Pooling Agreements?

Texas Mineral Rights Montague County, TX
1

Newbie here. I admit I don't know what I am doing.

I received a pooling agreement today for my non-participating royalty interest in 1216 acres of land in the R. F. Millard Survey, A-470, Montague County. This land was first leased by Pioneer Natural Resources and 2 successful wells were dug and there are plans for more. They are right now at the point of doing the distribution orders to start paying royalties.

I was told to sign this agreement to get paid. Some of you know my history and that my husband died. I am wondering if there is a reason why HE didn't sign the agreement? What's wrong with pooling?

Here's my understanding and I'm not sure if I'm right so please clear up my misconceptions. A whole group, or pool of people own the mineral rights under the land they leased and are drilling on. Pioneer is probably doing horizontal drilling as well as vertical so all the owners in the area stand to lose mineral resources so everyone gets paid. Am I right? Or even close?

I think if I sign and agree to join the pool I get paid. If I don't join the pool, I don't get paid. Is this right? I really have no choice but to sign and move on?

As usual, thanks for your help!

2

Because your interest is non-participating, you have to ratify the pooling agreement, or be a party to it, in order to get paid. That said, you should try to ensure that the royalty interest that they are paying you on is correct. I would also just check that your acreage is in the unit etc. you can never have too much information on these things. Certainly get a copy of the lease (or leases) under which you are entitled to your NPRI, to verify the basis on which you get paid.

But basically you are right, in order to get paid, you have to sign it, or a ratification of it.