Neighboring well and payments

When you find out ANOTHER company is using their pad and will be including your sections in their wells, who pays you?

We found out the neighbors (different townships/range/section AND field) have a well with a pad located in their section 13 that was run under the section line and is a 4 section well heading south into two sections we have interest in.

Since the neighbor’s lease is with Kraken and our is with Chord/Oasis, how do the companies work out the payments, etc.? So far Kraken has sent out forms for taxes (1099 forms) and nothing else and of course with mail issues, we didn’t get ours yet, but some of the siblings did.

I have the “directional” information and know the above information is correct, however, the well in question is on CONFIDENTIAL status yet (I have the well file which warns it is confidential) therefore I hesitate to give the legal locations because of that.

I hope you can clarify these questions. Thanks so much!

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The operator will usually pay the royalties. It is quite common to have many working interest owners in a well who all lease independently, but only one operator. In some cases, the operator may have other working interest owners who take their share of the products “in kind” and sell them independently under their own contracts and will pay separately. I have wells that have two payments from two companies and they add up to the total amount required.

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We own mineral rights in 159n 103w sections 11 and 12 leased to both Koda and Phoenix and as yet have not received any updates since signing up last year. Total acreage 451. We are curious what might be in the works currently. Thank you

I don’t see anything on the map server. Your best bet is to check the ND Oil and gas daily activity reports or hearing dockets. FYI you may want to start you own topic. I think you replied to my post. I think you would find your topic goes to everyone then instead of people just following mine. Not sure exactly how it works though.

Phoenix has five permits for Quarne 2-11-14-23 1HF, 2HF, 3HF, 4 HS & 5HF as of 1/12/26 and a Salt water disposal well. No rig on location at this time.

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Thank you

The Quarne wells (Phoenix) are scheduled to be drilled in November. The pads and roads are built.

Koda has a single well permit that includes your land in section 12. They are planning to drill a pad just north of Grenora in 36–they plan to hold (HBP) the four section unit (1/12/13/24) with a single lateral. They will use that same pad to run another lateral an hold the 4 section unit just to the East as well. But I haven’t seen when this might happen.

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I own 131 mineral acres in section 11 as you may already know. Other family members also own rights in the same section under Koda. Curious if you have any further updates on their timeline. So far I believe from your earlier post that there are roads in and pads down currently and that drilling may start November 2026. We also have the whole family leased in section 12 to Koda. Any updates you may have would be greatly appreciated. Thank you

I think you maybe mixed two different units mentioned from my previous post. The (Phoenix) wells to the west of you are scheduled for late fall–in section 2 and traveling south through sections11/14/23.

Koda has one permit that includes your land for a pad just north of town in T160/R103/S36. That lateral will travel south through 1/12/13/24. I don’t have info on progress or schedule with that pad and wells.

Koda has a different business model compared to Phoenix. Koda tends to move slower and might drill one well in a unit, holding that acreage sometimes for months or years before drilling another well in the unit. Phoenix carries more debt, so they need to develop the unit faster. For example, the Phoenix unit to the west of you will have 5 wells drilled this year.

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