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Thursday, May 26, 2011

Unwilling landowners dislike forced pooling for gas and oil wells; some cite water-well pollution

Gas and oil drillers have long gained access to those minerals through a controversial legal process known as 'forced pooling' which "compels holdout landowners to join . . . agreements with their neighbors" if they own enough property, Marie C. Baca of ProPublica reports. While the specifics vary among states, the general consensus among the 39 states that have some type of forced pooling regulations is "drillers can extract minerals from a large area or 'pool' if leases have been negotiated for a certain percentage of that land." (ProPublica photo by Peter Mantitus)

"Landowners cannot legally opt out," Baca notes. Those who do not choose to contribute to the cost of the well and share in the profits may either receive profits minus a penalty or get a minimum royalty set by the state. Opinions of forced pooling vary among landowners. Supporters say it protects them from companies that drill near their property and "siphon off" oil or gas without payment, Baca reports. But state laws limit wells' distance from property lines, and Joseph Todd, right, a resident of Big Flats, N.Y., sees the other side of forced pooling. He found methane in his well water after forced pooling began near his home, and told Baca, "We never wanted to be a part of the drilling. To have something like this happen is beyond frustrating."

Gas companies argue that new horizontal drilling technology gives them access to more minerals with fewer wells, making for a tidier drilling parcel, Baca writes. "Drillers must notify all the landowners within the prospective drilling area of their right to participate in a hearing before the oil and gas board, or whatever regulatory agency the state has set up for that purpose," she writes. (Read more)

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