Can The Rule Of Capture Be Rationalized?

CONTENTS PAGE A.I.M.E. Stabilization Committee Activity 3 Definition of Capture Rule: Robert E. Hardwicke 4 Westmoreland Natural Gas Co. vs. DeWitt 5 Kelly vs. Ohio Oil Co 5 Bernard vs. Monongahela Gas Co 6 Definition of Ownership in Place 7 Prospective Stabilization Remedies 7 Dean Roscoe Pound's Four Tests of Practicability 7 I: Mechanically Feasible 8 Capture Rule 8 Ownership in Place 10 Mechanical Separation Method 10 Engineering Appraisal Method. 11 II. Economically Advisable. ., . 13 Capture Rule 14 Ownership in Place 14 III. Politically Wise 14 Capture Rule 14 Ownership in Place 17 IV. Legally Sound 18 Capture Rule 18 Ownership in Place 19 Dean Henry M. Bates' Analysis 19 Resume 22 THE A.I.M.E. Stabilization Committee was named in 1932 to ascer-tain whether some practical substitute could be devised for the Rule of Capture, which was generally credited with being the major cause of instability in the Petroleum Industry. After considerable intercommittee correspondence a letter was received from. E. DeGolyer under date of Jan. 25, 1935, in which he discussed the possibility of modifying rather than discarding the Rule of Capture. He summarized his proposal as follows: