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The Case For A Texas Compulsory Unitization Statute., Paula C. Murray, Frank B. Cross
The Case For A Texas Compulsory Unitization Statute., Paula C. Murray, Frank B. Cross
St. Mary's Law Journal
Compulsory unitization of oil and natural gas reservoirs would substantially enhance the welfare of the United States and of Texas in particular. The present regulated free market for oil production produces both inefficiencies and inequities. Consequentially, oil exploration is discouraged, oil production is unnecessarily costly and wasteful, and the private distribution of oil revenues can be arbitrarily unfair. Compulsory unitization would remedy many of these shortcomings which result from extant structures. Unitization means the cooperative development of an entire reservoir of oil or gas. Compulsory unitization in most states also contains a variety of substantive and procedural prerequisites to unitization …
Take-Or-Pay Provisions: Major Problems For The Natural Gas Industry Comment., David L. Roland
Take-Or-Pay Provisions: Major Problems For The Natural Gas Industry Comment., David L. Roland
St. Mary's Law Journal
A prompt solution to the take-or-pay problem is vital to the survival of the natural gas industry. Due to the increasingly turbulent and unpredictable natural gas market, most natural gas producers include a take-or-pay provision in their gas purchase contracts. Take-or-pay provisions require a pipeline company to either take an amount of natural gas from the producer or the company must pay for the specified amount. The market, however, has changed and the demand for natural gas declined. The demand can be partly attributed to the energy crisis of a decade ago. As a result of the crisis, consumers are …