Legal Definitions - rule of capture

The rule of capture is a legal principle that appears in several different areas of law, generally meaning that a resource or property belongs to the person who first takes possession of it, even if it originated on someone else's land. Its application varies significantly depending on the context:

• 1. In Estate Law (Powers of Appointment):

  This version of the rule applies when someone (the "donee") has been given a "general power of appointment," which is the authority to decide who will receive certain property after their death. If the donee demonstrates a clear intention to treat that property as their own, rather than just directing it to someone else, the property is "captured" and becomes part of the donee's personal estate. This means it can be used to pay the donee's debts or be distributed according to their will, even if they don't explicitly name a recipient for the appointed property.

  • Example 1: Sarah's mother's will gave Sarah a general power of appointment over a trust fund. In her own will, Sarah included a clause stating, "I direct that all property over which I have a power of appointment shall be added to my residuary estate." By blending the appointed property with her own assets, Sarah demonstrated an intent to control it as her own, and it would therefore be distributed with the rest of her estate.

  • Example 2: John had a general power of appointment over a valuable art collection. Before his death, he used the collection as collateral for a personal business loan. This act of using the property for his own financial benefit, rather than simply appointing it to someone, could be seen as an intent to "capture" the property, making it part of his estate and subject to his creditors.

• 2. In Property Law (Wild Animals):

  This principle states that wild animals, which are not owned by anyone in their natural state, become the property of the person who successfully captures them. This holds true regardless of whether the animal was initially found or pursued on another person's land, as long as the capture itself did not involve trespassing or other illegal acts.

  • Example 1: A hunter legally shoots a deer on public land, but the wounded deer runs onto an adjacent, unfenced private property. The hunter tracks the deer and retrieves it without trespassing. Under the rule of capture, the deer belongs to the hunter because they successfully captured it.

  • Example 2: A fisherman catches a trout in a navigable river that flows through a private ranch. Even though the riverbed might be privately owned, the fish itself is a wild animal, and by catching it, the fisherman gains ownership under the rule of capture.

• 3. In Water Law (Groundwater):

  Historically, this rule allowed a landowner to extract and use all the groundwater beneath their property by drilling wells and pumping, even if doing so caused neighboring wells or springs to dry up. The idea was that the water belonged to whoever "captured" it first. However, it's important to note that this doctrine has been widely modified or abolished in many jurisdictions due to concerns about water scarcity and fairness, often replaced by more regulated systems.

  • Example 1 (Historical Application): A large industrial farm drills a series of deep wells to irrigate its crops, drawing a significant amount of water from an underground aquifer. Under the historical rule of capture, even if this pumping caused a nearby residential well on an adjacent property to run dry, the farm would not be liable because it was simply extracting water from beneath its own land.

  • Example 2 (Historical Application): A new housing development installs several powerful wells to supply water to its residents. If, as a result, a natural spring on a neighboring property that had historically supplied water to livestock significantly diminishes or disappears, the development would not be held responsible under the pure rule of capture.

• 4. In Oil & Gas Law:

  This is a foundational principle in oil and gas law. It states that a landowner or leaseholder can extract oil and gas from a well located on their property, even if the drilling causes oil and gas to migrate from beneath a neighbor's land to their well. There is no liability for this "drainage" as long as the drilling party has not physically trespassed onto the neighbor's property and has complied with all relevant statutes and regulations.

  • Example 1: An energy company drills an oil well on its leased land, close to the property line. The well taps into an underground reservoir that extends beneath the adjacent, unleased property. As the company pumps oil, it naturally draws oil from under the neighbor's land. Under the rule of capture, the company is not liable to the neighbor for the oil extracted, provided it stayed within its own property boundaries and followed all regulations.

  • Example 2: A landowner operates a natural gas well on their property. They implement enhanced recovery techniques, such as hydraulic fracturing, which increases the flow of gas from the underground formation. This process effectively draws gas from a wider area, including beneath a neighboring parcel. As long as the operations remain entirely on the landowner's property and comply with permits, the neighbor cannot claim ownership of the gas that migrated.