I was in lease discussions with Naive (ie they sent me theirs, I rejected it, they requested mine which I sent, and I was working their mark up of my lease), then unexpectedly their land agent, emailed that Native told her they were done leasing in that section (Sec.19-12N-5W Canadian Co.). This was on January 22.
I should have checked sooner, but on Feb 1, I did contact the Oklahoma Corporation Commission, I found that there was a hearing on spacing and pooling on held on January 29. I did not receive any notice of this hearing. Now my emails are responded to with “I’m sorry I can’t work on this anymore…. .”
So my question is, do I have any real recourse to bring Native back to completing the lease negotiations process, or is this time to spend money on an oil and gas lawyer?
I understand the need for a “forced pooling” in a spacing unit, but I don’t understand how it works in practice. But given the lack of notice, I’m worried (again) about what I don’t know hurting our royalty. I’m looking for education, not legal advice here.
Thanks.
Gerald
You may consider pulling the Spacing and Pooling order cases and see whether you are properly listed in the affidavits of mailing. If not, you may want to enter an appearance in the case to better insure that you receive notices. Also you want to make sure to timely respond to a forced pooling order. You may need legal advice.
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Thank you for responding.
I have gotten notice in August,(OCC intent to drill order/changing spacing from vertical to horizontal. (Lone Horn 19-1205 1MH) and again in September (standard offer with participating interest or several bonus/royalty combinations). Both had the correct contact information. I will pull the order, but if I’m listed correctly, what is my recourse?
Again thanks for responding,
Gerald
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Oh, and thank you, and your firm for the helpful web page. I used it during my search for good lease language. It is helpful to the newbies/ non professionals.
G
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If you failed to respond to the pooling order in the time allotted most likely you will be given the least favorable option which would be the highest bonus amount coupled with the lowest royalty interest, usually 1/8.
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Yep sounds like since you didn’t want to given into the oil company terms you will be thrown into Forced Pooling. Be sure you save every email, document phone calls where you have attempted to work with them to no avail. If you decide to protest, beware, the OCC is setup more to protect the oil companies and their Attorneys. You will be given the bare basics of information and expect to know the whole process. Hiring an Attorney can be expensive and in most cases like this could get you no where except paying a large bill. Regardless the oil company will end up with your interest leased or pooled interest while both sides Attorneys win and will be paid.
It may sound cynical but have to agree with Jay. Unless you have huge mineral interests and a good lawyer you’re not likely to gain anything. I’ve found over the past couple of years that most cases are not worth fighting, the lawyers end up with all the money and if you get anything it won’t pay the expense of the fight.
I tend to agree if someone wants to fight the forced pooling. However, most of us are reasonable (flat fee) in helping insure that the proper election is made, served and filed with the OCC.
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