As of March 3, 2020, the Texas Railroad Commission has updated its pooling procedures regarding the assignment of acreage to pooled development and proration units in unconventional fracture treated fields (UFT). Now, the same acreage can be assigned to multiple wells in UFTs.
This amended rule is a welcome update for the oil and gas exploration and production industry in Texas as circumstances consistently arose in which the assignment of acreage to more than one well in a field is necessary to prevent waste and to protect correlative rights.
Chairman Wayne Christian celebrated the rule change as a victory for the industry, stating “This … is a win-win for industry and regulators, saving both agency staff and energy producers time and resources.” Commissioner Christi Craddick added that “Amending rule 3.40 will enable energy producers to responsibly extract more energy resources by recognizing that the way energy is produced has evolved over time.”
To apply for multiple assignments of acreage, certain conditions and permitting requirements must be met. If you have questions about Rule 3.40 or any other upstream concerns, please contact T.C. Turner at firstname.lastname@example.org.