Possible force pooling , maybe

My friend in Noble county has a delimma, A company wants to sign a lease with her because they have a unit about completed and shes almost in the middle of it. She's thinking she may be better off to make them force pool her land. Their offering close to 6000 to lease but she thinks she may be better to hold off and become a part owner in the well when they drill. Isn't it after they recoup 200 percent of the cost of drilling then she will receive he money. I told her how would you ever know when that is and in the long run would you make any more money.. About forgot she owns 2 acres. Any opinions would be appreciated because she's an older woman that doesn't know what to do.. Thanks

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Permalink Reply by evan on December 12, 2013 at 6:11pm

That's a tough one there. I don't know which way she would be better off. Good luck .

Permalink Reply by Joseph-Ohio on December 12, 2013 at 6:40pm
This landowner is offered a choice ?

Is that normal / standard in force pooling applications ?

Also :

God forbid, But :

What happens if things don't go right and there's some sort of catastrophic event ?

Is the landowner holding a stake in the well going to carry insurance to offset financial losses / liabilities ?

With ownership there are also risks, responsibilities / liabilities.
Permalink Reply by henry summers on December 12, 2013 at 7:10pm

No Shes not being offered a choice they told her that they would and could force pool her

Permalink Reply by Joseph-Ohio on December 12, 2013 at 7:22pm
So it's an ultimatum then - issued from a company presenting your friend a lease ?

Accept and sign the lease or get force pooled ?
Permalink Reply by henry summers on December 12, 2013 at 7:39pm

Yep that pretty much aimed it up.  This makes her not want to sign even more.. Can't blame her. I hate bullies like that

Permalink Reply by WranglerRouser on December 19, 2013 at 12:24pm

If your friend is not happy with the terms of the initial offer tell her to make a counteroffer.  Just because they said "take it or leave it otherwise we will force pool you" does not mean anything.  This is how they operate with intimidation and lies.  If they made her an offer you can bet everything you own that it was not their best offer, ANYTHING is negotiable!  Tell her to start high because the first thing they will say is that her requests are unreasonable regardless of what they may be and will proceed to whittle away at her starting number.  She needs to be resolute and unwavering and could use all the moral support she can get!!

Permalink Reply by frank speaker on December 22, 2013 at 10:59am

As the practice is now,if you refuse to sign a forced pooling order could be issued which generally pays 12.5% royalty and may or may not provide a signing bonus, but allows you to invest as a working interest owner if you pay expenses when called for. Or you can let the principal owners pay  expenses and pay back expenses plus a 100 to 200% fee drawn from your share  revenues. I believe this to be entirely unconstitutional taking of property without due process or just compensation as you should be paid full value for any seized property without having to invest in the project. In this case they are paying you eight times less the value of your property  (less the expense to produce it which ultimately could amount to only a small fraction of revenues.) People who have been intimidated into signing may have an actionable cause.

Permalink Reply by scott peterson on December 24, 2013 at 5:28am

excellent info frank & very accurate. i wonder when the last case of forced pooling took place in Ohio.....if ever?

Permalink Reply by Joseph-Ohio on December 24, 2013 at 5:36am
Good question but I still feel crapped on and don't like the options.
Permalink Reply by Joseph-Ohio on December 12, 2013 at 7:40pm
Is the lease that your friend has been presented to sign the same lease that your friend would be force pooled into in the event your friend does not sign ?

If not what are the differences ?

I think your friend needs to weigh one against the other and make the most sensible decision possible.

Sounds like your friend is getting forced into one or the other doesn't it ?

Sounds to me like there's the rock and there's the hard place to choose between.

Wondering if that's what your friend wanted to buy when your friend purchased the property ?
Permalink Reply by Billy Park Whyde on December 12, 2013 at 7:44pm

Question just how did they get a permit to drill and have a unit without her in it in the first place? Was it a over sight. If they went under her without a lease its not a question of forced pooling but rather a TRESPASS BY THE COMPANY and time for her to seek an attorney. Pretty hard to try a forced pooling when you are trespassing to begin with.

The original thread starter "A company wants to sign a lease with her because they have a unit about completed and shes almost in the middle of it."

Permalink Reply by henry summers on December 12, 2013 at 7:55pm

The  company doesn't have a permit yet but are finalizing things..  I guess they have the well pad location picked out and everything. Their just trying to the up some loose ends and she is one of them. What she wanted to know is in the long run is she better off to hold out and get forced into the unit.. Does anyone know somebody that this has ever happened to? Money wise she thinks she may be better off, is this true.. Thanks again for all the info..

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