what's a pugh clause?
LEGALLY â a vertical pugh clause is one where all acreage outside of the well/unit boundaries must be released. LEGALLY â a horizonal pugh clause is one where you must release acreage below a certain depth. However, these two terms are used interchangeably in the industry. The way I teach my studends is this, if you warp your arms around the unit and chop down (vertically) then it is a vertical pugh clause.