I think I may have been served with a notice of forced pooling. I received a pink card from the Post Office but the Post Office could not find the letter. If someone tell me how to look up recent pooling order notifications, I would appreciate it.
The above relates to property in Oklahoma.
That may not be an easy task if you have multiple properties. http://www.occeweb.com/Orawebapps/OCCOraWebAppsone.html The case processing database. It is not easy to install correctly or use, however.
Once you have a case number you can get most of the information here. http://imaging.occeweb.com/imaging/OAP.aspx
Post the section township and range and someone should be able to help you. If it is a pooling it is usually the last step. You should have been notified of other applications previously. Multi-Unit, Spacing, Location Exception, etc.
Possible you are being pooled in Carter Co 12 2S 3W but that is a March application and a Gainsville address.
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If you post the STR I can get you the pooling order within a few minutes
At the time I first posted, it turns out I was not being forced pooled. Now I am, It is for Sec 29 - 5N-9E in Hughes County, Oklahoma. The lease is for Silver Creek, LLC. The Silver Creek Lease is no good.I would lease with a better lease. I got a good lease with Canyon Creek and would lease to Silver Creek if they would let me use it. I also would like a better understanding of forced pooling in OKlahoma. One person told me that iforced pooling was not such a bad deal but I would like to have a better understanding of it. And if I could use a decent lease, I would prefer that. Any advice would be appreciated.
Could you explain forced pooling in Oklahoma to me? I know there is a hearing the Corporation Commission.believe the Commission sets a royalty interest for those that are not leased. I assume the people that are not leased do not receive a bonus.
Force pooling folks do get a bonus choice. Force pooling is when the operators have not been able to get leases from everyone. Either refused or cannot be located. They go to the OCC and request a force pooling which is essentially a force lease. They are usually for six months to a year in length and only for the reservoirs requested. They usually give an option of two - four lease bonus pairs based upon leasing in the area. The pooled respondents have 20 calendar (not business) days to respond and pick one of the options. I do not mind them in some cases. I usually pick the lowest bonus and the highest royalty since the chances of them drilling a well are pretty good. They pay you the bonus within 30-35 days (usually). Either NARO or OCC has a little booklet called “Surviving Force Pooling in Oklahoma”. Is that enough info or do I need to explain a bit more?
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The Oklahoma Corporation Commission (OCC) conducts a hearing where a “fair market” value is place based on testimony of leases signed in the last 12 months on the property and the surrounding properties. The set both the royalty interest and the bonus amounts. It is up to the mineral owner to elect one and/or participate in the well. I’ve seen bonuses from $0 (with 1/4 RI) up to over $7000.
Here is some information from the OCC. This will answer many questions (and maybe create a few) about the process.
Thanks. I really appreciate the response!
This is something I don’t understand: “A pooling order is usually for a term of six months or one year.”
What happens when the pooling order ceases? The persons that are leased have leases for 3 years. Do the persons that are not leased continue to be covered by whatever choice they picked (from the list drawn up by the Commission)?
I guess whatever happens after the pooling order ends is determined by whether the well is producing.
One other question (not on pooling) but I wondered what is the anticipated life of these wells in Okalhoma?
If the pooling order ceases before the well is spud, then a couple of things can happen. a. Nothing, it expires and you are free to lease again. b. The Corporation Commission will extend it by another term (either six months or a year). Sometimes, you get paid an extra bonus. (I had one that got extended four times. Never drilled, but I got a whole bunch of extra bonus money.)
If the well is drilled in time, then the folks that are leased are held by their leases and the folks that are pooled are held by the pooling orders. The orders are public and you will get mailed a copy.
Life of wells is an answer subject to lots of factors. In general, gas wells last longer than oil wells for conventional vertical wells. They drain a larger area and have smaller molecules. For horizontal wells, we don’t know enough about them yet. But my engineer just did a review of my portfolio and some of the horizontal wells are predicted to last decades (although at low rates). Again, the gas wells will probably last the longest given that the molecules are smaller and gas has more molecular energy to get it through the pores. Of course, lots of caveats to the above statements. Ask me again when I am 99 and see if I was right…
Can you still sign a lease with another company with a better offer AFTER the pooling order has been issued by the court or do you have to choose one if the court ordered pooling offers?
You can lease with someone else as long as it gets to the courthouse by the 20 calendar day deadline of the pooling order. Speed is of the essence. Don’t hand over the lease without getting a check because they might file it to meet the deadline and then try to flip it and you won’t get your money until weeks later. Sometimes, they can’t flip it and then you are left with no payment, but the pooling company will think you didn’t respond and only give you 1/8th. I always respond to the pooling order with "I have leased with so&so for xx$ and xx royalty, effective date is XX. However, if no lease is filed before the end of the pooling order, then I select option xx for $xx and xx royalty. " That way I am covered either way.
I did not sign a lease with Silver Creek on Sec 29-5N-29E in Hughes County, OK. That was several months ago now and I have not received a forced pooling notice. I would like to start checking for a pooling notice at the Olklahoma Corp Commission so I don’t miss it when it comes out…
If you mean 29-5N-9E, the pooling notice is 201805986. http://imaging.occeweb.com/imaging/OAP.aspx
Looking for a bit of help. We have minerals in Oklahoma that have been force pooled. It seems that I remember reading sometime last year that if you are pooled, deductions will be allowed on your royalty checks (assuming you elected). I cannot find any evidence in statutes that allow for these deductions. Have I lost my mind??? Any help directing me to statutes would be appreciated.
Lot of confusion on that point. Some attorneys say yes, some say no. It will depend upon the language in the actual order. If you are force pooled and there are PPC, then they will have to abide by the Mittelstaedt court case.
You only have 20 days to respond, so do it quickly by certified return receipt mail. Keep a copy of everything. Many of us prefer the highest royalty and the lowest bonus as it usually pays off in the long run.
Thank you so much for the response.
27 06N 06W, I’d like my pooling order, please.
Thanks, Edith Patterson
The last pooling order for 27-6N-6W was in October 2, 2018. If you were on the pooling, you had 20 days in which to answer. If you did not, you were assigned the lowest royalty and the highest bonus. There are six horizontal wells permitted for that section. Adams 27-34 wells. They were spud in September of 2018. They came online in August of 2019. Division Orders should come out January or February of 2020.