Papers - Unitization - Unit Operation in California

No outstanding example of an important producing unit operation exists in California today where the competitive drilling drainage feature is or was entirely eliminated We need not feel, however, that the thought of unit operation had its birth in 1924, when Henry L. Doherty named and sponsored it so strongly before the American Petroleum Institute and our own organization. No man or company in California ever drilled a wildcat well without exerting every possible effort to get all of the structure, so as to control drilling and avoid competition. Overproduction did not begin in 1923, so there has always been the wish to avoid it. In this state the practice of selling acreage around a wildcat has not been followed, except possibly in rare instances. The operator drilling the wildcat knew he must pay the bill alone, so he endeavored to get the benefit of his effort by tying up all of the land around his well and by so planning his different lease obligations as to avoid as much offsetting as possible. If he failed to get all of the land, it was because someone's price was too high, some other oil man also had the same idea and already held some lands, a competitor took leases away from him while his work was still incomplete, or (as was so often the case) the hidden structure when developed did not prove to be where the wildcatter thought it would be. The last named condition often led to a forced drilling campaign by the last leases secured and thus to serious drilling drainage problems. Ownership of the Land The land situation differs a great deal in various parts of the state. In the San Joaquin Valley, all the land is surveyed into sections and townships. Railroad land grants embraced a part of the land. In the areas that were developed at an early date, as at Kern River, Coalinga, McKittrick and the Sunset-Midway field, such land as the railroad company's diligent land department had been unable to sell for a song as grazing land still remained in its ownership. Operation and ownership