Montana Ratification of Oil and Gas Lease (To Permit Pooling/Unitization)
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FAQ
Forced pooling allows the Board of Oil and Gas to issue orders that require owners of separately owned tracts within a spaced drilling unit to pool their interests in the underlying deposit and operate as a unit.
A ratification of an existing Texas oil and gas lease usually executed by a non-participating royalty interest owner or a non-executive mineral interest owner. It can be used for transactions involving business entities or private individuals.
In its essence, forced pooling is the taking of private property (also known as private eminent domain) that also forces the impacts of drilling onto landowners. Pooled landowners face toxic air emissions, risks of water pollution and other environmental impacts related to drilling.
Unitization is a process in which two or more operating companies combine their interests in a single unitized area, allowing them to operate their wells together. Texas' standards include determining the boundaries of the unitized area and how production will be divided amongst the participating companies.
In a few words, a pooling clause is written into a lease. This oil and gas clause allows the leased premises to be combined with other lands to form a single drilling unit. It's not uncommon for there to be a pool of oil or gas under numerous parcels of land.
State regulations The Montana Board of Oil and Gas Conservation within the Montana Department of Natural Resources and Conservation is responsible for regulating fracking in Montana. The board enforces regulations on the following: Well construction, casing, and cementing. Protection of underground and surface water.
