Pooled acres verses Unit acres

Would someone please advise. Unit verses Pooled acres. Can there be a difference in the amount of each? When you look at P 12 for Texas it gives acres in a Unit. Is the P12 also the Pooling acres?

The P-12 not only designates the size of the unit, but the names of the individual mineral owners and their number of acres assigned to the pool. All these acreages should add up to the total unit size (at least those I have seen do).

Thank you. That's what I thought but wanted an educated opinion.

There certainly can be a difference between pooled acreage and unit size. Since you are in Texas, that is the limit of my discussion.

Since unit size is typically a result of the pooling provision in the oil and gas lease, and also the pooling transaction in the lease contributes the mineral interest covered by the lease to the unit.

If there is a partial, undivided, unleased mineral interest that is not the drillsite, then they are not pooled. No lease, no pooling transaction. This is extremely common in vertical wells bottoming in subdivisions where the lot owners own all or a portion of the minerals.

The P-12 is a certificate of pooling authority, filed by the operator with the Railroad Commission. It shows the unit by tract with a tract name and number of acres in the tract and a lease name. HOWEVER, it does not show all of the leases in that tract, nor the mineral ownership of the lease so pooled, only the percentage the gross tract contributes to the unit. It will show unleased interests on a tract, however that does not affect unit size. It only affects the total mineral acres contributed to the pool. In a perfect world, mineral acres pooled would equal pooled unit size. The world is not so perfect many times.

For further information on pooled acreage and unit size, click on this link:

http://www.mineralrightsforum.com/profiles/blogs/pooling-in-texas-p...

Buddy,

As usual a very defined answer. Thank you for your time and knowledge that you share on this forum. You are a great help.

Buddy Cotten said:

There certainly can be a difference between pooled acreage and unit size. Since you are in Texas, that is the limit of my discussion.

Since unit size is typically a result of the pooling provision in the oil and gas lease, and also the pooling transaction in the lease contributes the mineral interest covered by the lease to the unit.

If there is a partial, undivided, unleased mineral interest that is not the drillsite, then they are not pooled. No lease, no pooling transaction. This is extremely common in vertical wells bottoming in subdivisions where the lot owners own all or a portion of the minerals.

The P-12 is a certificate of pooling authority, filed by the operator with the Railroad Commission. It shows the unit by tract with a tract name and number of acres in the tract and a lease name. HOWEVER, it does not show all of the leases in that tract, nor the mineral ownership of the lease so pooled, only the percentage the gross tract contributes to the unit. It will show unleased interests on a tract, however that does not affect unit size. It only affects the total mineral acres contributed to the pool. In a perfect world, mineral acres pooled would equal pooled unit size. The world is not so perfect many times.

For further information on pooled acreage and unit size, click on this link:

http://www.mineralrightsforum.com/profiles/blogs/pooling-in-texas-p...

Best,

Buddy Cotten

Mineral Manager

Thanks Buddy for enlightening us. It is more complicated than I thought!