Statutory pooling may affect the following persons:
Mineral owners who do not agree to lease. A statutory pooling order will set the terms for sharing of costs and revenues from the well. The mineral owner may choose to pay in advance his or her share of costs of the well, or to have those costs deducted from his or her share of revenues. If the mineral owner chooses the latter, he or she is not required to pay any out-of-pocket expenses. However, an additional cost (typically 100 to 300 percent of drilling costs may be assessed against his or her revenue to compensate the driller for the risk of an uneconomic well. The mineral owner will receive 1/8 of his or her revenue share as a cost-free royalty. The costs of drilling and production are deducted from the remaining 7/8 interest.
Oil and gas developers who have leased mineral rights in the unit but do not voluntarily agree to share the costs of drilling and producing a well. If pooled, an oil and gas developer will be subject to the same provisions for revenue sharing and choices for participation in costs as a mineral owner.
Mineral owners who have leased but do not consent to voluntarily pool their interests with others to form a full drilling unit. A statutory pooling order may pool the interests of such an owner, but does not impose costs or affect his or her royalties.