(a) Any oil well producing with a gas-oil ratio in excess of 2,000 cubic feet of gas per barrel of oil produced shall be allowed to produce daily only that volume of gas obtained by multiplying its maximum daily oil allowable, as determined by the allocation formula applicable to the well, by 2,000. The gas volume thus obtained shall be known as the daily gas limit of the well. The daily oil allowable of the well shall then be determined by dividing its daily gas limit, obtained as provided in this section, by its producing gas-oil ratio in cubic feet per barrel of oil produced.
(b) Any gas well producing from the same reservoir in which oil wells are completed and producing shall be allowed to produce daily only that amount of gas which is the volumetric equivalent in reservoir displacement of the gas and oil produced from the oil well in the reservoir that withdraws the maximum amount of gas in the production of its daily oil allowable.
  (1) The following formula shall be used in the determination of the allowable of a gas well producing with a gas-oil ratio of 100,000 or more.
Attached Graphic
  (2) The following formula shall be used in the determination of the allowable of a gas well producing with a gas-oil ratio of less than 100,000 under the provisions of the rule stated.
Attached Graphic
  (3) The allowable for an associated gas well as determined by this subsection shall be limited to the lesser of:
    (A) the gas well allowable as calculated by paragraph (1) or (2) of this subsection;
    (B) the well's capability as determined by §3.31(e) of this title (relating to Gas Reservoirs and Gas Well Allowable) (Statewide Rule 31); or
    (C) the highest monthly production during those months averaged to a daily amount for wells that reported production during any of the three most recently reported production months.
(c) The necessary reservoir data shall be obtained from the file of the most recent MER hearing or shall be estimated by the commission unless more recent information is submitted by the operators.
(d) If the gas produced from an oil reservoir is returned to the same reservoir from which it was produced, only the volume of gas not returned to the reservoir shall be considered in applying the rule stated.
(e) Associated gas wells.
  (1) Subsection (b) of this section will not be applicable to associated gas wells in reservoirs for which unlimited net gas-oil ratio authority has been granted for oil wells, where such net gas is defined as total gas produced less gas diverted to legal uses; however, this subsection does not apply to reservoirs where net gas is defined as total gas produced less gas returned to the reservoir from which it was produced, or where special field rules have been adopted for associated gas wells, or where a total gas volume limitation is placed upon the oil well producing under a net ratio, except that each associated gas well in such a reservoir shall be entitled to an additional gas voidage not to exceed the limitation placed upon the net ratio authority granted and the facts are shown on the current oil proration schedule for the field.
  (2) Allowables for associated gas wells producing from reservoirs that are subject to an unlimited net gas-oil ratio authority will be dropped from the associated gas well schedule, effective that date such an unlimited net gas-oil ratio is authorized for any oil well in such reservoir.
(f) All gas-oil ratios determined by test or allocation shall be reported on the oil well status report form in accordance with instructions thereon and the provisions of §3.53(a) of this title (relating to Annual Well Tests and Well Status Reports Required).
(g) Allowables.
  (1) No well shall have its allowable curtailed below the allowable fixed by the applicable field rules and the general statewide market demand order, unless such well is incapable of producing this allowable on a calendar day basis.
  (2) Any well that has a gas-oil ratio in excess of the prescribed ratio for the field in which it is located will have its schedule daily allowable penalized due to such ratio.

Source Note: The provisions of this §3.49 adopted to be effective January 1, 1976; amended to be effective July 1, 1992, 17 TexReg 3236; amended to be effective February 13, 1997, 22 TexReg 1313; amended to be effective November 24, 2004, 29 TexReg 10728