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Texas A&M University School of Law

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Pooling Clauses And Statutes, Gina S. Warren, Mark G. Walston Jan 2013

Pooling Clauses And Statutes, Gina S. Warren, Mark G. Walston

Faculty Scholarship

Pooling is a tool used to bring together small or irregular tracts of land or mineral interests to form one drilling unit for the purposes of oil or gas production. In general, pooling can be accomplished in a variety of ways, including separate pooling agreements, community leases, voluntary pooling clauses within leases, and compulsory pooling statutes. For purposes of this article, we will be focusing on voluntary pooling lease clauses and compulsory pooling statutes.

This article will discuss the requirements for valid pooling under a voluntary lease provision, briefly outline how royalties are distributed for pooled units, and discuss remedies …