Side by Side Leases

I have my property leased to Company A and Company B has a unit that adjoins my leased property. Company A is in the process of making a unit and drilling a well. My property will be in that unit. Company B has already drilled a well in their adjacent unit and has been withdrawing oil for about six months. Is their any type of Texas RRC oversight to keep Company B from withdrawing oil from underneath my property?

Company B has to be producing from X amt of feet from your lease line. How many feet exactly depends on the producing formation, and the type of well drilled (vertical or horizontal).

Short answer, yes, there is RRC oversight, per se.

Search "spacing regulations" in the upper right corner of this page, and you will find several threads on this topic.


David, just over 10 years ago, the Texas RRC would allow a Company like your Company A who has your active O&G lease, give permission to the Texas RRC for Company B on another O&G lease to drill closer than Rule 37. In my case Rule 37 was 467' and permission was given for 255' also the bottom of the hole was about 19' closer. Note, no pooling was done and no permission needed from our mineral owners. Do not know if there is an O&G lease clause that would address this issue. Look at the Texas RRC website on Company B's oil well documents, you may find a permission letter there.

Thanks Mr. Hawkins.