Sec. 115.003. DEFINITION OF UNLAWFUL OIL; PRESUMPTION. (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.
(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.
Added by Acts 1997, 75th Leg., ch. 166, Sec. 7, eff. Sept. 1, 1997.
Last modified: September 28, 2016