Proration unit

{
  "id": "MLC-T-OAG-002980",
  "term": "Proration unit",
  "field": "Oil and gas",
  "definition": "An area of land assigned to a well by a regulatory authority and used to set that well's allowable production and to allocate output in fields where production is prorated. The two areas coincide in many fields, but they serve different purposes: spacing governs where wells are drilled, while proration governs the allowable output of each well. In Texas and New Mexico, field rules set a standard proration unit size for each pool.",
  "subject": "Oil and Gas Business",
  "url": "https://mlchart.com/terminology/oil-and-gas/proration-unit/"
}