How are oil royalty pooling percentages determined?

Oil royalty pooling percentages are typically determined through agreements between the parties involved, such as landowners, oil companies, and other stakeholders. Factors influencing these percentages include the size of the land area being pooled, the estimated production potential, and the specific terms of the lease agreements. Additionally, state regulations and market conditions can play a role in establishing fair compensation for all parties. Ultimately, negotiations and contractual terms dictate the final pooling percentages.