Merging 4 sections into 1 for a border well?

Hello all,

I found this case that concerns our mineral rights property but can not figure out really what this would mean for us.

North Dakota Industrial Commission Docket for Hearing

Wednesday, August 28, 2013 @ 9:00 a.m.

N.D. Oil & Gas Division 1000 East Calgary Avenue Bismarck, North Dakota

Case No. 20712: Proper spacing for the development of the Pleasant Hill-Bakken Pool, McKenzie County, ND, redefine the field limits, and enact such special field rules as may be necessary. Slawson Exploration Co., Inc.; Whiting Oil & Gas Corp.

Case No. 20713:Application of Whiting Oil and Gas Corp. for an order amending the applicable orders for the Pleasant Hill, Ellsworth, and/or Juniper-Bakken Pools to establish nine overlapping 2560-acre spacing units consisting of Sections 4, 5, 8 and 9; Sections 16, 17, 20 and 21; Sections 17, 18, 19 and 20; Sections 27, 28, 33 and 34; Sections 28, 29, 32 and 33; and Sections 29, 30, 31 and 32, T.149N., R.99W.; Sections 13, 14, 23 and 24, T.149N., R.100W.; Sections 18 and 19, T.149N., R.99W. and Sections 13 and 24, T.149N., R.100W.; Sections 30 and 31, T.149N., R.99W., and Sections 25 and 36, T.149N., R.100W., McKenzie County, ND, and authorize the drilling of one horizontal well on each such overlapping spacing unit at or near the common boundary between existing spacing units, and such other relief as is appropriate.

Any ideas? Our land is at T149N R 99W section 18 & 19

Do you think this case is regarding exisiting wells or a new well? If it is a new well would the proceeds be split by all partys in the four sections or would this mean a change to all existing wells not just the new border one?

Does anyone have experience with this sort of thing?

Britta I did not see case numbers for your spacing. I did happen to notice that you are getting 3 more wells, they are already spud. The 17-20 spacing next to you has 4 new wells drilling. I think you or I would probably need a lawyer to explain what happens now. I think producing wells in the 1280 would stay 1280 spaced. Wells producing after the 2560 spacing is granted would belong to / be diluted in the 2560 spacing, twice as many acres means half the royalty per acre, per well.

In your particular case though, the operator Whiting, seems to be drilling enough wells that dilution should not be as great an issue. I think you are in a win-win situation Brita if the new wells are all still on 1280 spacing you have three new wells, if you are all lumped together in the 2560, you will have the equivalent of 3- 1/2 wells. The only problem I ever had with the oversized spacings was when the operators drilled only a single or a pair of wells to hold them and didn't drill any more wells for years and years. Between you me and the fence post I have unflattering names for the operator who has my minerals HBP in 5 spacings with a single well per 1280 going on 6 years now.

Britta, I think you are in the enviable position that no matter which way it turns out, it will be fine. Congratulations on the new wells drilling.

Thanks RW,

Yes, we have been lucky with Whiting, now if only we owned more than the merest smidgen of the mineral rights we would be rich, ah well, we cant have everything i guess.

It is confusing this merging situation. I do wonder if we will have to sign new division orders or a new lease amendment maybe. I would be surprised if there was no paperwork involved in this.

The lawyers down there must be so happy with all of the lost clueless people that are looking for their guidance and services.

I found the cases pending by simply playing around with the map layers at there is an option to see cases docketed on the map. If you zoom in on the section number is will list all of the case numbers concerning that section.

Britta, I'm right there with you on the issue of owning more. The spacing I receive the most royalty from I only have 7.619 acres in. I have a friend who calls his sub acre parcel a blade of grass in the spacing. I have a 1.935 acre parcel in a spacing that doesn't pay a lot even though it has 4 wells on it but we just have to make the best of what we have.

I have recently received notice that QEP Energy is asking to unitize 2 sections in Mckenzie county- 149-95 and 150-95. They have sent me a very legal looking packet and asking me to approve it and send them back my notarized signature saying so by the end of October. I can't say I understand it. It seems to say they will be able to extract more oil by not having as many boundaries to deal with, and that each owner will have a percentage of the total unit. I hate to ask any lawyer because my royalties so far have not amounted to much. If the majority of owners are for this maybe it doesn't matter what my family and I choose. I am hoping to get some feedback as to whether it is a good idea to sign such an agreement.