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Directive 007-1: Allowables Handbook

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Release Date: February 06, 2023

Effective Date: February 6, 2023
Replaces the previous edition released on February 17, 2016.
Released with Bulletin 2023-02.

Purpose of this Directive

This directive explains the AER’s procedures for determining monthly allowables for a production entity (well or block).

Allowables or maximum rate limitations (MRLs) are rate controls applied primarily to oil entities in accordance with an AER order. MRLs are assigned to new oil pools when conservation is or could potentially be an issue. MRLs help minimize depletion impacts on oil pools and ensure that enhanced oil recovery is addressed. MRLs also serve to maintain intrapool equity.

Application Process

Refer to the AER Order System to determine if the entirety of the well falls within an AER pool order. If any portion of the well falls outside of an AER pool order, then an O-38 application must be submitted.