Senate Bill 807 Summary

• Renames the "2011 Shale Reservoir Development Act" to the "2011 Shale Reservoir Extended Lateral Horizontal Well Development Act" and modifies definitions related to horizontal well development.

• Allows horizontally drilled oil wells to have spacing units of up to 640 acres plus tolerances, matching the allowances previously available only for gas wells.

• Provides that owners participating in initial unit wells under pooling orders shall have the right to elect participation in each subsequent horizontal well proposed under the pooling order, with limited relinquishment of interests for non-participating subsequent wells.

• Authorizes the Corporation Commission to allocate drilling, completion, and production costs of multiunit horizontal wells to affected units based on the length of completion interval in each unit, with authority to adjust allocation factors based on evidence presented.

• Declares an emergency, making the act effective immediately upon passage and approval.