Allocation well projects raise new lease analysis challenges for oil and gas landmen and attorneys in Texas and New Mexico. Ben Holliday allocation well expert and energy attorney and president of Dudley Land and veteran landman Brent Broussard dive into how lease language, especially retained acreage clauses, directly impacts well clearance and deal structure. For anyone acquiring working interests or managing cross-unit development, understanding allocation well restrictions in Texas versus the legal clarity of New Mexico compulsory pooling is critical.

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This clip explains why Texas courts rely heavily on the specific language of each lease, meaning no one-size-fits-all rule applies and how small wording details can make or break an allocation well proposal. This clip reviews common reasons mineral owners push back on allocation wells, including historical distrust of operators and fear of diluted interests. You’ll also hear real stories of mineral owners refusing lucrative deals due to uncertainty or perceived disadvantages, emphasizing why clear communication and lease analysis are as important as engineering.

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Takeaways: Always lead with thorough lease review, Texas law gives weight to every clause, especially post-2010 allocation well cases. Recognize the roots of mineral owner resistance, and expect that negotiating allocation well permissions may require education, transparency, and at times, creative structuring or compensation. If you’re managing HBP patchworks in the Eagle Ford, or navigating legacy lease portfolios in West Texas and the Delaware Basin, these insights are directly actionable for your current projects.