# A Well Proposal In Oklahoma - A Boon to the Mailman > Berlin's friend Bruce called her up on Friday, and after he finished ranting about planting his tomatoes before the last frost date, he got do… Source: https://www.berlinroyalties.com/oil-scout/a-well-proposal-in-oklahoma-a-boon-to-the-mailman/ Publisher: Berlin Royalties, a veteran-owned oil and gas mineral and royalty buyer in Tulsa, Oklahoma, buying for its own account since 2014. Call or text 918-984-1645. License: free to quote and cite with attribution to Berlin Royalties and a link to the source URL. ## A Well Proposal In Oklahoma - A Boon to the Mailman By **Stephen Clayman** · April 23, 2018 Oklahoma Oil and Gas Mineral Owners, Berlin's friend Bruce called her up on Friday, and after he finished ranting about planting his tomatoes before the last frost date, he got down to asking about well proposals and why he is receiving them in the mail for his Pittsburg County, Oklahoma mineral rights. Unless one is party to a Joint Operating Agreement, a well proposal in Oklahoma is a non-binding piece of correspondence. It is supposed to be the last of a series of efforts for all owners with the right to drill a well in a certain drilling and spacing unit to agree to drill (or not to drill) that well before a forced pooling proceeding is undertaken at the Oklahoma Corporation Commission. A well proposal will usually contain the following pieces of information; - The proposing party (and potential operator) - The location of the well (usually described to a quarter section level) - The target formation - The type of well (horizontal or vertical) - The depth of the well - The cost of the well (an AFE should be included) - The proposed farmout/lease terms in lieu of participation in the well Ever since our friends at Chesapeake popularized not sending out a JOA even between parties who have agreed to the development of a unit, a well proposal should be viewed as a warning order that a forced pooling application will arrive in a few weeks. Dr. Evil prefers that one forgets that elections under a pre-pooling well proposal are non-binding so he can deem Austin out of the well. There is little room for negotiation in the terms of the well proposal. If an owner desires not to participate and would prefer to lease/farmout and doesn't like the terms presented in the proposal, the proposing party will say something like, "well, you had your chance hot shot, but now you'll just have to see what we testify to at the pooling hearing." The power of the forced pooling provisions gives her the ability to (1) call anyone she wants "hot shot," and (2) not care about responding to counter-proposals from other owners in the unit. Berlin has been told that is not the case in other states (property rights, who needs property rights?). If an owner does want to participate in the well, he will still have to elect to do some when the forced pooling order issues. Despite the fact this is usually written into the well proposal, many parties still fail to elect under the order and the operator is more than happy to overlook their previously designated intent and deem them out of the well. After Berlin explained these facts to Bruce, he asked the only questions that a reasonable person would ask after hearing about how worthless a pre-pooling Oklahoma well proposal is, "what's the point and who benefits?" Berlin isn't sure what the point of the well proposal is, they are often ambiguous and as stated above, non-binding. The beneficiaries are certainly the USPS who really enjoy when letters are sent certified at $7.00/piece and the potential operator's competition who get a 2-3 week notice that applications are about to be filed. Please comment below or contact Berlin with any more questions about well proposals or if you would like to sell your Oklahoma mineral rights. More to follow, Berlin ### Thinking about selling your minerals? Berlin Royalties buys Oklahoma minerals and royalties, and we show you the work behind every offer. Free, no obligation, and if keeping them is the right answer we will tell you that too. [Get a Free Valuation](https://www.berlinroyalties.com/free-valuation/) or call or text **[918-984-1645](tel:9189841645)** More From The Oil Scout [March 19, 2018 ### Splitting the Baby and the Pooling Bonus The Oklahoma Corporation Commission has been regulating on the fly as to rule changes on multi-unit horizontal wells. One of the recent change…](https://www.berlinroyalties.com/oil-scout/splitting-the-baby-and-the-pooling-bonus/) [March 6, 2018 ### Spudding Before Forced Pooling Bruce was a bit pissed when he called up Berlin today. Apparently, his fence line weaning efforts cost him about 6 hours of sleep after he fou…](https://www.berlinroyalties.com/oil-scout/spudding-before-forced-pooling/) [March 29, 2018 ### "Yes Please, I'd Rather Have a Dividend" - Stockholder As yall are well aware, Berlin's finance (that's 'fuhnance') prowess is on par with her triple lutz, triple toe, which is non-existent. That b…](https://www.berlinroyalties.com/oil-scout/yes-please-i-d-rather-have-a-dividend-stockholder/) [March 26, 2018 ### Assorted Links (and a chance to win an Amazon gift card) Here are a few links that Berlin read over the weekend that will be of interest:](https://www.berlinroyalties.com/oil-scout/assorted-links-and-a-chance-to-win-an-amazon-gift-card/)