Whenever, to prevent waste, the division limits the total amount of crude petroleum oil to be produced in this state, it shall allocate or distribute the allowable productions among the fields of the state. Such allocation or distribution among the fields of the state shall be made on a reasonable basis, giving, if reasonable under all circumstances, to each pool with small wells of settled production, an allowable production which will prevent a general premature abandonment of the wells in the field.
§ 70-2-15 NMSA 1978
Allocation of allowable production among fields when division limits total amount of production
Known as the Oil and Gas Act
The act spans §§ 70–70 (43 sections).
Laws 1935, ch. 72, § 11; 1941 Comp., § 69-212; Laws 1949, ch. 168, § 11; 1953 Comp., § 65-3-12; Laws 1977, ch. 255, § 49.
Official source: NMOneSource (New Mexico Compilation Commission). Reproduced from public-domain New Mexico statutes; confirm against the official source for the current text. Not legal advice.