Senate Bill 78 Summary

• Renames the "2011 Shale Reservoir Development Act" to the "2011 Shale Reservoir Horizontal Well Development Act" and expands its scope to apply to targeted reservoirs beyond just shale formations.

• Introduces new definitions including "targeted reservoir" and "horizontal well unitization," allowing the Corporation Commission to designate common sources of supply as appropriately suited for multiunit horizontal well development.

• Permits horizontal wells to cross multiple drilling units and establishes allocation factors based on the completion interval length in each affected unit, with Commission authority to adjust these factors to prevent waste and protect correlative rights.

• Allows commingled production from multiunit horizontal wells with allocation to each unit based on approved allocation factors, and establishes procedures for royalty distribution and operator responsibilities under the Production Revenue Standards Act.

• Declared an emergency measure to take effect immediately upon passage and approval, with the Legislature retaining jurisdiction over approved wells and affected parties retaining rights to pursue legal remedies through district courts.