A new gas proration system has been proposed for Texas, one that may lower allowables and hence curtail gas production. This new system is embodied in the Texas Railroad Commission's proposed Rule 29, which was published in the Texas Register on January 21, 1992.1 It was also described by the Commission staff in a public meeting on April 8, 1991.2 To assess the impact on gas production, the allowables for a large gas field in Panola County were calculated under Rule 29 and compared to current allowables and production. The results clearly show that allowables may be severely reduced in some fields, with a corresponding effect on production. This paper will explain the basics of the current and proposed gas proration system. With a better understanding of gas proration, the production engineer can manage his operations more efficiently and economically.