I have a question on pooling. Chesapeake is doing a lot of pooling and I am not sure i get it. I received a pooling order not to long ago and it said if I did not reply within 20 days they would pool it all..blah, blah...well being scared that if I did not select one of there 3 offers (1/8, $$) 3/16, $$) etc. that they would just decide for me or take my interest and combine it with otherws forever....??? is that what they do? anyway, I selected 3 yrs, 3/16ths and whatever the amount of money theyb offered. Later I received a lease offer on the exact same property for more money no pooling crap from a company my uncle went with...I didn't know I didn't have to respond to chesapeake and could just hold out...what gives...do I hold out when the pooling orders come in or de we have to respond to them or get penalzied in some way...I am getting tons of these and need to know the proper protocol for handling these. any help?
Elizabeth:
You don't have to respond to any "pooling" letter as you own these minerals and you can lease them to whom you want. If you fail to lease and thus forced pooled, you must then understand your position in this situation. First, you must understand "pooling" and instead of making a lengthy discussion on this topic, go to the search engine at the top of the page on this forum and google in "pooling". This will show you numerous posts on this topic and help you better understand where you stand.
Dear Elizabeth,
If you are talking about Oklahoma properties (and I guess that you are, based on your post and your profile), then you have several choices to make prior to being force pooled. Failure to act will cause an option to be selected for you.
Forced pooling gets more wells drilled, yet removes individual freedoms for mineral owners.
thanks