. 2550, ch. 871, art. I, § 1, eff. Sept. 1, 
1977. 

SUBCHAPTER E. ENFORCEMENT;  PENALTIES


	§ 88.131. VENUE.  The courts of the county in which the 
oil property or any part of the oil property is located and with 
respect to which a violation of the provisions of this chapter is 
charged, the courts of Travis County, or the courts of the county of 
the residence of any defendant, have jurisdiction of all 
prosecutions for violations of the provisions of this chapter.

Acts 1977, 65th Leg., p. 2550, ch. 871, art. I, § 1, eff. Sept. 1, 
1977.  Amended by Acts 1983, 68th Leg., p. 5251, ch. 967, § 1, 
eff. Sept. 1, 1983.


	§ 88.132. SERVICE OF PROCESS.  (a) In a suit or action 
involving the enforcement of the conservation laws of this state or 
the orders of the commission affecting the conservation of the 
natural resources of this state, a Texas Ranger or an agent of the 
commission may serve civil or judicial process, citation, notice, 
warrant, subpoena, or writ, including process of every character in 
contempt proceedings, the same and as fully as a sheriff or 
constable of a county to whom the process, writ, notice, citation, 
subpoena, or warrant might be directed could within the limits of 
his own county.
	(b)  A ranger or an agent of the commission may serve the 
process anywhere in the State of Texas although it may be directed 
to "any sheriff or constable" of a particular county.  He shall make 
the same return as any other officer, sign his name, and add under 
his name the title of "State Ranger" or "Agent, Railroad Commission 
of Texas," as the case may be, which is sufficient to make it valid 
if the writ otherwise is properly prepared.
	(c)  No fees are allowed the rangers or agents of the 
commission other than their regular salary or compensation.

Acts 1977, 65th Leg., p. 2550, ch. 871, art. I, § 1, eff. Sept. 1, 
1977. 


	§ 88.133. RESPONSIBILITY FOR COMPLIANCE AND LIABILITY TO 
PROSECUTION.  The president of each corporation, the chief 
managing executive of each association, all active members of each 
firm and partnership, and all trustees of each trust subject to the 
provisions of this chapter shall be responsible for the compliance 
with the terms of this chapter by the corporation, association, 
firm, partnership, or trust of which he is, respectively, 
president, chief managing executive, member, or trustee, and he 
shall be liable to prosecution under and subject to the criminal 
penalties provided in this chapter for violations of this chapter 
by the respective corporation, association, firm, partnership, or 
trust of which he has actual knowledge or to which he assents.

Acts 1977, 65th Leg., p. 2551, ch. 871, art. I, § 1, eff. Sept. 1, 
1977. 


	§ 88.134. PENALTIES.  (a) A person who violates any of the 
provisions of Sections 88.091 through 88.093 of this code, or any 
person who fails to comply with any of the provisions of those 
sections, is guilty of a misdemeanor and on conviction shall be 
subject to a fine of not more than $500, or by confinement in the 
county jail for not more than six months, or by both.
	(b)  A person who violates any other provision of this 
chapter other than those covered by Subsection (a) of this section, 
a person who fails to comply with any of the other terms of this 
chapter, a person who fails to comply with the terms of a rule or 
order adopted by the governmental agency under the terms of this 
chapter, or a person who violates any of the rules or orders of the 
governmental agency adopted under the provisions of this chapter on 
conviction is considered guilty of a felony and on conviction shall 
be punished by imprisonment in the state penitentiary for a term of 
not less than two nor more than four years.

Acts 1977, 65th Leg., p. 2551, ch. 871, art. I, § 1, eff. Sept. 1, 
1977. 


	§ 88.135. CIVIL PENALTIES AND INJUNCTIONS.  In addition 
to the powers specifically granted to the commission under this 
chapter, the commission may enforce this chapter or any rule, 
order, or permit of the commission adopted under this chapter in the 
same manner and subject to the same conditions as provided by 
Chapters 81 and 85 of this code, including recovering civil 
penalties and seeking injunctive relief as provided by those 
chapters.

Added by Acts 1983, 68th Leg., p. 5260, ch. 967, § 7, eff. Sept. 
1, 1983.