O'Neill v. American Quasar Petroleum Co. : developing law on Oklahoma compulsory pooling

Journal Article · Thu Jan 01 04:00:00 EST 1981 · Public Land Resour. Law Dig.; (United States)

OSTI ID:5534030

Cooke, M D; Woods, N L

A recent Oklahoma Supreme Court decision warrants the attention of both the oil industry and mineral interest owners within the State. The court's holding in O'Neill v. American Quasar Petroleum Co. that the Corporation Commission lacks the power to adjudicate the rights of overriding royalty owners in forced pooling actions spotlights tactics by which mineral interest owners and oil and gas lessees may avoid an undesired forced pooling attempt and possibly increase the value of their interests. Although the capability for employing such tactics, arguably, always has existed, the court's resolution of the issues in O'Neill confirms their lawfulness. Any significant increase in the use of these tactics may generate enough attention to motivate the legislature to reexamine closely Oklahoma's forced pooling law. In the decision, the court has clearly demonstrated that under the present statute a mineral interest owner or one who owns a leasehold in a drilling and spacing unit could shield his interest from compulsory pooling proceedings or, at least, gain greater economic benefits from his interest.

• OSTI ID: 5534030
• Journal Information: Public Land Resour. Law Dig.; (United States), Journal Name: Public Land Resour. Law Dig.; (United States) Vol. 18:2; ISSN PRLDD
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
021000 -- Petroleum-- Legislation & Regulations
29 ENERGY PLANNING, POLICY, AND ECONOMY
290400* -- Energy Planning & Policy-- Energy Resources
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