The legal issues in oil and gas law, especially the rights of the landowners Summit in Oklahoma, remain rather complex for most persons to understand, more so if they have little knowledge of the law regulating mineral rights in the state. Another important element of this branch of the law is the so-called Oklahoma Corporation Commission (OCC) pooling orders, which are widely used in the context of the development of oil and gas resources. It is, therefore, important for the landowners to have adequate knowledge about these orders and their impact so that they can guard their interests well.
What Are Pooling Orders?
Pooling orders are legal tools employed by the OCC involving the gathering of mineral interests within the approved drilling unit. When a company targets a potential area for the production of oil or gas, it can sometimes require more than one parcel of land, and all these parcels may not belong to the same mineral rights owner. Pooling orders make it possible to develop these resources effectively for all owners within the pooling area, including those who have not leased their mineral rights willingly to join the drilling unit.
If the OCC imposes a pooling order, the landowner is made to join the drilling unit through leasing out of property or through sharing of the costs and revenues of the operation. The purpose of this process is to filter out any inefficient activity and guarantee that oil and gas are produced in the most efficient and mutually profitable way for the operator and the mineral rights owners.
Role of an Attorney in Pooling Orders
Considering that pooling of orders operate on legal and financial considerations, landowners can seek the service of an oil and gas attorney. Legal advisers practicing this field can assist the landowner comprehensively about their litigation options and legal responsibilities entailing pooling order and refining terms with legal ways to follow Oklahoma norms.
Indeed, one of the duties of an attorney in this regard is to study the terms of the pooling order and the lease agreement. This review is important because the provisions of these documents can have a considerable effect on the operation’s financial return to the landowner. For instance, the attorney can guide the client on which election is more suitable, whether it is to lease the mineral rights or join the drilling exercise, and assist the client in negotiating a reasonable royalty rate or working interest ratio.
Choosing the Right Attorney
Choosing the right lawyer to help with pooling orders is arguably the most important decision a landowner will make over the long-term earning capacity of their land. Landowners should choose an attorney who specializes in oil and gas law and more so in matters that deal with the OCC.
Some of the considerations include Whether the lawyer has proved successful in the course of representing his/her clients in negotiations, the law knowledge of the current laws governing lawsuits, and the way a lawyer presents a complicated legal situation. It is also crucial to choose an attorney who makes time to answer the concerns and questions of the landowner.
Conclusion
Oklahoma Corporation Commission pooling orders are critical regulation instruments of the society in the oil and gas field in Oklahoma since they play the role of promoting the development of mineral resources in a manner that is equally beneficial to all the parties involved. To the land owners, these orders and the consequences that are likely to arise from them must be known so that the rights of the owner can be well protected. Thus, with the help of a qualified lawyer, landowners will be able to understand the requirements of pooling orders, make proper decisions about cooperation, choose the most suitable conditions that were discussed, and protect their rights.