Friday, March 23, 2012

Eliff v. Texon Case Brief

Eliff v. Texon (Tex 1948)

Law of capture does not insulate a land owner from the damages caused by the wrongful drainage of gas and distillate from beneath the land of another.
  1. Held: Rule of Capture with a reasonableness caveat, i.e. Abs. ownership w/ rule of capture.
    1. Ownership occurs at capture so long as it is reasonably used (abs. ownership idea)
  2. Policy:
    1. Promotes competition and fair play which is good for the economy.
    2. Autonomy and Freedom of the owners
    3. Tragedy of the Commons idea, with law of capture leads to waste since only bear a portion of the externalities

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