Seagull Energy E & P, Inc. v. Railroad Commission

In this case we must decide whether the statute that grants the Railroad Commission authority to regulate production of commingled 1 oil and/or gas deposits includes the authority to regulate drilling, and if so, whether the Railroad Commission may consider the commingled deposits as though they were one reservoir when regulating drilling and production in the commingled field. The court of appeals held that the Railroad Commission could consider the commingled deposits as one reservoir when determining correlative rights and could deny an exception to the well-spacing requirements prescribed…