Texas Natural Resources Code 85.054 – Allowable Production of Oil
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(a) To prevent unreasonable discrimination in favor of one pool as against another, and on written complaint and proof of such discrimination or if the commission on its own initiative finds such an action to be necessary, the commission may allocate or apportion the allowable production of oil on a fair and reasonable basis among the various pools in the state.
(b) In allocating or ascertaining the reasonable market demand for the entire state, the reasonable market demand of one pool shall not be discriminated against in favor of another pool.
Terms Used In Texas Natural Resources Code 85.054
- Commission: means the Railroad Commission of Texas. See Texas Natural Resources Code 85.001
- Complaint: A written statement by the plaintiff stating the wrongs allegedly committed by the defendant.
- Oil: means crude petroleum oil, crude petroleum, and crude oil, and "gas" means natural gas. See Texas Natural Resources Code 85.001
- Pool: means an underground reservoir containing a connected accumulation of crude petroleum oil, or natural gas, or both. See Texas Natural Resources Code 85.001
- Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005
(c) The commission may determine the reasonable market demand of the respective pool as the basis for determining the allotments to be assigned to the respective pool so that discrimination may be prevented.