I plan on not leasing some minerals in North Dakota. So the forced pooled option is the way I will go. How soon in the process should I start forming an LLC? Also do I need insurance of any kind? Any other procedures to follow?
Kevin
I would say it would be smart to set up an LLC for the acres in each spacing. The LLC has to own the acres, not lease, or it would be subject to the larger penalty for lessees that don't participate. If you think you need insurance, I would get it if you don't find it prohibitively expensive. Someone once suggested that I wouldn't know where to get insurance, the same company that insured my house and car also insures wells. The main proceedure that has worked best for me so far is don't sign anything the operator might send you.
Ok thanks again! I will talk to my insurance agent.