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An oil or gas reservoir may straddle adjacent contract areas. Unitization is the process whereby the straddling reservoir is jointly developed by the interest owners in the adjacent contract groups.
Order pooling means combining several different customers orders on the same standard manufacturing panel. Order pooling or pooling is probably the most common name but the process is also called order combination, panel sharing, multi-panels
As noted above, while pooling focuses on efficiently combining lands for the purpose of obtaining a drilling permit to drill a single well, unitization focuses on the combination of interests covering a larger area to facilitate development of all or part of a common source of supply (i.e. a field/reservoir).
Pooling is the combination of all or portions of multiple oil and gas leases to form a unit for the drilling of a single oil and/or gas well.
State Laws Can Compel Landowners to Accept Gas and Oil Drilling StateType of Regulation(s)Section NumberTexasForced pooling102.017Utah1) Involuntary pooling 2) Compulsory unitization40-6-6.5VermontForced pooling14-29-523VirginiaCompulsory pooling45.1-361.2146 more rows May 19, 2011
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There are three types of owners who can apply for MIPA to encourage or require forced pooling. The owner of any working interest. The owner of any interest in gas or oil in an existing or proposed proration unit. Any owner of an unleased tract other than a royalty owner.
Pooling: During the pooling process, extraction companies purchase or lease mineral rights from multiple landowners and pool them to form a drilling unit upon which they can legally place a drill rig.
Generally, a pooling clause will allow the leased premises to be combined with other lands to form a drilling unit, wherein proceeds from production anywhere on the drilling unit are allocated according to the percentage of the acreage of each tract divided by the total acreage of the drilling unit.
What is Unitization? A unitization is the pooling of assets by several parties in an oil and gas producing area in order to form a single operating unit, in exchange for receiving an interest in that unit.
What is force pooling? The Oklahoma statutes authorize the Corporation Commission to create drilling and spacing units, and if necessary, to pool the interests of the owners therein to prevent waste and to protect the correlative rights of the interested parties.

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