Replies to This Discussion

Permalink Reply by Les Bamburg on July 14, 2010 at 9:23

Renee, "force pool" is just the excercise of pooling the mineral interests in a section to form a unit. The unit application will include a map that shows the "proposed unit". The map may also show adjacent units that are either "pending" (applied for but not yet approved) or "adopted" (approved by the State).

• ▶ Reply

Permalink Reply by Renee Rains on July 14, 2010 at 9:40

Thanks that helps alot!

• ▶ Reply

Permalink Reply by Mac Davis on July 15, 2010 at 0:58

The "force" part of force pooling means that the gas will be extracted even if some of the mineral owners don't agree.

The pooling means that everyone in the unit will get paid a percent based on the acreage they have in the unit.

The "Unit" is a geographical area drawn on the map. All the gas in that area is "pooled" and treated as if it's all in one "bucket." All the owners of the gas get paid their "fair share" based on acreage when the operator withdraws gas from wells in the unit.

(Yes, it's more complicated than that, but that's the general idea.)

• ▶ Reply

Permalink Reply by Les Bamburg on July 15, 2010 at 2:45

Mac, keep in mind that units are "force pooled" even when 100% of the minerals in a section have been leased.

• ▶ Reply

Permalink Reply by Renee Rains on July 15, 2010 at 2:12

Thanks Mac.

• ▶ Reply