Replies to This Discussion

Permalink Reply by Two Dogs, Pirate on March 15, 2009 at 10:27

Do a search on this topic and you will find many in depth discussions on force pooling.

Permalink Reply by Skip Peel - Mineral Consultant on March 15, 2009 at 10:36

NUDOG. Yeah, we get that reaction a lot here on GHS. If you would care to do some research for yourself, there is a lot you can access here on the site. Here is my short take. The term "force" has negative connotations. Don't panic. What it means under LA. mineral law is that a company holding drilling rights by way of leases for at least 75% of a proposed drilling & production unit area has requested the state to compel all parties represented by the remaining 25% to cooperate in order to produce the minerals from the unit. That 25% will be made up of unleased landowners and parties holding lease rights. The requesting company usually wishes to be the operator or, in some cases, designate the operator. All those leases not in the name of the company requesting the unit would be pooled and receive their share of production based on the terms of their leases. The unleased landowners would be approached for a lease by the company making the application or another wishing to have a participation in the production of the unit. Or the proprietary scientific data which will be created by drilling said unit. If you should choose not to execute a lease, you will receive 100% of your fractional participation in the D&P unit after the operator and other participating parties have recovered their cost to drill a well. There's more to it than that but this is the short answer. Search the site and you will find additional information. Good Luck.

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