New to the group, have a question

North Dakota Mineral Rights Divide County, ND
#1

Me and my wife have Mineral rights from her side of the family (Adams). Several Still live in Divide County. Can anyone clarify how to determine where the lots and area designations are based on the description. I have been looking at the Oil and Gas Commission map. It does not seem to show lots or area designations. Here are the two areas we have leased:

Township 164 North, Range 100 West

Section 28 Lots 2,3,4

Section 29 Lots 1,2,3,4

Section 30 Lots 1,2,3,4

Section 31 Lots 1,2,3,4 E1/2,E1/2W1/2

Section 32 All

Section 33 NW1/4

Township 163 North, Range 100 West

Section 5 Lots 1,2,3,4 S2N2,SW4

Section 6 Lots 1,2 S2,NE4

I have seen on the map that there is confidential well dated 3/29/12 in Section 33 in the Southwest corner. Seeing the NW1/4 area designation, is that well not in our leased area?

Thanks for any information.

Don Anglin

#2

Mr. Anglin, I think the location of the lots matter less than the designated spacing 640, 1280, 1920 and 2560 acres more or less concerning horizontal wells. As I understand it lots were added to some sections as corrections forced by the curvature of the earth. The GIS map on the NDIC O&G site can tell you which sections are spaced together using the drilling/spacing filter on the right side of the map page. Once at the NDIC site select GIS map server, at the bottom then select find section, input the coordinates twp range and section, select drilling / spacing from the right side of the page and click zoom to section. The spacings will have a slightly more noticable border. Lines between sections in the same spacing will not change if you unselect drilling /spacing and apply. Switching back and forth should make it easy to recognize. Another handy feature is the miles filter under the map, selecting this and inputting 10 or more miles will give you a broader view, you may have to click zoom to section to apply this filter. The lots may become significant when you talk about verticle wells as the pool / spacing could be much smaller possibly 40 to 160 acres and only those contributing acres to the pool will receive proceeds from a verticle well. I hope this helps.

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#3

Thanks for the Information!!

r w kennedy said:

Mr. Anglin, I think the location of the lots matter less than the designated spacing 640, 1280, 1920 and 2560 acres more or less concerning horizontal wells. As I understand it lots were added to some sections as corrections forced by the curvature of the earth. The GIS map on the NDIC O&G site can tell you which sections are spaced together using the drilling/spacing filter on the right side of the map page. Once at the NDIC site select GIS map server, at the bottom then select find section, input the coordinates twp range and section, select drilling / spacing from the right side of the page and click zoom to section. The spacings will have a slightly more noticable border. Lines between sections in the same spacing will not change if you unselect drilling /spacing and apply. Switching back and forth should make it easy to recognize. Another handy feature is the miles filter under the map, selecting this and inputting 10 or more miles will give you a broader view, you may have to click zoom to section to apply this filter. The lots may become significant when you talk about verticle wells as the pool / spacing could be much smaller possibly 40 to 160 acres and only those contributing acres to the pool will receive proceeds from a verticle well. I hope this helps.

#4

I checked into the spacing. The well in section 33 is in a 1600 acre spacing which also includes section 28. Does this mean, that we are eligible for royalties from this well?

#5

Mr Anglin, from what I am seeing on the map it shows you spaced 33 with 28, but the permit is for 33 with 34, this well isn't drilled yet or the NDIC is behind on posting the date it comes off confidential. I think it likely that 28/27 will get lumped with your spacing so nobody gets left out and no spacings get orphaned, thus a 1600 acre spacing. The rig icon currently in section 33 is actually offsite drilling for sections 32 and 31according to the permit so it's your well. When the other is drilled it will be your well also. Congratulations, it's nice to know you are getting a well no matter which way it goes. It's good that you are in the short sections also so you don't have to worry about dilution of your interest in an overlarge spacing, at least no more than the rest of us do!

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#6

Thanks for the information!! This sounds very promising. 2 dumb questions... Why are'nt leases drafted in spacing instead of sections, lots, etc? What is offsite drilling?
r w kennedy said:

Mr Anglin, from what I am seeing on the map it shows you spaced 33 with 28, but the permit is for 33 with 34, this well isn't drilled yet or the NDIC is behind on posting the date it comes off confidential. I think it likely that 28/27 will get lumped with your spacing so nobody gets left out and no spacings get orphaned, thus a 1600 acre spacing. The rig icon currently in section 33 is actually offsite drilling for sections 32 and 31according to the permit so it's your well. When the other is drilled it will be your well also. Congratulations, it's nice to know you are getting a well no matter which way it goes. It's good that you are in the short sections also so you don't have to worry about dilution of your interest in an overlarge spacing, at least no more than the rest of us do!

#7

Mr. Anglin, it's a good idea in ND to lease each spacing seperately and it can be done. The lessee wants to group the acres together in case they can hold some acres by production that they are not producing. It saves the cost of leasing them again as long as a well or wells still produce, even if it's only a few barrels a month. Spacings also can change, overlap even. We will see overlapping spacings in the future because there will be untapped or inadequately tapped oil along the section lines.

Donald Anglin said:

Thanks for the information!! This sounds very promising. A dumb question... Why are'nt leases drafted in spacing instead of sections, lots, etc?

r w kennedy said:

Mr Anglin, from what I am seeing on the map it shows you spaced 33 with 28, but the permit is for 33 with 34, this well isn't drilled yet or the NDIC is behind on posting the date it comes off confidential. I think it likely that 28/27 will get lumped with your spacing so nobody gets left out and no spacings get orphaned, thus a 1600 acre spacing. The rig icon currently in section 33 is actually offsite drilling for sections 32 and 31according to the permit so it's your well. When the other is drilled it will be your well also. Congratulations, it's nice to know you are getting a well no matter which way it goes. It's good that you are in the short sections also so you don't have to worry about dilution of your interest in an overlarge spacing, at least no more than the rest of us do!

#8

Thanks again r w, you have been very helpful.

#9

One more question... How long will it be before we can expect to hear something on any royalties if they are profitable?

#10

Mr. Anglin, that is the question. It depends on how quickly they frack the well, which can be done quickly or like one of mine took 8 months before the operator did it, I received a royalty check 120 days after first sales of oil. I would say the average from drilling the well to royalty check in ND is probably 1 year as long as there are no title defects.

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#11