Oil & gas discussion group for those interested in Roosevelt County, MT. Share your experience regarding lease bonus, royalty rates, drilling activity, and oil & gas news.
Group Members,
We can’t apologize enough, but the previous group has been inadvertently deleted by an intern who was helping add descriptions to various groups. The mistake does not align with the high quality that we are striving to deliver. We will continue to work hard to make this the best place to share and gain insight for everyone interested in mineral rights. We appreciate your understanding and ask that you help us kick off the Roosevelt County discussion.
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Reagan MRF Admin
Has anyone looked over the October hearing dockets for Roosevelt and Sheridan Counties. Lots of temp. spacing applications in these areas, makes one think that drilling in Montana are about to get very active. Maybe these expiring leases have attracted some attention.
Be SURE if you do leases to put in that a well must be SPUDDED by the end of the least,NOT just “commence” drillingl. Our well has a road, tanks and a derrick,but they cannot spud it by Oct 7th, the date the lease runs out because of a problem with the rig designated for it.,Soooo WE ARE negotiating a new lease,and of course at a good rate!!!
Dctex99:
I wish that I knew as much about leasing as I do now when I leased back in 2008 but at the time, my eyes were focused on the $$ bonus and really not on ever having a well on the site. My how things have changed. I’m hoping to get a chance to negotiate a new lease as it will have alot of changes. Thus far, our area (T30N;R59E;Sections 6&7) has not had any activity but the lease doesn’t expire until late 2012.
Dctex99:
Sounds like you’ve got a great deal as you will double dip. I think several of us mineral owners will get to negotiate new leases unless some serious drilling gets started quick. My question is that if the lease is expiring within days and the operator claims the well will be spudded on or before the expiration date, how can the mineral owner verify this without physically going to the lease location? I live in Texas and it’s a long way to travel to verify this but I suppose you could contact the Montana O&G and request a field inspection of the lease, if they do that.
Yes Charles, I think that would be the way,in our case I assumed it was drilling as the derrick has been up a few days and a lot of other equipment; but Brigham Land Division called last Saturday and told us right up front it would not be spudded!! Others in the group on that well had 4 year leases so have plenty of time, and others have just “commence drilling” in their well; so glad we paid Black Gold Consulting less than a $1000 to review and re-write our lease!!!
I have some mineral rights located in T30N;R59E which will be expiring early next year and was wondering if anyone knew the current bonus amounts for this area. I have other minerals in this area which will not expire until late next year but I was thinking if a new lease is negotiated or top leasing occurs, what the current bonuses would be.
I contacted Mr. Jim Halvorson (Montana Oil & Gas Commission) in regards to the drilling activity outlook for the Roosevelt/Sheridan County areas. He stated that the current rumor is that additional rigs should migrate into these areas over the winter months and hopefully more into 2012. Further, he stated that expiring leases were much concern to these operators thus promping this additional rig count to the areas. Please post any additional information if you have any.
RE: my post of October 3rd;Brightam land thought our well was NOT spudded, it was on August 31; the first thing they do on a pad…60’ culvert mounted verically and heavy duty pipe down the center…oile.jpg not sure if it is drilling YEt??
I have a feeling that alot of us are going to have a chance to re-write our leases if things don’t pick up very quickly. I don’t understand why the drilling has not picked up due to these expiring leases. On the upside, it will be great to get some higher bonus money and better % royalty than was negotiated in 2008.
I think it will remain business as usual except more wells might be drilled on these temp. spaced areas since Statoil brings more $$$ to the table.
im wondering whats going to be happening with the nelson 27-22 in roosevelt, with the acquisition/sale of brigham are temp spaced wells going to be put on the back burner because of the transition
Interesting article in the Sidney Herald today (11/1/11) regarding increased drilling in the Eastern Montana area. It appears things may be about to change for this area as additional rigs appear to be migrating to the area. Even with these additonal rigs, the drilling on numerous locations will most likely not begin prior to the expiration date. Most likely, top leasing will become very popular for this area in 2012.
New to this forum. Have minerals in 28N, 50E in Roosevelt purchased in 1997. Never have leased them and am just wanting to have any comments on what I have read about increased activity in Roosevelt County in 2012?
Any and all comments welcomed, thank you.
Richard:
I am not for sure how this work at the County Clerk’s office in regards to handling this matter by phone. I had a similiar situation back in 2003 in Roosevelt County and I live in East Texas. I ended up hiring an attorney in Culberson,MT to handle the legal matters. Everything was done promptly and the attorney fee was low. I feel you will be leased but make sure you do your homework and get good terms in the lease. Since your already in the oil and gas industry, you should be one step ahead. How many net mineral acres do you have in Roosevelt? This also has an impact at the negotiating table.
Mary:
You can always go to the Montana OIl and Gas website and look through the previous permits issued which are done on a weekly basis. Also, you can go to Eser.com and plug in your Township/Range/Section in Roosevelt County, then use your mouse move the map and stop on the yellow dots; the site will give the operator name, etc. I believe the yellow dots are permits, green dots are wells and red dots are plugged wells. Hope this helps.
I will call clerks office tomorrow. I purchased these minerals from my aunts estate and, have not updated my contact information with the clerks office which I will also do tomorrow. I live in AR and have been in the O&G industry for the last five years and ROW business since the early 80’s. Have had health issues this last year and have concentrated on getting well. Thank you for the reply to my post and I will be interested in leasing and watching progress of rigs in Roosevelt in 2012 as well as what is being paid for leases and % royalties.
Richard:
My first question is why your minerals have remained unleased? Have you checked the County Clerk’s office to make sure your contact information is correct? I have minerals in T30N;R59E and we have been leased since 2004. In response to your question about the activity forecast for Roosevelt County, I have also heard that 2012 should be an active year for this area as the majority of the rigs have been tied up in the ND area. There are numerous acres which are nearing expiration thus operators who hold these leases, face losing their holdings to top leases or must negotiate new leases at much higher bonuses and % royalties than occurred back in 2008. By all means, follow up on your minerals as I can’t believe that these landmen have overlooked your holdings.
Where can you find out what acreages Fort Worth Operating has permits on?