Texas Administrative Code
Title 16 - ECONOMIC REGULATION
Part 1 - RAILROAD COMMISSION OF TEXAS
Chapter 3 - OIL AND GAS DIVISION
Section 3.45 - Oil Allowables
Universal Citation: 16 TX Admin Code ยง 3.45
Current through Reg. 49, No. 12; March 22, 2024
(a) Oil allowable yardsticks.
(1) 1947 allowable
yardstick. The following schedule allowable shall be assigned all wells
according to depth of the reservoir and proration unit size authorized by the
commission upon expiration of the discovery allowable, if discovery of the
field occurred prior to January 1, 1965, provided that paragraph (3) of this
subsection does not apply.
(2) 1965
allowable yardstick. The following schedule allowable shall be assigned all
wells according to depth of the reservoir and proration unit size authorized by
the commission upon expiration of the discovery allowable, if discovery of the
field occurred on or after January 1, 1965.
(3)
Exception. Wells in fields discovered prior to January 1, 1965, whose discovery
allowables either have expired or will expire subsequent to July 1, 1964, upon
expiration of the discovery allowable, may be assigned allowable pursuant to
the 1965 yardstick, if such allowables exceed those which would be assigned
pursuant to the 1947 yardstick, or if the proration unit size authorized by the
commission is not provided for in the 1947 yardstick. It is provided that any
adjustment made in allowable assignment pursuant to this paragraph shall not be
made prior to the effective date of this order. Retroactive adjustment shall
not be allowed.
(4) Texas offshore
allowable yardstick.
(5) The
maximum daily allowable for a horizontal drainhole oil well or an oil well in a
designated unconventional fracture treated (UFT) field is set forth in §
RSA
3.86<subdiv>(d)(4) and
(5)</subdiv> of this title (relating to
Horizontal Drainhole Wells).
(b) Assignment of allowables for wells under statewide rules.
(1) All wells completed in
fields operating under statewide rules which were assigned the 20-acre
yardstick allowable prior to the adoption of the new spacing rule on October 1,
1962, will be continued at the same allowable rate unless, after notice and
hearing, special rules or other special orders are adopted that would provide
for a higher producing rate. Any new well completed in such a reservoir will be
given the same allowable rate as is assigned the other wells even though it has
been drilled as a regular location under the new statewide spacing rule and
density rule.
(2) All wells
completed in fields operating under statewide rules that are presently on
discovery status or have had discovery status terminated subsequent to the
adoption of the new state spacing rule on October 1, 1962, will be given the
40-acre yardstick allowable, until such time as a change is ordered by the
commission.
(c) Production of marginal wells.
(1) To
artificially curtail the production of any "marginal well" below the marginal
limit prior to its ultimate plugging and abandonment is hereby declared to be
waste, and no rule or order of the Railroad Commission of Texas, or other
constituted legal authority shall be entered requiring restriction of the
production of any "marginal well" as defined in this chapter.
(2) Application of paragraph (1) of this
subsection shall be confined to unrestricted operating conditions which accord
with established operating rules of the commission, and shall be subject to all
operating conditions designed to prevent waste imposed by the commission, which
conditions apply to all wells alike. (Reference Order Number 20-54,115,
effective January 1, 1965.)
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