Oil and gas conservation in Utah after Cowling: The law of capture receives a new lease on life
Journal Article
·
· Journal of Energy, Natural Resources amp Environmental Law
OSTI ID:486341
The Utah Oil and Gas Conservation Act is based on the 1950 Model Act promulgated by the Interstate Oil Compact Commission. The Model Act was drafted in direct response to the failure of the common law rule of capture to protect the correlative rights of oil and gas interest owners and prevent waste of the natural resource. Nearly forty years ago, Utah and other producing states adopted conservation statutes intended to strictly regulate the production of oil and gas. However, courts are still struggling to define the relationship between these conservation acts and the common law rule of capture. While many commentators have called for and predicted the demise of the law of capture, the Utah Supreme Court has been unwilling to abandon the common law. In Cowling v. Board of Oil, Gas and Mining, the Utah Supreme Court held that the Utah Board of Oil, Gas and Mining can not make a pooling order effective prior to entry of a spacing order, which provides for the establishment of a drilling unit. To reach this ruling, the court held as a matter of law that Utah Oil and Gas Conservation Act does not abrogate the law of capture until such time as the Board enters a spacing order. Therefore, under Cowling, from the time a well begins production until the time a spacing order is entered, there is theoretically no regulatory mechanism to insure that the stated goals of the Oil and Gas Conservation Act will be accomplished. The full meaning of the court`s holding cannot be appreciated without an understanding of the history and full reach of the law of capture.
- OSTI ID:
- 486341
- Journal Information:
- Journal of Energy, Natural Resources amp Environmental Law, Journal Name: Journal of Energy, Natural Resources amp Environmental Law Journal Issue: 1 Vol. 14; ISSN 1053-377X; ISSN JENLFS
- Country of Publication:
- United States
- Language:
- English
Similar Records
Coal leases held real property
Compulsory pooling in North Dakota: should production income and expenses be divided from date of pooling, spacing, or First Runs
Almost strict liability: Wind River Petroleum and the Utah Hazardous Substance Mitigation Act
Journal Article
·
Tue Mar 31 23:00:00 EST 1981
· Nat. Resour. J.; (United States)
·
OSTI ID:6202470
Compulsory pooling in North Dakota: should production income and expenses be divided from date of pooling, spacing, or First Runs
Journal Article
·
Fri Dec 31 23:00:00 EST 1982
· Public Land Resour. Law Dig.; (United States)
·
OSTI ID:5588450
Almost strict liability: Wind River Petroleum and the Utah Hazardous Substance Mitigation Act
Journal Article
·
Mon Dec 30 23:00:00 EST 1996
· Journal of Energy, Natural Resources amp Environmental Law
·
OSTI ID:478289