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3450-3451

PUBLIC RESOURCES CODE
SECTION 3450-3451

3450.  The Legislature takes notice of the existence of the
Conservation Committee of California Oil Producers and of the fact
that said committee for a number of years last past, in the interest
of the conservation of oil and gas, has made recommendations of
maximum efficient rates of production and for the intrapool
distribution of such maximum efficient rates of production with
respect to oil pools, capacity production from which pools would
result in a loss of ultimate production. The Legislature declares
that recommendations for such purpose are in the interest of the
conservation of the oil and gas resources of this State and that it
is lawful for said committee or any other committee of oil producers
to issue such recommendations as to any such oil pool and for
producers of oil to comply therewith or to agree to comply therewith,
provided:
   (a) Copies of all such recommendations shall be currently
delivered to the supervisor and shall be open to public inspection in
the office of the supervisor; and
   (b) Any such committee shall make available to the supervisor its
records, files, minutes, reports and other data pertaining to such
recommendations.
   The supervisor in his discretion may join in any such
recommendations or may express his disapproval thereof.
   The supervisor, in the absence of such recommendations by a
committee of oil producers with respect to any of such pools, or if
the supervisor deems any such recommendations to be insufficient or
incorrect, may issue recommendations with respect to any such pools
on said subject matter, and it shall be lawful for producers to
comply therewith or to agree to comply therewith. Neither a
disapproval by the supervisor nor a recommendation by him shall
constitute a basis for implying any obligation for producers of oil
to comply with such a disapproval or recommendation.
   Nothing herein contained shall be deemed to permit the production
of gas in violation of Articles 5 and 6 of Chapter 1 and Chapter 2 of
this division.



3451.  "Maximum Efficient Rate," commonly referred to as "MER," is
defined as the highest daily rate of production which can be
sustained economically from a particular pool, from existing wells
and facilities, for a reasonable period without loss of economically
recoverable ultimate production of oil from such pool.