You are here:

Oil/Gas/pooling and revised pooling

Advertisement


Question
Marsha I need some help on pooling.My problem is I am ratifying some leases and after researching one lease I found on the RRC sight that a another gas and oil company had drilled two wells on one of the leased property that was pooled with my lease. The person tht I am talking with said that the property was re pooled. Can that be done when the pooling is still in effect. The RRC shows the property in our pooling. Thank you for the help also this propery is in Texas.

Answer
The RRC is not the best source to get pooling information.  The P-12 form only needs to state one lease in each tract in which the operator owns an interest, to prove they have permission to pool that tract even if it is only partial permission.

The best place to go is the county clerk's office in the county where your land is located. Or, you can subscribe to an online deed records website such as texasfile.com and find the official legal document that creates the pooled unit. This document can be named several different things, but common titles are: Declaration of Pooled Unit, Declaration of Unit, Unit Declaration, or Declaration of Pooling. The Declaration will contain a list of the leases being pooled to form the unit. It is this document that invokes the power to pool and to hold those leases past their primary term--including the leases you are ratifying, if you find them in a filed Declaration.

That leads to the final point. Yes, a pooled unit can be revised. It can be done for any number of reasons. As for the other two wells drilled that might include your lease, they could have been drilled to a different depth than the well that is going to be drilled after you ratify the leases you own (I assume) a non-participating royalty interest under. If the two wells you mention are drilled to a different depth, they will have their own Declaration filed of record because a unit can be pooled only as to a certain formation (range of depth beneath the surface) and only as to a certain amount and configuration of tracts of land.

Please post a follow-up if you have additional questions.

Oil/Gas

All Answers


Answers by Expert:


Ask Experts

Volunteer


Marsha Breazeale, M.Ed., CDOA, CPLTA

Expertise

All questions regarding division orders; ownership decimal calculations; title ownership and payer record changes (testate/intestate inheritance; deed; assignment; court order); oil and gas lease analysis for record-keeping and purposes of payment by operator or payer; pooling, horizontal wells, horizontal well allocation units; unclaimed property reporting; royalty owner relations questions. All questions concerning administration of surface land contracts and payment questions, such as for Surface Right-of-Way, Sub-Surface Right-of-Way, Easement, Surface Use Agreement. All questions regarding industry-standard and company-specific policies that affect land owners.

Experience

Sr. Staff Division Order Analyst. Certified Division Order Analyst (CDOA, National Association of Division Order Analysts) and Certified Lease Analyst (CPLTA, National Association of Professional Lease and Title Analysts) with 35 years of experience as a combination division order analyst and lease analyst in exploration and production in the oil and gas industry.

Organizations
National Assoc. of Division Order Analysts (NADOA), National Association of Division Order Analysts (NALTA), American Association of Professional Landmen (AAPL), American Society of Trainers and Developers (ASTD)

Publications
"How an Oil & Gas Exploration & Production Company Operates" and "Principles of Oil & Gas Lease Analysis: Standard Clauses", Oil Patch Press; Articles in NADOA Magazine; LandFocus EDU Professional Training Manuals

Education/Credentials
B.A.in Management from Our Lady of the Lake University in San Antonio; M.Ed. in Instructional Design from WGU Texas.

Past/Present Clients
Past 15 years: GeoSouthern Energy Corporation; Contango Oil Co./Crimson Exploration & Operating Inc.; Apache Corporation; BP America; Marathon Oil; Newfield Exploration

©2016 About.com. All rights reserved.