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Texas Statutes (Last Updated: January 4, 2014) |
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NATURAL RESOURCES CODE |
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Title 3. OIL AND GAS |
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Subtitle B. CONSERVATION AND REGULATION OF OIL AND GAS |
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Chapter 85. CONSERVATION OF OIL AND GAS |
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Subchapter C. PROVISIONS GENERALLY APPLICABLE TO THE CONSERVATION OF OIL AND GAS |
Sec. 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.
(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.