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What is a pooling clause in oil and gas lease?

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 does pooling mean in oil and gas?

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.

What states have forced pooling?

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

What is the difference between pooling and unitization?

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).

What is the difference between pooling and unitization?

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).

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