Forced Pooling

If an entire scetion of land is under leases, by more than one O & G co. Say Company A has some acres, Company B has some acres and Company C has some acres. All three combined has the 640 acres leased. Would this section be subject to forced pooling?

I've learned about forced pooling envolving unleased land owners. But, what about the above case? Could the section be Unitized? Could it be Forced Pooled?

I'm not just asking out of simple curiousity. This may be my situation, and possibly others as well.

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Permalink Reply by Coyote Ugly on August 29, 2008 at 6:51
Thanks KB for your great answer!
Permalink Reply by Les Bamburg on August 29, 2008 at 3:03
Pete, force pooling, as part of unitization, is typically required even if 100% of the acreage in the section is leased. Let's say Company A leased 500 acres and B & C leased 70 acres each. Company A would apply to unitize and force pool the entire 640 acre section and be designated operator. This ensures all mineral owners receive royalty for production from the section. Companies B & C can either participate (consent) in wells drilled by Company A or non-consent but all mineral owners would be owed royalty payments.
Permalink Reply by Les Bamburg on August 29, 2008 at 3:19
Jim, can you expand as I assume this does not apply to most of the HS units.
Permalink Reply by Coyote Ugly on August 29, 2008 at 6:52
Thank you LesB for a good clear answer. I do appreciate it.

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