### Question
How does the law define maximum efficient rate?


### Answer
Under *10 U.S.C. § 7420*, **maximum efficient rate** is defined as:

> the maximum sustainable daily oil or gas rate from a reservoir which will permit economic development and depletion of that reservoir without detriment to the ultimate recovery

#### Citation:
  - *10 U.S.C. § 7420*
  - Heading: **Subtitle C-Navy and Marine Corps > PART IV-GENERAL ADMINISTRATION     > CHAPTER 641-NAVAL PETROLEUM RESERVES**

