TLD 058 - The Evolution of Pooling in the Oil & Gas Industry with Ben Holliday

Date Published:

February 19, 2026

Guests

Ben Holliday

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Energy attorney Ben Holliday breaks down how the oil and gas industry evolved from traditional pooling to today's allocation wells, tackling the complex challenge of drilling long laterals across multiple existing units.

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From the first Devon allocation well breakthrough to New Mexico's compulsory pooling framework, discover the practical solutions land professionals use to maximize development while navigating regulatory hurdles.

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What You’ll Learn

How allocation wells solved the multi-unit drilling problem without legislative changes
Key differences between Texas allocation wells and New Mexico compulsory pooling
Why production sharing agreements fell out of favor despite regulatory support
How to navigate lease restrictions on allocation well development
The evolution from 640-acre units to multi-section horizontal development

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Time Stamps

00:45 - Episode & Guest Intro
02:38 - Ben's Career Journey
03:58 - Early Experiences in the Oil and Gas Industry
10:29 - Pooling and Unitization Basics
13:48 - Evolution of Allocation Wells
15:52 - Challenges and Legal Aspects
23:10 - Production Sharing Agreements
26:19 - Current Practices and Industry Impact
33:15 - Understanding Lateral Take Points
33:42 - Complexities of Unit Allocation
34:43 - Impact of AI on Landmen and Attorneys
36:52 - Lease Analysis for Allocation Wells
38:16 - Mineral Owners' Concerns
41:52 - Retained Acreage Clauses and Allocation Wells
47:06 - New Mexico's Compulsory Pooling System
58:24 - Contested Hearings and Operator Disputes
01:02:09 - Conclusion and Resources

Snippets from the Episode

"I learned from Mr. Arrington that in the context of a lease negotiation, 'no' means not right now, and you haven't paid me enough." - Ben Holliday
"The general stance of Texas is to encourage development. We don't want to be restraining development, we want resources to be developed." - Ben Holliday
“The story of multi-tract development is really a story of industry and the legal side of the house trying to keep pace with each other and what you can do.” - Ben Holliday

Key Takeaways

Technology Drove Legal Innovation
Rule 37 Exceptions Opened Allocation Well Possibilities
PSAs Required Too Much Stakeholder Coordination
Productive Lateral Formula Became Industry Standard
Lease Language Analysis Critical for Allocation Wells
New Mexico's Compulsory System Protects State Revenue
Both State Approaches Effectively Maximize Resource Development

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Resources

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