SECTION 165:10-15-12. Unallocated oil allowables

(a)   Effective date of allowable. The allowable for a well completed or recompleted on or after the first day of a proration period shall become effective the date of completion of the well, provided the operator has complied with the provisions of this Section and other rules governing allowables. In situations where the operator fails to comply, the allowable shall become effective the date the operator complies with this Section and other rules governing allowables.

(b)   Well in an unallocated pool. Each well in an unallocated pool in which drilling and spacing units have been established shall be assigned the applicable allowable on a per-well basis from the Allocated Well Allowable Table (Appendix A to this Chapter) multiplied by the current market demand factor unless adjusted by order of the Commission. The production from each well shall be separately accounted for to the Commission.

(c)   Lease in an unallocated pool. Each individual lease in an unallocated pool in which drilling and spacing units have not been established shall be assigned allowables, at the option of the operator, on either of the following basis:

(1)   A per-well basis. If the operator elects to accept the per-well basis allowable, each well on the lease shall be assigned an allowable applicable to a ten-acre or less allowable at the appropriate depth from the Allocated Well Allowable Table (Appendix A to this Chapter) multiplied by the current market demand factor unless adjusted by order of the Commission. The production from each well shall be separately accounted for to the Commission.

(2)   A per-lease basis. If the operator elects to accept the per-lease basis allowable, the allowable for the lease shall be the shallowest ten-acre or less allowable from the Allocated Well Allowable Table (Appendix A to this Chapter) multiplied by the current market demand factor multiplied by the number of wells on the lease unless adjusted by order of the Commission. The production from each lease shall be separately measured and accounted for to the Commission.