Course Level: Intermediate
Presented by: Ricardo Morales | Whitworth, Borchers & Morales, LLP
In this compelling and detailed presentation, Richardo E. Morales examines the application of commingling in the oil and gas industry and explores the issues that become apparent when the doctrine of commingling is applied to horizontal wells. Keystone Texas cases are examined that demonstrate how the burden of proof is examined in court during a commingling dispute. The concept of Allocating Production to Horizontal wells and how the commingling doctrine can create controversy and issues for producers is among the issues that are discussed. Examples of the methods of allocation such as Tract Participation Basis, Productive Lateral Basis, and Stage Basis are set forth with the differences highlighted by the presenter. In addition, key statistics on whether these allocation methods are reasonable are discussed with the accompanying key technical factors and findings from US shale basins. These findings show the effectiveness of perforations in determining how perforations contribute to production.