Texas Natural Resources Code 115.003 – Definition of Unlawful Oil; Presumption
Current as of: 2024 | Check for updates
|
Other versions
(a) For purposes of this chapter, oil is unlawful if the oil is:
(1) produced in this state from a well in excess of the amount allowed by a commission order or otherwise in violation of a law of this state or commission order; or
(2) transported in violation of a law of this state or commission order.
(b) It is presumed that oil is “unlawful oil” for purposes of this chapter if the oil is retained in storage for more than six years without being used, consumed, or moved into regular commercial channels.
Terms Used In Texas Natural Resources Code 115.003
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
(c) The presumption under Subsection (b) may be rebutted by proof that the oil:
(1) was produced from a well within the production allowable then applying to that well;
(2) was not produced in violation of a law of this state or commission order; and
(3) if transported from the lease from which it was produced, was not transported in violation of a law of this state or commission order.