I see by the NDIC site the Denbury was granted a permit to drill on May 24, 2012 on the following site, T 145, R 95 section 23. However, according to NDIC web site, searching for wells in that area it mentions the "Doe Well 34-23 NH " as being n the "confidential list". Does anyone know what this means? have they actually started to drill on Section 23 or did they ask for a permit & plan to drill within the 6 months period info. can remain confidential. Just curious as I own these mineral rights & they are currently leased to Denbury. I have a "top lease" with them on this same property that goes into effect the middle of Sept, & there is quite a difference in royalty % under my current lease with them & the "top lease" that goes into effect the middle of Sept. Anyone have any info?
Kay:
This is new application and the permit does not appear on the current GIS map. The Doe 34-23NH well is listed on the confidential well list and this means that when Denbury drills the well, it will be under "confidential" status which means a 6 month period after the drilling before information is disclosed about the drill. If you already leased to Denbury, this would be an extension and not a top lease on the current lease. If your current lease does not expire until the middle of Sept., there is a good chance that Denbury will drill prior to this lease expiration date as others in this spacing unit may also be expiring. I have had this same incident occur and they got a rig on site just before the lease expired. They are fully aware of the consequences if the lease expires and a new one takes effect.
Thanks for your reply. I was afraid of that happening & yes, if they get around to it before the middle of Sept., then it would be an extension of my current lease agreement with them.
charles s mallory said:
Kay:
This is new application and the permit does not appear on the current GIS map. The Doe 34-23NH well is listed on the confidential well list and this means that when Denbury drills the well, it will be under "confidential" status which means a 6 month period after the drilling before information is disclosed about the drill. If you already leased to Denbury, this would be an extension and not a top lease on the current lease. If your current lease does not expire until the middle of Sept., there is a good chance that Denbury will drill prior to this lease expiration date as others in this spacing unit may also be expiring. I have had this same incident occur and they got a rig on site just before the lease expired. They are fully aware of the consequences if the lease expires and a new one takes effect.
Kay:
As I said earlier, the very same thing happened to me but in the end, the rig arrived. These companies work these leases along with their rig schedules. You might get lucky and the rig schedule falls behind due to breakdowns, etc. but if not, the well will most likely be drilled prior to the expiration date. You might contact Denbury and find out when the rig is due on your acreage. I contacted my operator and they were very helpful in providing information on their drilling schedule.
Kay Maas said:
Thanks for your reply. I was afraid of that happening & yes, if they get around to it before the middle of Sept., then it would be an extension of my current lease agreement with them.
charles s mallory said:Kay:
This is new application and the permit does not appear on the current GIS map. The Doe 34-23NH well is listed on the confidential well list and this means that when Denbury drills the well, it will be under "confidential" status which means a 6 month period after the drilling before information is disclosed about the drill. If you already leased to Denbury, this would be an extension and not a top lease on the current lease. If your current lease does not expire until the middle of Sept., there is a good chance that Denbury will drill prior to this lease expiration date as others in this spacing unit may also be expiring. I have had this same incident occur and they got a rig on site just before the lease expired. They are fully aware of the consequences if the lease expires and a new one takes effect.
Anyone dealing KDM PetroManagement out of Bismarck ND which is the leasing agent for Denbury (the old Encore) should be very careful. I was threatened and lied to by the owner Kirk Martinez. He also made written promises to me that he later said he would not abide by. After they offered to lease my minerals I tried to negotiate a better deal since they didn't want to give me but $250 per acre bonus. I was lied to several times and threatened over and over so that I would go along with their offer. One individual working there made up stories to get me to agree with their offer stating they had to check into matters and that I might have my mineral interest taken away from me all in order to get me to go along with them and their offer. They pitted relatives that were mineral owners against each other by calling them back and forth and telling stories about what the other said in order to do get their way. They didn't pay on all mineral interest when they leased.