Operations
Regulation was a practical rather than ideological affair. The TRC typically worked with the regulated industries to improve operations, share best practices, and address consumer complaints. Radical activities like rate setting to favor shippers or producers or consumers, and heated court battles, were the exception rather than the rule.
Within the oil and gas industry, it took into account production in other states, in effect bringing total available supply, (including imports, which were small) within the principle of prorationing to market demand. Allowable oilfield production was calculated as follows: estimated market demand, minus uncontrolled additions to supply, gave the Texas total; this was then prorated among fields and wells in a manner calculated to preserve equity among producers, and to prevent any well from producing beyond its Maximum Efficient Rate (MER). Scheduled allowables are expressed in numbers of calendar days of permitted production per month at MER.
Read more about this topic: Railroad Commission Of Texas
Famous quotes containing the word operations:
“It may seem strange that any road through such a wilderness should be passable, even in winter, when the snow is three or four feet deep, but at that season, wherever lumbering operations are actively carried on, teams are continually passing on the single track, and it becomes as smooth almost as a railway.”
—Henry David Thoreau (1817–1862)
“Plot, rules, nor even poetry, are not half so great beauties in tragedy or comedy as a just imitation of nature, of character, of the passions and their operations in diversified situations.”
—Horace Walpole (1717–1797)
“There is a patent office at the seat of government of the universe, whose managers are as much interested in the dispersion of seeds as anybody at Washington can be, and their operations are infinitely more extensive and regular.”
—Henry David Thoreau (1817–1862)