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Simple English definitions for legal terms

forced pooling

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A quick definition of forced pooling:

Forced pooling is when a regulatory agency orders small pieces of land or mineral interests to be brought together for the purpose of drilling an oil or gas well. This is usually done to meet well-spacing regulations. It is also known as compulsory pooling. In contrast, voluntary pooling is when the owners of mineral interests agree to pool their resources together.

A more thorough explanation:

Forced pooling, also known as compulsory pooling, is a process in the oil and gas industry where small tracts of land or fractional mineral interests are brought together over a producing reservoir for the purpose of drilling an oil or gas well. This is usually done to meet well-spacing regulations.

Forced pooling is different from voluntary pooling, which is arranged by agreement of the owners of mineral interests.

Compulsory pooling is done by order of a regulatory agency. This means that if a certain percentage of mineral owners in a given area agree to lease their mineral rights for drilling, the remaining owners can be forced to participate in the drilling project.

For example, if a company wants to drill for oil in a certain area and needs to collect a large enough tract of land to meet well-spacing regulations, they may use forced pooling to bring together the necessary land and mineral interests. This can be done even if some owners do not want to participate in the drilling project.

forced labor | forced portion

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