When we inherited our mineral rights a few years ago we were told that pooling was bad. That we wouldn’t get as much money as if we negotiated a lease. But now a friend who has mineral rights is telling me it’s better to be pooled. Can someone straighten me out, please?
The answer may depend upon the state where your minerals are located. In some states, pooling is not a very mineral friendly option. In OK, it is more equitable. A pooling keeps business moving ahead. The operator is supposed to offer the best terms in the section and the surrounding eight sections over the last year. The pooling respondent can pick between several royalty/bonus options. Many of us would pick the highest royalty option as the bonus is usually insignificant in the long run. Poolings do not have a time limit on shut in payments like a lease can. Poolings are limited to a set of reservoir(s) so that can be good or less good depending upon how many reservoirs are listed. If I cannot get good lease clauses with an operator, then I have no problem with pooling.
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