# Pooling vs leasing
**URL:** https://www.mineralrightsforum.com/t/pooling-vs-leasing/71565
**Category:** Kingfisher County, OK
**Created:** [July 13, 2023, 6:17pm UTC](https://www.mineralrightsforum.com/t/pooling-vs-leasing/71565 "2023-07-13T18:17:07Z")
**Posts on this page:** 13
**Page:** 1
### Author:  [@john12](https://www.mineralrightsforum.com/u/john12)
#### Post date: [July 13, 2023, 6:17pm UTC](https://www.mineralrightsforum.com/t/pooling-vs-leasing/71565/1 "2023-07-13T18:17:08Z")
What kind of lease does the state assign to a mineral owner if they are pooled? I have a tract of nearly 400 acres that match is pooling. They are leveraging the pooling against a lease, and they won’t back up and allow a no deductions clause. Would I be better to go for the 21 percent election and no bonus over the 1/5 and $400 bonus? Advice please. Thank you.
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### Author:  [@Martha\_McMorries](https://www.mineralrightsforum.com/u/Martha_McMorries)
#### Post date: [July 14, 2023, 12:53am UTC](https://www.mineralrightsforum.com/t/pooling-vs-leasing/71565/2 "2023-07-14T00:53:20Z")
[Forced Pooling in Oklahoma](https://oklahoma.gov/content/dam/ok/en/occ/documents/og/the-pooling-process-in-oklahoma.pdf)
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### Author:  [@Martha\_McMorries](https://www.mineralrightsforum.com/u/Martha_McMorries)
#### Post date: [July 14, 2023, 1:05pm UTC](https://www.mineralrightsforum.com/t/pooling-vs-leasing/71565/3 "2023-07-14T13:05:44Z")
Are there other oil and gas companies active in your area? Also, have you tried negotiating a 1/5 interest no bonus in your lease including a no deductions clause? And does your lease deduction clause state “no deductions for processing” as well as the standard no deductions?
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### Author:  [@john12](https://www.mineralrightsforum.com/u/john12)
#### Post date: [July 14, 2023, 1:26pm UTC](https://www.mineralrightsforum.com/t/pooling-vs-leasing/71565/4 "2023-07-14T13:26:17Z")
There are not any other interests at this time. They are offering 1/5 and 400 dollar bonus. I posted the deductions clause above.
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### Author:  [@john12](https://www.mineralrightsforum.com/u/john12)
#### Post date: [July 14, 2023, 2:22pm UTC](https://www.mineralrightsforum.com/t/pooling-vs-leasing/71565/5 "2023-07-14T14:22:11Z")
It is agreed between the Lessor and Lessee that, notwithstanding any language herein to the contrary, all oil, gas or other proceeds accruing to the Lessor under this lease or by state law shall be without deduction, for the cost of producing, gathering, storing, separating, treating, dehydrating, compressing, processing, transporting, and marketing the oil, gas and other products produced hereunder to transform the product into marketable form; however, Lessor’s share of any such costs which result in enhancing the value of the marketable oil, gas or other products to receive a better price may be deducted from Lessor’s share of production so long as they are based on Lessee’s actual cost of such enhancements.
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### Author:  [@Richard\_Winblad](https://www.mineralrightsforum.com/u/Richard_Winblad)
#### Post date: [July 14, 2023, 2:27pm UTC](https://www.mineralrightsforum.com/t/pooling-vs-leasing/71565/6 "2023-07-14T14:27:10Z")
That is a fake no deduction clause because of the last portion which states:
> _Lessor’s share of any such costs which result in enhancing the value of the marketable oil, gas or other products to receive a better price may be deducted from Lessor’s share of production so long as they are based on Lessee’s actual cost of such enhancements_
Many mineral owners ask for a no deduction clause and this is what they get, it is actually a deduction clause.
_ **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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### Author:  [@john12](https://www.mineralrightsforum.com/u/john12)
#### Post date: [July 14, 2023, 2:47pm UTC](https://www.mineralrightsforum.com/t/pooling-vs-leasing/71565/7 "2023-07-14T14:47:52Z")
Yes sir, I agree. I am in a position of being force pooled over this clause. My choices at this time are 1/5 and 400 dollar bonus lease with the above clause that allows deductions or being force pooled. I think the force pool elections may be an 1/8 or 1/5-400 or a 21% no bonus. I am the surface owner so lease provisions are important to me for the surface but I am unclear if a surface use agreement under a force pool election of 21 percent would be a good option for me.
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### Author:  [@Martha\_McMorries](https://www.mineralrightsforum.com/u/Martha_McMorries)
#### Post date: [July 14, 2023, 9:25pm UTC](https://www.mineralrightsforum.com/t/pooling-vs-leasing/71565/8 "2023-07-14T21:25:20Z")
The last sentence is confusing, but we have many leases with the very same no deductions clause and we are not paying for any of the deductions in the clause. It’s because if the lessor pays for the enhancements the lessor will also get the price for the enhanced products.
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### Author:  [@john12](https://www.mineralrightsforum.com/u/john12)
#### Post date: [July 15, 2023, 12:23pm UTC](https://www.mineralrightsforum.com/t/pooling-vs-leasing/71565/9 "2023-07-15T12:23:09Z")
So? What this is saying is that if the lessor pays to have the oil and gas enhanced and receives a better price, then the lessor and the lessee share in the expense of only the enhancement but not production, etc.? And without this clause the lessor only will receive all of the revenue of any enhancement?
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### Author:  [@Martha\_McMorries](https://www.mineralrightsforum.com/u/Martha_McMorries)
#### Post date: [July 15, 2023, 3:22pm UTC](https://www.mineralrightsforum.com/t/pooling-vs-leasing/71565/10 "2023-07-15T15:22:08Z")
John, my family has hundreds of leases with this no deduction clause, and we are not paying for any of the deductions listed in the clause. The clause reads exactly like it states and pertains to marketable oil and gas, not production oil and gas. However, some believe it is confusing and if you don’t want it in your lease, you can cross out, _Lessor’s share of any such costs which result in enhancing the value of the marketable oil, gas or other products to receive a better price may be deducted from Lessor’s share of production so long as they are based on Lessee’s actual cost of such enhancements._ Remember, the lease is negotiable between the lessor and lessee. If you have doubts about any portion of your lease you should contact an Oil and Gas Attorney to review your lease.
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### Author:  [@Mineral\_Owner5](https://www.mineralrightsforum.com/u/Mineral_Owner5)
#### Post date: [July 17, 2023, 1:50pm UTC](https://www.mineralrightsforum.com/t/pooling-vs-leasing/71565/11 "2023-07-17T13:50:22Z")
You need a good oil and gas attorney NOW!
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### Author:  [@Martha\_McMorries](https://www.mineralrightsforum.com/u/Martha_McMorries)
#### Post date: [July 17, 2023, 7:53pm UTC](https://www.mineralrightsforum.com/t/pooling-vs-leasing/71565/12 "2023-07-17T19:53:26Z")
John, it’s up to you whether you want to take the 1/5 and $400. Tom Ward is with MACH and Chesapeake and Marathon are the other companies in your area, but Tom Ward was once one of the owners of Chesapeake. Some are getting 1/5 and $500 in other sections but one section can be different than the next. You can wait for pooling or lease it’s up to you.
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### Author:  [@system](https://www.mineralrightsforum.com/u/system)
#### Post date: [October 11, 2023, 6:17pm UTC](https://www.mineralrightsforum.com/t/pooling-vs-leasing/71565/13 "2023-10-11T18:17:31Z")
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