(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.
Texas Legal Code