Texas Administrative Code
Title 16 - ECONOMIC REGULATION
Part 1 - RAILROAD COMMISSION OF TEXAS
Chapter 3 - OIL AND GAS DIVISION
Section 3.48 - Capacity Oil Allowables for Secondary or Tertiary Recovery Projects
Current through Reg. 49, No. 12; March 22, 2024
(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.
(b) Application. The director of the Oil and Gas Division or the director's delegate may grant a capacity oil allowable for a lease or unit, to the operator of a secondary or tertiary recovery project, when evidence of production increase in response to the secondary or tertiary recovery project is noted. The operator's application for a capacity oil allowable shall consist of:
(c) Notice and hearing. If the operator does not submit signed waivers of objection from all offsetting operators and unleased mineral interest owners affected by the application, there shall be a minimum of 21 days notice of the application for a capacity oil allowable; provided that, if the operator requests a hearing to consider the application, such hearing shall be held only after at least 10 days notice. If the director of the Oil and Gas Division or the director's delegate declines to approve the initial application, or if a protest is received by the Oil and Gas Division within the prescribed notice period, the operator may request a hearing to show that the capacity oil allowable is necessary either to prevent waste or to protect correlative rights. Any hearing held pursuant to this section shall be held only after at least 10 days notice. If the operator submits signed waivers of objection from all offsetting operators and unleased mineral interest owners affected by the application, or if no protest is received by the Oil and Gas Division within the 21-day notice period, or if no protestant appears at a hearing to consider an application for a capacity oil allowable, the capacity oil allowable may be granted administratively by the director of the Oil and Gas Division or the director's delegate if the application establishes that the capacity oil allowable is necessary to ensure maximum recovery from the secondary or tertiary recovery project.
(d) Temporary basis. A capacity oil allowable may be granted on a temporary basis by the director of the Oil and Gas Division or the director's delegate upon receipt of a complete application indicating that an immediate allowable increase is necessary to ensure maximum recovery from the secondary or tertiary recovery project. If a hearing is held to consider the application, any capacity oil allowable previously granted on a temporary basis under this section will remain in effect until a signed order of the Railroad Commission is issued in the matter. If the commission order denies the application, or if an applicant fails to request a hearing to consider a protested application, additional production resulting from the capacity oil allowable granted on a temporary basis will be treated as overproduction.