Answer:
B. Proration
Explanation:
Prorationing is an obvious remedy for the problem of
“distressed oil.” In market-demand prorationing, a state
conservation agency first restricts statewide production to the
estimated market demand and then allocates the statewide total
back to fields, reservoirs, and finally to individual wells.27 Thus,
every producing well is assigned an “allowable.” This seeks to
accumulatively reduce the state’s production to equal the market
demand. Oklahoma’s market-demand law, passed in 1915, was
the first proration statute in the country.
