landowner

Pooling Question

We have a 1000 acre tract of minerals and would like to negotiate a no pooling clause in the lease. It seems to me that with this size mineral tract that this would be possible. Any suggestions on how to accomplish this, as well as a requirement for the Lessee to put all of our 250 additional non-contiguous acres in a pool (rather than an amount at Lessee's option)?

Has anyone been successful in negotiating these kind of terms with the assistance of an oil and gas lawyer or professional landman who represented you?

Thanks.

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Oil & Gas ProPermalink Reply by dbob on September 22, 2012 at 10:09

Texas Gal - depending on where you are, and what the target is, your 1000 acres may have more value to the operator if you allow some pooling.  

If you aren't familiar, I'd look at some type of horizontal pugh clause and maybe a continuous drilling provision.  The continuous drilling provision may have to be watered down some if you are in a dry gas area, but might be reasonably acceptable in wet gas or liquids.  

Regarding the 250 non-contiguous acres - I think you'll have more trouble getting that in a single pool, unless its nearly contiguous.  If you are in an oil play, it probably can't effectively be put in a single pool.  Again, I think you want to look at a horizontal pugh clause.


landownerPermalink Reply by Texas Gal on September 23, 2012 at 14:58

Thanks for the advice.  Would it make a difference in us holding out for no pooling on the 1000 acre tract if another company has the leases across the fence from us?

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