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Comment by M.L.D.M on February 6, 2009 at 14:09

Thanks so much for the great info.! That helps a lot!

Comment by The Old Goat on February 5, 2009 at 14:51

Force pooling is a process whereby all mineral right owners in a section or "unit" participate in the production of that "unit" whether they have or have not signed a contract with the operator of the "unit" in question. The "unit" generally consists of 640 acres (one section). If you have signed a lease your royalty rate is decided. A mineral rights owner who has not signed a lease will generally have a very hard time trying to negotiate with anyone other than the unit operator. Your participation in the royalties is a direct ratio to your acreage and the unit acreage. The major drawback is that without a lease the minerals owner is considered a non-participating partner and as such will not receive any money until the lease in in the "black". However, the money received will represent 100% of your acreage ratio.
Example: you own 80 acres, (80/640 = 1/8 or 12.5%), your lease royalty is 25%, your royalty is 3.125% of the total production of the unit. If you have not signed a lease your royalty is 12.5% of the unit production, however, you may be held responsible for your percentage of any liability arising from the well. Obviously, it is better to sign a lease.