In response to the increasing number of horizontal drainholes being drilled in Texas, the Railroad Commission of Texas developed guidelines for issuing drilling permits for these wells. While these guidelines do serve the purpose of outlining permitting procedures, they do not address such issues as between well spacing requirements, acreage and allocation assignments and the definition of a horizontal drainhole for regulatory purposes. A general statewide rule is being formulated by the Commission to address these issues. The proposed rule should offer some flexibility to encourage the use of this relatively costly and complex technology while honoring the Commission's legislative mandate to prevent waste and protect correlative rights.

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