Affidavit As to Acreage Assigned to Spacing / Proration Units Around Producing Wells by Lessee
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FAQ
Leaks from abandoned wells have long been recognized as an environmental problem, a health hazard and a public nuisance. They have been linked to dozens of instances of groundwater contamination by research commissioned by the Groundwater Protection Council, whose members include state ground water agencies.
Proration Unit means the acreage assigned to a well for the purpose of allocating allowable gas production thereto by order or rule of the Texas Railroad Commission, or any other state or federal body having authority.
That's legal in many jurisdictions under what's called the rule of capture, meaning anything you can produce from a well on your property is yours, even if it drains from somewhere else. If your neighbors don't like it, they can drill their own wellsunless, of course, they're too late.
The health impacts of living near oil extraction sites are well documented: studies have shown that oil development can contribute to health effects such as headaches, upper respiratory illness, nausea, nosebleeds and a possible increase in cancer risk.
There are those in the oil and gas industry who believe to prorate a reservoir means to take or produce at equal rates from all wells in the reservoir regardless of the quality of the wells or the reserves underlying them.Oil was collected in pits and often polluted the surrounding land and adjacent streams.
(1) No well for oil, gas, or geothermal resource shall hereafter be drilled nearer than 1,200 feet to any well completed in or drilling to the same horizon on the same tract or farm, and no well shall be drilled nearer than 467 feet to any property line, lease line, or subdivision line; provided the commission, in
But HUD goes further and states that "Operating and abandoned oil and gas wells pose potential hazards to housing, including potential fire, explosion, spray and other pollution.... No existing dwelling may be located closer than 300 feet from an active or planned drilling site.
Statutes require the Commission to prorate to reduce waste. Proration means all producers will share the pain.