ADJUSTED OIL WELL ALLOWABLE

ADJUSTED OIL WELL ALLOWABLE. (a) If a newly completed oil well comes into production during any allowable period, or if any oil well is placed back into production after having been removed from the allowable schedule, such well may produce, during the remainder of such allowable period, only an allowable equivalent to that assigned, for the remainder of such allowable period, to any regular allowable unit in the field; provided, however, if such well is located on a unit smaller than the regular drilling unit prescribed by the Board for the field, such well shall be permitted to produce during the remainder of such allowable period, only that proportion of the allowable assigned, for the remainder of such allowable period, to such a regular allowable unit as the acreage in the smaller unit bears to the acreage in a regular allowable unit. The Board reserves the right to adjust such allowable, and, if such allowable is reduced, to charge the overproduction against the future production of such well. (b) Pending the fixing of the maximum efficient rate of production for an oil well completed in a non-allocated pool, unless the Board, after notice and hearing, either heretofore or hereafter, expressly finds that allowables shall not be imposed on a particular pool, the allowable shall be based upon the depth of the completion zone and shall be as follows: Depth Maximum Allowable - 7,000 feet 150 BOPD 7,000 - 8,000 feet 200 BOPD 8,000 - 9,000 feet 250 BOPD 9,000 - 10,000 feet 300 BOPD 10,000 - 12,000 feet 350 BOPD 12,000 - 14,000 feet 400 BOPD Below - 14,000 feet 500 BOPD However, in order to prevent waste and protect co-equal and correlative rights of all parties, the depth of the zone in which the discovery well of a pool is completed shall be used in determining the depth allowable of additional wells in that pool until an MER is established by the Board after notice and hearing.