Subscribe to receive our Floor Reports covering all the action on the Texas House and Senate floor!
Relating to the duty of a lessee or other agent in control of certain state land to drill an offset well, pay compensatory royalty, or otherwise protect the land from drainage of oil or gas by a horizontal drainhole well located on certain land.
No significant fiscal implication to the State is anticipated.
SB 1258 would limit when offset well requirements are mandated, prohibit universities from requiring a lessee to drill an offset well, pay compensatory royalty, or otherwise protect the leased premises or acreage pooled with the leased premises from drainage by a horizontal drainhole unless the well is located closer to the leased premises than the distance requirement of the Railroad Commission of Texas (RRC). This bill would also make it so that a lessee of a state area is not required to drill an offset well unless they violate the RCC distance requirements. Parties to a lease or other agreement entered into before the effective date of this Act can contractually agree to amend the lease or other agreement to bring the lease or other agreement into conformity with the changes in law made by this Act.
Texas Action remains neutral on SB 1258 as this bill does not impact our liberty principles. It primarily updates outdated statute to reflect modern practices.
Read Bill & Check Bill Status