Ohio: Forced Pooling: How Many Acres?

Ohio does have forced pooling; a buddy of mine without a lease thinks he cannot be forced pooled because of the size of his acreage which is 150 acres and drilling is occurring close to his property Is this true is their a limit on the amount of acres that can be force pooled?  If this answer has been given before just point me to the discussion--sometimes the answer is in an unlikely discussion.   Thanks in advance.

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Permalink Reply by Joseph-Ohio on June 22, 2013 at 9:50pm
@ Marcus Grayson,

You're sounding like someone I could vote for.
J-O
Permalink Reply by searcherone on June 7, 2013 at 11:35pm

Keith, this helps immensely and I will be providing him the information.  LOL yes, the steam would be rolling out and  bursting into flames because he is just that kind of guy.   Thanks again.

Permalink Reply by The Hiker on June 8, 2013 at 8:43am

Keith:  Great article.  Thanks for posting it.   Interesting that the folks not leasing were "unresponsive", not "unwilling".   I guess they didn't open their mail or return their phone calls? This probably made it a lot easier for Chesapeake to win the case (cheaply).

They could have produced the same result for themselves (no roads, pads, drill rigs, pipelines, tank farms, compressor stations, etc...) if they would have negotiated a lease stating "no surface development".   They would then walk away with some bonus money and the same royalty percentage as their neighbors, but none of the mess they are afraid of. 

If anyone else out there is in a similar situation, discuss this option with your attorney.  It'll save you a lot of headache.   As the article shows, if these guys want to drill in your area, they are going to drill in your area and there is little you can do to stop it, so you may as well make the best deal for yourself.   Hire an attorney now and pay him.  When you get the bonus money, you will be happy you did it.  Don't be like the guy in this article that was "unresponsive" and got screwed.  IMHO.

Permalink Reply by Billy Park Whyde on June 8, 2013 at 9:03am

Whoa. What forced leasing? Just recently here in GOMS a thread was run where a company forced another company into a forced unitization. Notice I said FORCED ANOTHER COMPANY. That meant the landowner was left with what kind of a lease?  Was his lease conditions to be applied to the equation? What if he had a non unitization cause in his lease, where does his rights come into play? Perhaps he did not want anything to do with a forced flip of his lease ( if you want to call it that) to a company he detested by their actions, where is the landowners rights, here?

This isn't a can of worms it's a whole flat of worms!

Permalink Reply by Joseph-Ohio on June 8, 2013 at 12:13pm

I'm on your bus Billy - don't know who cares however ?

Permalink Reply by Billy Park Whyde on June 8, 2013 at 12:26pm

Every landowner should care!

Permalink Reply by Americanoilnd on June 8, 2013 at 12:37pm
Keep in mind that force pooling is not always a bad thing... You also have the opportunity to participate in the well as a working interest partner should you so choose...more $$$
Permalink Reply by Billy Park Whyde on June 8, 2013 at 1:01pm

Anytime a non elected government employee can control your property rights its time to worry!

Permalink Reply by searcherone on June 8, 2013 at 1:28pm

Billy, totally agree with you as have had some experience, not forced pooling, but another o&g matter that left me with a very bad taste regarding oil and gas division of ODNR.  Let's just say the veracity of some of the inspectors is questionable and how chummy they are with the operators and drillers.  Every landowner should care, there is no backing away from this industry as without your land it doesn't exist.  Landowners need access and a voice at the table.

 

Permalink Reply by Joseph-Ohio on June 8, 2013 at 2:32pm

There's also the part about the E & P being required to make the landowner a Fair Offer before being force pooled.

Then there's also the part about no surface disruption on any force pooled landowner's lands.

Those are positive things.

How does it all pan out for a landowner who's leased with a force pooled company ? 

I think that's what concerns BPW. 

I'd like to know the answer to that one too. 

It seems to me that the company doing the force pooling would have to honor the terms and conditions of the 1st lease.  Is that correct ?   

Permalink Reply by Billy Park Whyde on June 8, 2013 at 4:08pm

 The thing is the landowner is already under a lease , so that could hold the landowner at the old lease terms as far as royalty, forget any bonus money.  From what I see the ODNR will do as they please.

Permalink Reply by Joseph-Ohio on June 8, 2013 at 4:17pm

Seems to me that Signing Bonus money (to be considered a Fair Offer) should be at least the same rate that the other landowners in the Unit received prior to the Unitization Order from the ODNR.

How is it a Fair Offer any other way ?

 

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