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6. Lessee at its option is hear by given the right and power to pool and combine the acreage covered by this lease or any portion thereof with other lands, lease or leases in the immediate vicinity thereof when in lessee's judgment it is necessary or advisable to do so in order to properly develop and operate said lease premises so as to promote conservation of oil, gas or other minerals in and under that may be produced from said premises or in order to obtain a larger production allowable from any governmental agency having control over such matters such pooling to be of tracts contiguous to one another and be into unit or units not exceeding 160 acres in the event of an oil well or units or unit not exceeding 640 acres each in the event of a gas well.
Not if it is classified as a gas well. This covers it. "unit or units not exceeding 160 acres in the event of an oil well or units or unit not exceeding 640 acres each in the event of a gas well." I don't know what happens if it turns out to be primarily an oil well.
The statutory pooling and spacing laws are designed to allow drilling on a regulated type basis. They are state law. Therefore, anything the OCC does is by state law and it trumps the provisions of an oil and gas lease to the extent it is inconsistent.
Otherwise, parties could put provisions in a lease that drilling and spacing units aren't allowed. that would be inconsistent with the state law's purpose of promoting drilling and protecting correlative rights.
You are certainly free to contest the spacing application, but it would be a waste of your time.
Well, then good luck to you.
‘That all royalty interest within any spacing unit created herein shall be communitized and each royalty owner within any unit shall participate in the royalty from the well drilled thereon in the relation that the acreage owned by him bears to the total acreage in the unit.’
‘In the interpretation of a contract the intention of the parties, at the time the contract was made, is a paramount objective, and in arriving at the intent the conditions and circumstances under which the contract was made * * * may be considered.’
‘* * * the purpose of the Act was the conservation of the oil and gas with particular attention directed to the protection of private lease contracts and the correlative rights of all parties in interest.’
1. the law hasn't changed.
2. 52 OS. 87.1 is still a valid statute.
3. If you're confident in your position, go for it.