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Tex. Nat. Res. Code § 102.052

DRILLING AND COMPLETION COSTS

Known as the Mineral Interest Pooling Act

The act spans §§ 102–102 (20 sections).

Applied in 2 court decisions — leading case Buttes Resources Co. v. Railroad Commission (1987)

Most recently applied in American Operating Co. v. Railroad Commission (October 1987)

Acts 1977, 65th Leg., p. 2573, ch. 871, art

(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.

Official source: Texas Constitution and Statutes. Reproduced from public-domain Texas statutes; confirm against the official source for the current text. Not legal advice.