If I have a mineral interest in a well that was part of a forced pooling and a new well is being considered in the same property, am I automatically force pooled in the new well? Or, does the operating company owe me a letter asking how I want to participate in the new well?
Thanks in advance!!
MW
“It depends”. If the new well is in the same reservoir as the first pooling and the well that went with the first pooling was drilled and is productive, then the new well is under the first pooling. Check the wording of the first pooling. Some only allow participation in further wells if you participate in the first one. Some allow further choices.
If the new well is in a reservoir not listed in the first pooling, then you would be covered by a new pooling.
By “participate,” do you mean as a working interest owner, or do you mean M_C_Warren would not be paid on any production?
I was assuming he meant participate as a working interest owner in the well. If you are pooled and you select one of the royalty/bonus options (not the participate option) and the well is successful, the you receive royalties. The working interest option has its own set of rules for royalties and financial liabilities.
If force pooled and that well is successful, will a new well in a different strata be subject to a new lease? Or will it automatically be force pooled? Thank you.
Force poolings list the reservoirs for that pooling. If the first well is in one of those reservoirs, then you are held by that pooling for that reservoir(s). If a second well is spaced and permitted into different reservoirs, then you can lease or go to a second pooling.
Thank you. I value your information.
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