Proration Unit

“Proration unit” means the area in a pool that can be effectively and efficiently drained by one well as determined by the division or commission (see NMSA 1978, Section 70-2-17(B)) as well as the area assigned to an individual well for the purposes of allocating allowable production pursuant to a prorationing order for the pool.  A proration unit shall be the same size and shape as a spacing unit.  All proration units are spacing units but not all spacing units are proration units.

Source: Oil and Gas, New Mexico Administrative Code Title 19, Chapter 15, January 2013. Regulations


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