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Permalink Reply by Chris on April 25, 2013 at 4:31am

you're saying that they would have to pool all your acreage, instead of a pugh clause, right?  Back in the early days , standard language was to pool all acreage , then people started wanting the pugh clause put in. Im sure it depends on how much acreage you have. If you own small acreage, than it shouldn't be an issue.

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Permalink Reply by Brad Cellier on April 28, 2013 at 4:01pm

Mike,

I have ~40 acres in Armstrong County, PA. I had the O&G Company include a clause that they must include "all or none" of my acreage in the unit.  They would not do a Pugh Clause.  There's probably a point in acreage size where it make sense to go with a Pugh Clause.  At my size, the O&G Company did not have any concerns about the "all or none" language.

Brad.

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Permalink Reply by mike james on April 29, 2013 at 1:11am

why wouldnt people want the pool all clause in their lease then they get for sure royalties vs if you have 100 acres and they drill through just 10 acres you would only get 10 acres royalties vs 100

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Permalink Reply by Chris on April 29, 2013 at 4:49am

In a standard lease when they unitize or pool, they can include only certain parts of your acreage in the unit, only paying royalties on those certain acres, but still holding the rest of the property.  But a true "pool all" lease would fix that problem, it would most likely be hard to get for large acreage.

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Permalink Reply by Joseph-Ohio on April 29, 2013 at 12:46pm

Pool All seems easier to figure.
For instance, if you're 30 acres
of 640 you're share would be figured
using 30/640 x contract royalty % x production,
regardless of the actual size of the well acres
(which may be less than 640 acres).

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