The Railroad Commission is in the process of arriving at a policy on the subject of allocation wells. Its decision will have far-reaching impact on how operators go about drilling horizontal wells throughout the state.
In an article titled The Age of Allocation: The End of Pooling as We Know It?, Hamilton & Squibb partner Clifton A. Squibb presents a scholarly, in-depth discussion on the issue of allocation wells.
The controversy regarding allocation wells stems from a protest by royalty owners against an application by EOG Resources, Inc. for a permit to drill the Klotzman (Allocation) #1H well in DeWitt County. Examining Texas law on pooling and commingling, Mr. Squibb’s article formulates and reflects on arguments for and against the legality of allocation wells. These arguments will play a central role in determining what direction the Railroad Commission, the courts, and the legislature might take on the issue of allocation wells and their availability to Texas operators.
The article has been published in Volume 45, Book 4, of the Texas Tech Law Review. For more information on the article, please contact Hamilton & Squibb or the Texas Tech Law Review.