| (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.
Attached Graphic
(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.
Attached Graphic
(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.
Attached Graphic
(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 §3.86(d)(4) and (5) 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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