SB 646 Summary

• Allows horizontally drilled oil and gas wells to have spacing units up to 1,280 acres (doubled from 640 acres) plus gas well tolerances and variances.

• Authorizes Corporation Commission to establish concurrent drilling and spacing units for horizontal wells in the same common source of supply, with a maximum of two concurrent units at any given time.

• Permits multiunit horizontal wells that cross multiple spacing units, with costs, production, and proceeds allocated to each affected unit based on the length of the completion interval within that unit.

• Establishes owner election rights allowing participation in subsequent horizontal wells during concurrent unit development, with limited relinquishment of drilling rights for wells not participated in.

• Requires Commission to determine allocation factors and retain jurisdiction over approved multiunit horizontal wells; act takes effect immediately upon passage as emergency legislation.