Practical Advice For Common Pooling Clause Issues

Law360, New York ( March 17, 2016, 12:23 PM EDT) -- Pooling is a fundamental concept within oil and gas law, but one that is often misunderstood. Pooling is most commonly defined as "the combining of two or more tracts of land into one unit for drilling purposes ... accomplished voluntarily, or through compulsion."[1] In other words, it is how a lessee is able to extend a lease without physically drilling on the lease. For private (fee) oil and gas leases, the ability of the lessee to pool the lease is typically addressed in the lease provisions. These provisions are known as the pooling clause. This article provides some practical tips in dealing with the issues that arise from pooling clauses....

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