Force Pooling
in Pennsylvania

A local uproar is beginning due to Hilcorp force pooling in Pennsylvania. With some mineral owners deciding they do not wish to a sign an Oil & Gas lease, Hilcorp has force pooled these owners by continuing to drill without a signed lease. On first glance this seems unfair for mineral owners but a closer examination shows why this practice takes place.

Force Pooling in Pennsylvania

Before looking at force pooling in Pennsylvania, it’s important to note that force pooling has been used around the country for decades. Force pooling is not new and Oil & Gas companies routinely force pool when necessary.

What does force pooling do? Force pooling allows and Oil and Gas company to drill even though all landowners have not agreed to sign a lease. The reason this is allowed is because extracting oil and gas is necessary for our country to thrive economically. Oil and gas makes up a large portion of the products we use every day and the supply needed to created those products must be available. In addition to the need for Oil & Gas, force pooling is also necessary to keep things equitable among mineral owners.

Imagine you own a large portion of land which you leased to and Oil & Gas company. You are waiting on the drilling to begin, but before that can take place the Oil & Gas company must secure leases for the other owners in the area. If a single owner who had 1 acre of land did not wish to lease, they could effectively halt drilling by owning a very small fraction of the total minerals. Without force pooling, mineral owners who had a large portion of mineral rights would lose out because a single owner did not wish to sign a lease. Force pooling gives operators the ability to drill even when a single party does not with to participate.

Some landowners would prefer to lease and others would prefer not to. Force pooling is the mechanism that settles this dispute.

Impact on Mineral Owners

As a mineral owner it’s important to know the force pooling exists. If you are approached to lease mineral rights from an operator, you will want to negotiate the highest price you can. However, if you are not willing to lease your property at a reasonable price you may be force pooled. This can initially sound unfair but an Oil & Gas operator will want to sign a lease with you rather than go through force pooling. You can still fully negotiate your lease with the operator.

If you are considering leasing mineral rights and have concerns about force pooling, fill out the form below and we can help answer your questions:

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