Reaffirmation of Oil and Gas Lease dated 1964 Ward County, ND. My mother received a letter from Enduro Operating LLC of a well that has been producing for over 50 years. My grandparents executed the lease in June, 1964. It seems to run forever as long as the well is in production. Now she is being asked to accept $50 an acre (8.775 is her portion). All other terms of the lease to stay the same. It allows for 1/8 payment. I think she should re-negotiate the royalty payments to be in line with what is being offered in Ward Co. Also, I think she should limit the lease terms and not "forever". What are her options? I am new to this and trying to help as she is 92 years old and doesn't understand any of this! The location of the well is Township 155 North Range 85 West (South Lone Tree Field). Section 30: Lots 1 & 2. Thank you.
You should read carefully the term of the 1964 lease. Generally leases continue as long as there is continuous production. If the well ceased producing in recent months then the minerals are open for lease. Alternative, it is possible that your grandparents executed a lease with a 50 year term (or other specific number of years) and so the lease has expired. In that case, the minerals are open to lease.
You should definitely renegotiate the lease terms to current standards. Hopefully mineral owners familiar with this area can give you some guidance. If you live in ND, you can go to the county records and find some recorded leases to see examples of newer forms. Good luck!
Thanks for your answer. The lease states as long as the well is in production the lease is in force. I'm not sure how to renegotiate the terms from 50 years ago! I'd like to know what the going rates are for a per acre amount and the current royalty amounts for this area in Ward County. I live in Miami, Florida and I don't see a trip to ND anytime in my near future! Although if I must go I will.
Hi Glenda,
From the North Dakota website, the well located in that Township/Range/Section is called the Felt A well. It's file number is #4978 and it produced 119 barrels of oil in October of 2014 so it is still an active well. The terms of the lease are applicable for the life of the well, which is commonly called "Held by production". I have never heard of someone being able to limit a lease once the land is producing oil which this one is. Who has been receiving the royalty payments for the last 50 years, and did this just recently transfer into the ownership of your mother? Regardless, I would talk with an oil and gas attorney who may be able to point you in the right direction as to what your options are. Someone should be receiving royalty payments on this well and if it was recently transferred to your mother, they may be trying to clean up some paperwork.