We have leased mineral rights in Richland County, Montana, 26N 56E sections 6&7 with Osage/Heritage. Phoenix now wants to drill on that same location. We would appreciate any clarification as to how that would affect our lease and what we can expect to happen. We also have rights for 26N 55E section 12 that is not leased, but Phoenix has requested a permit to drill. Does anyone have a lease in that section? Any insight into what is going on in these areas would be greatly appreciated!
It is fine if you have a lease with one company and another company wants to drill. The companies often take working interest portions with one another depending upon who has rigs available. The operator must abide by the terms of all of the leases. A well may have many working interest partners and many more mineral interest owners who may end up being royalty owners. Just sit back and wait to see what happens.
Heritage currently has a permit for the State 18-7-6-31BH.
I have a lease with Phoenix in Richland County, Sct. 26N/57E/10 S2S2, Sct. 26N/57E/15. I have 1/4 interest in each. How do I find out if they have applied for a drilling permit on these lots?
You may not see Phoenix drilling as your operator as other operators are also in the area. It is common that there are several working interest partners in a well. Krakken is the other leasing group in those sections. Most of the leases have a five year primary term and expire in 2029, so lots of time left to drill.
Of the 20 active permits in Richland right now, Continental has four, Heritage has four and Krakken has 12. Continental has suspended new drilling until the economics get better, but are still continuing regular operations. No current permits in your township right now, but plenty of time for later.