Hi All! I agree here (list in green!!!), you are very learned in what not to do! I am still working on it, my hubby has a mind of his own so my input to him is hardly noticed..., cost him though! Listen to this fellow/here! My old man did everything wrong, and we are paying. Still, why I am responding here, I let him go for it because I did learn that in N. Dakota, if one doesn't exercise his mineral right activity of sorts/can't remember exactly (I have a ton of research I hope to share here one of these days...), the rights can revert to the landowners after twenty years. So I figured it was better to just let him screw up than lose the rights altogether... anyone know more about this? later/Happy New Year, and may your Wells ALL be BARNBURNERS!
DG said:
Blanca Peak Energy LLC
Search on North Dakota Industrial Commission site: Not listed as an operating company. It has no history of drilling wells. Check for yourself:
Feedback: Based on personal experience, I would not lease to a company that I could not find information on, and I would not believe anything its agents told me without iron-clad verification. I would not enter a lease for such a small bonus when the going rate is now exceeding several thousand dollars per mineral acre; I would not enter a lease with an option to extend; I would not enter a lease that gave the lessee the right to assign or transfer rights/obligations (i.e., sell the lease) to another. I would not enter a lease with any company that I could not verify as being a bona fide operating company that was actually going to develop my minerals and had operating control of the spacing units where my minerals are located. Even then, however, I would not enter a lease with any company that would seek to create and/or place my minerals in an oversized spacing unit because that means that my interest would be unnecessarily diluted--and in that case, I would be better off as an unleased mineral owner. I would be patient and not jump on the first offers that are presented.
William Leverenz said:
I recently received an offer from Roxann Nolan, representing Blanca Peak Energy LLC, for $300/acre for 3 years + 3 year option and 1/5 Royalty in Stark County, Township 137N, Range 99W, Section 33 & Section 35. Does anybody have information/feedback regarding this offer? Great? Good? Bad? We have not received any offer at all in quite a while, so this seems pretty good. I cannot find any information on Blanca Peak Energy LLC, which makes me a little nervous. Thanks for any feedback.
What you need to know is the activities that will extend the protection of your minerals from a claim of abandonment. I think you can file a statement of claim, record mineral deeds, have a lien placed against your minerals by using them as collateral for a loan or sign a lease. All of these things and maybe others, show you are using your minerals. If you are leased, the clock shouldn’t start again till the lease runs out. If they drill and produce, the tract in that pool probably won’t be in danger of abandonment proceedings in your lifetime. You will still have to keep an eye on the other tracts. Hope this clears things up a bit for you.
kathy young said:
Hi All! I agree here (list in green!!!), you are very learned in what not to do! I am still working on it, my hubby has a mind of his own so my input to him is hardly noticed..., cost him though! Listen to this fellow/here! My old man did everything wrong, and we are paying. Still, why I am responding here, I let him go for it because I did learn that in N. Dakota, if one doesn't exercise his mineral right activity of sorts/can't remember exactly (I have a ton of research I hope to share here one of these days...), the rights can revert to the landowners after twenty years. So I figured it was better to just let him screw up than lose the rights altogether... anyone know more about this? later/Happy New Year, and may your Wells ALL be BARNBURNERS!
DG said:
Blanca Peak Energy LLC
Search on North Dakota Industrial Commission site: Not listed as an operating company. It has no history of drilling wells. Check for yourself:
Feedback: Based on personal experience, I would not lease to a company that I could not find information on, and I would not believe anything its agents told me without iron-clad verification. I would not enter a lease for such a small bonus when the going rate is now exceeding several thousand dollars per mineral acre; I would not enter a lease with an option to extend; I would not enter a lease that gave the lessee the right to assign or transfer rights/obligations (i.e., sell the lease) to another. I would not enter a lease with any company that I could not verify as being a bona fide operating company that was actually going to develop my minerals and had operating control of the spacing units where my minerals are located. Even then, however, I would not enter a lease with any company that would seek to create and/or place my minerals in an oversized spacing unit because that means that my interest would be unnecessarily diluted--and in that case, I would be better off as an unleased mineral owner. I would be patient and not jump on the first offers that are presented.
William Leverenz said:
I recently received an offer from Roxann Nolan, representing Blanca Peak Energy LLC, for $300/acre for 3 years + 3 year option and 1/5 Royalty in Stark County, Township 137N, Range 99W, Section 33 & Section 35. Does anybody have information/feedback regarding this offer? Great? Good? Bad? We have not received any offer at all in quite a while, so this seems pretty good. I cannot find any information on Blanca Peak Energy LLC, which makes me a little nervous. Thanks for any feedback.
Feedback: Based on personal experience, I would not lease to a company that I could not find information on, and I would not believe anything its agents told me without iron-clad verification. I would not enter a lease for such a small bonus when the going rate is now exceeding several thousand dollars per mineral acre; I would not enter a lease with an option to extend; I would not enter a lease that gave the lessee the right to assign or transfer rights/obligations (i.e., sell the lease) to another. I would not enter a lease with any company that I could not verify as being a bona fide operating company that was actually going to develop my minerals and had operating control of the spacing units where my minerals are located. Even then, however, I would not enter a lease with any company that would seek to create and/or place my minerals in an oversized spacing unit because that means that my interest would be unnecessarily diluted--and in that case, I would be better off as an unleased mineral owner. I would be patient and not jump on the first offers that are presented.
William Leverenz said:
I recently received an offer from Roxann Nolan, representing Blanca Peak Energy LLC, for $300/acre for 3 years + 3 year option and 1/5 Royalty in Stark County, Township 137N, Range 99W, Section 33 & Section 35. Does anybody have information/feedback regarding this offer? Great? Good? Bad? We have not received any offer at all in quite a while, so this seems pretty good. I cannot find any information on Blanca Peak Energy LLC, which makes me a little nervous. Thanks for any feedback.
What you need to know is the activities that will extend the protection of your minerals from a claim of abandonment. I think you can file a statement of claim, record mineral deeds, have a lien placed against your minerals by using them as collateral for a loan or sign a lease. All of these things and maybe others, show you are using your minerals. If you are leased, the clock shouldn't start again till the lease runs out. If they drill and produce, the tract in that pool probably won't be in danger of abandonment proceedings in your lifetime. You will still have to keep an eye on the other tracts. Hope this clears things up a bit for you.
kathy young said:
Hi All! I agree here (list in green!!!), you are very learned in what not to do! I am still working on it, my hubby has a mind of his own so my input to him is hardly noticed..., cost him though! Listen to this fellow/here! My old man did everything wrong, and we are paying. Still, why I am responding here, I let him go for it because I did learn that in N. Dakota, if one doesn't exercise his mineral right activity of sorts/can't remember exactly (I have a ton of research I hope to share here one of these days...), the rights can revert to the landowners after twenty years. So I figured it was better to just let him screw up than lose the rights altogether... anyone know more about this? later/Happy New Year, and may your Wells ALL be BARNBURNERS!
DG said:
Blanca Peak Energy LLC
Search on North Dakota Industrial Commission site: Not listed as an operating company. It has no history of drilling wells. Check for yourself:
Feedback: Based on personal experience, I would not lease to a company that I could not find information on, and I would not believe anything its agents told me without iron-clad verification. I would not enter a lease for such a small bonus when the going rate is now exceeding several thousand dollars per mineral acre; I would not enter a lease with an option to extend; I would not enter a lease that gave the lessee the right to assign or transfer rights/obligations (i.e., sell the lease) to another. I would not enter a lease with any company that I could not verify as being a bona fide operating company that was actually going to develop my minerals and had operating control of the spacing units where my minerals are located. Even then, however, I would not enter a lease with any company that would seek to create and/or place my minerals in an oversized spacing unit because that means that my interest would be unnecessarily diluted--and in that case, I would be better off as an unleased mineral owner. I would be patient and not jump on the first offers that are presented.
William Leverenz said:
I recently received an offer from Roxann Nolan, representing Blanca Peak Energy LLC, for $300/acre for 3 years + 3 year option and 1/5 Royalty in Stark County, Township 137N, Range 99W, Section 33 & Section 35. Does anybody have information/feedback regarding this offer? Great? Good? Bad? We have not received any offer at all in quite a while, so this seems pretty good. I cannot find any information on Blanca Peak Energy LLC, which makes me a little nervous. Thanks for any feedback.
Mr. Miller: Is Chesapeake Energy an operating company? Does it drill oil wells in North Dakota or is it a speculator? It isn't listed as an operating company on the NDIC site. Is this Chesapeake Energy Marketing, Inc.? The business search information states this company is located in Oklahoma. Is Chesapeake Energy registered to do business in ND? Who is its registered agent in ND? Tell us more about Chesapeake Energy. Why would it use a leasing agent that isn't registered to do business in ND?
Chesapeake Energy is indeed an operating company, underneath their operational arm, Chesapeake Operating, Inc., one of the largest operators in the lower 48 onshore.
Chesapeake is the 2nd largest producer of natural gas in the nation and is traded on the NYSE under the symbol CHK. It is currently the most active operator of new wells in the lower 48.
I am not aware of CHK operating as of yet in North Dakota, but they are well engineered and experienced in the other major natural gas shale plays and the unconventional liquids plays.
DG said:
Mr. Miller: Is Chesapeake Energy an operating company? Does it drill oil wells in North Dakota or is it a speculator? It isn't listed as an operating company on the NDIC site. Is this Chesapeake Energy Marketing, Inc.? The business search information states this company is located in Oklahoma. Is Chesapeake Energy registered to do business in ND? Who is its registered agent in ND? Tell us more about Chesapeake Energy. Why would it use a leasing agent that isn't registered to do business in ND?
Synopisis of article: A study conducted by the ND Geological Survey detected shallow gas in 52 of ND's 53 counties, however, the benefits of this study may not be seen for many years. This is due to lack of infrastructure to handle natural gas and depressed prices and glut of natural gas.
So. What are the practical ramifications and benefits vs. disavantages of leasing, at this time, to a producer of natural gas?
Buddy Cotten said:
...Chesapeake is the 2nd largest producer of natural gas in the nation....
Chesapeak is also somewhat famous for having negotiated oil and gas leases with Arlington Tx. mineral owners and then backing out of the deal after obtaining the signed lease agreements and never honoring the drafts. I believe there are; or were lawsuits over it in the last 4 or 5 years. Even dealing with some of the largest companies don’t count on a draft to be worth anything.
Actually as memory serves, the real problem was in the Haynesville shale in north Louisiana in the apocolypse that occurred in the second half of 2008, when product prices tumbled.
They retracted their leases and drafts issued at $20K per acre and in some cases, dropped the offer to $2500 per acre.
Any company that does not support the field landmen and cold drafts the landowner, is a company that I will never want to deal with in the future. If you want to take a check from them, by all means go ahead.
HOWEVER, if a company treats people that way prior to getting a lease, you must strongly consider how you will be treated post lease?
r w kennedy said:
Chesapeak is also somewhat famous for having negotiated oil and gas leases with Arlington Tx. mineral owners and then backing out of the deal after obtaining the signed lease agreements and never honoring the drafts. I believe there are; or were lawsuits over it in the last 4 or 5 years. Even dealing with some of the largest companies don't count on a draft to be worth anything.
I would doubt seriously that CHK is looking for shallow gas when there is unconventional liquids opportunities available at excellent current pricing. They are not idiots.
I was surprised at the current gas production for the month of November, in the entire state of ND, being about 11mmcfpd, as stated in your linked article. One of my clients had a well brought in last year that is twice that per day -- one well, not an entire state. Add another 20% to that figure for flared gas and there is just not that much natural gas being produced in ND.
DG said:
So. What are the practical ramifications and benefits vs. disavantages of leasing, at this time, to a producer of natural gas?
Thank you ;Buddy, for that information. I believe the problem was widespread. I think Chesapeake should never have agreed to oil and gas leases of 20,000 dollars an acre or more signing bonus. I’m sure you could think of more reasons why than I could.
Buddy Cotten said:
Actually as memory serves, the real problem was in the Haynesville shale in north Louisiana in the apocolypse that occurred in the second half of 2008, when product prices tumbled.
They retracted their leases and drafts issued at $20K per acre and in some cases, dropped the offer to $2500 per acre.
Any company that does not support the field landmen and cold drafts the landowner, is a company that I will never want to deal with in the future. If you want to take a check from them, by all means go ahead.
HOWEVER, if a company treats people that way prior to getting a lease, you must strongly consider how you will be treated post lease?
Chesapeak is also somewhat famous for having negotiated oil and gas leases with Arlington Tx. mineral owners and then backing out of the deal after obtaining the signed lease agreements and never honoring the drafts. I believe there are; or were lawsuits over it in the last 4 or 5 years. Even dealing with some of the largest companies don't count on a draft to be worth anything.
Sorry DG, I can’t answer those questions. I became aware of Blanca Peak while researching oil and gas leases at the local court house.
DG said:
Mr. Miller: Is Chesapeake Energy an operating company? Does it drill oil wells in North Dakota or is it a speculator? It isn't listed as an operating company on the NDIC site. Is this Chesapeake Energy Marketing, Inc.? The business search information states this company is located in Oklahoma. Is Chesapeake Energy registered to do business in ND? Who is its registered agent in ND? Tell us more about Chesapeake Energy. Why would it use a leasing agent that isn't registered to do business in ND?
I have half a section about half a mile southeast of Dickensen. I just got a letter offering me $1,000/acre for my mineral rights- so it sounds like things may be heating up there. This is not an oil lease- I negotiated that last year- this would be to buy the mineral rights themselves.
Mike Miller said:
Sorry DG, I can't answer those questions. I became aware of Blanca Peak while researching oil and gas leases at the local court house.
DG said:
Mr. Miller: Is Chesapeake Energy an operating company? Does it drill oil wells in North Dakota or is it a speculator? It isn't listed as an operating company on the NDIC site. Is this Chesapeake Energy Marketing, Inc.? The business search information states this company is located in Oklahoma. Is Chesapeake Energy registered to do business in ND? Who is its registered agent in ND? Tell us more about Chesapeake Energy. Why would it use a leasing agent that isn't registered to do business in ND?
Hi! If you can find info that they are reputable, it sounds like a going rate, 1/5th is better than 1/6, but I did hear an old pro mention it is better to go for more barrels, like 1/3 or 1/4th and perhaps less money up front for leasing rights that are in a good area. From what I know now, I’d always bargain, still, some of those guys are on set budgets if they are working for another larger company: I have legal information online that exhibit Empire is affiliated with Nisku, but can’t say how, and can’t find much about Nisku, someone said it is a Canadian company, which stands to reason because the Nisku play is in Canada, above ND somewhere… saw a map… We got a low ball offer, but if you are sitting on the real thing, you can ask whatever you want probably, it probably depends on what everyone else is getting from that company too. I see Northern may be a good company but have heard no negatives on it yet… YET, but whatever you do, STAY AWAY FROM HALLIBURTON as they have some real bad Karma coming their way… I am glad Empire is affiliated with Nisku however, as long as they are not affiliated with Halliburton I am happy! Still, from what I read, I’d be repenting if I were the owner of Empire, he could have some bad karma coming his way too… ultimately, ulp! I wish the best for them all, nevertheless, who are on the up and up, but Halliburton is a mess.
William Leverenz said:
I recently received an offer from Roxann Nolan, representing Blanca Peak Energy LLC, for $300/acre for 3 years + 3 year option and 1/5 Royalty in Stark County, Township 137N, Range 99W, Section 33 & Section 35. Does anybody have information/feedback regarding this offer? Great? Good? Bad? We have not received any offer at all in quite a while, so this seems pretty good. I cannot find any information on Blanca Peak Energy LLC, which makes me a little nervous. Thanks for any feedback.
wow Williston’s Empire Oil got the Airport’s (Dickinson’s Theodore Roosevelt Regional Airport) mineral rights lease!!! I bet they got more than we did…sigh…!
We have 5 leases with Blanca that supposedly was for a 90 day draft. When we got the lease it had 120 days on it. I’m considering fraud charges since the 90 day draft is a tool used for getting your minerals free for 4 months. But, 120 days is unheard of.
William Leverenz said:
I recently received an offer from Roxann Nolan, representing Blanca Peak Energy LLC, for $300/acre for 3 years + 3 year option and 1/5 Royalty in Stark County, Township 137N, Range 99W, Section 33 & Section 35. Does anybody have information/feedback regarding this offer? Great? Good? Bad? We have not received any offer at all in quite a while, so this seems pretty good. I cannot find any information on Blanca Peak Energy LLC, which makes me a little nervous. Thanks for any feedback.
