Definition(s)
Penalized Unit
“Penalized unit” means a proration unit to which, because of an excessive gas-oil ratio, the division assigns an allowable that is less than top proration unit allowable for the pool in which it is located and also less than the ability of the well or wells on the unit to produce.
Source: Oil and Gas, New Mexico Administrative Code Title 19, Chapter 15, January 2013. Regulations