Correlative Rights not only refers to groundwater but is also applied to gas and oil reserves in the United States. Owners have production rights over oil reservoirs that encompass both their and their neighbor’s property, as long as there is no damage, waste or negligence. Negligence includes overproducing or drilling too many wells. Correlative Rights works in tandem with The Rule of Capture to encourage both exploration and conservation. The Rule of Capture states that a landowner may produce oil from his land without gaining consent of neighbors. This is in place in order to encourage exploration, as the landowner taking risks through mining and drilling should be reimbursed.
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