Hettinger County Leases?

Are there any leases being done in Hettinger county other than the public land auctions at this point?

Yes - in the six townships in the northwest corner of the county: Rifle, Clark, Kunze, New England, Havelock and Black Butte at the present time.

Do you know which landmen are working the New England area now?

Sullivan still had some folks in the area - I've heard that all of the other contracted landmen have been pulled. There may be some independents operating in the area.

Thanks for the info. We are currently working with Sullivan.

Jim Gion said:

Sullivan still had some folks in the area - I've heard that all of the other contracted landmen have been pulled. There may be some independents operating in the area.

You're absolutely right, Jim. I heard from our landman a few days ago and Chesapeake is not doing any more leases in Hettinger County right now. He's working for them in Kansas now.

You know any landmen still working Hettinger County?

Thanks, Ron

Jim Gion said:

Sullivan still had some folks in the area - I've heard that all of the other contracted landmen have been pulled. There may be some independents operating in the area.

Ron:

Things have slowed to a standstill - I am trying to determine if anyone else is active, but that is a difficult chore. Lots of negativism toward Chesapeake and Sullivan right now - the pendulum is swinging the other way. As I tell folks, remember that if the wells that are permitted are drilled and completed successfully, there will be another 'oil rush' in the county. There is also the realism that there are only so many drilling rigs available - we've been hearing that Chesapeake has four rigs, and 380,000 acres on which to drill - even if they can drill and move within 30 days, it would take 6 years to drill that acreage with four rigs.

Jim

Ronald M Gall said:

You're absolutely right, Jim. I heard from our landman a few days ago and Chesapeake is not doing any more leases in Hettinger County right now. He's working for them in Kansas now.

You know any landmen still working Hettinger County?

Thanks, Ron

Jim Gion said:

Sullivan still had some folks in the area - I've heard that all of the other contracted landmen have been pulled. There may be some independents operating in the area.

Yup, Chesapeake has a pretty bad reputation. We were negotiating a lease with Sullivan but didn't get our proposed lease changes to them until a few weeks ago. I'd sure like to get an offer from a different company, but looks like it might be awhile before there's more activity in Hettinger County. I agree that there probably will be another rush in the county and it may be some time before that happens.

Jim Gion said:

Ron:

Things have slowed to a standstill - I am trying to determine if anyone else is active, but that is a difficult chore. Lots of negativism toward Chesapeake and Sullivan right now - the pendulum is swinging the other way. As I tell folks, remember that if the wells that are permitted are drilled and completed successfully, there will be another 'oil rush' in the county. There is also the realism that there are only so many drilling rigs available - we've been hearing that Chesapeake has four rigs, and 380,000 acres on which to drill - even if they can drill and move within 30 days, it would take 6 years to drill that acreage with four rigs.

Jim

Ronald M Gall said:

You're absolutely right, Jim. I heard from our landman a few days ago and Chesapeake is not doing any more leases in Hettinger County right now. He's working for them in Kansas now.

You know any landmen still working Hettinger County?

Thanks, Ron

Jim Gion said:

Sullivan still had some folks in the area - I've heard that all of the other contracted landmen have been pulled. There may be some independents operating in the area.

I glanced through the past year for Hettinger County in NDRIN and found around 15 companies leasing.

The majority by a landslide are companies that are all sidekicks of Chesapeake, and many others that did their assignment of leases to Chesapeake. I will first list the companies that I'm not aware of any Chesapeake involvement, then I will list the companies that are. The list may help those unleased to possibly find a Lessee.

CA Crouch-Dickinson ND, Eagle Oil & Gas-Dallas TX, Empire Oil-Minot ND, Geronimo Holding-Midland TX, Marathon Oil-Houston TX. These are listed in the order of most to least amount of leases, not for sure on last 2 listed.

Sullivan Land Resources, Crystal Lake Resources, Blanca Peak Energy, Chesapeake Exploration, Bull&Bear Resources, Black Bear Resources, Great Northern Energy, Border Resources, Arapahoe Resources, KDM Petromanagement, Hallador Energy, Irish Oil - To find locations you can google if wanted.

Ron:

CA Crouch was working for Chesapeake - turned into a mess because of IDEA Energy and ROMAC. I have dealt with Eagle Oil and with Great Northern Energy. Great Northern Energy may have contracted with Chesapeake, but GNE is an independently owned company operating out of Bismarck, ND - they've been around for 30+ years. Both of those outfits have, to the best of my knowledge, honored every lease they entered into. I was led to believe that Bull & Bear was an independent operating out of Dickinson - again possibly contracted to Chesapeake.

Jim

When I ran the assignment of leases of each of them companies, it showed they had assigned them to Chesapeake, but nothing showed up on CA Crouch, for assignment of leases.

CA Crouch, really got a LOT of leases signed. Most of the companies listed that assigned for Chesapeake, are Independents from ND companies that have done well, and honored the leases. The first 4 listed, had a specific lease form for Chesapeake, and it was horrible in so many ways. I think Chesapeake needed these independents to get the leases signed the other 4 couldn't get.

It will be interesting to see what cover-name that Chesapeake uses to purchase their next Auction parcels. First they used Clear Creek Resources, then Classic Petroleum Inc.

Jim Gion said:

Ron:

CA Crouch was working for Chesapeake - turned into a mess because of IDEA Energy and ROMAC. I have dealt with Eagle Oil and with Great Northern Energy. Great Northern Energy may have contracted with Chesapeake, but GNE is an independently owned company operating out of Bismarck, ND - they've been around for 30+ years. Both of those outfits have, to the best of my knowledge, honored every lease they entered into. I was led to believe that Bull & Bear was an independent operating out of Dickinson - again possibly contracted to Chesapeake.

Jim

I currently own mineral rights in castle Rock and Kern do you think any one will be leasing in that area in the near future ?

Mr. Walker:

Right now leasing in Hettinger County is almost in reverse - leases that haven't been paid are being turned back to the mineral owners. Depending on how the 2-3 wells planned for Hettinger County develop, I would not expect there to be a lot of leasing for the next year or so. But, one must remember we are dealing with a volatile industry, where things can change overnight.

Jim

Darrell D Walker said:

I currently own mineral rights in castle Rock and Kern do you think any one will be leasing in that area in the near future ?

thank you i guess we will wait and see.please keep me informed of future developements.

Jim Gion said:

Mr. Walker:

Right now leasing in Hettinger County is almost in reverse - leases that haven't been paid are being turned back to the mineral owners. Depending on how the 2-3 wells planned for Hettinger County develop, I would not expect there to be a lot of leasing for the next year or so. But, one must remember we are dealing with a volatile industry, where things can change overnight.

Jim

Darrell D Walker said:

I currently own mineral rights in castle Rock and Kern do you think any one will be leasing in that area in the near future ?

Ron,

You mention that Chesapeake had moved to Kansas. Can you find out where?

Why you ask? I experienced the Chesapeake Shell game in Michigan in summer 2010 and they cancelled 1000+ leases. I see they have done the same thing in Hettinger County, ND and I am suspicious they are now trying same in Kansas. So I am trying to investigate activity in KS.

Why investigating? I am collecting evidence that Chesapeake is on a nationwide campaign to lock up mineral rights, dump leases they don't want, bundle large holdings and sell to JV and move on. So if you can help me with what you can find out about where the landman is in KS that would be helpful.

Thanks,

Wilson


Ronald M Gall said:

You're absolutely right, Jim. I heard from our landman a few days ago and Chesapeake is not doing any more leases in Hettinger County right now. He's working for them in Kansas now.

You know any landmen still working Hettinger County?

Thanks, Ron

Jim Gion said:

Sullivan still had some folks in the area - I've heard that all of the other contracted landmen have been pulled. There may be some independents operating in the area.

Although I know this article is posted on this website, I didn't notice it on this particular thread. Here is the best article to date that showcases what Chesapeake did in MI using deception, manipulation and fraud. The matter is now being sorted out in many courtrooms in Michigan. This Reuters article is the most comprehensive investigation and report yet and its trail ends in Hettinger!

http://www.reuters.com/article/2011/12/28/us-energy-giant-idUSTRE7BR0G420111228

Wilson

Snues,

Have you heard of Bent Tree Properties or Bayside Energy?

Bayside Energy has leased (anonymously) about 80,000 acres in MI state auction; but for who? I have also traced Bayside to ND.

Bent Tree Properties I have discovered is behind Bayside; but who behind them? I have traced Bent Tree to KS where they are involved with a lawsuit against a landowner - why? no payment.

I am trying to find out who is behind these 2 companies.

Wilson


Snues said:

I glanced through the past year for Hettinger County in NDRIN and found around 15 companies leasing.

The majority by a landslide are companies that are all sidekicks of Chesapeake, and many others that did their assignment of leases to Chesapeake. I will first list the companies that I'm not aware of any Chesapeake involvement, then I will list the companies that are. The list may help those unleased to possibly find a Lessee.

CA Crouch-Dickinson ND, Eagle Oil & Gas-Dallas TX, Empire Oil-Minot ND, Geronimo Holding-Midland TX, Marathon Oil-Houston TX. These are listed in the order of most to least amount of leases, not for sure on last 2 listed.

Sullivan Land Resources, Crystal Lake Resources, Blanca Peak Energy, Chesapeake Exploration, Bull&Bear Resources, Black Bear Resources, Great Northern Energy, Border Resources, Arapahoe Resources, KDM Petromanagement, Hallador Energy, Irish Oil - To find locations you can google if wanted.

Wilson,

No, I did not see those two companies listed among the documents I saw in Hettinger County.

On Tuesday, Feb 7th, it's the next ND State auction. It will be interesting to see who bids the parcels available, for the counties that Chesapeake has targeted. They've used a shell name in the previous auctions, but if they're pulling out of leasing the remaining acres they initiated with MO's, I just wonder if they want anymore State acres at a high price.

I saw on another site, that CHK has 320,000 acres leased in ND; and only 2 operational rigs at this time. Doing the math of one well a month each, 5 year lease terms, they'd need 8+ rigs to drill out that amount of acres.

Good luck with your research.

Susan

In todays Dickinson Newspaper. Chesapeake moving out.

http://www.thedickinsonpress.com/event/article/id/55176/

In today's Bismarck paper -

http://bismarcktribune.com/news/state-and-regional/chesapeake-analyzing-well-results-at-far-edge-of-bakken/article_4f78bc4a-4e00-11e1-9e68-001871e3ce6c.html