I needing guidance on being Forced Pooled. Crown Energy unitized S4 T19 R5E. When AEW/AEP withdrew their lease December 2014, that left several mineral owners w/o a lease.
These owners are now receiving offers from independent companies (Not Working for Crown) for a 3 year @$100 ac, etc. no production costs. We immediately turned that down, "Too low." We know many leased with AEW for $375/ac, 3yr, no Extension, & pay production costs Dec 2014.
We've heard it's best to be force pooled to get the (same) highest lease offered to other mineral owners in that section.
But, is that true?
We'll be contacting our attorney, but would like a heads up before we proceed in any direction.
Is anyone else currently considering Forced Pooling?
Is Force Pooling still the best lease to go for?
Do we just "WAIT" it out for Crown to eventually offer us a lease?
How do we know what the highest lease offer was?
We're just learning, so appreciate any information from some of you knowledgeable folks.
Jodean, Most of the time, but not always, lease bonuses will increase when the operator who actually drills starts leasing again or has to file to be granted forced pooling. When you turn down the operator's lease offers they force pool and the OCC requires they do a value check of leases taken in all 8 sections around you and your section during the last year period to determine the highest bonus paid. Since this value check is time sensitive, you might want to contact the mineral owners who leased for $375 and find out the date their leases were taken.
Martha, thank you for your quick reply. I apologize for not responding back until now, but my new Windows 8.1, touchscreen computer seems to have a mind of it's own. But, thank you.
In the meantime I did speak to our favorite atty, McBride and he basically said the same thing. He said theory is, we just sit and wait and eventually the driller will give us an offer to choose between higher royalty and smaller bonus or vice versa. And, for us to get the highest lease amount is probable, but not set in concrete.
Forced pooling seems to have an unknown set of rules, but as I understand we do nothing but wait.
Learning this ever changing business is never ending, so I appreciate those of you who've already been down this road sharing their knowledge.
Thanks again. I appreciate this site, and have learned so much reading others Q/A's.
Jodean, If the operator force pools your interest, it can take several weeks for the OCC to issue the pooling order, then you have 20 days after they issue the order. Be sure to return your pooling election, with a copy to the OCC, well within the 20 day period. If you don't return it on time, the OCC will give you the highest lease bonus with the least amount of royalty interest. I always take the opposite, being the lessor lease bonus with the highest royalty interest. The operator can get a drilling permit without the pooling order and they can 'spud' (start work on the drilling location) without the pooling order. Sometimes, depending on the operator, they drill the well before they are issued a pooling order, but they are not supposed to. It's not a perfect world, so while you are waiting, keep a watch on the drilling in the sections around you. Below is the OCC website, Go to Dockets and Agendas, click on Weekly Dockets and look for your township and range, your section and the sections around you. If you have trouble accessing the OCC website, call 405-521-2613, ask the OCC for help and they will walk you through it. May 2015, EIA reported that drilling will increase in the 2nd half of 2016. Good Luck! http://www.occ.state.ok.us/
Thank you Martha. I was hoping for a simple "wait and choose", but, your instructions are a reality check that this business is never simple.
I so appreciate knowing what to watch for, and will share this with other family members.
Again, thank you.