Pooling and Royalty Allocation

We have land up towards the NE corner of the county. I’m trying to better understand how pooling and royalty allocations work on horizontal wells. I wonder if you have an article or website to recommend as helpful on the subject. Also, I’m curious what offers most drilling companies in Scurry County are making concerning this. Thanks!

Hello…I’m clueless on how pooling and allocation go. Hopefully someone can answer that question for you. We do though own an interest which encompasses Mitchell and Scurry counties. In fact received an offer to lease recently. Terms offered were 3/16ths royalty $300 per net mineral acre owned and a three year lease with a two year extension or 1/5th royalty $200 pnma owned and a three year with a two year extension. The company (Osage) didn’t want to negotiate anything further. We are always insistent on a 1/4 royalty. Osage didn’t want to negotiate anything but their terms so we declined.

Here’s a link to a good article on oil and gas pooling.

You can find others by using the Looking Glass feature at the top right side of the page, next to New Topics. Put in a search term like pooling, or royalty calculation and a bunch of previous discussions will come up.

This topic was automatically closed after 90 days. New replies are no longer allowed.