Application for Authorization of a Pooling Unit for Primary Production

PURPOSE: This rule sets forth the procedure for pooling mineral interests of separatelyowned tracts, portions of tracts, or interests within a single spacing unit for primary production, to allow for the development and operations of the spacing unit. (1) Before the commencement of drilling a well in a spacing unit, all owners, whether ownership is by deed or lease or farmout, shall enter into a contractual agreement whereby every owner pays his or her mutually agreed fair share of the drilling and operating costs and receives his or her fair share of the oil or gas or the profits produced therefrom. Contractual agreement is achieved by way of the pooling process pursuant to section 259.110, RSMo. The pooling process may be either voluntary or involuntary, as defined as follows: (A) A voluntary pooling occurs when all owners of mineral interests enter into a private contractual agreement willingly and of their own accord. Voluntary poolings are executed privately with no involvement by the council; and (B) An involuntary pooling occurs when one (1) or more owners of mineral interests are not able to enter into a private contractual agreement willingly and of their own accord, and the council, upon application by any interested owner and after notice and hearing, issues a pooling order that serves as the binding contractual agreement. AUTHORITY: sections 259.110 and 259.120, RSMo 2000.* Original rule filed Sept. 12, 1973, effective Sept. 22, 1973. Amended: Filed Sept. 15, 2015, effective March 30, 2016. *Original authority: 259.110, RSMo 1965 and 259.120, RSMo 1965, amended 1972.