Iowa § 458A.6 Department shall determine market demand and regulate the amount of production

Iowa Statutes

§ 458A.6 — Department shall determine market demand and regulate the amount of production

Iowa § 458A.6

Title XINATURAL RESOURCES

Ch. 458AOIL, GAS, AND OTHER MINERALS

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Bluebook

Iowa Code § 458A.6 (2026).

Text

production. The department shall determine market demand for each marketing district and regulate the amount of production as follows:

1.The department shall limit the production of oil and gas within each marketing district to that amount which can be produced without waste, and which does not exceed the reasonable market demand.

2.When the department limits the total amount of oil or gas which may be produced in the state or a marketing district, the department shall allocate or distribute the allowable production among the pools in the district on a reasonable basis, giving, where reasonable under the circumstances to each pool with small wells of settled production, an allowable production which prevents the general premature abandonment of the wells in the pool.

3.When the departme

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production.
The department shall determine market demand for each marketing district and regulate
the amount of production as follows:
1. The department shall limit the production of oil and gas within each marketing district
to that amount which can be produced without waste, and which does not exceed the
reasonable market demand.
2. When the department limits the total amount of oil or gas which may be produced in
the state or a marketing district, the department shall allocate or distribute the allowable
production among the pools in the district on a reasonable basis, giving, where reasonable
under the circumstances to each pool with small wells of settled production, an allowable
production which prevents the general premature abandonment of the wells in the pool.
3. When the department limits the total amount of oil or 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 were imposed, which limitation is imposed either incidental to, or without, a
limitation of the total amount of oil or gas produced in the marketing district wherein the
pool is located, the department shall allocate or distribute the allowable production among
the wells or producing properties in the pool on a reasonable basis, preventing or minimizing
reasonable avoidable drainage, 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.
4. In allocating the market demand for gas between pools within marketing districts, the
departmentshallgivedueregardtothefactthatgasproducedfromoilpoolsistoberegulated
in a manner which will protect the reasonable use of its energy for oil production.
5. The department is not required to determine the reasonable market demand applicable
to any single pool, except in relation to all other pools within the same marketing district,
and in relation to the demand applicable to the marketing district. In allocating allowables
to pools, the department may consider, but is not bound by nominations of purchasers to
purchase from particular fields, pools, or portions thereof. The department shall allocate
the total allowable for the state in a manner which prevents undue discrimination between
5 OIL, GAS, AND OTHER MINERALS, §458A.8
marketing districts, fields, pools, or portions thereof resulting from selective buying or
nomination by purchasers.