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Casing Point: Key Insights into Its Legal Definition and Importance
Definition & Meaning
Casing point is the term used to describe the depth at which a well has been drilled to reach its intended target. At this stage, the well is evaluated, and a decision is made regarding the installation of casing, which is a protective pipe that helps maintain the integrity of the well. This decision is crucial, especially for marginal wells, where operators must carefully consider the economic viability of setting casing before proceeding with completion.
Table of content
Legal Use & context
The term casing point is primarily used in the context of oil and gas law. It is relevant during the drilling process and plays a significant role in the completion of wells. Legal implications may arise if there is a dispute over the depth reached or the decision to set casing. Operators often rely on legal forms and contracts to outline their obligations and rights regarding casing points and well completion.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: An oil company drills a well to a depth of 10,000 feet, reaching the casing point. After testing and logging the well, they determine that setting casing is necessary to proceed with completion.
Example 2: A drilling operator faces challenges in deciding whether to set casing for a marginal well that has reached its casing point but shows uncertain production potential. (hypothetical example)
State-by-state differences
Examples of state differences (not exhaustive):
State
Regulation on Casing Point
Texas
Specific guidelines on casing installation and depth requirements.
Louisiana
Legal definitions tied to casing point in oil and gas contracts.