A pooling order in the oil and gas industry is a legal order that combines multiple mineral interests into a single drilling unit so oil or gas can be developed even when not all owners agree. For mineral owners, receiving a pooling order can be confusing, urgent, and financially significant.
This blog explains what a pooling order is, which states allow them, how mineral owners are notified, and exactly what steps to take if you receive one, including the timelines that matter most.
What Is a Pooling Order?
A pooling order is issued by a state oil and gas regulatory agency to legally combine, or “pool,” separate mineral interests within a defined drilling unit. The purpose is to allow efficient development of oil and gas resources while protecting the rights of mineral owners.
Pooling orders are typically used when:
An operator cannot lease all mineral owners voluntarily
A drilling unit requires multiple tracts to be developed together
State law prioritizes conservation and prevention of waste
There are two main types of pooling:
Voluntary pooling, where all owners agree through leases or contracts
Forced (statutory) pooling, where the state orders pooling when agreement cannot be reached
Most mineral owners encounter pooling through forced pooling orders, which are legally binding.
Which States Allow Pooling Orders?
Pooling orders are allowed only in states that have enacted oil and gas conservation laws authorizing them. Authority and procedures vary, but pooling is permitted in many producing states.
States that allow pooling orders include:
Alabama | North Dakota |
Arkansas | Ohio |
Colorado | Oklahoma |
Kansas | Pennsylvania |
Kentucky | South Dakota |
Louisiana | Tennessee |
Mississippi | Texas (limited authority under the Mineral Interest Pooling Act) |
Montana | Utah |
Nebraska | West Virginia |
New Mexico | Wyoming |
Some states generally require 100% voluntary agreement and do not allow forced pooling, including California, New York, Virginia, and Florida. Because pooling laws are state-specific, mineral owners should always review orders based on their state’s rules, not general assumptions.
How a Mineral Owner Is Notified of a Pooling Order
1. The Pooling Application Is Filed
The process begins when an operator files a pooling application with the state regulatory agency. The operator must identify all mineral owners in the proposed unit using county land records and title work.
2. Formal Legal Notice Is Sent
Mineral owners are notified using legally approved methods, which may include:
The notice typically includes:
The legal description of the drilling unit
Proposed lease or pooling terms
The date of the pooling hearing
Instructions for responding or objecting
Notices are sent to the address listed in county records, which may be outdated if ownership has changed or estates were never updated.
3. A Pooling Hearing Is Held
A hearing is conducted by the state agency. Mineral owners may attend or file objections, but attendance is not required. If approved, the agency issues a final pooling order after the hearing.
When the Pooling Order Is Issued
Once issued, the pooling order:
Legally pools all mineral interests in the unit
Lists the election options available to mineral owners
Starts the deadline for owners to respond
Mineral owners usually receive a copy of the pooling order or a notice explaining how to obtain it.
Timeline: How Long Does a Mineral Owner Have to Respond?
Most pooling orders require a response within 15 to 30 days from the date the order is issued.
Some common examples by state:
These deadlines are strict. Late responses are typically rejected, and the owner is assigned a default option.
Election Options
Pooling orders usually provide several election choices:
Lease Option - The mineral owner accepts a stated cash bonus per acre and a royalty rate, with no responsibility for drilling or operating costs.
Participation Option - The owner elects to participate as a working interest owner, paying their share of drilling and completion costs in exchange for a higher share of production revenue.
Non-Consent or Carried Option - The owner does not pay upfront costs, but the operator recovers costs plus a penalty from the owner’s share of production before payments begin.
If You Do Nothing - Failure to respond results in a default election, which is almost always the least favorable option, often the lowest royalty and no bonus.
What Mineral Owners Should Do Immediately
Identify the response deadline. Do not assume mailing delays or weekends extend it.
Verify your ownership details, including net mineral acres and the legal description. Errors are common and should be addressed quickly.
Compare the financial impact of each option, taking into account royalty rates, bonus amounts, drilling risk, and nearby production.
Respond exactly as required by the order, usually in writing and often by certified mail. Keep copies of everything.
For valuable or complex interests, consulting an oil and gas attorney, mineral manager, or experienced land professional can help avoid costly mistakes.
Receiving a pooling order means an important decision window has opened, and timely action is required. Understanding the pooling process, your options, and the deadlines involved gives you the best chance to protect your mineral interests and long-term value. If you would like help navigating pooling orders for your mineral assets, contact Peoples Company’s Energy Management team.
