Greetings. My three sisters and I were recently deeded the mineral rights to 80 acres S20 T152N R104W. The lease expires in 2014. I believe a well was drilled on the property; at any rate my mother periodically received a small check ($50-$300) for a couple of years up until sometime last year. Now I'm trying to figure out where we stand. Questions I have:
As new owners can we renegotiate the lease now, or do we have to wait until expiration?
If a well was drilled, are we stuck with the current lessee forever?
How can I find out if a well was drilled and its current status?
With four owners of the rights is it best to hold the rights individually or as a legal group?
Can anyone point us to a reputable O&G attorney?
Thanks for any guidance. I've enjoyed reading the group discussions.
Welcome to the group. First off you are going to answer alot of your questions, because you are the only one with the lease, at least I hope you have it. If you don't have the lease you will have to get it and read it. Your old well was plugged and abandoned in Oct 2009. A change in ownership of the minerals will not change the lease. The property itself is burdened with the lease just as it would be with a mortgage. You can keep an eye on activity in your spacing with the GIS server map found on the NDIC Oil and Gas Division website, it's a good thing to learn to use. I looked up your spacing and you don't have an active well currently, although you do have permits for 2 wells in section 29, one of which, if they ever drill them, will have the wellbore enter your section 20. This would be your well. I wouldn't hold my breath as those permits, good for 1 year, regularly expire with no drilling and the operator simply gets a new permit, I think the permit costs $100. Brigham was the operator. I think it's great you are asking questions ahead of time. It's so much better to know beforehand than to have to hit the ground running. As for a good oil and gas lawyer, I'd say get a recommendation from the state bar assoc. I haven't been terribly pleased with my lawyer, of course he was my third choice. My first and second choices were too busy to handle my affairs, I'd recommend them, but I think the situation probably hasn't changed for the better. For my family members, each having the final say over their property works best. I have heard of many people dissatisfied with family trusts. You don't need to pool your interests to stand together for negotiating. Everyone has a different threshold of price and sensitivity to risk. I would say that if you tie four people together at least one is going to be less than happy. I hope I have provided some useful information. I look forward to more questions because I learn more, with every question I consider. Welcome again.
Dear RW,
You were right on about the well in section 29. Its status now is "producing well completed" as of yesterday's Daily Activity Report of ND O&G Division. With such a small interest we aren't expecting much in royalties but it has been fun to follow from permit to producing.
Thank you for all your generous advice and information shared with the group.
S Mattson
r w kennedy said:
Welcome to the group. First off you are going to answer alot of your questions, because you are the only one with the lease, at least I hope you have it. If you don't have the lease you will have to get it and read it. Your old well was plugged and abandoned in Oct 2009. A change in ownership of the minerals will not change the lease. The property itself is burdened with the lease just as it would be with a mortgage. You can keep an eye on activity in your spacing with the GIS server map found on the NDIC Oil and Gas Division website, it's a good thing to learn to use. I looked up your spacing and you don't have an active well currently, although you do have permits for 2 wells in section 29, one of which, if they ever drill them, will have the wellbore enter your section 20. This would be your well. I wouldn't hold my breath as those permits, good for 1 year, regularly expire with no drilling and the operator simply gets a new permit, I think the permit costs $100. Brigham was the operator. I think it's great you are asking questions ahead of time. It's so much better to know beforehand than to have to hit the ground running. As for a good oil and gas lawyer, I'd say get a recommendation from the state bar assoc. I haven't been terribly pleased with my lawyer, of course he was my third choice. My first and second choices were too busy to handle my affairs, I'd recommend them, but I think the situation probably hasn't changed for the better. For my family members, each having the final say over their property works best. I have heard of many people dissatisfied with family trusts. You don't need to pool your interests to stand together for negotiating. Everyone has a different threshold of price and sensitivity to risk. I would say that if you tie four people together at least one is going to be less than happy. I hope I have provided some useful information. I look forward to more questions because I learn more, with every question I consider. Welcome again.