I understood from reading somewhere that a horizontal well is said to represent 320 acres, or some number like that. But I see some leases on the RRC web site that have 60+ wells on only 10,000 acres. Is there a limit on the number of wells per so many acres or not?!
Dear Mr. Martin,
What you read was wrong.
The Proration Unit is determined by the Texas Railroad Commission on a field basis.
The Proration Unit acreage is designated on a Form P-15 and the attached plat to show the acreage assigned to the well for proration purposes where field rules provide for the setting of allowables on an acreage basis, in whole or in part.
The proration unit is designated after the well is drilled and completed, and only productive acreage can be assigned to a proration unit. The designation of a proration unit can be changed at any time.
In Texas, there are 5 different types of units. I wrote an article about them here.
Best
Buddy CottenDear Mr. Cotten,
I hadn't checked back in to this website for a while and just now saw your reply. Thank you very much for the information you provided. I really appreciate your help.
Very best regards,
Jim Martin
Buddy Cotten said:
Dear Mr. Martin,
What you read was wrong.
The Proration Unit is determined by the Texas Railroad Commission on a field basis.
The Proration Unit acreage is designated on a Form P-15 and the attached plat to show the acreage assigned to the well for proration purposes where field rules provide for the setting of allowables on an acreage basis, in whole or in part.
The proration unit is designated after the well is drilled and completed, and only productive acreage can be assigned to a proration unit. The designation of a proration unit can be changed at any time.
In Texas, there are 5 different types of units. I wrote an article about them here.
Best