What status do unleased mineral owners have in Ohio when they enter a mandatory pool?

In Ohio, when unleased mineral owners enter a mandatory pool, they are treated as royalty owners. This means they are entitled to receive a share of the production revenues generated from the oil or gas extracted from the pooled unit, but they do not hold a lease agreement that grants them the same rights and obligations as leaseholders.

Mandatory pooling is designed to protect the interests of mineral owners who have not leased their rights while allowing for efficient extraction and development of resources. By classifying unleased mineral owners as royalty owners, the law recognizes their entitlement to benefit from the extracted minerals even if they have not entered into an agreement that explicitly states the terms of their participation. This helps ensure that they are compensated fairly for their share of the resources, despite their lack of a traditional lease.

In contrast, other classifications such as equity owners or leaseholders imply different roles and responsibilities which do not accurately reflect the status of unleased mineral owners in a mandatory pool context.