Texas Natural Resources Code

§ 102.052 — DRILLING AND COMPLETION COSTS

NR § 102.052Title 3. OIL AND GAS · Part C. POOLING AND COOPERATIVE AGREEMENTS · Ch. 102. POOLING · Art. C. RIGHTS IN A POOLED UNIT

Statute text

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(a)As to an owner who elects not to pay his proportionate share of the drilling and completion costs in advance, the commission shall make provision in the pooling order for reimbursement solely out of production, to the parties advancing the costs, of all actual and reasonable drilling, completion, and operating costs plus a charge for risk not to exceed 100 percent of the drilling and completion costs.

(b)If there is a dispute relative to the costs, the commission shall determine the proper costs and their allocation among working interest owners after due notice to interested parties and a hearing on the costs.

Legislative history

Acts 1977, 65th Leg., p. 2573, ch. 871, art. I, Sec. 1, eff. Sept. 1, 1977.