I have not seen this before?

in the everton portsmouth game the defender and the forward were fighting for the but but neither player came away from that spot so the ref got the ball put each one of them on each side and dropped the ball so they can fight for it. kind of like a hockey puck or a jumpoff (basketball) what is that rule called

how come is not used much because i have seen many occasions where it might be needed

A Drop-ball.

I hate this rule so much, the other day i was playing and my friend was taken out in the area, the ball roled through to me and i would have scored, but the ref gave a drop-ball. No advantage, no penalty, a drop ball.

Drop ball.

Its not used that much because most of the time the ref gives a freekick to a team, for whatever reason, but when something very unordinary happens and he doesn't know what to do, he gives a drop ball.

Sometimes the teams know whos ball it should rightfully be, so when the ref drops it, one man backs away and gives the team the other ball.

This situation happens when there's a off the ball incident. Like a player getting injured and lying on the field and the referee needs to stop the game for the player to be treated. It's called drop ball. Where there's no foul committed but the referee has to stop the game anyway. It could also happen if there was a outside interference like a fan running onto the pitch. Or if a dangerous object is thrown onto the field. Players safety is more important. But most times, they player will return back the ball to the team who had the initial possession.
There is another unusual situation. When a player kicks the ball out of touch on purpose. This happens when he sees someone injured and needs treatment. The opposing team gets the free throw but will throw back the ball to his oppenent as a gesture of goodwill........ But of course some teams will refuse to return the ball back. Of course it's not ethical but it's not wrong either........

It is pretty much where the ref cannot decide who the freekick is in favour of but he knows that a freekick should be awarded