# Need to understand Pooling

**URL:** https://www.mineralrightsforum.com/t/need-to-understand-pooling/61987
**Category:** Miscellaneous
**Created:** [June 2, 2021, 9:35pm UTC](https://www.mineralrightsforum.com/t/need-to-understand-pooling/61987 "2021-06-02T21:35:28Z")
**Posts on this page:** 4
**Page:** 1

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### Author: ![Bertie\_Lou\_Stringfellow](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/b/a183cd/32.png) [@Bertie\_Lou\_Stringfellow](https://www.mineralrightsforum.com/u/Bertie_Lou_Stringfellow)
#### Post date: [June 2, 2021, 9:35pm UTC](https://www.mineralrightsforum.com/t/need-to-understand-pooling/61987/1 "2021-06-02T21:35:29Z")

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I need a refresher on what is Pooling Is there Forced Pooling in WV?

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### Author: ![Nick\_C](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/nick_c/32/15287_2.png) [@Nick\_C](https://www.mineralrightsforum.com/u/Nick_C)
#### Post date: [June 3, 2021, 4:16am UTC](https://www.mineralrightsforum.com/t/need-to-understand-pooling/61987/2 "2021-06-03T04:16:25Z")

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Good evening,

Pooling means to pull your net mineral acreage into a drilling unit. When a E&P company decides to propose a horizontal drilling unit, they record DPU’s - Declarations of pooling and unit agreements. This shows you who the company pools into the unit.

The State of West Virginia does have forced pooling called co-tenancy.

**West Virginia** Gov. Jim Justice signed into law HB 4268, the “Co-Tenancy Modernization and Majority Protection Act.” July 1, 2018 and essentially acts as a **forced pooling**.

WV Oil & Natural Gas Association Link.

> **[06\_WVONGA\_Pooling.pdf](https://energywv.org/assets/files/Energy-Summit-Presentations/2015/06_WVONGA_Pooling.pdf)**
>
> 2.08 MB

I hope this helps answer your question.

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### Author: ![RedHead](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/r/9e8a1a/32.png) [@RedHead](https://www.mineralrightsforum.com/u/RedHead)
#### Post date: [June 7, 2021, 5:08pm UTC](https://www.mineralrightsforum.com/t/need-to-understand-pooling/61987/3 "2021-06-07T17:08:47Z")

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In more laymen terms, effectively pooling means what it sounds like; a “pool” of oil is “defined” and you are contributing your oil to that pool. For example, you may own 40 mineral acres that are included in a well that draws from a pool of 640 acres. In this case, you are contributing 40/640 = 6.25% of the oil that gets extracted by the well. Most people sign a lease that entitles them to a royalty, so rather than than have to fund their share of the well cost and get 6.25% of the revenue, they instead fund $0 of the well cost and get say 20% of their 6.25% share of their oil (1.25%)

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### Author: ![system](https://www.mineralrightsforum.com/uploads/db5755/original/3X/6/c/6c7c56608c843272ad6e3662ce9562a5956f173e.png) [@system](https://www.mineralrightsforum.com/u/system)
#### Post date: [August 31, 2021, 9:36pm UTC](https://www.mineralrightsforum.com/t/need-to-understand-pooling/61987/4 "2021-08-31T21:36:21Z")

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