Has anyone heard of a oil company changing the terms of a pooling agreement after all parties have signed? Specifically enlarging the pooled acreage without written approval of the Lessors?
Most leases, especially older leases grant the oil company the right to do this. Newer leases prepared by O&G attorneys strive to protect lessons from this. Good luck
What did you sign? Does your lease grant unrestricted pooling authority to the lessee? If so, then the lessee can do as it pleases. Did you ratify the recorded DPU? If so, then you need to read the recorded DPU and see if it contains a provision authorizing the operator and WI to alter and amend the terms at will, including the acreage. Some of these DPU as written also amend other lease provisions, such as by stating the royalties will be paid by proceeds rather than at market value. You should read all documents carefully to fully understand the legal effects.
all documents were reviewed by O and G attorneys. Pooling agreement and lease was for specific acreage amounts as well as depth and there was no language that allowed for modifications. If the the oil company had the ability to unilaterally change the agreement after a specific acreage for lease was made…why have an agreement at all? Very odd.
Pooling can be beneficial and detrimental. There has been injustices heaped upon landowners under lease clauses that they didn’t fully understand. You are in it now and may not be able to do much about it. I had my own production company for 35 years so I am coming from the Lessee’s side but I fully understand both sides. Remember that if you receive any document from the oil company, it is worded in their favor. Again I say, smart to get representation by O&G a try. Not any a try. O&G!
How can a person find out if they are pooled or not.? Also, if a pipeline going across your land or laid in the ground and is connected to a well that is on your land, should you not be paid something? Such as transportation if nothing else? Need some help here. Thanks for any and all comments.
Randy, Some companies are creating new larger Wolfcamp units and leaving the smalller Bone Spring units in place, ie different units covering some of the same acreage, but at different depths. Colgate permitted 160 acre MIPA wells in City of Pecos, but have a larger 650+ acre voluntary units which cover the same acreage plus adjacent acreage. Mineral owners can opt to be in the smaller MIPA unit (limited to single well) or larger unit at smaller DOI but possibly multiple wells. This is a simplified description. Or perhaps the first recorded DOY differs from the version that you agreed to. If you provide information about the operator and the unit involved, you could get a more definite response.
Louise, If a unit is formed on a section where you own minerals under lease, then the DPU will be recorded in the county deed records. In Ward County you can read the DPU on line and see if your lease is listed. You can purchase the DPU for $1 per page or ask the opeator’s landman to email it to you. Generally you should be paid surface damages for a pipeline, but that might not be the case if you own both the minerals and surface and the lease does not provide for damages, then the operator may not pay you. Your lease should include a provision for damages or compensation for any surface use. I do not know what you mean by “transportation”,
The pipeline starts at the n/w and goes across the land to the s/e to connect to a well on the s/e and is for gas. Since the proposed pipeline is for the company that leased our land, should we not receive money other than payment for allowing the permanent pipeline? I did pipelines all around the 4 sides of the land and was happy to do so, for the ability to move the oil on down the line and be paid for the production from the oil wells. But the gas well diagonally doesn’t mention payment for any gas? Really confusing pipeline contract. Appreciate your help.
Sorry, land is in Reeves county.