Press Alt+1 for screen-reader mode, Alt+0 to cancelAccessibility Screen-Reader Guide, Feedback, and Issue Reporting | New window
(817) 778-9532

Pooling vs Unitization

Understanding how mineral tracts are combined for development.

Get Your Free Mineral Valuation

Combining Mineral Interests for Development

Oil and gas reservoirs don't follow property lines. To efficiently develop these resources—and to prevent waste from uncoordinated drilling—mineral interests are often combined through pooling or unitization.

These terms are sometimes used interchangeably, but they refer to different concepts with different implications for mineral owners.

What Is Pooling?

Pooling Definition: The combining of multiple mineral tracts into a single drilling unit for purposes of drilling one well or a group of wells targeting the same formation.

Key Characteristics:

Creates a defined drilling unit (e.g., 640 acres)

Required to comply with state well spacing rules

Applies to a specific well or wells

Owners share based on net mineral acres in the unit

Can be voluntary or compulsory (force pooling)

What Is Unitization?

Unitization Definition: The combining of multiple leases and mineral tracts across an entire reservoir or field for coordinated development and operations, typically for enhanced recovery.

Key Characteristics:

Covers an entire reservoir or field

Used for waterfloods, gas injection, or other enhanced recovery

Combines multiple existing leases

Participation based on reserves, acreage, or formula

Often requires high percentage of owner consent

Pooling vs Unitization Comparison

Factor Pooling Unitization
Scope Single drilling unit Entire reservoir/field
Purpose Well spacing compliance Coordinated field development
Size Typically 40-1,280 acres Hundreds to thousands of acres
Allocation Net mineral acres Participation factor (various methods)
Common Use Primary recovery drilling Enhanced/secondary recovery

Force Pooling (Compulsory Pooling)

Many states allow operators to force pool mineral owners who won't voluntarily lease or join a drilling unit. This prevents individual owners from blocking development.

How Force Pooling Works

Operator applies to state regulatory agency

Notice is provided to affected mineral owners

Hearing is held if there are objections

If approved, non-consenting owners are included in the unit

Force pooled owners still receive their share of production, though terms may differ from those who leased voluntarily.

What This Means for You

Your interest may be diluted: In a larger unit, your percentage is smaller

But you share in more production: Larger units often mean more wells

You can't prevent pooling: Most states have force pooling laws

Lease terms matter: Pooling clauses in your lease affect how you're included

You can still sell: Pooled or unitized minerals can be sold

Questions About Your Pooled Minerals?

Get a free valuation to understand your options.

Request Your Free Valuation

Frequently Asked Questions

Pooling combines multiple mineral tracts into a single drilling unit for one well or a group of wells targeting the same formation. It's typically done to comply with state spacing regulations. Mineral owners share proportionally in production based on their net mineral acres in the pooled unit.

Unitization combines multiple leases and tracts across an entire reservoir or field for coordinated development. It's typically used for enhanced recovery operations or when a reservoir spans many properties. Owners share based on their participation factor in the unit, which may consider reserves, acreage, or other factors.

Pooling combines tracts for a single well or drilling unit, while unitization combines entire leases and properties across a reservoir for field-wide operations. Pooling is smaller in scope and typically occurs at the well level; unitization is larger and typically reservoir-wide.

In many states, yes. Force pooling (compulsory pooling) allows operators to include your minerals in a drilling unit even without your consent, though you're entitled to receive your share of production. Compulsory unitization also exists in some states for enhanced recovery projects.

In a pooled unit, you receive royalties based on your proportional interest: your net mineral acres divided by total unit acres, multiplied by your royalty rate. If you own 40 NMA in a 640-acre unit with a 1/4 royalty, you receive 40/640 × 0.25 = 1.5625% of production.

Disclaimer: This information is for educational purposes only and should not be considered legal advice. Consult with qualified professionals for specific questions about pooling and unitization.

Ready to Sell?

Get a fair offer from a direct buyer with 18+ years of experience.

Get Started