I Got a Pooling Order—Now What?

If you’ve received official-looking paperwork from the Oklahoma Corporation Commission with your name listed as a “Respondent,” you’re not being sued. You’ve received a pooling order—and while it can be intimidating, it’s actually a normal part of oil and gas development in Oklahoma.

This guide explains what a pooling order is, why you received one, and exactly what you need to do next.

What Is a Pooling Order?

A pooling order is a legal mechanism that allows an oil and gas operator to combine (or “pool”) the interests of all mineral owners within a drilling unit so they can drill a well. It’s governed by the Oklahoma Corporation Commission (OCC) under Title 52 of the Oklahoma Statutes.

Here’s the situation: An operator wants to drill a well. To do so legally, they need to secure rights from all the mineral owners in the drilling unit. Most owners sign leases voluntarily. But if some owners can’t be located, won’t respond, or won’t agree to lease terms, the operator can file a pooling application with the OCC to force those owners into the unit.

This is called “forced pooling” or “compulsory pooling”—though “forced” sounds more aggressive than it really is. The process exists to prevent a single holdout from blocking development that benefits everyone else.

Why Did I Receive a Pooling Order?

You received a pooling order because:

• You own unleased mineral rights in a drilling unit where an operator wants to drill

• The operator couldn’t reach you or couldn’t agree on lease terms with you

• The operator filed an application with the OCC to pool your interest with others in the unit

Being named as a Respondent simply means you have an interest in the unit that hasn’t been leased. It’s not a lawsuit, and you’re not in trouble.

Understanding the Paperwork

Your pooling packet typically includes:

• The Application: Lists the operator (Applicant), the legal description of the drilling unit, the target formations, and all Respondents (unleased owners).

• Exhibit A: A list of all Respondents—mineral owners who haven’t signed leases.

• Notice of Hearing: The date, time, and location of the OCC hearing where the pooling will be decided.

• Proposed Pooling Options: The cash bonus and royalty combinations being offered.

Read through all of this carefully. The legal description tells you exactly where your minerals are located. The proposed options tell you what you’ll receive if you don’t take action.

Your Options When You Receive a Pooling Order

Once a pooling order is issued, you typically have 20 days to make an election. Your options are:

Option 1: Elect a Cash Bonus + Royalty

This is what most mineral owners choose. You’ll receive a one-time cash payment (the “bonus”) plus an ongoing royalty on production. The pooling order will list several combinations—for example:

• $500/acre bonus + 1/8 (12.5%) royalty

• $300/acre bonus + 3/16 (18.75%) royalty

• $0 bonus + 1/4 (25%) royalty (sometimes called the “no cash” option)

Which should you choose? Generally, if you believe the well will be productive, a higher royalty (lower cash) is better long-term. If you’re uncertain about the well’s prospects or prefer cash now, take the higher bonus.

Option 2: Participate as a Working Interest Owner

You can elect to pay your proportionate share of drilling and completion costs in exchange for a larger share of production revenue.

Warning: This is almost never a good idea for individual mineral owners. Drilling costs can run $5-10 million or more for a horizontal well. If the well is a dud, you lose your entire investment. Leave this option to the professionals.

Option 3: Do Nothing (Not Recommended)

If you don’t respond within the deadline, you’ll be assigned the default election—usually the lowest royalty option (often 1/8). This is almost never in your best interest. Don’t ignore pooling paperwork.

Step-by-Step: What to Do

Step 1: Don’t Panic—A pooling order is routine. Thousands are issued in Oklahoma every year.

Step 2: Verify the Information—Check that your name is spelled correctly, your address is current, and the legal description matches property you believe you own. If something looks wrong, contact the operator or the OCC.

Step 3: Understand the Deadline—You typically have 20 days from the date of the order to make your election. Mark this on your calendar. Missing the deadline means you get the default (worst) option.

Step 4: Evaluate Your Options—Review the bonus/royalty combinations offered. Consider:

• How productive are nearby wells?

• Do you need cash now, or would you prefer higher long-term royalties?

• What’s the operator’s reputation?

Step 5: Make Your Election—Complete the election form included in your packet and return it by the deadline. Keep a copy for your records.

Step 6: Wait for Payment—After you make your election, the operator has 30-35 days to pay your cash bonus (if applicable). Royalty payments begin after the well is drilled and producing—this can take 6-12 months or longer.

Should I Attend the Hearing?

You can attend the OCC hearing listed in your notice, but it’s usually not necessary unless you want to contest the pooling. Most mineral owners simply make their election by mail and move on.

If you believe the bonus or royalty options offered are unfair, you can appear at the hearing and present evidence. However, the OCC generally approves pooling applications as long as the operator made a good-faith effort to negotiate and the terms reflect fair market value.

What If I’d Rather Just Sell?

Many mineral owners who receive pooling orders decide this is a good time to sell. Here’s why:

• Pooling paperwork is confusing and stressful

• You may not want to deal with tracking royalties, filing taxes, and managing an asset you never asked for

• A pending well can actually increase your mineral value—you may get a better offer than before

If you’d rather convert your minerals to cash and be done with it, Berlin Royalties can make you an offer. We buy minerals at all stages—before pooling, during pooling, and after wells are producing.

Common Questions About Pooling Orders

Can I negotiate better terms?

Once a pooling order is issued, the terms are set. Your negotiating window was before the operator filed the application. That said, you can still choose among the options provided.

What if I never received the notice?

If you didn’t receive notice but own minerals in a pooled unit, contact the OCC or the operator immediately. Your election rights may be preserved if you can show the notice wasn’t properly delivered.

Does the pooling order expire?

Yes. Most pooling orders require the operator to begin drilling within 6-12 months. If they don’t, the order expires and your minerals return to unleased status.

What happens after the well is drilled?

If the well is successful, you’ll receive royalty payments based on your elected royalty percentage. If it’s a dry hole, you keep your bonus (if you elected one) but won’t receive ongoing royalties.

The Bottom Line

A pooling order isn’t something to fear—it’s an opportunity to participate in oil and gas development on your minerals. The key is to respond by the deadline and choose the option that best fits your situation.

If you’d rather not deal with pooling at all, selling your minerals is always an option. Berlin Royalties is happy to explain your choices and make you a no-obligation offer.

Questions about a pooling order you received? Call us at 918-984-1645 or email stephen@berlinresources.com.