Ala. Admin. Code r. 400-2-5-.10

Current through Register Vol. 43, No. 1, October 31, 2024

Section 400-2-5-.10 - Permissible Tolerance In Production Volumes Allowed For Gas Wells

(1) Daily tolerance. Although gas wells may overproduce their daily allowable one day and under produce another, no unit, other than for the purpose of testing in the process of completing or recompleting a well and for the purpose of testing to obtain scientific data, shall produce, during any one day, more than two hundred percent (200%) of the daily allowable assigned for the unit. Subject to the foregoing, any underproduction may be made up by production from the same unit within the same month and overproduction shall be adjusted by underproduction.

(2)Monthly tolerance. No unit shall be allowed to produce, in any one (1) month, more than the monthly allowable for such unit plus a tolerance equal to five (5) days' allowable production. The allowed monthly tolerance of overproduction shall be adjusted during the following month by underproduction. Overproduction within the permitted tolerance shall be considered as gas produced against the allowable assigned to the unit for the following month.

(3)Production in Excess of Monthly Allowable Plus Tolerance. In instances where production in excess of the monthly allowable plus tolerance occurs from error, mechanical failure, testing, or other cause reasonably beyond the control of the operator, a report of such excess production shall be filed in writing with the Board and the transporter within fifteen (15) days after occurrence. Such report shall contain the number of cubic feet of excess production and the plan of adjustment. Such excess production shall be considered as gas produced against the allowable assigned to the unit for the following month.

(4)General. The tolerance permitted on a daily or monthly basis shall not be construed to increase the allowable of a production unit or to grant authority to any operator to market or to any transporter to transport any quantity of gas in excess of the unit's allowable.

Ala. Admin. Code r. 400-2-5-.10

New Rule: Filed April 11, 2000; effective May 16, 2000. Amended: Filed July 6, 2010; effective August 10, 2010.

Previous Chapter 400-2 (Rules 400-2-X-.01 through 400-2-X-.09) Repealed and New Chapters400-2-1 through 400-2-9adopted in lieu thereof: Filed April 11, 2000.

Author: Marvin Rogers

Statutory Authority:Code of Ala. 1975, §§ 9-17-1, etseq.