Sec. 202.002. PRODUCTION AND MEASUREMENT OF OIL. (a) "Production" means the total gross amount of oil produced, including royalty and other interests.
(b) The amount of production shall be measured or determined by:
(1) tank tables compiled to show 100 percent of the capacity of the tanks without deduction for overage or losses in handling; or
(2) meter or other measuring devices that accurately determine the amount of production.
(c) If the amount of production has been measured or determined by a tank table compiled to show less than 100 percent of the full capacity of a tank, the amount must be raised to a basis of 100 percent.
(d) When measuring or determining the amount of production, a reasonable deduction may be made for basic sediment and water and a reasonable allowance may be made for correction of the temperature to 60 degrees Fahrenheit.
(e) This section does not authorize the use of metering devices for the measurement of oil on a well without the express permission of the operator of the well.
Acts 1981, 67th Leg., p. 1736, ch. 389, Sec. 1, eff. Jan. 1, 1982.
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