Mich. Admin. Code R. 324.601 - Proration of oil and gas wells and fields
Rule 601.
(1) The supervisor may prorate production from wells or fields, or both, to conserve reservoir energy, to maximize oil and gas recovery, to ensure that the owners shall be afforded the opportunity to produce their just and equitable share of the oil and gas from the reservoir, and to prevent waste by setting allowable production rates. The prorated allowables shall be established by order of the supervisor after a hearing pursuant to part 12 of these rules.
(2) The proration order shall specify the maximum amount of oil or gas, or both, that may be produced in a 24-hour day.
Notes
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