What I have learned, in hindsight, is that once you have accepted an offer and received payment. you are on the hook. You will not be told ANYTHING. If you want to know, you have to dig it out yourself. No one has your best interest in mind. I just started clicking on this and clicking on that. I started researching the dockets. I read everyone starting January 2008. I was clueless. I bought a copy of the McKenzie County Atlas. That helped me understand Sections and Ranges and Townships.
It gave me a visual and helped me understand the information available in the well files. I did subscribe to extra information via a Premium offering. It helps if you are ânosyâ. Iâve been nosy for 85 years. So I have it down pat.
I donât have enough info on your 190 acres, Ron ForemanâŚbut a recent deal in Dec 2014 a group with 18,500 net acres of multi-payzone lands â they got $7,500 an acre, about two-thirds was equity in the acquiring company, the rest cash, lots of operated net minerals in Eddy/Lea NM. Heyco being acquired by Matador.
The highest Iâve seen in a really sweet spot of ND with all the zones present, during the height of oil prices ($115/bbl in 2013), was $22,000 an acre, that was a 6,000 net acre transaction, leased minerals with no operations.
I remember a 2013 sale of a large operated position in ND at $43,000/ac, highest Iâve seen. Cannot remember details but itâs online somewhere.
For anyone interested in going to the NARO (National Assoc of Royalty Owners) Convention this year, for the N.D. Chapter, it will be in Minot on June 25 & 26. They should have some informative speakers to help us get through the owning of mineral rights and understanding how to do it with less pitfalls. For more info go to NARO 's website.
Has anyone run into Gerrity Bakken LLC? It just filed a quiet title action against about 40 owners and operators in MCKenzie County. Any information would be appreciated. JSM
RW, They still need to press getting that flaring reduced. The LA to Europe nonstop flights often go right over western North Dakota after dusk (yeah, I know the planes use a lot of fuel too) and it is so bright it looks like a major city down there. What a mess. Besides, I want to get paid for that gas.
Ed, my sources tell me that the cost of completing a well has dropped drastically, possibly by 1/3. I already knew that operators were overspending to bring the wells in hastily but evidently it was even more than I thought. Idling frack crews seems to have had a beneficial effect bringing costs in line with reality again. We also should remember that even without the new wells completed, ND production is still rising.
Iâm also relatively certain that the state will find a way to allow operators to extend that one year time limit as it is a regulation and not a law. The state has proven willing to bend over backwards to help the operators in the past. The state would have never imposed such draconian penalties for excessive flaring except the environmentalists were up in arms and the scorn was going to be heaped equally on the state as well as the oil companies because it was the states job to regulate it. The politicians couldnât let that happen. If anything could cripple the O&G industry in ND, making the operators plug and abandon what were probably going to be viable wells and probably losing some leases in the process, would be it. I donât think that will happen.
Mr. Kennedy: Thanks for the detailed explanation. I did not disagree with your initial comment, but rather lamented the fact that what you were saying is true. The oil companies likely drafted the legislation and handed it to one of their âemployees in all but nameâ legislators to enact. -JSM
Mr. Murray, they still have a year from first sales to get it hooked to a gas gathering line before there could be a penalty. Then there is the way the regulation is written. Many wells will not be economic to hook to a gathering line after 1 year⌠because the âflushâ production of gas is already gone, flared and the operator will be allowed to not hook that well to a gathering line. The regulation also states that if the well is not eligible for the waiver or variance, whatever it is called, the wells production will be limited to 100 bbl per day. There are quite a few wells that wonât produce 100 barrels a day after the first year and curtailing one that produces little more than 100 bbl per day to 100 isnât that big a hardship to not have to pay for the gathering line.
I did state that the state bends over backwards to accommodate the industry any way it can. The state did the absolute minimum to keep from getting a media black eye. The regulation was deliberately written, in my opinion, to be as ineffective as possible, affect as few wells as possible and I doubt enforcement of production is very strictly enforced. I have heard of only two instances where overproduction in ND has led to a fine. I also doubt the fines are significant, even if they imposed rigorously.
Iâd like to see everyone get paid for their gas too.
Bart, finally home from Ireland. The newspaper I get weekly is the Bakken Breakout Weekly. I believe you can see it online at bakkenbreakout.com/email Failing that, call (701)223-2500. Didnât check, but you might be able to subscribe at www.bismarktribune.com Thereâs no subscription information in the paper, but I believe the annual cost is something like $36.
I was referred to the following firm to probate 3 estates with O&G interests in McKenzie County, ND. I primarily worked with the paralegal, Julie, who was responsive and efficient, and I felt the charges were fair. Attorney was:
Hi, North Dakota. Conoco Phillips has just found our very tiny interest in 151 North, 97 West, Sections 15 & 22, and has sent us an offer to participate or lease or be pooled in the 12 wells that have been drilled there. We are leaning toward the non-consent/pooling option. But we also have to do probate on our dadâs will with North Dakota. We are from Oklahoma and his will was probated there. Could anyone recommend an attorney who could help us with our probate issue?
Hello: I am strongly considering selling a non op working interest in 6-152N-98W. Statoil operated, ~0.0044 WI, 7 completions, another drilling. Statoil seems to be holding these back currently. Any ideas on market value would be greatly appreciated. Thanks.
Dawn, would need more info to answer what I think youâre asking: whether they are offering you a fair deal (the going rates). Also my access to NDRIN just lapsed over the holidays. If youâd like to post the letter here, I can try to help make sense of it.
You should be able to get the statement of claim form from the County website. If you canât find it, I have a copy. You will need the exact description of the acreage. Costs just a few dollars. Has to be done every 20 years or so.
We have received a letter from a landman telling us that we possibly have unclaimed mineral rights from a great uncle. My uncle lived right over the border into MT at Fairview, MT at one time and later into ND. When he passed away his probate was done in ND. They missed 14 acres of mineral rights in MT. He didnât have any children, so he willed everything to his nieces and nephewsâŚour parents. Of course our parents are all passed on now, so my question is what would be the simplest way to claim the mineral rights. Thanks to any advice out there.