SECTION 165:10-15-16. Excessive water exempt oil project allowables

(a)   Effective date of allowables. The allowable for an excessive water exempt oil project shall be on a well or a project basis and shall be effective when the Conservation Division receives and accepts the production test of, Form 1013, unless otherwise specified by order of the Commission.

(b)   Qualification for excessive water exempt oil project. For any project or well to qualify for excessive water exempt allowable, an order of the Commission authorizing the well or project must be obtained.

(c)   Allowable for excessive water exempt oil project. The allowable for a well or Project which has received a special excessive water exempt allowable shall be the capacity of the well or project to Produce without causing preventable waste unless otherwise adjusted by the Director of Conservation. The production from a well which has received a special excessive water exempt allowable under this Section shall be separately produced, measured, and accounted for to the Commission from the oil produced from the remainder of the lease.