Ark. Court Affirms 'Reasonableness' Standard for Forced Pooling Compensation

LITTLE ROCK, Ark. - The Court of Appeals of Arkansas has affirmed an administrative order setting compensation to private property owners compelled to participate in a pooled natural-gas drilling operation, concluding that it met a "reasonableness" standard despite being less than the highest compensation paid to other landowners. Walls, et al. v. Arkansas Oil & Gas Commission, et al., No. CA 11-620 (Ark. Ct. App.).

The court said in its Feb. 1 opinion that if the legislature wanted to define "reasonable consideration" as the highest and best price paid to others it would have said so.

Zelda Walls and Richard …