Washington Code 78.52.270 – Limitation of production to “oil allowable” — Proration
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Whenever the total amount of oil which all of the pools in this state can currently produce in accordance with good operating practices, exceeds the amount reasonably required to meet the reasonable market demand, the department shall limit the oil which may be currently produced in this state to an amount, designated the “oil allowable.” The department shall then prorate this “oil allowable” among the pools on a reasonable basis, avoiding undue discrimination among the pools, and so that waste will be prevented. In determining the “oil allowable,” and in prorating such “oil allowable” among the pools in the state, the department shall take into account the producing conditions and other relevant facts with respect to such pools, including the separate needs for oil and gas, and separate needs for oil of particular kinds or qualities, and shall formulate rules setting forth standards or a program for the determination of the “oil allowable,” and shall prorate the “oil allowable” in accordance with such standards or program, and where conditions in one pool or area are substantially similar to those in another pool or area, then the same standards or program shall be applied to such pools or areas so that as far as practicable a uniform program will be followed: PROVIDED, HOWEVER, That if the amount prorated to a pool as its share of the “oil allowable” is in excess of the amount which the pool can efficiently produce currently, then the department shall prorate to such pool the maximum amount which can be efficiently produced currently without waste.
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Terms Used In Washington Code 78.52.270
- Department: means the department of natural resources. See Washington Code 78.52.010
- Gas: means all natural gas, all gaseous substances, and all other fluid or gaseous hydrocarbons not defined as oil in subsection (12) of this section, including but not limited to wet gas, dry gas, residue gas, condensate, and distillate, as those terms are generally understood in the petroleum industry. See Washington Code 78.52.010
- Oil: means crude petroleum, oil, and all hydrocarbons, regardless of gravity, that are in the liquid phase in the original reservoir conditions and are produced and recovered at the wellhead in liquid form. See Washington Code 78.52.010
- Pool: means an underground reservoir containing a common accumulation of oil or gas, or both. See Washington Code 78.52.010