In the case of Twist et al. v. Prairie Oil & Gas Company in 1926, the U.S Supreme Court was tasked with determining whether a gas company had unlawfully extracted natural gas from beneath an individual's property without their consent or compensation. The plaintiffs, Twist and others, claimed that Prairie Oil & Gas Company had drilled for and removed natural gas from under their land through wells located on adjacent properties - a practice known as "drainage." They argued this constituted trespassing and sought damages for the value of the extracted gas. The court ruled in favor of Prairie Oil & Gas Company stating that while ownership rights to oil and gas reserves are tied to surface land ownership, these resources are considered 'fugitive' due to their ability to move freely underground across property lines. Therefore, any party has a right to extract them if they can do so within their own property boundaries even if it results in drainage from neighboring lands. This decision established what is now commonly referred to as the "rule of capture," which remains an important principle in American oil and gas law today.

In the dissenting opinion for TWIST et al. v. PRAIRIE OIL & GAS COMPANY, it was argued that the majority's decision failed to adequately consider and respect state law and rights. The dissenting justices believed that Oklahoma had a right to regulate its own natural resources, including oil and gas reserves, without interference from federal courts or corporations operating within their borders. They felt that Prairie Oil & Gas Company should not be allowed to drain oil from beneath Twist's land without compensation simply because they were doing so indirectly through neighboring properties rather than directly trespassing on his land itself. This view held that such actions constituted theft under Oklahoma law regardless of how they were carried out technically, thus making them illegal despite any contractual agreements between Prairie Oil & Gas Company and other property owners in the area allowing for this type of extraction method.