Defined term

Pooling

Combining acreage from several tracts into one drilling unit so a well can produce; each owner shares output by their acreage.

Pooling combines small tracts and the leases on them into a single drilling unit large enough to drill a well, especially a long horizontal lateral. Each mineral owner in the unit shares in production based on how many of their acres fall inside the unit, regardless of where the actual wellbore runs.

Pooling can be voluntary, authorized by a pooling clause in your lease, or compulsory under state law. In Texas the RRC oversees pooling and field rules; Oklahoma's OCC has a well-known forced-pooling process. Once a tract is in a producing unit, that unit's production typically keeps the lease held by production.

Pooling differs from unitization, which combines a much larger area for field-wide recovery. Watch the pooling clause — and pair it with a Pugh clause so non-pooled acreage is released.

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