Showing posts from May, 2013

Integration (Force Pooling) in Arkansas: What Happens to Unleased Mineral Interests?

If you've ever received notice from the Arkansas Oil and Gas Commission that your mineral interest was subject to an integration application, you may have wondered what "integration" actually is.  Most states refer to it integration as "force pooling" or "compulsory pooling" of non-consenting mineral interests.  In essence, after notice and a hearing, the Arkansas Oil and Gas Commission will enter an integration order that pools all of the unleased mineral interests with the consenting mineral owners located in a particular drilling unit.  The pooled owners share in the unit's production, pro rata, based on their ownership percentages, and other factors.

Once an unleased mineral interest becomes subject to an integration order, the mineral owner has the opportunity to elect from four distinct consideration options.  First, the mineral owner can execute a lease at terms satisfactory between the mineral owner and the chosen lessee.  Second, the mine…