Breach of the duty to protect against drainage may occur when an oil and gas company signs a lease with two adjacent property owners. In this situation, if the oil and gas company drills a well in property number 1 and discovers oil, although geological tests indicate a common reservoir underneath both properties, the oil and gas company may be breaching their duty to protect against drainage.
Texas law also has found that the duty to protect against drainage exists in the instance of field wide drainage. For example, if a royalty owner owns only 1/6 of the land in question, but is experiencing a drainage due to “up-dip” wells, this owner may have the ability to bring a claim that the oil and gas company is breaching their duty to protect against drainage.
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