Pooling actions in OK -- clarification

[bmcfadyen]

I need some clarification on Pooling actions in OK. It was my understanding that a Pooling action can only pool “unleased mineral interests.” This is specifically regarding Sec. 2-3N-6W in Grady County, OK. In 2016 Marathon pooled the interests by Pooling Order #652470, dated 5/9/2016. We were held under lease until 6/20/2016, and therefore did not make an election. Our lease had a depth clause in it, only holding depths to “100’ below the deepest producing formation.” Marathon Oil Company filed an “amended permit to drill” which was approved by OCC on 5/16/2016 (we were still under lease). The MICHELLE ABLE 1-11-2XH well was spudded on 7/6/2016 and completed on 10/26/2016 with first production being 10/29/2016. The MICHELLE ABLE 1-11-2XH is producing from the Morrow and Springer formations (depth of 12,791 feet), so our lease is held to 100’ below the Springer formation. We received division order from Marathon for the MICHELLE ABLE 1-11-2XH well paying a 3/16th royalty (as our lease called for). We received Gulfport’s Pooling application Cause No. CD 2023-001783) in June 2023. We leased our deep rights (beginning 100’ below the Springer formation) in July 2023. We were dismissed from Gulfport’s Pooling action and did not receive Pooling Order #738648. The party we leased to in July filed a Pooling election for Order #738648, but was told that their lease to us was not valid because we were held under Marathon’s pooling, with the landman stating we “should have made a precautionary pooling election to preserve [our] rights and prevent [us] from a deemed election on the deep rights.” Based on my understanding of the Pooling process in OK, I have no idea how that landman could be correct. We were held under lease and therefore had no reason to make an election. Our lease would have held ALL of our interest until it either expired OR had production from a certain depth. Can someone please explain how our deep rights could be held under a Pooling action when the company pooling the rights paid us according to our lease AND therefore the terms of the lease are in effect NOT the pooling?

[M_Barnes]

You probably need an attorney to help straighten this out for you. Get a copy of your lease and all the other pooling documents ready and that would save time.