In some jurisdictions (including Texas) an overriding royalty interest owners interest cannot be pooled without the overriding royalty owners consent. This form provides for the overriding royalty interest owner to ratify an existing pooling or unitization to allow the overriding royalty interest to participate in production
Arkansas Ratification and Consent to Pooling and/or Unitization by Overriding Royalty Interest Owner is a legal process in the state of Arkansas that allows an overriding royalty interest owner to give their approval and consent for pooling and unitization of oil and gas operations on their property. Pooling and unitization refer to the consolidation of multiple oil and gas leases or properties into a single unit for more efficient extraction and production. This process is commonly used when individual leases or properties do not have sufficient resources to be economically productive on their own. By ratifying and consenting to pooling and unitization, the overriding royalty interest owner agrees to combine their interests with those of other owners within the designated unit. In exchange, they receive a proportionate share of the production revenue based on their ownership percentage. There are several types of Arkansas Ratification and Consent to Pooling and/or Unitization by Overriding Royalty Interest Owner, including: 1. Voluntary Ratification: This occurs when an overriding royalty interest owner willingly agrees to pool and unitize their interests with others. It is usually done to maximize production and revenue potential. 2. Compulsory Ratification: In some cases, the Arkansas Oil and Gas Commission may require an overriding royalty interest owner to ratify and consent to pooling and unitization. This typically happens when the majority of the interest owners within a particular area have already agreed to pool and unitize. 3. Enhanced Recovery Ratification: This type of ratification is specific to cases where enhanced oil or gas recovery methods are utilized. Enhanced recovery techniques, such as water injection or gas injection, are employed to extract additional resources from depleted reservoirs. The overriding royalty interest owner may need to ratify and consent to the use of these techniques. It is important for overriding royalty interest owners to understand the implications of ratifying and consenting to pooling and unitization. While it allows for potential benefits, such as increased production and royalty income, it also involves sharing costs and responsibilities with other interest owners. Engaging a lawyer or legal advisor familiar with Arkansas oil and gas laws is highly recommended before signing any ratification document.
