Creation of Permanent Spacing Unit & Forced Pooling Request

Hello, we just received a copy of the applications from our Owner/Operator, to the state board of oil & gas to establish a permanent Spacing unit on our tract, and to force pool the non-voluntary interests in this Spacing unit. Since we are leased with this Operator, I do not see any problems with force pooling the remaining interest owners, from our perspective at least. Also the temporary spacing unit was 1280 AC, and they are asking for the same for the PSU. I’d love to see the spacing unit lowered, of course, but I am guessing that this is just standard procedure at this point on a new well, and the letters we received are just the Oil Co fulfilling their obligations by informing interest owners. Does this seem reasonable?

Mark Presley

Mark, What State, County and legal? Rules are different in different states.

Thanks for the reply, this is in Richland Co, MT. I did post the question on the Montana Forum, but have not gotten any responses, so…I thought I’d try here.

Force pooling is a way to keep the wheels of commerce rolling, yet also protect (to some extent) the unleased folks and let drilling move ahead. If you are leased, then it may just be a courtesy letter. However, check your expiration date to make sure. In OK, they do not generally send pooling letters to anyone who is leased.

Thanks for that; yes this was my understanding on forced pooling, and since our 3 year lease is less than 6mo old, I surmise that they are simply complying with lease provisions by notifying all mineral owners, leased or not.