what happens to the lease if all of the known mineral owners do not sign the lease?
As it happens I was just looking at the Colorado forced pooling regulations. Briefly, they would probably be force pooled, receive a 12.5% royalty until the operator recoups 200% of his drilling cost. The 200% does not apply to operating or surface equipment cost, those they take from thier other 87.5% on a dollar for dollar basis your proportionate share. When the operator recovers 200% of his drilling cost they will become a working interest in the well receiving 100% of their proportionate proceeds, but also responsible for thierr proportionate costs of operating the well. It can be a good deal. If the well never pays out for them, they don't have to pay anything. I recommend those interested look up the state regulations directly, as when I was looking for them I browsed what landmen were saying on those ask the expert sites and they were way off. Go straight to the regulations, they are in plain language. 34-60-116 Colorado revised statutes.
No, COGCC does not provide notice. The operator is required to provide proper notice to those being force pooled, and then the operator provides proof of that notice to the COGCC, along with the other requirements for their application for a forced pooling order. COGCC reviews whether the operator has provided proper notice as part of their overall evaluation of the application in the hearing in which they determine whether to grant the forced pooling order.
Jordan stevens frazier said:
All in all, the Colorado oil gas commission should call and notify prior to a force pool being implemented, right?