Transcript Forced Pooling by Gas & Oil Board

Forced Pooling by Gas & Oil Board
Forced Pooling – Election Options for Gas Owners
– Participating Operator’s proportionate cost hereunder shall be
obtained by multiplying the Participating Operators’ “Percent
of Unit” times the estimated Completed-for-Production Cost
set forth (in an Authorization For Expenditure before the
Board).
80 Acre Unit Example
20 Acres
25%
20 Acres
25%
6.67Acres
8.33%
6.67Acres
8.33%
13.33 Acres
16.67%
Total Well Costs= $450,000
My family owns 13.33 acres in an 80 Acre Unit.
What is my family’s investment share if we make
an election to be a participating operator?
Step 1:
13.33 / 80.00 acres = 16.67%
Step 2:
6.67Acres
8.33%
6.67Acres
8.33%
$450,000 X 16.67% = $ 75,015
The Process and Distribution of Payments
from VGOB Escrow.
80 Acre Unit Example
20 Acres
25%
20 Acres
25%
My family owns 13.33 escrowed acres. The
acreage is equally divided among 4 heirs.
What is my and my sister’s share of the
disbursement?
Question 1: First Steps:
6.67Acres
6.67 Acres
8.33%
8.33%
6.67Acres
8.33%
6.67Acres
8.33%
6.67Acres
8.33%
13.33 Acres
16.67%
VGOB Disbursement Approval, Order Preparation
and Recordation
Question 2: UNIT amount in Escrow = $10,000
Question 3: Acres escrowed = 13.33 + 6.67 = 20.00
Calculations:
(1) 13.33 acres / 20.00 acres escrowed= 66.65% of
escrow amount.
(2) $10,000 x 0.6665 = $6,665 to be disbursed
(3) 13.33 acres equally divided between 4 heirs
(4) $6,665 / 4 heirs = $1,666
The Process and Distribution of Payments from
VGOB Escrow.
ESCROWED FUNDS - DISBURSEMENT TIMELINE
1
Parties are escrowed within VGOB Order by Unit Operator
Unknowns or Unlocatable
Conflicting Ownership Claims
2
Conflicting Claim remedies
Court Action or Judgment regarding Ownership
Settlement or "Split Agreement"
3
Gas Operator requests disbursement from Board
Upon receipt of an affidavit from conflicting claims, unit operator must file for disbursement w/in 30 days.
4
With Board Approval, tax forms are received from all parties and an Order is prepared.
5
Disbursement Order Recorded at County Courthouse
6
Disbursement Order receives final review by Division after recordation.
7
Disbursement Order to Escrow Agent
8
Best Case - Days
Within 10 Days of receipt - Escrow Agent makes disbursement
0
Expected Case - Days
30
50
65
75
80
90
60
80
95 105 110 120