The Allocation Problem - Allocating Production in the Permian and Other Basins

Speaker: Robert Eli Kiefaber: 

The presentation will address the problem of allocating production and discuss the multiple responses that have emerged in varying jurisdictions. As technology evolved, operators are able to drill longer and longer laterals that cross multiple tracts and/or pooled units, which have not combined to create a new pooled unit. How production is allocated among those tracts and existing units gives rise to the "allocation problem." The speaker will provide an overview of allocation wells and how allocation wells function in Texas. Next, the presentation will explore how the allocation problem has been addressed in other basins and jurisdictions.