57-907. Commission; limitation on production; duties.
259 words·~1 min read·
/ne/chapter-57/57-907A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1)The commission shall limit the production of oil and gas from each pool to that amount which can be produced without waste in such pool.
(2)Whenever the commission limits the total amount of oil and gas which may be produced in any pool in this state to an amount less than that amount which the pool could produce if no restriction was imposed, the commission shall allocate or distribute the allowable production among the several wells or producing properties in the pool on a reasonable basis, preventing or minimizing reasonably avoidable drainage from each developed area not equalized by counterdrainage, so that each property will have the opportunity to produce or to receive its just and equitable share, subject to the reasonable necessities for the prevention of waste.
(3)The commission shall give due regard to the fact that gas produced from oil pools is to be regulated in a manner as will protect the reasonable use of its energy for oil production.
(4)Each person now or hereafter purchasing or taking for transportation oil or gas from any owner or producer shall purchase or take ratably without discrimination in favor of any owner or producer in the same common source of supply offering to sell his oil or gas produced therefrom to such person or offering it to him for transportation.
This section authorizes the Oil and Gas Conservation Commission to limit production to prevent waste and to allocate or distribute allowable production equitably. Farmers Irr. Dist. v. Schumacher, 187 Neb. 825, 194 N.W.2d 788 (1972).