Allocation well in texas

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Railroad Commission of Texas. Share Facebook Twitter Linked In. No guidance is given on how to satisfy this standard — should the allocation be done based on the location of perforations, by the percentage of linear feet of the well bore within each tract, or a more detailed geological analysis of the formation? For example, the well will only maintain leases on the tracts traversed by the wellbore. Enter your keywords. Jones, S. In the Opelia case, EnerVest applied for an allocation well permit, and notwithstanding challenge by affected parties, the RRC granted the requested permit. I tend to scroll through the daily email when I am having my lunch, reading the headlines and descriptions of the articles, and click on any items that are of interest to me - that way, I feel like I am kept 'in the loop' with legal developments. I have recommended the service to quite a few friends who have also found it very helpful.

  • What is a horizontal allocation well
  • PSA and Allocation Wells – The Current State of Play Energy Legal Blog
  • Allocation Wells Still No Guidance in Texas Lexology

  • Video: Allocation well in texas RRC OIL - Online Inspection Lookup

    What is an Allocation Well? An Allocation Well is a Texas Railroad Commission designation for a proposed horizontal well for which the.

    The law regarding allocation wells—horizontal wells that cross several tracts and/or leases without pooling such interests—remains an evolving area.​ Operators in Texas primarily rely upon allocation well permits issued by the Railroad Commission of Texas (the “RRC”) for.

    images allocation well in texas

    o An allocation well is a horizontal well that traverses the boundary between two or wells. o Devon permitted the first Allocation Well in Texas Railroad.
    I tend to scroll through the daily email when I am having my lunch, reading the headlines and descriptions of the articles, and click on any items that are of interest to me - that way, I feel like I am kept 'in the loop' with legal developments.

    What is a horizontal allocation well

    The issue of whether the RRC can lawfully issue a permit for an allocation well came up through an appeal raised by a group of royalty owners, the Klotzman family, regarding an allocation well permit issued to EGO Resources, Inc.

    Nonetheless, the RRC has continued to grant drilling permits for allocation wells and PSA wells and thus, from a regulatory perspective, allocation wells remain a viable option for operators who are unable to pool the tracts they need to drill horizontal wells. You should not send us any information that you want treated confidentially.

    Eyes will remain on the Opelia case, and undoubtedly, additional allocation well suits will be filed in the interim. Again, this matter settled before a final resolution. Based on the dearth of case law and the recent dueling law review articles on allocation wells, there is concern that the Lessor-oriented bar is in the process of finding a test case for its theories against these wells.

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    Lexology is great as it provides a daily email with the headlines in all the areas of law that I am interested in which are all relevant to me, as I was able to choose which areas I was interested in at registrationwith links to articles from a wide variety of sources. Also, spacing exceptions are needed with respect to portions of the horizontal wellbore that are within the setback distances from the property lines of traversed tracts in situations where the lessee is not the sole working interest owner in the lease.

    Video: Allocation well in texas Allocation Wells and What Makes Them Different with Angela Staples

    Again, this matter settled before a final resolution. In common with many in-house lawyers, I have limited access to and a limited budget for resources and rely on receiving know-how from friends and contacts in private practice. Jones, S.

    Oil and Gas Lawyer Blog — Allocation Wells Category — Oil and Gas Lawyer Blog.

    Inc., et al. v.

    PSA and Allocation Wells – The Current State of Play Energy Legal Blog

    Railroad Commission of Texas, Cause No. The Railroad Commission of Texas (the “RRC”) routinely grants drilling permits to operators seeking to drill horizontal wells across multiple. The law regarding allocation wells — horizontal wells that cross several tracts and/or leases without pooling such interests — remains an.
    In addition, there is currently a case pending in Texas state court in Karnes County, Opelia v. As discussed below, the RRC currently will issue a permit regardless of how many impacted interest owners have signed a PSA so long as the Operator has a valid working interest in all of the tracts at issue.

    Enervest Operating, LLC. These issues can be onerous to deal with, especially where there is a very productive horizontal well that results in drainage of properties in the surrounding area. While it seems evident that the principal risk associated with these wells is a potential claim by lessors or other working interest owners for misallocation of production, PSA and allocation wells also present additional land administration issues created by the fact that the well is not drilled on a pooled unit.

    images allocation well in texas
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    In Browning Oil Co. Ultimately the parties to this lawsuit settled all allocation related claims outside of court and thus this case does not provide any actionable holding regarding the standard that an Operator must meet in proving up its allocation method in these situations.

    Allocation Wells Still No Guidance in Texas Lexology

    The positions staked out in these two articles are not aided by much case law, as the limited case law that has considered this issue has not provided any clear answers. Oil and gas producers were in favor of the bill, which would have legislatively validated allocation wells in Texas and given producers guidance regarding payment of revenue among interest owners.

    You should not send us any information that you want treated confidentially.

    images allocation well in texas

    4 thoughts on “Allocation well in texas”

    1. In response to this article, UT professor Ernest Smith published an article this summer rebutting the Baylor article.

    2. Based on the dearth of case law and the recent dueling law review articles on allocation wells, there is concern that the Lessor-oriented bar is in the process of finding a test case for its theories against these wells.

    3. Eyes will remain on the Opelia case, and undoubtedly, additional allocation well suits will be filed in the interim.

    4. By clicking Accept you acknowledge that we may review and use any information you transmit to us.