Have a pooling order from OCC for Charter Oaks Production CO., LLC on Roger Mills Section 8, Township12N, Range 24 West. It states 3 options and that I must send Charter Oaks a response in writing as to my choice of option. In the past I’ve been given a page to just mark and option and sign and send back. This one doesn’t have that page. I’m told by family I must type a letter including all the information from the order and include my option chose in it and sign. Why do they not explain better how to respond to the pooling order.
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they are actively trying to force pool you at the lowest possible terms, there’s no incentive to make that easier for you
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If you are making an election, in your letter you should reference the case number, the order number clearly make your election by royalty and consideration being accepted. Mail to the company and it is a good idea to file a copy with the OCC within the 20 day deadline.
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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Here is an example template for the letter. Replace the red text with the text from the pooling order and then turn it black. Suggest that you send it by certified mail so that you have a receipt for the date they received it. Send it before the 20 days is up! Send a W-9 with it so that they will pay you.
They are supposed to state the highest bonus/royalty pairs that they have offered in that section in the last year. Most of us would pick the highest royalty even though it is the lowest bonus. The reason is that the higher royalties on one (or more) productive wells over years of payments usually FAR outweighs the one time bonus payment.
0_Force Pool template letter.docx (13.3 KB)
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I wouldn’t deal with charter oak at all
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One must deal with the operator who sends the pooling order or you will be assigned the lowest royalty through the court mandated pooling process. Even if you do not want to deal with them…..
I didn’t realize this as a new owner. Thank you for stating it.
You only have 20 calendar days in which to respond, so do not delay. Send the response by certified mail so that you have proof of mailing and proof of receipt. You may need those receipts if “something happens” and you need to prove that you mailed it on time.
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