You can only produce oil from your own lease. If you directionally drill across state lines into a lease you own you still have to pay the other state royalties, and probably also royalties to the state where the well is located. If you drill into someone else’s lease you have to pay them for the production and pay the state where the lease is located royalties. Then one or the other state will make you P&A the well at least to the lease line if not all of it.
Thanks...good information.