When an applicant (Oil Company) is approved by the OCC for pooling, is there any consistency in the options? Are the options determined by the OCC (or rules) or are the options determined by the applicant requesting the pooling? If a company won’t lease at 1/4th is there any reason to think the OCC Pooling will include this option?
Terry- The applicant testified to transactions that are of record for the 9 section area. The OCC usually accepts those transactions for the Order to issue. Unless, someone presents evidence to the contrary. And that is why everyone is invited to attend the hearings and present their evidence. Transactions within 1 year of the hearing date are considered valid. Depending on where your acreage is and the net acres owned, you will most likely be able to get the 1/4, sometimes more than 1/4 from some company.
Even if there was a lease for 1/4, if the Lessee files a Memorandum of Lease, there is no way to prove it. I have been offered 1/4 lease in a section, only to be pooled for 1/5th later. Again, no way to prove that someone leased for 1/4 if the original lease is not made public record.