RAILROAD COMMISSION OF TEXAS
Horizontal Drilling Permit Applications
Lorenzo Garza
Presentation overview
• Differences between horizontal and vertical wells
• Learn how to determine if your in need of a SWR
Penetration Point
exception
• Learn how to resolve these SWR 37 & 38 exceptions
Drilling Permits and Online Filing - Advanced
Vertical Well in Productive Zone
Penetration Point
Penetration Point
Drilling Permits and Online Filing - Advanced
Horizontal Well Productive Zone
Penetration Point
Penetration Point
To be considered a horizontal well the displacement of the well
must be at least 100 feet.
Drilling Permits and Online Filing - Advanced
Horizontal Well Productive Zone
Horizontal Drainhole
Containing the
Productive Portions of
the Well Bore
Drilling Permits and Online Filing - Advanced
TERMS YOU SHOULD BE FAMILIAR WITH
 Surface location
 Penetration point
 Terminus location
Statewide Rule that covers horizontal drilling is SWR 3.86
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Drilling Permits and Online Filing - Advanced
SWR 86 PLAT
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Drilling Permits and Online Filing - Advanced
Where to find out more information concerning
horizontal well:
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Drilling Permits and Online Filing - Advanced
Where to find out more information concerning
horizontal well:
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Drilling Permits and Online Filing - Advanced
Where to find out more information concerning
horizontal well:
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Drilling Permits and Online Filing - Advanced
Where to find out more information concerning
special horizontal field rules.
What you can find:
 Information concerning dual lease line distances
 Off lease penetration point information
 As-drilled tolerance box rule
 Acreage assignment based on length of lateral
 Stacked lateral rules
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Drilling Permits and Online Filing - Advanced
Where to find out more information concerning
horizontal well:
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Drilling Permits and Online Filing - Advanced
Where to find out more information concerning
horizontal well:
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Drilling Permits and Online Filing - Advanced
Where to find out more information concerning
horizontal well:
Located in Rule 2
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PENETRATION POINTS
Defined as the point your well penetrates the top of
the regulatory field’s correlative interval as defined in
Rule 1 of the field rules.
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Drilling Permits and Online Filing - Advanced
STANDARD SWR 86 FIELD
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Drilling Permits and Online Filing - Advanced
SWR 86 PLAT
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Drilling Permits and Online Filing - Advanced
SPECIAL HORIZONTAL FIELD RULES
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Drilling Permits and Online Filing - Advanced
OFF LEASE PENETRATION POINTS
• If the well is in a standard SWR 86 field then the penetration
point must be on lease or an exception to rule is needed.
• If the well is in a field approved for special horizontal rules
then application can be processed as long as proper
notification to affected parties is done prior to the
submission of the Drilling Permit application.
 If you are proposing to drill a vertical pilot hole to log the
formation you will need to follow the rules for off lease
penetration and provide notice to affected parties prior
to submission of the application.
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SPECIAL HORIZONTAL FIELD RULES
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Determining if you are a SWR 37 lease line or
between well exception.
HORIZONTAL WELL:
What is the distance to nearest lease line?
• Look at the entire length of your wellbore’s
productive portion
• Use the shortest distance to a lease line from
any point in the productive portion
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Drilling Permits and Online Filing - Advanced
Out of compliance SWR exception needed
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Un-leased mineral interests
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330’ halo around wellbore
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Multiple terminus locations
can be applied for at the
same time
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Drilling Permits and Online Filing - Advanced
MAIN POINTS
1. SWR 3.86 MUST BE ADHERED TO UNLESS
THERE ARE SPECIAL HORIZONTAL RULES FOR
THE FIELD YOU ARE APPLYING FOR.
2. KNOW HOW TO DETERMINE DISTANCE TO
NEAREST LEASE LINE AND WELL FOR THE TYPE
OF FIELD RULES (STANDARD OR SPECIAL) YOU
ARE WORKING UNDER.
3. ONCE YOUR WELL HAS PENETRATED THE
FORMATION YOU CANNOT CROSS INTO A
TRACT THAT IS NOT LEASED. THIS IS MINERAL
TRESSPASS.
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