- Blaine county 19-17-13 18.6 nma
- leased in 2015 for 750/nma 3/16 3 yrs + 2 yr extension @ 150% (BAD lease terms)
- 2015 company sold lease to another company in 2018
- new company pooled in 3/2018, and then sent 6/2018 payment (prior to expiration) to extend lease for 2 yrs
- no production, no royalty checks since 2015
Qst. I believe I have no option but to extend for 2 yrs. based on 2015 lease, but am I free to generate new lease when extension expires in 2020 or does pooling lock me into original 2015 lease terms?
Pooling only holds your 2015 lease (including the terms) if you are in the primary term (which you still are if they paid for the 2 year extension), if there is production, or if there is continuous drilling (depending on terms of the lease). I am not an expert and did not stay at a Holiday Inn Express last night.
Were you named in the pooling order?
In Oklahoma, what is generally referred as Pooling, is actually forced pooling.
If you are subject to an existing lease, you normally shouldn’t be listing in the pooling order.
If you are not listed, the pooling order does not have any impact on you.
You are listed in the spacing application/order.
You are not listed in the pooling application. No pooling order has been issued. Since you are leased, they do not have to force pool you.
The payment they sent you extended the lease. No, you are correct. You don’t have an option to not extend it since you agreed to it in the original lease. .
Yes, you are free to lease again when the lease expires in 2020 “IF” they do not drill a well. Drilling a well will place you in the secondary term of the lease. “and so long thereafter as … is produced”.
The forced pooling application will have no effect on your current lease.
Thanks, Rick, for your good explanation.