In horizontal drilling is the well location considered to be the point of entry? the target location? or the entire trek (from entry to target)? In extension, can an operator drill on a neighbor’s land, horizontal drill under my land to a target location in the opposite neighbor’s land and thus exclude me?
The horizontal leg of the well (area where the oil will be removed) will always lie within the specified spacing unit of the well. The actual well head, could be located off the spacing unit as is the case in several wells where an eco-pad is utilized in order to save drilling costs. In all cases that I am familiar with, when this eco-pad is utilized, it is drilling on adjacent leases. All drilling permits must be approved by the State Agency responsible for regulating oil and gas within a State.
The pad is known as the tophole location. Where the lateral terminates is known as the bottomhole location. As the earlier comment suggests, these can be in different units (sections if we're talking about Oklahoma). The answer to your question could depend on the law of your jurisdiction. You could potentially have a sub-surface trespass claim if you are not in the producing unit and have not authorized the wellbore to pass through your property. Regulatory agencies and state statutes are behind industry practice when it comes to horizontal drilling. Because of this, there may not be a clear cut answer to your question.