Legal Ethics and Professional Responsibility Commons^™

New Oil And Old Laws: Problems In Allocation Of Production To Owners Of Non-Participating Royalty Interests In The Era Of Horizontal Drilling., Benjamin Holliday

St. Mary's Law Journal

Oil and gas exploration and production is not only a big business, it is also an expensive one. As with any business, when faced with competing alternatives, operators generally prefer to pursue exploration in areas with more stable and predictable legal environments. Efforts have previously been made to make Texas such an environment, but as technology advances, legal rules often become unclear in their application. The explosion in horizontal drilling activity is challenging the courts and the Texas Railroad Commission to apply and adapt traditional legal and regulatory concepts to horizontal wells. The growing dominance of horizontal well development is …