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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.
The Taxing and Spending Clause (which contains provisions known as the General Welfare Clause) and the Uniformity Clause, Article I, Section 8, Clause 1 of the United States Constitution, grants the federal government of the United States its power of taxation.