Question : Ohio - Forced Pooling - Forced Unitization

In Ohio, is it possible to be 'Force Unitized' and NOT 'Force Pooled' ?

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Permalink Reply by evan on August 25, 2014 at 12:42am
My neighbor was in this situation and the answer is no as well as I'm concerned. The company threatened but legally couldn't do it because unitization was crossed out of his lease. Just my thoughts though.
Permalink Reply by Mark McGrail on August 25, 2014 at 1:01am

Joseph,

They are two different things.

"Forced Pooling" is generally used in urban areas for vertical wells. Whereas "Unitization deals with larger tracts and is usually associated with horizontal drilling.

That's the Cliff Notes version.

Permalink Reply by Joseph-Ohio on August 25, 2014 at 1:35am

Thanks Mark.

However the terms (words) are subjective.

Take the words 'urban areas'; and the words 'larger tracts'. 

Seems to me both sets of words are subject to the interpretation of only the Gas and Oil / E & P entity submitting an application and the Chief of the ODNR Gas and Oil Division.

Perhaps tracts that impacted landowner folks might consider smaller could be considered larger by those submitting the application and the ODNR Gas and Oil Division Chief; or vice-versa ?

Same goes for the words 'urban areas'. Can a Township be considered an area 'urban' enough ?

A lot of latitude exists seems to me with only one appointed individual making determinations.

Don't you agree ?

So, as to my original inquiry - can a tract be 'Force Unitized' without being either already 'Pooled' by leasehold or ' Force Pooled' by action of a Gas and Oil interest in conjunction with the approval of the ODNR Gas and Oil Division Chief ?

What do you think ?

Permalink Reply by Mark McGrail on August 25, 2014 at 1:42am

Joseph,

First, one person doesn't make the decision, there is a committee. I believe it's called the Technical Advisory Committee.

The simple answer question is yes. But I think you miss the point. Each action is a separate action and used for different purposes (in general) .

It might be easier to answer your question if you could give a concrete example and explain the purpose for the question.

Permalink Reply by Joseph-Ohio on August 25, 2014 at 2:03am

Another poster on another post (subject: Cryogenics Plants) mentioned a collective group owned minerals on an unleased tract (or a number of tracts) with 'a new producing well'.

Hence, I began wondering how that happened (as I and my Mrs. are also unleased landowners); and then posted this inquiring discussion.

Permalink Reply by James Foster on August 25, 2014 at 2:35am

You could read Ron's posts or just ask him. He aquired his interest in a well through a bankruptcy. The lease was signed by the landowner during the bankruptcy. Ron and only Ron says the lease is not valid. It was never challanged in court so Chesapeake has a signed lease from the landowner of record at the time which was signed during an open bankruptcy. I doubt they had knoeledge of said bankruptcy. Did the bonus money go to creditors. If so I doubt a court would rule against that as during an open bankruptcy it is the administrators (wrong term but it escapes me now) job to get as much money out of the turnip as possible. Should administrator have approved or signed lease ..not sure of law. They are not the landowner. Another case in Ohio a couple was forced to sign a lease they did not want to sign because they would be keeping their home and were against driling and fracking. Court ordered them to participate and turn over the bonus money but not any future royalties received after the bankruptcy was closed.

015334grltd9mPermalink Reply by 015334grltd9m on August 25, 2014 at 2:50am
James, the US Trustee and any lawyer would say the same thing. I do not think you should be practicing law here unless you are a lawyer. Are you?
Permalink Reply by James Foster on August 25, 2014 at 8:21am

"US Trustee and any lawyer would say the same thing" ... but it is ok for you to practice law.  You are not the US Trustee or a lawyer either!  But they didn't say the same thing because the issue never came before them.

015334grltd9mPermalink Reply by 015334grltd9m on August 25, 2014 at 8:27am

James, You have to be smarter that this, THERE IS NO CASE, in bankruptcy, all assets belong to the US TRUSTEE.  Call your lawyer and ask him,please.  This is basic law, when an entity goes bankrupt, the TRUSTEE owns the assets in TRUST. My GOD, sometimes I wonder why I bother. 

Permalink Reply by Dexter Green on August 25, 2014 at 8:37am

"This is basic law, when an entity goes bankrupt, the TRUSTEE owns the assets in TRUST."

No, they don't.  They control the sale of assets within the trust.  Technically the debt holders own the trust.  The trustee operates on the behalf of those who are owed money.  The trustee isn't an owner.

015334grltd9mPermalink Reply by 015334grltd9m on August 25, 2014 at 8:48am

Layman's response Marcus, don't confuse him anymore than he already is, you know what I mean.

Foster, here are three US Trustees in THIS region that can help you with this:

1. Atty. Bruzalencia

2. Atty. Beatrice

3.  Atty. Suhar

Tell them they can send me the bill.

Permalink Reply by James Foster on August 25, 2014 at 8:55am

You are in a production unit of a well that has been drilled.  Is it producing?  Did you receive any royalty payments?  You claim there is no valid lease, but you have yet to do anything about it but blow hot air on here.  The truth is you have a valid lease but you did not receive the bonus money because the individual who went bankrupt leased the land prior to you taking possession of it.  When you get an attorney or court to take your side and get a new lease let us know.  In the mean time your land is leased PERIOD! 

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