A well has been drilled on my neighbor’s tract but may be draining my tract. What can I do?
If the oil company fails to protect your tract from drainage, you may have a claim for damages. The law implies a covenant that the leaseholder will protect the lease from drainage. The Leaseholder must normally act as a reasonably prudent operator to prevent substantial drainage from one’s tract. However, a reasonably prudent operator is usually only required to take actions to protect a tract from drainage if there is a reasonable expectation of making a profit after deducting all operating expenses and capital costs associated with the actions necessary to prevent drainage.