I was sent a letter giving an amount of money with W-9 for a forced pooling bonus. Is this a lease???
No, Your election of committed your property to the unit. (or if you failed to elect, the default option applies)
You are required to give your tax identification number (TIN) to prevent the “backup withholding” per IRS requirements @ the current rate of 24%. The proper way of submitting your TIN is on a W-9.
I recommend submitting a W-9 at the time of the pooling election. Some pooling orders will have the language requesting it.
This pooling bonus is for a new well 1 mile east of a lease that was started in 2013. I signed a 3 yr. with 2yr option lease in 2013 for a location 1 mile away that was pooled. They extended the lease in 2016. They haven’t drilled yet. The lease expired today on that location. This letter is the first and only contact that I have received for this new location. Thanks for the help.
The information you are providing does follow the normal process.
The bonus will be tied to a pooling order.
The new well 1 mile away may are may not be servicing your acreage.
You should have been named in a pooling order to receive a pooling bonus.
You should have made an election if named in a pooling order, or a default election was selected for you.
“The owner”, you should have received notification of the application for pooling and the subsequent order at the official address of record, or address they may have located for you through other means.
If you were leased, they USUALLY will not name you in the pooling application. Sometimes they will, if they were not able to negotiate a lease or lease extension in good faith.
There could have been errors on the applicant’s part.
Something is missing but I don’t have all the info.
We could go on and on for hours with hypothetical situations of ifs and buts and waste considerable time.
Give me more info and I may be able to explain.
Application and/or order number on the letter or check stub.
The name of the party on the check, if “inherited” property of unknown marketability status, the name of the owner(s) just above you in the chain of ownership.
Section Township and Range of the new well and the one your lease is located in.