ODNR Change to Forced Pooling Unitization in 2018 Reduces Royalties

In May MDN brought you the news that Ohio mineral rights owner Gateway Royalty was sounding the alarm over a new bill quickly advancing in the Ohio legislature. House Bill (HB) 152 would use forced pooling if 65% of a proposed unit’s landowners are leased (too low a bar) and also would force the landowner to accept a 12.5% royalty and force them to accept post-production deductions with royalties in some cases potentially going down to nothing (see Ohio HB 152 Forced Pooling Bill Disadvantages Unleased Landowners). As part of their effort to either defeat or significantly change HB 152, Gateway has been researching unitization (aka force pooling) in the state and discovered a disturbing change introduced in existing unitization beginning in 2018.

---

To view this content, log into your member account. (Not a member? Join Today!)