The premier
fee-based mineral listing service.
But I must explain to you how all this mistaken idea of denouncing pleasure and praising pain was born
Get your free evaluation
Forced Pooling
Forced Pooling
Forced pooling occurs when mineral owners are forced to allow the pooling of oil on their land. Pooling is an economical drilling technique, in which pipes are run horizontally from a single well to collect oil within a pooled area around that well. It is much cheaper than drilling vertically, which requires multiple wells to be built to extract the same amount of oil.
Why People are Upset
Forced pooling is allowed by state law in certain areas and has been for many years. However, many people are only recently starting to be affected by the law, as the oil industry is taking a huge hit from plummeting gas prices. The modern horizontal drilling technique has also made pooling more effective, giving oil companies more incentive to take advantage of forced pooling allowances. There are a few steps that an oil company must take before they can force pool from your land:
- The oil company must exercise an effort, in good faith, to pool elsewhere before the forced pooling can be granted.
- An oil company must notify the landowner with the permission letter multiple times before forced pooling can begin. The company must also attempt a lease negotiation in the letters.
- If you do not try to negotiate a lease with the company that contacted you, your state oil and gas commission will likely contact you in an attempt to settle a negotiation.
- If after the prior measures have been taken and you have still not managed a negotiation, forced pooling can begin. You will receive royalties, but only after (and if) profits allow.
While owners can turn down negotiations or refuse to be a part of a lease, they cannot escape forced pooling if the state approves it. The issue of forced pooling may cause you to decide it is best to sell your mineral rights. If this is the case, contact the experienced professionals at The Mineral Auction by calling (512) 698-2802 today.
Top-tier mineral listing
service for you
We’re located in Austin, TX, and because we have connections to thousands of oil and gas royalties and mineral rights buyers, we know that we can get you the best deal if you are looking to sell your mineral rights, whether you’re located in Texas or anywhere else in the U.S.
The Mineral Auction provided me with an invaluable exit strategy when selling a mineral interest that one of my clients had. I’d recommend them to anyone who has the need to create some liquidity.
Blake is excellent. We have used him in numerous family issues and find him always direct and very helpful. He is incredibly informed and our go-to guy.
Blake and I have worked on several deals together and they have always gone off without a hitch. Both parties leave the table satisfied. Highly recommended!
Blake hit it out of the park! He did everything he said he would do, and then some. He far exceeded our expectations within a day! If you are concerned about paying commission or being restricted to a broker – don’t be. He will max out the value of your minerals. I tried to negotiate with several buyers on my own and didn’t come within the same universe.
Blake Bergstrom helped my family negotiate the sale of our mineral rights for our small ranch outside of San Antonio. I found Blake to be very knowledgable about whole process and took the time to answer all our questions. We were very satisified with the transaction and have already recommended Blake and The Mineral Auction to some our friends. Thanks again.
I have mineral rights to natural gas and Blake was excellent in his advice regarding my situation. Thanks a lot for your help!
