I have a basic question about pooling and unleased acres. Not necessarialy looking for legal advice but more what happens as a matter of practice. Say someone owns an undivded very small tract of minerals only, no surface,(say 5ac out of 600) in the middle of an area which an oil company is putting together a larger tract for development. If that owner refuses to lease, what happens. What does the oil company do if they want to drill?
You need to look up the compulsory pooling statute for your state. Also, talk to a lawyer. The company may or may not be able to drill on your property.
DMG:
This topic has been discussed numerous times on this forum and to save time, I would advise that you google in "forced pooling" in the box located in the upper right corner of this page. You will be able to read the responses from numerous individuals on this topic.
DMG:
California would allow the oil company to drill and would treat the non-leased mineral owner as a co-working interest owner. This is not a great place to be for such a small interest, however, because it could be years after the drilling of a well before you would be entitled to any portion of the profits. It is best in California to give a lease even if the terms are not exactly as you would like them.
Hope this helps.
Jean M. Pledger
EHRLICH ∙ PLEDGER LAW, LLP
Dear DMG,
Since your profile lists your acreage in Texas, I will not confuse you with other states.
Go to these blogs for the Texas answer to your question:
http://www.mineralrightsforum.com/profiles/blogs/rule-of-capture-regarding-oil
http://www.mineralrightsforum.com/profiles/blogs/the-basics-of-pooling-and
http://www.mineralrightsforum.com/profiles/blogs/pooling-in-texas-part-3