I have a mineral interest in land that is subject to a pooling order:
http://imaging.occeweb.com/AP/Orders/occ5043194.pdf
I am trying to understand what is meant by the phrase "owner's interest is burdened" in the following paragraph in that pooling order:
Failure to Elect: In the event any owner fails to elect within the time and in the manner as set out above which of the alternatives set forth in Paragraph 6 above, any such owner accepts, then such owner shall be deemed to have accepted the cash bonus plus total royalty as set out in Paragraph 6(b). In the event any such owner's interest is burdened greater than the total royalty provided in Paragraph 6(b), then said owner will be deemed to have elected the option provided in Paragraph 6(c). In the event any such owner's interest is burdened greater than the total royalty provided in Paragraph 6(c), then said owner will be deemed to have elected the option provided in Paragraph 6(d). In the event any such owner's interest is burdened greater than the total royalty provided in Paragraph 6(d), then said owner will be deemed to have elected the option provided in Paragraph 6(e). In the event any owner elected to do other than participate in said well by paying his pro rata share of the costs thereof, or fails to make one of the elections provided above, such owner shall be deemed to have relinquished unto Operator all of such owner's right, title, and interest or claim in and to the unit well or wells, except for any normal 1/8 royalty interest and other share in production to which such owner may be entitled by reason of any election hereunder.
Can anyone explain what is meant by that phrase and how you could determine if it was greater than the total royalty provided in the different election options?
The total royalty in each of the Paragraphs mentioned is as follows: 6(b) = 1/8 total royalty, 6(c) = 3/16 total royalty and 6(d) = 1/5 total royalty.
Thanks,
David