Rule of capture

Common law

The rule of capture or law of capture, part of English common law[1] and adopted by a number of U.S. states, establishes a rule of non-liability for captured natural resources including groundwater, oil, gas, and game animals. The general rule is that the first person to "capture" such a resource owns that resource. For example, landowners who extract or “capture” groundwater, oil, or gas from a well that bottoms within the subsurface of their land acquire absolute ownership of the substance even if it is drained from the subsurface of another’s land.[2] The landowner who captures the substance owes no duty of care to other landowners.[3] For example, a water well owner may dry up wells owned by adjacent landowners without fear of liability unless the groundwater was withdrawn for malicious purposes, the groundwater was not put to a beneficial use without waste, or (in Texas) "such conduct is a proximate cause of the subsidence of the land of others."[4] An exception to the rule of capture is that a person who drills for groundwater, oil, or gas may not extract the substance from a well that bottoms within the subsurface estate of another by drilling on a slant.[5][6]

  1. ^ Acton v. Blundell, 12 Mees. & W. 324, 354, 152 Eng. Rep. 1223, 1235 (Ex. Ch. 1843)
  2. ^ See, e.g., Ohio Oil Co. v. Indiana, 177 U.S. 190, 203 (1900)
  3. ^ Acton v. Blundell, 12 Mees. & W. 324, 354, 152 Eng. Rep. 1223, 1235 (Ex. Ch. 1843)
  4. ^ Friendswood Development Co. v. Smith-Southwest Industries, Inc., 576 S.W.2d 21 (Tex. 1978)
  5. ^ H. Williams and C. Meyers, Oil and Gas Terms 737 (5th ed. 1981)
  6. ^ See also Nunez v. Wainoco Oil & Gas Co., 488 So. 2d 955, 958 (La. 1986)