I signed a lease with oil company (1) with production computed 3/16 at the wellhead. The whole section was later pooled by oil company (2) who drilled a producing well on the 640 acre pooled section. How does this effect my initial lease with oil company #1. Does the pooling negate the provisions of my original lease?
First, I will assume this is OK since that is what your profile says. I'll also assume that your orignal lease was filed of record in the county of interest.
It's extremely common for multiple oil companies to lease in a section, and then for a dominant player to pool the section. They would be pooling the unleased interests, and pooling the interests of the other oil companies that did their own leasing, such as your company #1. Maybe there is more to the story, but the provisions of your original lease would not be negated in the situation I have described.