Idaho Pooling Now Law

by Elizabeth Alford on March 30, 2016

Idaho has become the latest state to allow oil and gas producers to drill against the will of mineral owners with forced pooling.

Related: Texas Supreme Court Sides with Mineral Owners

Last week, Idaho Governor Butch Otter signed Senate Bill 1339, making it easier to force mineral-right holders into a pool with other owners. Pooling is the controversial process where operators deal with a collection of mineral owners of a specific deposit of resources instead of one-by-one. With pooling in place, the operator only needs an agreement of 55% of the owners for them to force all to comply.

“If an owner objects to any participation or involvement of any kind in the unit, such owner may elect to be an objector. An objecting owner’s interest will be deemed leased under the terms and conditions in the integration order. The owner shall receive one-eighth (1/8) royalty.”

The bill has received heavy opposition from concerned citizens, especially those around Payette County, where most of Idaho’s new drilling has taken place. They claim the bill takes away their ability to negotiate with oil and gas companies because of a shortened window of time to provide written comments on drilling applications.

Own minerals in Idaho? Join the discussion with our forums!

Idaho has long been a state that honors the rights of the individual and critics warn of allowing lawmakers to silence the voices of the people who put them in office.

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