Forced pooling

[TxNonRev]

Wow !

Here's part of a news item that I thought was very interesting:

From : Star Telegram

Wednesday, Apr. 21, 2010
By MIKE LEE

Forced pooling

In one case, XTO Energy has leases on 541 tracts that make up about 167 acres of the proposed 232-acre TWU Unit A. XTO is asking the state to "force-pool" the owners of the remaining 99 tracts into the drilling unit, using the state's mineral interest pooling act.

Under the act, the gas operator has to make a fair offer to the landowner before asking the Texas Railroad Commission to order an owner into the pool. The process can be lucrative for unleased owners, even if they don't get an upfront bonus.

The commissioners ruled that owners are entitled not only to royalties from the well but also to a working interest in the well, meaning a share of the profits after royalties and other costs are paid.



Read more: http://www.star-telegram.com/2010/04/21 ... z0mpZwKLtC