During a good faith hearing at the Texas Railroad Commission, the operators lawyer stated that the lease used to pool tracts together was invalid. This knowledge now creates pooling without the consent of the owners and voids all the division orders that were created using this invalid lease.
Does anyone know for sure how the division order issue has to be presented in court?
The remedy, I think, is to return all parties to the original position before the lease was used.
Last, the pooling lease took tracts that were 23% in a unit and combined the 23% with the remaining 77% that was not. From that point the oil was not measured by tract and was paid as if the pooling lease was valid.
Is the remedy return to 23% in unit 77% out or 0% in the unit and 100% out of the unit?
The operator is claiming he didn’t know the lease was invalid until the good faith hearing.
Any suggestions on how to proceed? I personally want the operator off my property!
Williamson County Texas.
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