Thank Goodness For Mineral Rights
When Fracking Fractures Communities
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  • Fat_Man

    The problem solved by forced pooling is that oil and gas are liquids. Drilling from point A will suck the oil and gas out from under the neighboring properties. If the neighbors are not compensated by forced pooling, they will get nothing. It also decreases the number of wells that need to be drilled in any area so that the oil can be efficiently exploited with out undue inconvenience to the neighbors. The only loser in forced pooling is the neighbor who wants to block drilling completely, and even then they have lost little other than the right to be little bitches.

  • gabrielsyme

    The problem that forced pooling most avoids in this context is not the landowner that only desires peace and quiet, but the difficulty of having numerous landowners competing to gain the completion premium. The difficulty of course, is that by avoiding paying the completion premium, a company will in fact be paying rather less than the actual open-market value of the resource; the law thus enriches the acquiring company at the expense of the landowners.

    I am unsure of the Pennsylvania law, but forced-pooling laws ought to include an independent assessment of the value of the access to the resource which then is equitably distributed among the landowners. I would imagine that under such a law both landowners and acquisitors would benefit: most landowners would receive a higher payment, and the acquiring company would be faced with a more certain and possibly swifter process.

  • Boritz

    Who knew having oil and gas on your property was such a drag?

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