When you are subject to a forced pooling, does the pooling letter substitute for an actual lease? Or do you still sign a lease with the company after you elect an option? Native Exploration Operation has forced pool 2 properties in McClain County, sec. 36-8N-4W and sec. 25-8N-4W. I’m new to this oil and gas leasing business.
Meredith,
The Pooling Order is your lease if you are subject to the pooling and make an election. That is you have not come to terms and leased with the operator, their lease brokerage firm or another company interested in taking your lease. That said, you can lease up to the date the order’s election period expires. The election period is twenty calendar days from the date of mailing the order. If the date falls on a holiday where the USPS is closed, the next regular mailing counts as day one. To be safe, I always count 20 days from the day the order is signed. If you lease during this period, the leasee will make the election under pooling. This election must be sent to the address provided in the pooling order. I HIGHLY recommend that if you lease during this period or before the order but you are listed as a respondent on the order, you send a response via certified mail and carbon copy the Oklahoma Corporate Commission. Indicating the status of your interest. Such as, a lease was executed on X date with LEASEE NAME, address, phone and contact person. It is important to remember to date this lease prior to the 20 calendar day expiration, to be safe, prior to the pooling order date. For more information on pooling in Oklahoma here is a link on a presentation from the Oklahoma Corporate Commission: https://www.occeweb.com/og/The%20Pooling%20Process%20in%20Oklahoma.pdf I also have presentations I have given on Oklahoma Pooling during OK NARO conventions on my site fleetenergyco.com. I have leased with Native in the past and know they like their lease form to be used and will accept certain language in an exhibit. If you are not comfortable negotiating lease terms, I suggest finding a professional to give you a hand.
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