Division Order

The only time you win on a pooling or unitization agreement is if you don't have oil and gas under your property and you get the income off of other properties in the unit. We learned the hard way in the 1980's with Phillips 66. They pooled and unitized our properties with federal lands that the wells were dry on, we had the only producing wells and most of our production benefited the federal government - not us.

In our most recent Converse County lease, we reserved the right to approve unitization and pooling efforts and we also required payment for all gas used on site, whether flaring or to run their pumps. Some companies are using up tp 40 - 50 % of the production for the running of their equipment, pumps and compressors.

Good luck,

Ray