| (4) If a well producing priority category 1, 2, or 3 gas is shut in or curtailed, and waste, as defined in the Texas Natural Resource Code, Title 3, is found by the commission to exist, neither a special marketing program purchaser nor its affiliated first purchaser may purchase lower priority category gas until all the priority Category 1, 2, and 3 gas is taken and resulting waste is prevented. The commission shall expedite determination of waste, and may enter an emergency, temporary, or interim order upon application and affidavit proof that waste is occurring. The application and affidavit proof must be accompanied by supporting documentation, including data on well performance, and a statement that the application and affidavit proof has been served on the first purchaser(s) of the subject well(s) and any affiliated special marketing program purchaser using the first purchaser(s) same pipeline system on or before the date the application and affidavit proof has been mailed or delivered to the commission, with the opportunity for the first purchaser to respond within five days of service or of commission receipt, whichever is latest. (5) The affiliated first purchaser must continue in compliance with this section to purchase and accept delivery from the wells for which the offer was made and not accepted. (6) With respect to the purchase of gas from those that accept an offer made pursuant to this subsection, the special marketing program purchaser must comply with this section and §3.28 and §3.31 of this title (relating to Potential and Deliverability of Gas Wells To Be Ascertained and Reported, and Gas Reservoirs and Gas Well Allowable) (Statewide Rules 28 and 31) as a separate first purchaser. (7) It is not the objective of this subsection to abrogate any existing contract rights or obligations. (l) Sellers' complaint procedure. Any operator or nonoperator that is denied by the first purchaser in violation of this section or §3.28 or §3.31 of this title (relating to Potential and Deliverability of Gas Wells To Be Ascertained and Reported, and Gas Reservoirs and Gas Well Allowable) (Statewide Rules 28 and 31) the opportunity to produce a well's ratable share of gas or opportunity for a well to participate in a special marketing program may file a complaint with the commission and request the commission to direct the first purchaser to end the discriminatory practices. A complainant may request a hearing regarding alleged discriminatory practices or to determine whether a first purchaser is or has, through gas exchange agreements or through actions of its affiliate(s), denied an operator a reasonable opportunity to market its gas. (m) Purchasers' complaint procedure. If after reasonable notice by the purchaser, an operator fails to comply with a first purchaser's request to reduce production ratably in compliance with this section and §3.28 and §3.31 of this title (relating to Potential and Deliverability of Gas Wells To Be Ascertained and Reported, and Gas Reservoirs and Gas Well Allowable) (Statewide Rules 28 and 31) the purchaser may file a complaint with the commission and request the commission to direct the operator to comply with the purchaser's requests to reduce production ratably. The complainant or the operator may request the commission to take further action, including setting the issue for hearing. (n) Hardship exceptions. If the operation of this section or §3.28 or §3.31 of this title (relating to Potential and Deliverability of Gas Wells To Be Ascertained and Reported, and Gas Reservoirs and Gas Well Allowable) (Statewide Rules 28 and 31) causes undue hardship, the commission may, after proper notice and hearing, grant an exception or take appropriate action, including action to prevent waste or protect correlative rights. (o) Severability provisions. If any provision of this section or its application to any person or circumstance is held invalid, the invalidity shall not affect other provisions or applications of the section which can be given effect without the invalid provisions or appreciation, and the provisions of the section are declared to be severable. |
| Source Note: The provisions of this §3.34 adopted to be effective September 1, 1986, 11 TexReg 3691; amended to be effective March 2, 1987, 12 TexReg 536; amended to be effective September 8, 1987, 12 TexReg 2860; amended to be effective February 29, 1988, 13 TexReg 838; amended to be effective July 1, 1992, 17 TexReg 3236; amended to be effective November 24, 2004, 29 TexReg 10728 |
