getting taken to the cleaners by forced pooling or unitization
let's just suppose that you are in a section that is more than 60% owned by one individual. Let's further suppose that this individual has previously leased his acreage for 200 dollars per acre without the benefit of a depth clause. This lease is held by a small operator and he has drilled several shallow wells over the period of the lease prior to the Haynesville play. He wants to cash in on the play so he flips his lease to one of the big o&G
and they immediately seek to force pool the section. Only a couple of the property owners has leased for chicken feed. The company applies for a drilling permit and immediately puts out a ridiculous offer for the rest of the owners in the section. Naturally, the owners have heard of the anticipated drilling . QUESTION----What action should they take?
and they immediately seek to force pool the section. Only a couple of the property owners has leased for chicken feed. The company applies for a drilling permit and immediately puts out a ridiculous offer for the rest of the owners in the section. Naturally, the owners have heard of the anticipated drilling . QUESTION----What action should they take?
Views: 59
Replies to This Discussion
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Permalink Reply by alleyboy on
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thanks for
f the enlightening opinion. Had not the slightest idea we could do that.
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Permalink Reply by Grice on
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Do you have the phone number for those ants? Do they charge per hour, or a flat fee?
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Permalink Reply by Boomer on
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I would think the O&G Company will not drill until they have 85%-90% or more of the land in the unit leased ... at that point the forced pooling might take place. Hold out for the Bonus $$$ and royalty % you want ...... or like others have said already consider the option of going unleased. Pros and cons to both sides.
Lots of factors to consider ... how much land we talking about that you have .... what is your tolerance for risk .... your financial situation ... and more.
Good Luck.
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Permalink Reply by bullbayou on
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Please, everybody understand, O & G companies are NOT in the business of drilling unleased landowners FREE wells. Therefore, they are NOT going to drill a well in a unit that they don't have totally leased or almost totally leased. They can probably handle carrying maybe 5% to 8%. Otherwise, they are NOT going to drill.
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Permalink Reply by Ringgold Redskin on
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It a bluff... unless they have pooled 85 to 90% of the unit. Probably more o&g lease holders in the section you don't know about, and they pooled them to be the operator. It does put pressure on unleased landowners to sign. If you have the pool notice I would pick a fair number for a bonus and not under 25% and call the company with your offer. They can only say no and you may get a counter offer back, seems they are in a hurry to get everyone aboard. Look on the bright side ....you may end up a unsigned partner.
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