Allocation well in texas
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.
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.
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.
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.