Saturday, November 13, 2010

Rules needed for horizontal drilling

"As horizontal drilling gains ground in southeast New Mexico, regulatory issues are percolating to the surface in Santa Fe.

With traditional vertical wells, lease holders drill straight down into mineral resources that are recognized as their property once they extract it from the ground. There are rarely disputes over a lessee’s rights to the proceeds.

But when producers start drilling sideways into previously untapped hydrocarbons, property lines can become blurred, said Mark Fesmire, acting director at the state Oil Conservation Division.

“If you’re drilling horizontally, you can go from your land way out into somebody else’s property,” Fesmire said.

That raises questions." More>>>>

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