What is pooling, the pros and cons please?
Different states have different rules.
In OK, the forced poolings are generally cost free already (in my experience) unless the pooling language changes the terms. The options given at pooling are supposed to be the highest royalty/bonus pairs offered by the operator in the section of interest and the surrounding contiguous sections within the last year. It is a good alternative if you cannot get a good fair lease with the operator or other working interest owners.
0_The Pooling Process in Oklahoma.pdf (340.4 KB)
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Thank you. That helps a lot. I am trying to learn as much as I can, by asking questions and reading information I can find.
Keep in mind that there are very short time limits to make a pooling order election. Best practice is to file your election with the OCC and land records.
This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.
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You have 20 calendar days from the date of the order to file your election. If you do not make the cutoff, they will assign the lowest royalty option. I always send by certified mail return receipt for proof of mailing and receipt.
When you say, “You have 20 calendar days from the date of the order to file your election”, Is there a standard format to use to file your election, like a template or is just an email sufficient?
I send mine by certified mail return receipt so that I have a copy of when I mailed it, who received it and what date. Have had to use that receipt to get paid a few times with the correct royalty.
Here is an example of a letter. And the most recent W-9 0_Pooling order response 2024.docx (13.4 KB)
IRS form W-9 2024.pdf (137.5 KB)
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Thank you for this, I really appreciate not having to “recreate the wheel” so to speak!
Hopefully this is the end of the experimental drilling fracing wishing hoping failing in eastern McClain county. What a disaster. Total waste
A waste of what? Tell that to the mineral owners that received bonus money, the rig hands that were paid to work, the rig company, the subcontractors, the clerical workers etc. They did not work for nothing.