Rule of Capture

September 9, 2011

That rule of capture gives a mineral rights owner title to the oil and gas produced from a lawful well bottomed on the property, even if the oil and gas flowed to the well from beneath another owner’s tract. The rule of capture is a cornerstone of the oil and gas industry and is fundamental both to property rights and to state regulation.

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Douglas C. Kittelson

Attorney and Counselor at Law

6116 N. Central Expressway, Suite 1201

Dallas, Texas 75206

(214) 739-2700

Email: doug@kittelsonlaw.com

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"HBP" means held by production. This is in reference to a provision in an oil & gas lease that extends the lease indefinitely past the primary term so long as there is production in paying quantities.