Stabilization - Can the Rule of Capture he Rationalized?

Page A.I.M.E. Stabilization Committee Activity................. 133 Definition of Capture Rule: Robert E. Hardwicke.......................... 134 Westmoreland Natural Gas Co. vs. DeWitt................ 135 Kelly vs. Ohio Oil Co......................... 135 Bernard vs. Monongahela Gas Co.................... 136 Definition of Ownership in Place..................... 137 Prospective Stabilization Remedies.................... 137 Dean Roscoe Pound's Four Teats of Practicability.............. 137 I. Mechanically Feasible....................... 138 Capture Rule.......................... 138 Ownership in Place....................... 140 Mechanical Separatio.7 Method................. 140 Engineering Appraisal Method................. 141 II. Economically Advisable...................... 143 Capture Rule.......................... 144 Ownership in Place....................... 144 III. Politically Wise.......................... 144 Capture Rule..........................144 Ownership in Place.......................147 IV. Legally Sound..........................148 Capture Rule..........................148 Ownership in Place.......................149 Dean Henry M. Bates' Analysis......................149 Raumé................................152 The A.I.M.E. Stabilization Committee was named in 1932 to ascertain 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: