Offer to join Communization Agreement

North Dakota Mineral Rights Divide County, ND
1

Hello!

I have a lease with Prima Exploration Inc, (originally signed 06-14-2012 by my late Mother with Plains Marketing) and am currently receiving royalties on the Amundsen Well. Township 160 North, Range 100 West, 5th PM Section 22: NWNE, E2NW, E2SW

Divide County, ND

I have received a letter inviting me to join a Communized Account with BLM for spacing reasons regarding the Smokey Butte-Bakken well.

The letter says I have 10 days to sign, and that if the signed documents are not received within 10 days, they will automatically add me to the CA.

Am I obligated to join the CA?

Am I giving up ownership of the mineral rights by doing so?

Is there any benefit of joining the CA?

I am just beginning to learn about these mineral interests that were left by my Mother. I have no idea what effect joining a CA will have.

Thank you for any insight you can offer!

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2

If you Google “What does a communitized account with the BLM mean in North Dakota spacing?” it gives a pretty good basic explanation. It is basically combining your acreage with federal acreage to create a larger spacing unit for drilling. You do not give up your mineral acreage. It probably gives a better chance for drilling and more royalties for you if the new well is productive.

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3

Thank you for your reply!

So does the decimal interest change on the division order for the well that is already leased, or just any newly drilled wells?

4

The already drilled well will probably stay the same, but the new ones will have a different spacing and lateral length, so will be different.

5

Thank you so much for your help, it is much appreciated! :slightly_smiling_face:

6

We received the same document. Thanks so much for your input!!

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