I recently allowed myself to be force pooled for the first time. Section 10-16-18, Dewey County, OK. OCC CASE NO. CD2024-001646, Order no.743409. I understand that I have 20 days from 8/14/24 to choose my option. I prefer the “no cash bonus with 1/4 royalty”. Should I make this selection by certified mail? Is there anything else that I need to do or be aware of? Thanks for your advice.
Mail it today by certified mail! Do you need a template for the letter?
Here is a template. Fill in the red parts and then turn black. Attach the newest W-9 form.
0_Pooling order response 2024.docx (13.4 KB)
IRS form W-9 2024.pdf (137.5 KB)
So, you decided not to have an attorney review it? Elaborate on why you feel “forced” to sign.
Mrs. Barnes, You said to G brown that a normal royalty is 1/8. My attorney in Dallas said 25% is normal. What am I missing ?
Minimum royalty by state varies. In OK, it is 12.5% (1/8th). Most of us mineral owners would rather have a higher royalty.
In OK, if a mineral owner cannot be found or refuses to lease, then the Oklahoma Corporation Commission will hold a hearing for “forced” pooling. That is what it is called. It allows all parties to end up with either a lease or a force pooling order. Slightly different in other states depending upon their statutes.
If you do not respond to a pooling order in OK in the 20 days after the order, then whatever the lowest royalty/bonus pair option on the pooling order will be assigned to non-responding folks on the list. It is often the 1/8th option.
Most folks in TX are used to 25% royalty offers. Not the case in OK.
You are not forced to sign anything. However, if you do make a timely election for the 1/4th royalty, then you will be stuck with the 1/8th option.
This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.
Richard probably meant that if you do not make a timely election, you will be stuck with the lowest royalty option (often 1/8th). I would much rather have the 1/4th option if offered.
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