Texas Natural Resources Code
§ 52.034 — OFFSET WELLS
NR § 52.034Title 2. PUBLIC DOMAIN · Part D. DISPOSITION OF THE PUBLIC DOMAIN · Ch. 52. OIL AND GAS · Art. B. LEASE OF PUBLIC SCHOOL AND GULF LAND
Statute text
View on source(a)In this section:
(1)"Horizontal drainhole well" means a well with a horizontal drainhole that may produce oil or gas along at least 100 feet of the drainhole.
(2)"Take point" means any point in a horizontal drainhole well where oil and gas can be produced from the reservoir or field interval recognized by the Railroad Commission of Texas.
(3)"Unconventional fracture treated field" means an oil or gas field in which horizontal well development and hydraulic fracture treatment must be used to recover resources from all or part of the field. (a-1) Except as provided by Subsection (a-2), if oil or gas is produced in commercial quantities from a well located on a privately owned area or areas of state land leased at a lesser royalty and the well is located within 1,000 feet of an area leased under this subchapter or is draining an area leased under this subchapter, the lessee of the state area shall begin in good faith and prosecute diligently the drilling of an offset well or wells on the area leased from the state within 60 days after the initial production from the draining well or the well located within 1,000 feet of the leased state area. (a-2) If the well producing oil or gas in commercial quantities under Subsection (a-1) is a horizontal drainhole well located in an unconventional fracture treated field, a lessee of a state area is not required to drill an offset well as provided by Subsection (a-1) unless any take point in the horizontal drainhole well is located closer to the leased state area than the greater of:
(1)the minimum distance established by the applicable lease-line spacing requirement of the Railroad Commission of Texas; or
(2)a perpendicular distance of 330 feet.
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Legislative history
Acts 2021, 87th Leg., R.S., Ch. 392 (S.B. 1258), Sec. 1, eff. September 1, 2021.