Legal Definitions - pooling

Definition: Pooling is the process of bringing together small pieces of land or mineral interests to drill an oil or gas well. This is usually done to meet regulations for well-spacing. There are three types of pooling: voluntary, compulsory, and forced.

• Voluntary pooling: This is when the owners of mineral interests agree to pool their resources to drill a well. For example, if two neighboring landowners each own a small fraction of mineral rights over a producing reservoir, they may agree to pool their interests to drill a well together.
• Compulsory pooling: This is when a regulatory agency orders the pooling of mineral interests. For example, if a company wants to drill a well but cannot obtain enough land or mineral rights to meet well-spacing regulations, they may petition a regulatory agency to order compulsory pooling.
• Forced pooling: This is another term for compulsory pooling.

These examples illustrate how pooling can help companies and landowners work together to extract oil and gas resources more efficiently. By pooling their resources, they can meet regulatory requirements and increase their chances of success in drilling a well.