Mineral Eagle Energy Acquisition Systems
Defined term

Correlative Rights

The principle that each owner over a shared reservoir has a fair opportunity to produce their just share — the legal check on the rule of capture.

Correlative rights are the counterweight to the rule of capture. The doctrine holds that every owner whose tract overlies a common reservoir is entitled to a fair and reasonable opportunity to produce their just and equitable share of the oil and gas, and to be protected against waste and against the negligent or uncompensated drainage of that share by others.

State regulators enforce correlative rights through the same tools that limit unrestrained capture: well spacing units, allowables and production limits, and pooling or forced pooling that folds every owner in a unit into the well so each shares production in proportion to acreage. Where the rule of capture says "the well owner keeps what it produces," correlative rights says "but everyone over the pool must get a fair shot at their share."

For a mineral owner, correlative rights are why you typically receive a proportionate royalty when your acreage is pooled into a producing unit, even if the wellbore sits on someone else's surface — you are credited for your share of the common reservoir rather than left out of the pool.

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